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Finance Act 1948

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This is the original version (as it was originally enacted).

5(1)In this Schedule the following expressions have the meanings hereby assigned to them respectively, that is to say:—

  • " company " means a company within the meaning of the Companies Act, 1929, or the Companies Act (Northern Ireland), 1932;

  • " director " includes any person occupying the position of director by whatever name called, and any person in accordance with whose directions or instructions the directors of a company are accustomed to act;

  • " investment company" has the same meaning as in section twenty of the Finance Act, 1936 ;

  • " private company " means a private company within the meaning of the said Act of 1929 or the said Act of 1932, being a company the directors whereof had a controlling interest therein, so however that for the purposes of this definition no body corporate shall be treated as a director unless it was during the relevant period itself a company the directors whereof had a controlling interest therein ;

  • " working director ", in relation to a company, means any director thereof who during the period in question worked full time in the actual management or conduct of the trade or business of the company.

(2)Where during a period being or comprised in the year 1947-48 an individual was a director of two or more private companies which, within the meaning of section eighteen of the Companies Act, 1947, either were a holding company and one or more subsidiary companies thereof or were subsidiary companies of the same holding company, and during that period he worked full time in the actual management or conduct of the trades or businesses of the companies taken together, he shall be treated as a working director of such one of the companies as he selects and the provisions of this Schedule shall apply accordingly but subject to the following modifications :—

(a)the aggregate of his emoluments from all the companies as a director for the said period, being emoluments which fall to be included in his total income for the year 1947-48, shall be treated for the purposes of sub-paragraph (1) of paragraph 2 of this Schedule as if they were emoluments from the company of which he is to be treated as a working director ;

(b)he may require that investment income from share capital of all the companies shall be treated as if it were investment income from share capital of the said company:

Provided that nothing in this sub-paragraph shall affect the operation of this Schedule in relation to a director who would be a working director apart from this sub-paragraph.

(3)For the purposes of this Schedule, the profits of a company shall be taken to be the profits as computed, without abatement and including franked investment income, for the purposes of the profits tax, except that—

(a)no deduction shall be made in respect of the remuneration of working directors; and

(b)all remuneration of other directors shall be deducted.

(4)Where the relevant period comprises one or more accounting periods or parts of accounting periods of the company for the purposes of the profits tax, the profits of the company for the relevant period shall be ascertained in accordance with the last foregoing sub-paragraph by aggregating the profits for the said periods or parts of periods; and for the purposes of this sub-paragraph the profits for part of an accounting period shall be ascertained by apportioning the profits for the whole period according to the number of months and fractions of months in the said part of the period and in the remainder thereof.

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