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Finance Act 1948

Status:

This is the original version (as it was originally enacted).

Part VThe Special Contribution

47Charge, and amount, of contribution

(1)In the case of individuals whose total income for the year 1947-48 exceeded two thousand pounds and whose aggregate investment income for that year exceeded two hundred and fifty pounds, there shall subject to the provisions of this Part of this Act be charged a special contribution (in this Part of this Act referred to as " contribution") of an amount determined in accordance with the following Table :—

Table

or every pound of—s.d.

the first two hundred and fifty pounds of the excess of an individual's aggregate investment

, income for the said year over two hundred and fifty pounds

20
the next five hundred pounds of the said excess40
the next thousand pounds 01 the said excess60
the next three thousand pounds of the said excess80
the remainder of the said excess100

(2)Contribution shall not in the case of any individual exceed the amount by which his total income for the said year exceeded two thousand pounds.

(3)Contribution shall not be charged in the case of an individual who in the year 1947-48 was not domiciled in the United Kingdom, unless he was in that year resident therein and had been ordinarily resident therein throughout the period of ten years ending with the year 1947-48.

(4)Subject to the provisions of this Part of this Act, contribution shall not be charged in the case of an individual who died before the end of the year 1947-48.

(5)Subject to the provisions of this Part of this Act and of regulations thereunder, contribution shall be charged by assessment on the individual by reference to whose income it is charged, and shall be payable by that individual.

(6)Contribution shall be payable on or before the first day of January, nineteen hundred and forty-nine, so however that contribution included in an assessment which in accordance with regulations under this Part of this Act is signed and allowed on or after that day shall be deemed to be due and payable on the day next following the day on which the assessment is signed and allowed.

(7)Where an individual who could be assessed to contribution dies before the assessment is made, the assessment may be made on his personal representative ; and the provisions of this Part of this Act as to individuals assessed or liable to contribution or by whom contribution is payable shall apply accordingly with the necessary modifications.

48Ascertainment of income and total income

Subject to the provisions of this Part of this Act, income from any source and total income shall be ascertained for the purposes of this Part of this Act as they are ascertained for the purposes of sur-tax; and subject as aforesaid income shall be treated for the purposes of this Part of this Act as income of an individual if it would be so treated for the purposes cf surtax.

49Meaning of "investment income"

(1)Subject to the provisions of this section and of the Tenth Schedule to this Act, in this Part of this Act the expression " investment income " means income from any source other than a source of earned income.

(2)The following shall not in any case be treated as investment income, that is to say—

(a)income from investments (including land) which falls to be taken into account as a receipt in computing, in accordance with the provisions, of the Income Tax Acts in that behalf, the profits or gains of a trade, profession or vocation, or which would fall so to be taken into account but for the fact that it has been subjected to tax under other provisions of those Acts ;

(b)income arising to persons carrying on a trade, profession or vocation from property occupied and used by them for the purposes thereof, or, where the property is so occupied and used as to part only.—

(i)so much of the income as is equivalent to the deduction allowable in respect of the property under paragraph (c) of Rule 3 of the Rules applicable to Cases I and II of Schedule D, or

(ii)if the circumstances are such that the said paragraph (c) does not apply, a due proportion of the income ;

(c)any other income arising from a trade, profession or vocation carried on by an individual otherwise than in partnership, not being income specified in subsection (3) of this section.

(3)The following shall in all cases be treated as investment income, that is to say, income from investments (including land) held by or on behalf of the persons carrying on or exercising a trade, profession or vocation, not being income falling within paragraphs (a) or (b) of the last foregoing subsection.

50Ascertainment of aggregate investment income

(1)Subject to the provisions of this Part of this Act, the aggregate investment income of an individual shall be taken for the purposes of this Part of this Act to be the aggregate of his investment income from all sources.

(2)A terminable annuity payable by the National Debt Commissioners or by any other persons in the carrying on of life assurance business shall be disregarded in ascertaining aggregate investment income, whether or not the annuity was originally created in favour of the individual whose income is being ascertained.

(3)Where, in pursuance of any arrangement made in connection with an individual's retirement from a trade, profession or vocation or in case of his death while carrying on or exercising a trade, profession or vocation, payments fall to be made either to the said individual or to any other person, the payments shall be disregarded in ascertaining the aggregate investment income of that individual or such other person.

(4)Any assessment under Schedule B shall be disregarded in ascertaining aggregate investment income.

51Deductions in ascertaining aggregate investment income

(1)In ascertaining aggregate investment income for the purposes of this Part of this Act, no deduction shall be allowed in respect of any such payment as is specified in subsection (3) of the last foregoing section.

(2)In ascertaining aggregate investment income for the purposes of this Part of this Act, no deduction shall be allowed in respect of any relief under the provisions of the Income Tax Acts relating to relief in respect of losses.

(3)The amount of any allowance under the Income Tax Act, 1945, available or primarily available against a specified class of income which is deducted from or set off against income of that class for the year 1947-48 shall be allowed as a deduction in ascertaining aggregate investment income for the purposes of this Part of this Act, but in so far only as the amount of the allowance does not exceed the investment income for that year of that class.

(4)Subject to the provisions of this and the next following section, any deduction in respect of rent, interest, annuities or other annual payments allowable in ascertaining the total income of an individual for the year 1947-48 for the purposes of sur-tax shall be allowed as a deduction in ascertaining aggregate investment income for the purposes of this Part of this Act:

Provided that no deduction shall be allowed in ascertaining aggregate investment income in respect of any payments which are allowable as deductions in computing the profits or gains of a trade, profession or vocation.

52Certain payments and income from occupation of property to be income of payer or person entitled to property

(1)Periodical payments made—

(a)in pursuance of an order of any court for the payment of maintenance or in pursuance of an affiliation order, or

(b)in pursuance of a disposition not made for full consideration in money or money's worth,

being payments such as are allowable as deductions in ascertaining for the purposes of sur-tax the total income of the individual making the payment, shall in all cases be treated for the purposes of this Part of this Act as income of the person making the payment and not as income of any other person.

(2)Income from the occupation of property under a revocable licence not granted for valuable consideration shall be treated for the purposes of this Part of this Act as income of the person entitled to occupy the property on the revocation of the licence and not as income of any other person.

53Provisions where income under trust payable out of capital, etc.

(1)For the purposes of this Part of this Act the investment income of an individual arising under a trust shall be ascertained without regard to any part thereof which is shown to the satisfaction of the Special Commissioners to be attributable to payments duly made otherwise than out of the income of the trust.

(2)For the purposes of this section the income of a trust shall be ascertained without regard to—

(a)income of any description which by the provisions of this Part of this Act in that behalf is required to be disregarded in ascertaining aggregate investment income or to be treated as the income of any other person, or

(b)income from another trust which is shown to the satisfaction of the Special Commissioners to be attributable to payments duly made otherwise than out of the income of that trust,

and otherwise shall be ascertained in like manner as the total income of an individual is ascertained for the purposes of sur-tax, except that no deduction shall be made in respect of any payment made to a beneficiary under the trust or to any person claiming under such a beneficiary.

(3)Nothing in this section shall affect the ascertainment of the amount of an individual's total income.

54Payment in advance, and interest on unpaid contribution

(1)Payment in or towards discharge of contribution may be made in advance of assessment by any person who under this Part of-this Act is liable to pay or bear the contribution or any part thereof. Any such payment shall be made to the Accountant General Of Inland Revenue.

(2)A payment in respect of contribution, made whether before or after the passing of this Act, which is made before the first day of January, nineteen hundred and forty-nine being a payment of an amount which together with interest thereon at the rate of two per cent. per annum from the date of payment to the said first day of January is equal to the contribution or any part thereof, shall be a discharge of the contribution or that part thereof,-as the case may be.

(3)Where contribution, whether already assessed or not, is not paid by the first day of January, nineteen hundred and forty-nine, it shall carry interest at the rate of two per cent. per annum from that date to the date of payment.

(4)The interest payable under subsection (3) of this section shall be paid without any deduction of income tax; and the said interest shall be recoverable in like manner and from the like persons as if it were part of the contribution in respect of which it is payable.

55Assessment and collection of contribution, and service of notices

(1)Contribution shall be a debt due to the Crown, and shall be assessed and charged by the Special Commissioners.

(2)Any return relating to the income of an individual made for the purposes of the Income Tax Acts shall be available to the Special Commissioners for the purposes of this Part of this Act, and where it appears to the Commissioners that the information contained in the return is sufficient to enable them to make an assessment they may make the assessment on that information.

(3)Where it appears to the Special Commissioners that no return, or no sufficient return, relating to the income of an individual has been made for the purposes of the Income Tax Acts, the Commissioners may make an assessment to the best of their judgment.

(4)The Special Commissioners may, whether an assessment to contribution has been made or not, require any person in whose case it appears to those Commissioners that contribution is or may be payable by him, and that he has in his possession any" information relevant to the assessment or recovery of the contribution, to furnish to the Commissioners within such time as they may prescribe, not being less than twenty-eight days, such particulars as they consider necessary for the purposes of the assessment or recovery of the contribution ; and if any person without reasonable excuse fails to furnish within the time prescribed any particulars required under this subsection, he shall be liable to a penalty not exceeding fifty pounds and after judgment has been given for that penalty to a further penalty of the like amount for every day during which the failure continues.

(5)Section two hundred and twenty-two of the Income Tax Act, I918 (which confers powers to mitigate income-tax penalties, and provides for the application of penalties and other sums) shall apply in relation to penalties recoverable under the last foregoing subsection.

(6)The Commissioners of Inland Revenue may by statutory instrument make regulations with respect to the assessment and collection, and the repayment, of contribution and interest thereon, and subject to the foregoing provisions of this section may by those regulations apply and adapt the provisions of the Income Tax Acts relating to returns and the giving of information and to the assessment and collection of income tax and interest thereon. Any statutory instrument made under this subsection shall be subject to annulment in pursuance of resolution of either House of Parliament.

(7)Any notice under this Part of this Act may be served by post.

56Recovery of contribution from trustees

(1)Subject to the provisions of this Part of this Act, where investment income of an individual assessed to contribution (in this section referred to as " the contributor ") arose under a trust, then if he has paid the contribution the contributor may recover under subsection (3) of this section such amount as bears to the contribution the same proportion as that investment income bears to his aggregate investment income, ascertained without any such deduction being made as is allowable under subsection (4) of section fifty-one of this Act.

(2)Where investment income of the contributor arose under a trust and either—

(a)the contributor gives notice in writing to the Special Commissioners requiring that this subsection shall apply; or

(b)the whole or part of the contribution remains unpaid at the expiration of twenty-eight days after it became due,

the liability of the contributor shall be reduced by the amount specified in the last foregoing subsection, and that amount shall be recoverable under the next following subsection as a debt due to the Crown :

Provided that where at the expiration of twenty-eight days after the contribution became due part, but part only, of the contribution remains unpaid, and that part is less than the amount specified in the last foregoing subsection, the difference shall—

(a)unless the contributor by notice in writing to the Special Commissioners otherwise requires, be repaid to him by those Commissioners;

(b)if he does so require as aforesaid, be treated as having been paid on behalf of the persons from whom recovery may be made under this section or, if recovery may be so made from different persons in different capacities, then on behalf of all or any of them and in such proportions as may be specified in the notice given by the contributor under the last foregoing paragraph.

(3)Recovery under this subsection may be made—

(a)where the investment income arose under a trust and the trust continues, from the trustees or, in the case of a settlement within the meaning of the Settled Land Act, 1925, or in Northern Ireland the Settled Land Acts, 1882 to 1890, from the tenant for life ;

(b)where the investment income arose under a trust and the trust has come to an end, from the person who immediately after the trust came to an end was entitled at law to the trust property or fund, or, if more than one person was then so entitled thereto, from the persons who were then so entitled in proportion to the value of their interests therein :

Provided that where the person or persons entitled as mentioned in this paragraph became so entitled by virtue of a mortgage or charge, or in Scotland by virtue of the exercise of the power of sale contained in a bond and disposition in security, recovery under this subsection shall be made in the proportion aforesaid not from him or them but from the person or persons who would have been entitled at law to the trust property but for the mortgage or charge or the exercise of the power of sale, as the case may be. For the purposes of this subsection a trust shall be deemed to have come to an end when any person has become entitled thereunder to capital and the trust property has in consequence thereof become vested in that person or an assignee of his interest; and where part of the trust property has become so vested a proportionate part of the amount recoverable under this subsection shall be recoverable under paragraph (b) and the remainder under paragraph (a) thereof.

(4)Where apart from this subsection a right of recovery under this section would be exercisable in respect of income of the contributor which arose, or is deemed by virtue of this subsection to have arisen, under any trust (hereinafter referred to as " the first trust ") and income of the trustees for the year 1947-48 arose under another trust (hereinafter referred to as " the second trust "), not being a foreign trust, the trustees may—

(a)where the right of recovery would be exercisable by the contributor, by notice in writing given to him ;

(b)in any other case, by notice in writing given to the Special Commissioners before the assessment has become final against the trustees,

require that, for the purpose of the exercise 01 the right of recovery in respect of the appropriate part of the said income of the contributor, that part of the income shall be deemed to have risen under the second trust.

(5)For the purposes of the last foregoing subsection, the appropriate part of the said income of the contributor shall be taken to be that part thereof which bears to the whole thereof the same proportion as the income arising under the second trust to the trustees of the first trust, ascertained in accordance with the provisions of subsection (1) of section fifty-three ,of this Act, bears to the total income of the first trust, ascertained in accordance with the provisions of Subsection (2) of that section.

(6)The contributor shall not be entitled to exercise a right of recovery conferred by this section in respect of the contribution assessed by any assessment unless, not later than six months after the date when the contribution so assessed was paid, he has given to the persons against whom under subsection (3) of this section the right of recovery is exercisable notice in writing of his intention to exercise any such right as may be available to him ; arid trustees who have received a notice under this subsection shall not be entitled under subsection (4) of this section to require that the right of recovery to which the notice relates shall be exercisable as mentioned in that subsection unless not later than one month from the receipt of the notice they have given notice in writing of its receipt to the trustees of the second trust mentioned in that subsection or, in the case of a settlement within the meaning of the Settled Land Act, 1925, or in Northern Ireland the Settled Land Acts, 1882 to 1890, to the tenant for life. ,

(7)Notwithstanding anything in the foregoing provisions of this section, the following provisions shall have effect as respects foreign trusts :—

(a)where the trust referred to in subsection (1) or subsection (2) of this section is a foreign trust, the right of recovery therein referred to shall not in any case be exercisable ;

(b)where the contributor has paid the contribution and has exercised or given notice of intention to exercise a right of recovery under this section in respect of income arising under a trust not being a foreign trust, and the persons against whom the right was exercised or exercisable show to the satisfaction of the Special Commissioners that income of the trustees of the first-mentioned trust arose under a trust which is a foreign trust, the Special Commissioners shall repay to the said persons or to the contributor, according as the right of recovery has or has not been exercised, the proper proportion of the amount recovered, or recoverable apart from this paragraph, as the case may be, and if the right of recovery has not been exercised it shall not be exercisable as respects that proportion of the said amount;

(c)where apart from this paragraph a right of recovery would be exercisable by virtue of subsection (2) of this section in respect of income arising under a trust not being a foreign trust, and the persons against whom the right would be exercisable show to the satisfaction of the Special Commissioners that income of the trustees of the first-mentioned trust arose under a trust which is a foreign trust, the right of recovery shall not be exercisable as respects the proper proportion of the amount which would be recoverable apart from this paragraph ;

(d)for the purposes of the two last foregoing paragraphs the proper proportion of any amount shall be taken to be so much thereof as bears to the whole thereof the same proportion as the income mentioned in the paragraph in question as arising under the foreign trust, ascertained in accordance with subsection (1) of section fifty-three of this Act, bears to the total income of the trustees mentioned in that paragraph, ascertained in accordance with subsection (2) of the said section fifty-three.

(8)Where any property or fund is held as to different parts thereof upon different trusts, this section shall apply separately to each part.

(9)In this section the expression "foreign trust" means a trust of which the administration is governed by the law of any place outside the United Kingdom.

57Application of trust property, etc., in payment of contribution

(1)The powers of a trustee or tenant for life (whether arising under the Settled Land Act, 1925, or that Act as applied by section twenty-eight of the Law of Property Act, 1925, or otherwise) to apply or direct the application of capital money and to raise money by mortgage shall be exercisable for the purpose of paying contribution and interest thereon, of making payments in advance of assessment in or towards the discharge of contribution, and of discharging any liability arising under the last foregoing section.

(2)As between the persons interested (whether in income or capital) under a trust, the law relating to the ultimate incidence of estate duty shall apply to any amount falling to be paid under the last foregoing section in respect of income derived from property subject to the trust as if that amount were estate duty charged on that property on the cesser of a life interest therein, being an interest not subject to any interest in the property in fact existing under the trust, occurring at the end of the year 1947-48, and were charged as on property not passing to the executor as such : r

Provided that as between any annuity, other than one by reason of which the said amount or any part thereof fell to be paid, and other interests, the amount shall be borne by the other interests to the exoneration of the annuity.

(3)Where the income derived from property referred to in the last foregoing subsection was a share only of income from the property, whether or not subject to other interests, that subsection shall apply as if the income derived as aforesaid had been derived from a corresponding share of the property.

(4)This section shall, in its application to Scotland, have effect as if for subsection (1) there were substituted the following subsection :—

(1)For the purpose of paying contribution and interest thereon, of making payments in advance of assessment in or towards the discharge of contribution, and of discharging any liability arising under the last foregoing section, a trustee, a liferenter or an heir of entail in possession shall have power to expend capital money and to sell, or to borrow money on the security of, the estate or any part thereof, heritable as well as moveable.

(5)In the application of subsection (1) of this section to Northern Ireland, for the first reference to the Settled Land Act, 1925, there shall be substituted a reference to the Settled Land Acts, 1882 to 1890, and the reference to the said Act of 1925 as applied by the Law of Property Act, 1925, shall be omitted.

58Provisions as to husband and wife

(1)Where a husband and wife were during any part of the year 1947-48 living together and any liability of the husband to contribution is attributable to investment income of the wife, then if any contribution payable by the husband remains unpaid at the expiration of twenty-eight days from the time when it became due, the Special Commissioners may by notice in writing require the wife to pay it up to an amount which bears to the whole of the contribution the same proportion as .the aggregate investment income of the wife bears to the aggregate investment income of the husband.

(2)The provisions of this Part of this Act as to the payment and recovery of contribution shall apply to any sum required to be paid by the wife in pursuance of a notice under the last foregoing subsection as if it were contribution assessed on her and due on the day next following the giving of the notice.

(3)Where after the end of the year 1947-48, and before a notice has been given under subsection (1) of this section, the wife dies, the notice may .be given to her personal representative ; and references to the wife in the last foregoing subsection shall be construed accordingly.

(4)Where the provisions of this subsection apply—

(a)the husband and the wife shall be assessed to contribution as if they were not married and the provisions of this Part of this Act and of regulations thereunder shall apply to each of them accordingly ; but

(b)in ascertaining total income and aggregate investment income for the purposes of this Part of this Act the income of the husband and wife shall be treated as the income of one individual, and the amount of the contribution payable by reference to the total income and aggregate investment income so ascertained shall be divided between the husband and wife in proportion to the amounts of their respective aggregate investment incomes.

(5)The provisions of the last foregoing subsection shall apply in "the case of a husband and wife—

(a)where application in that behalf is made either by the husband or the wife in such manner and form as may be prescribed by the Commissioners of Inland Revenue ; or

(b)where an application by the husband or wife under subsection (9) of section forty-two of the Finance Act, 1927, for separate assessment to sur-tax has effect as respects the year 1947-48, unless notice in writing requiring that the last foregoing subsection shall not apply is given both by the husband and by the wife in such manner and form as may be prescribed as aforesaid :

Provided that no application or notice under this subsection shall be made or given after the fifth day of October, nineteen hundred and forty-eight or such later date, not falling after the expiration of twenty-eight days from the giving to the husband of notice of the assessment to contribution, as the Special Commissioners may allow.

(6)Where of a husband and wife one died during the year 1947-48, the provisions of this Part of this Act shall apply to the survivor as if during that year they had not been married.

(7)References in this section to investment income of a husband or wife, except the reference in subsection (1) thereof to the aggregate investment income of the husband, shall be construed as references to investment income which would be such income of the husband or the wife apart from the provisions of the Income Tax Acts under which income of a wife is treated as income of her husband; and where a husband and wife were married and living together during part only of the year 1947-48—

(a)references in this section to the aggregate investment income of the wife shall be construed as references to her aggregate investment income for that part of the year;

(b)references therein to the aggregate investment income of the husband shall be construed as references to his aggregate investment income for the whole year.

59Provisions as to certain companies

(1)The following provisions of this section shall have effect where an individual is assessed to contribution by reference to the undistributed income of a company (hereinafter referred to as " the apportioned income ") which by virtue of a direction and apportionment under section twenty-one of the Finance Act, 1922, was deemed to be his income for the purposes of sur-tax.

(2)If any part of the contribution remains unpaid at the expiration of twenty-eight days from the time when it became due, the Special Commissioners may by notice in writing addressed to the company require the company to pay it up to an amount which bears to the whole of the contribution the same proportion as the apportioned income bears to the aggregate investment income of the said individual, ascertained without any such deduction being made as is allowable under subsection (4) of section fifty-one of this Act.

(3)Any sum required to be paid by a company in pursuance of a notice under the last foregoing subsection shall be payable on the day next following the giving of the notice, and the provisions of this Part of this Act and of regulations thereunder shall apply to any such sum as they apply to contribution payable by an individual.

60Appeals

(1)An individual may not later than the prescribed time from the giving to him of notice of the assessment appeal to the Special Commissioners against an assessment to contribution made on him.

(2)Where contribution assessed on an individual may fall to be recoverable from another person (hereafter in this section referred to as an " indirect contributor ") by reason that it is charged by reference to income arising under a trust.—

(a)the Special Commissioners shall, if the indirect contributor so requires or in any other case where the indirect contributor is known to them, give notice to him stating the amount of the said income and the amount of contribution attributable thereto, and shall give a like notice to the individual assessed ;

(b)the indirect contributor or the individual assessed may not later than the prescribed time from the giving of the notice appeal to the Special Commissioners against the notice on the grounds that the amount of the said income has been wrongly ascertained, and on any appeal under this paragraph the Special Commissioners may make any alteration in the assessment necessitated by the determination of the appeal;

(c)on any appeal against the assessment by the individual assessed, being an appeal in which the amount of the said income is brought into question, the indirect contributor shall be entitled as respects that amount to appear and be heard by the Special Commissioners or to make representations to them in writing ;

(d)on an appeal by an indirect contributor the individual assessed shall be entitled to appear and be heard -by the Special Commissioners ;

(e)where an assessment to contribution is varied, the Special Commissioners shall, if the indirect contributor so requires or in any other case where he is known to them, give notice to him of any variation of the amount of the said income and the amount of contribution attributable thereto, and shall give a like notice to the individual assessed. Where this subsection applies to ail indirect contributor by reason of his being trustee or tenant for life under, or otherwise concerned with, a trust under which income arose to other trustees, the notice under paragraph (a) of this subsection, in lieu of stating the particulars specified in that paragraph, shall state the amount of the said income, the contribution attributable thereto and the total income of the said other trustees; and where this provision has effect—

(i)references in this subsection to the income arising under a trust by reference to which contribution is charged shall be construed as references to the said income arising to the other trustees and their total income ;

(ii)references in this subsection to the amount of contribution attributable to the said income by reference to which contribution is charged shall be construed as references to the amount of contribution attributable to the said income arising to the other trustees ;

(iii)references to the individual assessed (other than the first reference in this subsection to that individual) shall be construed as including references to the said other trustees.

(3)A wife on whom notice is served under subsection (1) of section fifty-eight of this Act requiring her to pay any sum in respect of contribution assessed on her husband may not later than the prescribed time from the giving of the notice appeal against the notice on the grounds that her investment income has been wrongly ascertained; and on an appeal under this subsection—

(a)the Special Commissioners may make any alteration necessitated by the determination of the appeal in the assessment on the husband ;

(b)the husband shall be entitled to appear and be heard by the Special Commissioners.

(4)An appeal to the Special Commissioners may be brought against the determination of an application under any of the next five following sections of this Act, or under the Tenth Schedule thereto.

(5)The contributor or other persons mentioned in paragraph (b) or paragraph (c) of subsection (7) of section fifty-six of this Act may appeal to the Special Commissioners against a determination under the said paragraph (b) that no repayment is due thereunder or as to the amount of any such repayment or a determination under the said paragraph (c) how far a right of recovery is exercisable.

(6)On any appeal under this section the Special Commissioners shall have power, if they think fit, to summon witnesses and examine them on oath.

(7)The provisions of section one hundred and forty-nine of the Income Tax Act, 1918 (which relate to the statement of a case for the High Court on a point of law) shall, with the necessary modifications, apply in the case of any appeal to the Special Commissioners under this section as they apply in the case of appeals to the Special Commissioners under that Act.

(8)Where an assessment for the purposes of income tax for the year 1947-48 has become final and conclusive and the assessment related only to investment income, the assessment shall be conclusive for the purposes of this Part of this Act as to the amount of the income to which the assessment relates and that amount shall not be questioned in any appeal under this section.

(9)An assessment to contribution which has become final against the individual assessed shall be final and conclusive against any other person, so however that where under this section a notice may be required to be given to that other person in connection with the assessment, the assessment shall not become final and conclusive against him until the notice has been given and, where the notice is subject to appeal, until the time for appealing against it has expired, or, if an appeal is brought, until it has been determined.

(10)Any notice which is given to an indirect contributor under this section in connection with the exercise of any right of recovery and which, if subject to appeal, has become final, shall be conclusive for the purposes of the exercise of the right.

(11)Notwithstanding anything in section fifty-six of this Act, no right of recovery thereunder shall be exercisable until any notice which may be required to be given to the indirect contributor under this section has been given and, if subject to appeal, has become final:

Provided that this subsection shall have effect subject to the provisions of regulations under the next following subsection relating to the recovery of tax appearing not to be in dispute. ,

(12)The Commissioners of Inland Revenue may by statutory instrument make regulations with respect to appeals under this section and the hearing thereof, and for prescribing anything authorised to be prescribed under this section, and may by those regulations apply and adapt any enactment relating to appeals as to income tax and to the collection and payment, notwithstanding a pending appeal, of so much tax as appears not to be in dispute. Any statutory instrument made under this subsection shall be subject to annulment in pursuance of resolution of either House of Parliament.

61Relief where income attributable to period of years was received in year 1947-48

(1)Where—

(a)either before or after an assessment to contribution is made, but in any case before such an assessment has become final, application is made to the Special Commissioners for relief under this section, and

(b)the Special Commissioners are satisfied as respects any assets that, by reason of the _provisions of the Income Tax Acts which require that income which is chargeable with income tax by way of deduction shall be deemed to be income of the year in which it is receivable, the income from the assets represents more than the income which would be attributable to a period of one full year if the income were deemed to have accrued from day to day,

the Special Commissioners shall in ascertaining total income and aggregate investment income for the purposes of .this Part of this Act make such reduction, if any, as may be appropriate to secure that there shall be taken as representing the income from the assets an amount equivalent to a full year's income therefrom.

(2)Subsection (1) of section thirty-six of the Finance Act, 1927 (which specifies the period over which income is deemed to have accrued from day to day) shall apply for the purposes of paragraph (b) of the last foregoing subsection as it applies for the purposes of section thirty-four of the said Act of 1927 (which makes in relation to surtax the like provision as subsection (1) of this section).

62Allowance for maintenance, repairs, etc.

(1)If, either before or after an assessment to contribution is made, but in any case before such an assessment has become final, application in that behalf is made to the Special Commissioners, then in ascertaining total income and aggregate investment income for the purposes of this Part of this Act Rule 8 of No. V of Schedule A shall have effect as if, for all purposes thereof, for references therein to the cost of maintenance, repairs, insurance and management according to the average of the preceding five years there were substituted references to the said cost for the year ending on the thirty-first day of March, nineteen hundred and forty-eight, or such other date in the year 1947-48 as may be adopted by the owner of the land or houses with the consent of the surveyor of the district.

(2)For the purpose of ascertaining the last-mentioned cost, paragraph (5) of the said Rule 8 (which provides for applying the provisions of the Income Tax Acts as to claims for allowances or deductions and the proof to be given with respect to such claims, and for certification by the surveyor of the correctness of declarations by owners relating thereto) shall apply with the necessary modifications.

63Limitation of liability of trustees

(1)Where—

(a)on a claim against a trustee for the recovery of contribution, not being contribution in respect of which the trustee could have given notice under subsection (4) of section fifty-six of this Act, or

(b)on a claim against a tenant for life for the recovery of contribution,

the trustee or tenant for life shows to the satisfaction of the Special Commissioners that his rights of indemnification out of the trust estate are, otherwise than by negligence or default on his part, insufficient to provide for his reimbursement, the Special Commissioners shall give such directions for the limitation or release of his liability as appear just and equitable.

(2)Where a person who has paid any contribution proves to the satisfaction of the Special Commissioners that by reason of directions under the last foregoing subsection he is deprived of the 'right to recover any amount in respect thereof, the Special Commissioners shall repay that amount to him.

64Relief where capital subject to death duties

(1)Where, either before or after an assessment to contribution is made, but in any case before such an assessment has become final, application is made to the Special Commissioners for relief under this section, and the Special Commissioners are satisfied—

(a)that in consequence of a death occurring before the end of the year 1947-48 death duties became payable in respect of any assets, and

(b)that investment income affecting, whether directly or indirectly, the amount of any contribution arose from the assets, and

(c)that the amount of that income exceeded what it would have been if all death duties payable in consequence of the death had been paid immediately on the occurrence of the death or other event whereby the duties became payable,

the amount of the said income shall in ascertaining aggregate investment income for the purposes of this Part of this Act be treated as reduced by such amount as the Special Commissioners may determine to be appropriate to offset the excess.

(2)In this section the expression " death duties" means estate duty, succession duty or legacy duty.

65Relief in respect of error or mistake

(1)Where at any time before the fifth day of April, nineteen hundred and fifty-four it is shown to the satisfaction of the Special Commissioners that an assessment to contribution was excessive by reason of any error or mistake in any return or statement made for the purposes of contribution, or that after the assessment became final any adjustment was made under the provisions of the Income Tax Acts of any income that was relevant to ascertaining aggregate investment income or total income for the purposes of the assessment, the Special Commissioners shall authorise any appropriate adjustment of the contribution.

(2)Effect shall be given to any adjustment authorised by the Special Commissioners under this section either by discharge or reduction of the assessment in question, or by repayment of the contribution to the persons by whom it was paid or from whom it was recovered, or by all or any of those means, as the case may require.

(3)Where contribution is repaid under this section, there shall also be repaid any interest paid in respect of that contribution.

(4)Where under this section repayment is made of contribution the whole or any part of which was discharged by payment in advance, the amount of the repayment shall be calculated as if the payment in advance had been made in respect of the contribution as adjusted under this section and as if the interest referred to in subsection (2) of section fifty-four of this Act had been calculated accordingly.

66Provisions as to National Trust

(1)Where under a , settlement any property (whether real or personal) was for the whole or any part of the year 1947-48 held upon trust for the National Trust subject only to a life interest of the settlor or to life interests of the settlor and his wife or her husband, whether jointly or in succession, any income arising from the property during that year or the part thereof in question shall be disregarded for the purposes of this Part of this Act :

Provided that nothing in this section shall affect the ascertainment of the amount of an individual's total income.

(2)In this section the expression " National Trust " means the National Trust for Places of Historic Interest or Natural Beauty incorporated by the National Trust Act, 1907, or the National Trust for Scotland for Places of Historic Interest or Natural Beauty incorporated under the National Trust for Scotland. Order Confirmation Act, 1935.

67Obligation as to secrecy

All Commissioners and other persons employed for any purpose in connection with the assessment or collection of contribution shall be subject to the same obligations as to secrecy with respect to contribution as they are subject to with respect to income tax, and any oath taken by any such person as to secrecy with respect to income tax shall be deemed to extend also to secrecy with respect to contribution.

68Interpretation of Part V

(1)In this Part of this Act—

the expression " assessment " includes additional assessment;

references to income of an individual arising under a trust include references to income from property subject to the trust which is treated as the income of that individual by virtue of any of the provisions of the Income Tax Acts;

the expression " tenant for life " means, in relation to any settlement, any person who has the powers of a tenant for life under the Settled Land Act, 1925, or in Northern Ireland under the Settled Land Acts, 1882 to 1890 ;

references to a trust do not include references to a trust constituted in pursuance of a unit trust scheme as defined for the purposes of Part VII of the Finance Act, 1946 ;

the expression "trustee " includes a personal representative, and the expression " trust " shall be construed accordingly.

(2)Save as expressly provided in this Part of this Act, expressions used therein have the same meanings as in the Income Tax Acts.

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