Finance (No. 2) Act 1992

7 The provisions of section 262 (widow’s bereavement allowance) shall become subsection (1) of that section and the following subsections shall be added after that subsection—

“(2) Where a widow would (but for this subsection) be entitled for a year of assessment—

(a) to a deduction from her total income under subsection (1)(a) above, and

(b) to a deduction from her total income by virtue of an election under section 257BA,

the deduction mentioned in paragraph (b) above shall instead be made (without a claim being made) from her late husband’s total income for the year.

(3) If the deduction mentioned in subsection (2)(b) above exceeds what is left of the husband’s total income for the year after all other deductions have been made from it, the widow shall be entitled to deduct from her total income the amount of the excess (in addition to the deduction to which she is entitled by virtue of subsection (1) above and without making a further claim).

(4) In determining for the purposes of this section the amount that is left of a person’s total income for a year of assessment after other deductions have been made from it, there shall be disregarded any deduction made—

(a) on account of any payments of loan interest which become due in that year and to which section 369 applies,

(b) under section 289,

(c) on account of any payments to which section 593(2) or 639(3) applies,

(d) on account of any payments to which section 54(5) of the [1989 c. 26.] Finance Act 1989 applies, or

(e) on account of any payments to which section 32(4) of the [1991 c. 31.] Finance Act 1991 applies.”