PART IIIncome Tax
6Increase in standard rate of income tax for 1931-32
(1)The standard rate of income tax for the year 1931-32 shall be the rate of five shillings in the pound instead of the rate of four shillings and sixpence in the pound as provided by subsection (1) of section five of the [21 & 22 Geo. 5. c. 28.] Finance Act, 1931, and accordingly it is hereby declared that any deductions of tax made before the passing of this Act by reference to a rate of five shillings are to be treated for all purposes (including all the purposes of any legal proceedings instituted before the passing of this Act) as having been made by reference to the proper rate :
Provided that this subsection shall not invalidate anything done before the passing of this Act or render improper any deduction in respect of income tax made before the fifteenth day of October, nineteen hundred and thirty-one, which would have been a proper deduction if this Act had not passed.
(2)The provisions of the Third Schedule to this Act shall have effect for the purposes of and in connection with the change in the standard rate of income tax made by this section.
7Higher rates of income tax for 1930-31
Section six of the Finance Act, 1931 (which determines the higher rates of income tax for the year 1930-31), shall have effect as if each of the amounts specified in the second column of the Table contained in that section were increased by ten per cent., and the amount payable by virtue of any assessment in respect of sur-tax for the year 1930-31 made before the passing of this Act shall, by virtue of this Act and without more, be treated as varied accordingly.
8Amendments of enactments relating to income tax reliefs
(1)The enactments specified in the second column of the Fourth Schedule to this Act (being enactments which relate to the income tax reliefs described in the first column of the said Schedule) shall be amended in the manner specified in the third column of the said Schedule.
(2)Where relief from income tax for the year 1931-32 has been given to any individual and the amount thereof is incorrect by reason of any of the amendments made by this section, then—
(a)if the relief was given by the reduction of an assessment on that individual, the assessment shall, by virtue of this Act and without more, be treated as varied so as to give effect to the said amendments; and
(b)if the relief was given otherwise than by the reduction of an assessment on that individual, any amount of relief so given in excess may, if not otherwise made good, be assessed under Case VI of Schedule D and recovered from that individual accordingly.
9Notice of variation of assessment, and c
Where the amount of tax payable under an assessment is to be treated as varied by virtue of section six or section eight of this Act, or exceeds the amount which would have been payable if those sections had not passed, the Commissioners of Inland Revenue shall cause such notification as may be necessary to be given to the person affected thereby, and any notification so given shall, as regards any particulars of the assessment contained in the notification which have not been contained in a notice of assessment, have effect as if the notification were a notice of assessment.
10Income tax in connection with conversion of Government securities
Where in pursuance of an arrangement which is being carried out under section sixty of the [6 & 7 Geo. 5. c. 24.] Finance Act, 1916, (which relates to the conversion of Government securities) the Treasury direct that the provisions of this section shall have effect, any person who is carrying on a trade which consists wholly or partly in dealing in securities and who in pursuance of the arrangement exchanges securities to which he is beneficially entitled for other securities (whether or not any additional consideration is given for the exchange) shall, unless he gives notice in writing to the surveyor not later than the end of the year of assessment next following the year of assessment in which the exchange takes place that he desires not to be so treated, be treated for income tax purposes (except as regards any income tax payable in respect of interest), both at the time of the exchange and thereafter, as if the exchange had not taken place, and in that case the produce of any subsequent realisation of securities received by him under the exchange (together with any additional consideration, or the appropriate part of any additional consideration, received by him thereunder) shall be treated as the produce of the realisation of the corresponding securities surrendered by him under the exchange.