Finance Act 1947

PART IIIIncome Tax.

Charge of tax, etc..

14Income Tax for 1947-48.

(1)Income tax for the year 1947-48 shall be charged at the standard rate of nine shillings in the pound, and, in the case of an individual whose total income exceeds two thousand pounds, at such higher rates in respect of the excess over two thousand pounds as Parliament may hereafter determine.

(2)Subject to the provisions of section thirty of the Finance Act, 1946, and of any Act of the present Session relating to transport or electricity, all such enactments as had effect with respect to income tax charged for the year 1946-47, other than enactments which by their terms relate only to tax for that year, shall have effect with respect to the income tax charged for the year 1947-48.

15Alteration of certain reliefs.

(1)Subsection (1) of section fifteen of the Finance Act, 1925 (which, as amended by subsequent enactments, provides for a deduction of tax on an amount equal to one-eighth of the amount of earned income, but not exceeding one hundred and fifty pounds) and subsection (2) of the said section fifteen (which, as amended by subsequent enactments, provides, in a case where an individual or his wife has attained the age of sixty-five years and his total income does not exceed five hundred pounds, for a deduction of tax on an amount equal to one-eighth of his income) shall have effect as if the words " one-sixth " were substituted for the words " one-eighth " and the words " two hundred and fifty pounds " were substituted for the words " one hundred and fifty pounds. "

(2)Section eighteen of the Finance Act, 1920 (which, as amended by subsequent enactments, provides, amongst other things, that the deduction of tax allowable in the case of married persons shall in certain cases be increased by an amount not exceeding seven-eighths of the earned income of the claimant's wife) shall have effect as if the words " five-sixths " were substituted for the words " seven-eighths. "

(3)Section twenty-one of the Finance Act, 1920 (which, as amended by subsequent enactments, provides for a deduction of tax on fifty pounds in respect of each child with an income of fifty pounds or less) shall have effect as if the words " sixty pounds" were substituted for the words " fifty pounds " in subsections (1) and (3) thereof.

(4)Subsection (1) of section sixteen of the Finance Act, 1943 (which provides, amongst other things, that the deduction of tax allowable in certain cases in respect of a relative of the claimant or his or her wife or husband who is maintained by the claimant is limited to cases where the total income of the person maintained does not exceed eighty pounds a year and that the allowance is reduced if the total income of that person exceeds thirty pounds a year) shall have effect as if the words "one hundred and twenty pounds " were substituted for the words " eighty pounds " and the words " seventy pounds" were substituted for the words " thirty pounds. "

(5)The additional reliefs afforded by this section for the year 1947-48 shall not be deemed to have affected the amount of tax deductible or repayable before the seventh day of July, nineteen hundred and forty-seven.

16Repayment of post-war credits.

Section twenty-six of the Finance Act, 1946 (which provides for the repayment of post-war credits in certain cases to elderly persons) shall apply to post-war credits for the year 1944-45, or the year 1945-46, as it applies to post-war credits for previous years, and accordingly,—

(a)in subsection (3) of the said section, for the words " for the year 1941-42, the year 1942-43 or the year 1943-44 " there shall be substituted the words " for any year of assessment " ; and

(b)in subsection (9) of the said section, for the words " shall be deemed to have had effect as from the first day of June, nineteen hundred and forty-six " there shall be substituted the words " shall, as respects credits for the year 1941-42, the year 1942-43 or the year 1943-44 be deemed to have had effect as from the first day of June, nineteen hundred and forty-six. "

17Continuance of allowance for repairs.

(1)Section twenty-eight of the [13 & 14 Geo. 5. c. 14.] Finance Act, 1923 (which relates to the allowance for repairs and which was continued in force by section twenty-seven of the Finance Act, 1942, until the fifth day of April, nineteen hundred and forty-seven) shall continue in force until Parliament otherwise determines.

(2)This section shall be deemed to have had effect as from the sixth day of April, nineteen hundred and forty-seven.

18Relief from balancing charges for certain cotton spinning concerns.

(1)Where—

(a)at any time after the third day of December, nineteen hundred and forty-six, arrangements are made for the unification or grouping of two or more cotton spinning concerns ; and

(b)the Board of Trade certify that the arrangements were made for the purpose of providing a concern or group of concerns such as to satisfy the conditions requisite for the making of a re-equipment grant to concerns in the cotton industry; and

(c)before the sixth day of April, nineteen hundred and fifty, and, for the purpose either of carrying out the arrangements or of effecting a reorganisation rendered possible by the arrangements, one cotton spinner affected by the arrangements sells machinery or plant to another cotton spinner affected by the arrangements or to a company affected thereby which exists wholly or mainly for the purpose of co-ordinating the administration of two or more companies each of which is under its control and each of which is a cotton spinner; and

(d)a balancing charge falls to be made in respect of the machinery or plant by reason of the sale,

the rate of tax charged in the assessment by means of which the balancing charge is made shall be one half the standard rate of tax in force for the year.

(2)In this section—

• " cotton spinner " means a person carrying on a trade which consists of or includes the spinning of cotton or of staple rayon fibre not exceeding three inches in length and " cotton spinning concern " shall be similarly construed ;

• " re-equipment grant " means a grant out of moneys provided by Parliament towards the cost of re-equipping or modernising cotton spinning mills as respects the machinery or plant thereof ; and

• " sale " and " sell " have the same meanings as in the [8 & 9 Geo. 6. c. 32.] Income Tax Act, 1945, and include in particular any transfer which under subsection (1) of section sixty of that Act is to be treated as a sale, and references to the time of any sale shall be construed in accordance with the provisions of subsection (3) of section sixty-eight of that Act.

Retirement and other benefits for directors and employees.

19Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.

(1)Subject to the exemptions and provisions contained in the next succeeding section, where pursuant to a scheme for the provision of future retirement or other benefits for persons consisting of or including directors or employees of a body corporate (in this and the next four succeeding sections referred to as a " retirement benefits scheme ") the body corporate in any year of assessment pays a sum with a view to the provision of any such benefits for any director or employee thereof, then (whether or not the accrual of the benefits is dependent on any contingency)—

(a)the sum paid, if not otherwise chargeable to income tax as income of the director or employee, shall be deemed for all the purposes of the Income Tax Acts to be income , of that director or employee for that year of assessment and assessable to income tax under Schedule E ; and

(b)where the payment is made under such an insurance or contract as is mentioned in section thirty-two of the [8 & 9 Geo. 5. c. 40.] Income Tax Act, 1918 (which relates to relief for life insurance premiums, etc), relief, if not otherwise allowable, shall be given to him under that section in respect of the payment to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him.

(2)Subject to the exemptions and provisions contained in the next succeeding section, where—

(a)an agreement is in force between a body corporate and a director or employee thereof for the provision for him of any future retirement or other benefits afforded by a retirement benefits scheme, or a person is serving as a director or employee of a body corporate in connection wherewith there is a retirement benefits scheme relating to persons of the class within which he falls under which any such benefits will be provided for him ; and

(b)the body corporate does not, or does not fully, secure the provision of the benefits by the payment of such sums as are mentioned in the preceding subsection ; and

(c)the circumstances in which the benefits are to accrue are not such as will render the benefits assessable to income tax under Schedule E as emoluments of his office as a director or of his employment,

then (whether or not the accrual of the benefits is dependent on any contingency), in each year of assessment in which the agreement is in force or the director or employee is serving as aforesaid, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, a sum equal to the annual sum which the body corporate would have had to pay in that year under a contract with a third person which secured the provision by that third person of those benefits or, as the case may be, of those benefits so far as not already secured by the payment of such sums as are mentioned in the preceding subsection, shall be deemed for all the purposes of the Income Tax Acts to be income of the director or employee for that year and assessable to income tax under Schedule E.

(3)Where the body corporate pays any sum as mentioned in subsection (1) of this section in relation to several directors or employees, the sum so paid shall, for the purpose of that subsection, be apportioned among them by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them.

20Exemptions from charge to tax under the preceding section.

(1)The following payments shall be exempted from the operation of subsection (1) of the last preceding section, that is to say—

(a)payments made pursuant to a statutory superannuation scheme, or made to a superannuation fund approved (whether in whole or in part) by the Commissioners of Inland Revenue for the purposes of section thirty-two of the [11 & 12 Geo. 5. c. 32.] Finance Act, 1921 ;

(b)payments made pursuant to an excepted provident fund or staff assurance scheme or other similar scheme (as defined in section twenty-three of this Act) ;

(c)payments made by way of premium pursuant to a scheme the benefits whereunder are secured by premiums payable by the body corporate, with or without contributions by the directors or employees affected, under life or endowment assurance or life annuity contracts, being a scheme which was in operation before the sixth day of April, nineteen hundred and forty-seven, and which is not confined, or substantially confined, to directors and persons who, not being directors, are remunerated at a rate exceeding two thousand pounds a year, or to directors or to such persons.

(2)Neither subsection (1) nor subsection (2) of the last preceding section shall apply so as to cause any sum to be deemed to be income as therein mentioned where the retirement benefits scheme in question is one under which the main benefit afforded to each of the persons to whom the scheme relates is the provision for him of a pension or annuity for his life, and either—

(a)that scheme was in operation before the sixth day of April, nineteen hundred and forty-four ; or

(b)that scheme is for the time being approved by the said Commissioners under the next succeeding section.

(3)Where in respect of the provision for a director or employee of any future retirement or other benefits a sum has been deemed to be income of his by virtue either of subsection (1) or of subsection (2) of the last preceding section, and subsequently the director or employee proves to the satisfaction of the said Commissioners that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason whereof no such payment will be made, and claims relief under this subsection within three years from the time when that event occurred, they shall give relief in respect of tax on that sum by repayment or otherwise as may be appropriate ; and if the director or employee satisfies the said Commissioners as aforesaid in relation to some particular part of the benefits but not the whole thereof, they may give such relief as may seem to them just and reasonable.

(4)Where apart from this subsection any sum would be deemed, by virtue either of subsection (1) or of subsection (2) of the last preceding section, to be income of an employee for any year of assessment, but, by reason of his exercising his employment outside the United Kingdom he is not assessable to income tax under Schedule E in respect of the emoluments of his employment for that year, that subsection shall not apply so as to cause that sum to be deemed to be income of his for that year.

21Approval of retirement benefit schemes.

(1)Subject to the provisions of the next succeeding section the Commissioners of Inland Revenue shall approve a retirement benefits scheme for the purpose of subsection (2) of the last preceding section unless it appears to them that the scheme does not fall within the said subsection (2) by reason of the fact that the main benefit afforded thereby is not such as is therein mentioned, or that, although the main benefit is such as aforesaid, the scheme fails to satisfy some one or more of the following conditions, that is to say—

(a)that that benefit will accrue only on retirement at a specified age or on earlier retirement through incapacity or on death ;

(b)that the nature of the benefits afforded by the scheme is the same in relation to all the persons to whom the scheme relates ;

(c)that the proportion between the value of the pensions or annuities provided for by the scheme, in so far as they are not commutable, and the value of all other benefits afforded thereby, including the value of so much, if any, of the said pensions or annuities as is commutable, is reasonably comparable to the proportion between the values of such benefits respectively as are usually afforded by statutory superannuation schemes ;

(d)that the aggregate value of the benefits, of whatever nature, afforded by the scheme is reasonably comparable to the aggregate value of the benefits usually afforded by statutory superannuation schemes in like circumstances ;

(e)that the pensions or annuities provided for by the scheme are not assignable, either in whole or in part; and

(f)that no service of a person, in whatever capacity/rendered by him while he is a controlling director of the body corporate is taken into account for any of the purposes of the scheme :

Provided that the said Commissioners may, if they think fit, having regard to the facts of the particular case, approve a scheme the main benefit afforded whereby is such as is mentioned in subsection (2) of the last preceding section notwithstanding that it may not, in one or more respects, satisfy the whole of the aforesaid conditions.

(2)Where the said Commissioners have given their approval to a scheme, they may at any time, by notice in writing to the body corporate in question, withdraw their approval on such grounds, and as from such date, as may be specified in the notice.

(3)In the case of a scheme in existence at the passing of this Act the main benefit afforded whereby is not then such as is mentioned in subsection (2) of the last preceding section, or which does not then satisfy the conditions specified in subsection (1) of this section, but which is so altered before the sixth day of April, nineteen hundred and forty-eight, or within such further time as the said Commissioners may allow, as to be approvable under this section, approval thereof after the sixth day of April, nineteen hundred and forty-seven, shall, if the said Commissioners so direct, be deemed to have had effect as from that day.

22Aggregation and severance of schemes.

(1)References in this section, in the last three preceding sections, and in the next succeeding section, to a retirement benefits scheme shall be construed in accordance with the following provisions, that is to say—

(a)references to such a scheme shall, in relation to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons of two or more classes, be construed as references to so much thereof as relates to persons of a single class, and accordingly a deed, agreement, series of agreements or other arrangements so providing shall be treated for the purposes of those sections as constituting two or more retirement benefits schemes relating respectively to the different classes ;

(b)references to such a scheme include references to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons consisting of or including a director or employee, or directors or employees, of a body corporate (or, in a case falling within the preceding paragraph, to so much thereof as relates to a person or persons of any one class), notwithstanding that it or they relates or relate only to a small, number of directors or employees, or to a single director or employee.

(2)For the purpose—

(a)of determining, in the case of a retirement benefits scheme which was in operation before the sixth day of April, nineteen hundred and forty-four, whether the scheme falls within subsection (2) of section twenty of this Act as respects the nature of the main benefit afforded thereby, and

(b)of determining, in the case of a retirement benefits scheme submitted for the approval of the Commissioners of Inland Revenue, whether the scheme so falls and whether the conditions specified in subsection (1) of the last preceding section are satisfied,

the scheme shall be considered in conjunction with any other retirement benefits scheme or schemes subsisting in connection with the body corporate and relating to persons of the class to which the scheme in question relates, and—

(i)if the main benefit afforded by all of those schemes taken together is such as is mentioned in subsection (2) of section twenty of this Act, each of them shall be taken to fall within that subsection as respects the nature of the main benefit afforded thereby, and, if it is not, none of them shall be taken so to fall; and

(ii)if the said conditions are satisfied in the case of all of them taken together, those conditions shall be taken to be satisfied in the case of each of them, and, if not, those conditions shall be taken to be satisfied in the case of none of them.

(3)The said Commissioners may, if they think fit,—

(a)approve a part of a retirement benefits scheme ; or

(b)approve such a scheme notwithstanding that, having regard to another such scheme subsisting in connection with the body corporate, the scheme in question is to be treated by virtue of the last preceding subsection as not falling within subsection (2) of section twenty of this Act or as not satisfying the conditions aforesaid ;

and where under this subsection the said Commissioners approve a part of a scheme, neither subsection (1) nor subsection (2) of section nineteen of this Act shall apply so as to cause any sum to be deemed to be income of a director or employee by reference to the provision for him of benefits afforded by that part of the scheme or of any part of such benefits.

23Supplementary provisions as to retirement or other benefits and application to unincorporated societies.

(1)In this and the last four preceding sections, except where the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• " controlling director " means a director of a company, the directors whereof have a controlling interest therein, who is the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than five per cent. of the ordinary share capital of the company, and for the purposes of this definition the expressions " company " and " ordinary share capital " have the same meanings as they have for the purposes of the Fourth Schedule to the [1 Edw. 8. & 1 Geo. 6. c. 54.] Finance Act, 1937 ;

• " director " means—

  (a)

  in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body ;

  (b)

  in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person ;

  (c)

  in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate, and includes any person who is to be or has been a director;

• " employee, " in relation to a body corporate, includes any person taking part in the management of the affairs of the body corporate who is not a director, and includes a person who is to be or has been an employee ;

• " excepted provident fund or staff assurance scheme or other similar scheme " means so much as relates to persons remunerated at a rate of two thousand pounds a year, or at a less rate, of any retirement benefits scheme as to which the following conditions are satisfied, that is to say—

  (a)

  that the sums paid by the body corporate pursuant to the scheme in question in respect of any person for any period do not exceed ten per cent. of his remuneration for that period, and do not exceed one hundred pounds in the case of a period of a year or a correspondingly less or greater amount in the case of a shorter or longer period ; and

  (b)

  that no other retirement benefits scheme which relates to employees of the body corporate who are of the class to which the scheme in question relates, and who are remunerated as aforesaid, is subsisting for the time being, or, if there is any such other scheme subsisting, that it (so far as it relates to persons remunerated as aforesaid) and the scheme in question taken together satisfy the requirement specified in paragraph (a) of this definition ;

• " retirement or other benefit, " means any pension, annuity, lump sum, gratuity or other like benefit to be given on retirement, or in anticipation of retirement, or, in connection with past service, after retirement, or to be given on or in anticipation of or in connection with any change in the nature of the service of the person in question, except that it does not include any pension, annuity, lump sum, gratuity or other like benefit which is to be afforded solely by reason of the death or disability of a person occurring during his service, and for no other reason ;

• " service " means service as an employee or director of the body corporate in question, and " retirement " shall be construed accordingly ;

• " statutory superannuation scheme " means a scheme set up by or approved under any enactment relating to superannuation or set up by or approved under any regulations relating to superannuation made under any enactment by any Minister or government department, and for the purposes of this definition, the expressions " enactment," " Minister " and " government department " include respectively an enactment of the Parliament of Northern Ireland, a Northern Ireland Minister and a Northern Ireland government department.

(2)Where an alteration has been made in a retirement benefits scheme at any time after the fifth day of April, nineteen hundred and forty-seven, the scheme shall, for the purposes of this and the last four preceding sections be deemed to have become a new scheme coming into being on the date of the alteration:

Provided that this subsection shall not apply to an alteration approved by the Commissioners of Inland Revenue.

(3)Any reference in this or the last four preceding sections to the provision for a person of retirement or other benefits includes a reference to the provision of benefits payable to that person's spouse, children, dependants or personal representatives, and any reference therein to the provision for a person of a pension or annuity for his life includes a reference to the provision (either in addition or as an alternative to the pension or annuity payable for his life) of a pension or annuity payable to that person's spouse, or to any child or dependant of that person, for the life of the spouse, child or dependant.

(4)Any reference in this or the last four preceding sections to the provision of retirement or other benefits, or of a pension or annuity, by a body corporate includes a reference to the provision thereof by means of a contract with a third person.

(5)It shall be the duty of a body corporate—

(a)to deliver to the surveyor, within the time specified in this subsection, particulars of any retirement benefits scheme subsisting in connection with the body corporate ' on the sixth day of April, nineteen hundred and forty-seven, or coming into being after that date, other than a scheme referred to in subsection (1) of section twenty of this Act, and

(b)when required so to do by notice given by the surveyor, to furnish within the time limited by the notice such further particulars as he may require with regard to any retirement benefits scheme subsisting in connection with the body corporate or to the persons to whom it relates,

and the provisions of section one hundred and seven of the Income Tax Act, 1918 (which relates to failure to deliver lists, declarations and statements) shall apply in relation to the particulars required to be delivered by or under this subsection as they apply in relation to any list, declaration or statement required to be delivered by any such notice as is referred to in that section.

The time for delivery of particulars under paragraph (a) of this subsection shall be—

(a)in the case of a scheme that came into being before the passing of this Act, six months beginning with the date of the passing of this Act ;

(b)in the case of a scheme coming into being after the passing of this Act, three months beginning with the date of its coming into being.

(6)This and the last four preceding sections shall apply in relation to unincorporated societies or other bodies as they apply in relation to bodies corporate :

Provided that the reference in this subsection to unincorporated societies or other bodies shall be deemed not to include a reference to individuals in partnership.

Miscellaneous provisions as to income tax.

24Relief for capital expenditure on rehabilitation.

(1)Subject to the provisions of this section, where a person carrying on a trade incurs, whether before or after the passing of this Act but before the end of the year nineteen hundred and forty-seven, rehabilitation costs in connection with the trade, those costs may be deducted as an expense in computing the profits or gains of the trade for the purposes of income tax:

Provided that if the person carrying on the trade produces to the Commissioners of Inland Revenue before the end of March, nineteen hundred and forty-eight, particulars of work required to be done, as at the thirty-first day of December, nineteen hundred and forty-six, and satisfies them that it was not possible for that work to be done before the end of the year nineteen hundred and forty-seven, the said Commissioners may direct that, in relation to any rehabilitation costs incurred in doing that work, this subsection shall have effect as if for the first reference therein to the end of the year nineteen hundred and forty-seven there were substituted a reference to the end of the year nineteen hundred and forty-eight or, if the circumstances so require, to such later date as the said Commissioners may allow, being a date not later than the end of the year nineteen hundred and forty-nine.

(2)Where the excess in respect of which an exceptional depreciation allowance falls to be made for any year of assessment in charging the profits or gains of a trade has been increased owing to any rehabilitation costs having been treated as part of the net cost of the provision of any building, machinery or plant, any deduction allowable under this section in respect of those costs in computing the profits or gains of the trade (whether for the same or any other year of assessment) shall be reduced by the amount of the increase ; and where any such excess would have been diminished if the work which is the subject of any rehabilitation costs incurred in connection with the trade after the thirty-first day of December, nineteen hundred and forty-six, had been completed on that day, any deduction allowable under this section in respect of those costs in computing the profits or gains of the trade (whether for the same or any other year of assessment) shall be reduced by the amount of the diminution.

(3)Where a deduction allowed under this section in computing the profits or gains of a trade for any year of assessment is in respect of rehabilitation costs incurred in the provision, renewal, improvement, reinstatement or replacement of any machinery or plant, any deduction made in respect of that machinery or plant under Rule 6 of the Rules applicable to Cases I and II of Schedule D in charging the profits or gains of the trade (whether for the same or any other year of assessment) and any deduction made in respect of the machinery or plant under Rule 7 of those Rules in estimating the profits or gains of the trade (whether for the same or any other year of assessment) shall be computed as if those costs had not been incurred.

(4)In this section, the expression " rehabilitation costs" means—

(a)expenditure on the removal of works designed to afford protection from hostile attack;

(b)where the trade was, as a consequence of the war, removed in whole or in part to a different place, expenditure on again removing the trade or that part thereof back to the place where it was carried on before the first-mentioned removal, or, where the trade or that part thereof is not removed back to that place, expenditure on removing it to some other place up to the amount which would have been incurred in removing it back to that place ;

(c)where any buildings, plant, machinery or other physical assets held for the purposes of the trade were, either as respects lay-out or otherwise, altered so as to adapt them to conditions prevailing as a result of the war, any expenditure incurred on again altering the assets so as to re-adapt them to peace-time requirements, except so far as that expenditure represents an improvement of the character or condition of the assets as compared with their character and condition before the first mentioned alteration,

the expression " exceptional depreciation allowance " means an allowance made under section nineteen of the [4 & 5 Geo. 6. c. 30.] Finance Act, 1941, and any reference in this section to an allowance made or deduction allowed includes a reference to an allowance or deduction which would be made or allowed but for an insufficiency of profits or gains against which to make it.

(5)Nothing in this section applies in relation—

(a)to any rehabilitation costs which, apart from the provisions of this section, would be deductible in computing the profits or gains of the trade in question for the purposes of income tax ; or

(b)to so much of any rehabilitation costs as has been or is to be met directly or indirectly by the Crown or by any government or public or local authority, whether in the United Kingdom or elsewhere, or by any person other than the person carrying on the trade in question,

and references in this section to rehabilitation costs shall be construed accordingly.

(6)This section shall have effect as respects the year 1939-40 and subsequent years of assessment and all necessary adjustments of any assessments made before the passing of this Act, for any year of assessment, shall be made accordingly; but it shall not apply for the purposes of excess profits tax.

25Payments of the profits tax to be treated as expenses of management.

Sums disbursed in discharge of any liability to the profits tax shall, for the purposes of section thirty-three of the Income Tax Act, 1918 (which gives relief to assurance companies and others in respect of expenses of management), be treated as sums disbursed as expenses of management, and, in the case of a claim for relief made by virtue of this section, the time allowed by subsection (2) of that section for the making of claims shall be extended until twelve months after the end of the year of assessment during which the disbursement in question is made.

26Amendment of s. 4 of Income Tax Act, 1945.

(1)After subsection (6) of section four of the Income Tax Act, 1945, there shall be inserted the following subsection :—

“(6A)If any exceptional depreciation allowance is made in respect of a building or structure for the year of assessment in which the appointed day falls, an amount equal to that allowance shall be written off as at the end of the immediately preceding year of assessment.”

(2)This section shall be deemed always to have had effect, and such additional assessments shall be made (including assessments for the year 1946-47) as are necessary to give effect to this subsection.

27Exemption from income tax of training expenses allowances and bounties of reserve and auxiliary forces.

The sums known as training expenses allowances payable out of the public revenue to members (whether men or women) of the reserve and auxiliary forces of the Crown, and the sums payable by way of bounty out of the public revenue to such members in consideration of their undertaking prescribed training and attaining a prescribed standard of efficiency, shall not be regarded as income for any of the purposes of the Income Tax Acts.

28Exemption from income tax of gratuities payable to certain women who re-engage in the forces.

Where, under the scheme relating to members of the Women's Royal Naval Service, the Auxiliary Territorial Service and the Women's Auxiliary Air Force announced on behalf of His Majesty's Government in the United Kingdom on the twentieth day of November, nineteen hundred and forty-six, or under any other scheme certified by the Treasury to make analogous provision for classes of persons to whom the first mentioned scheme does not apply, a woman who has served in or with the armed forces of the Crown at any time during the continuance in force of the [2 & 3 Geo. 6. c. 62.] Emergency Powers (Defence) Act, 1939, voluntarily undertakes to serve in or with those forces for a further period, any sum payable to her in pursuance of the scheme out of moneys provided by Parliament by way of gratuity at the end of her further period of service shall not be regarded as income for any of the purposes of the Income Tax Acts.

29Assets transferred under Coal Industry Nationalisation Act, 1946.

(1)Where, whether before or after the passing of this Act, any assets consisting of or of an interest in any property vest in the National Coal Board by virtue of section five or section six of the [9 & 10 Geo. 6. c. 59.] Coal Industry Nationalisation Act, 1946, or by virtue of section forty-four of, and the Third Schedule to, that Act, and, immediately before the date of the vesting thereof, the assets were assets of a colliery concern, a subsidiary of a colliery concern, a body administering a scheme under Part I of the [21 & 22 Geo. 5. c. 27.] Coal Mines Act, 1930, or the South Yorkshire Mines Drainage Committee, the provisions of the Seventh Schedule to this Act shall have effect in computing the liability to income tax of the person who was, immediately before the said date, the owner of the said assets, and of the said Board respectively.

(2)If, in computing the liability to income tax for any year of assessment of any such owner or of the said Board, anything has been done otherwise than in accordance with the provisions of the said Schedule, such adjustments may be made by way of additional assessment or otherwise as may be necessary to secure compliance with the provisions thereof.

(3)In this section and the said Seventh Schedule, the expression " colliery concern " has the meaning assigned to it by section sixty-three of the Coal Industry Nationalisation Act, 1946, and the expression " subsidiary " has the meaning assigned to it by paragraph 25 of the First Schedule to that Act.