Finance Act 1994

4 (1) Subject to sub-paragraph (3) below, this paragraph applies in the case of income which—

(a) is from a source arising before 6th April 1994 and continuing after 5th April 1998, and

(b) is chargeable to tax under Case III of Schedule D.

(2) Section 64 of the Taxes Act 1988 shall have effect in relation to the year 1996-97 as if it required income tax under Case III of Schedule D to be computed on 50 per cent. of the aggregate of—

(a) the full amount of the income arising within that year; and

(b) the full amount of the income arising within the year 1995-96.

(3) This paragraph does not apply if section 66(1)(c) of that Act applied in relation to the year 1995-96.