Finance Act 1965

7 (1) As from the beginning of the year 1966-67, sections 491 and 492 of the Income Tax Act 1952 (which provide for adjusting under-deductions and over-deductions of income tax from certain payments made before the passing of an annual Act imposing the tax) shall be amended in accordance with the following sub-paragraphs.

(2) For section 491(3)(a) (by virtue of which section 491(2) has effect where too little tax is deducted under section 184 from preference dividends) there shall be substituted:—

“(a) any preference dividend within the meaning of Part IV of the Finance Act 1965 from which a deduction of tax may be made under the said Part IV ; and”.

(3) In section 492 (over-deductions by bodies corporate under section 169 from interest payments on securities or under section 184 from preference dividends)—

(a) after the words " section 169 " there shall be inserted the words " or section 170 "; and

(b) for the words " section 184 of this Act " there shall be substituted the words " Part IV of the Finance Act 1965 "; and

(c) at the end of the section there shall be added—

“In this section ' preference dividend ' has the same meaning as in Part IV of the Finance Act 1965, and ' share' includes stock.”