Finance Act 1940

1. Introductory Text

2. PART I Customs and Excise.

   1. 1. Beer.

   2. 2. Spirits.

   3. 3. Tobacco.

   4. 4. Matches.

   5. 5. Mechanical lighters.

   6. 6. Extension of period of stabilisation of Imperial preference in case of sugar, and c.

   7. 7. Drawback of duties under Safeguarding of Industries Act, 1921.

   8. 8. Excise licences for vehicles belonging to members of forces on leave.

   9. 9. Reduction of duty on certain mechanically propelled vehicles used for agricultural purposes.

   10. 10. Exemption from duty in respect of trailers used for refuse collection by local authorities and their contractors.

3. PART II Income Tax.

   1. Charge of Tax.

      1. 11. Income tax for 1940-41.

      2. 12. Higher rates of income tax for 1939-40.

   2. Rents and annual payments in respect of land.

      1. 13. Application and interpretation of provisions as to rents and annual payments.

      2. 14. Modifications of relief from Schedule A in case of unoccupied houses.

      3. 15. Taxation of excess rents of immediate lessors arising under certain short leases.

      4. 16. Taxation of excess rents arising under other short leases.

      5. 17. Rents under long leases and other annual payments in respect of land.

      6. 18. Information.

   3. Miscellaneous.

      1. 19. Extension of classes of income from foreign possessions taxable though not received in the United Kingdom.

      2. 20. Provisions as to dividends paid without full deduction of tax.

      3. 21. Amendment of provisions relating to tax-free income.

      4. 22. Deduction for wear and tear of hired machinery and plant.

      5. 23. Extension to 1940-41, and amendment, of s. 11 of Finance (No. 2) Act, 1939.

      6. 24. Double claims for children relief.

      7. 25. Postponement of quinquennial revaluation for purposes of Schedules A and B.

4. PART III Excess Profits Tax and National Defence Contribution.

   1. 26. Raising of rate of excess profits tax.

   2. 27. Provisions to replace s. 13 (7) of Finance (No. 2) Act, 1939.

   3. 28. New provisions as to inter-connected companies.

   4. 29. Investments held by members of groups of bodies corporate.

   5. 30. Relief in respect of excess profits tax in dominions, and c.

   6. 31. Miscellaneous amendments as to standard profits.

   7. 32. Disallowance, in computing profits, of certain expenses.

   8. 33. Miscellaneous amendments as to computation of profits for excess profits tax.

   9. 34. Miscellaneous amendments as to computation of capital.

   10. 35. Computation of profits and capital in the case of trades and businesses not falling within Case I of Schedule D.

   11. 36. Provisions as to computation of losses.

   12. 37. Amendments as to deficiencies of profits.

   13. 38. Successions and amalgamations.

   14. 39. Amendments as to relation of excess profits tax to national defence contribution.

   15. 40. Amendments as to national defence contribution.

   16. 41. Definition of ordinary share capital.

   17. 42. Date from which amendments are to operate.

5. PART IV Estate Duty.

   1. General.

      1. 43. Disposition or determination of life interests, and c.

      2. 44. Purchases of annuities, and c, from relatives.

      3. 45. Gifts by way of creation of burden or release of right.

   2. Estate duty in respect of deceased's benefits from certain companies.

      1. 46. Charge on company's assets in respect of deceased's benefits therefrom.

      2. 47. Matters to be treated as benefits to deceased from company.

      3. 48. Surrender of title to, or of power to obtain, benefits.

      4. 49. Determination of net income of company.

      5. 50. Determination of value of assets of company.

      6. 51. Limitation on, and prevention of duplication of, charge.

      7. 52. Aggregation.

      8. 53. Duty to give information to Commissioners on death.

      9. 54. Collection and incidence of duty under s. 46.

   3. General provisions as to certain companies.

      1. 55. Valuation for estate duty of shares and debentures of certain companies.

      2. 56. Limitation of exceptions for consideration, and for exclusion of deceased, where company concerned.

      3. 57. Information for purposes of s. 46 and s. 55.

   4. Interpretation and definitions.

      1. 58. Interpretation of estate duty provisions.

      2. 59. Definitions for purposes of Part IV.

6. PART V Miscellaneous.

   1. 60. Extension of power of Treasury to attach exemptions from taxation to securities.

   2. 61. Provisions as to permanent annual charge for the National Debt.

   3. 62. Amendment as to deficit for 1939-40.

   4. 63. Suspension of enactments relating to Post Office Fund.

   5. 64. Remission of death duties in cases of members of the crews of vessels killed in war.

   6. 65. Short title, construction, extent and repeal.

7. SCHEDULES.

   1. FIRST SCHEDULE

      Beer (Rates of Duty and Drawback).

      1. PART I Rate of Excise Duty.

      2. PART II Rate of Excise Drawback.

      3. PART III Rate of Customs Duty in case op Beer being an Empire Product.

      4. PART IV Rate of Customs Duty in case of Beer not being an Empire Product.

      5. PART V Rate of Customs Drawback in case op Beer being an Empire Product.

      6. PART VI Rate of Customs Drawback in case of Beer not being an Empire Product.

   2. SECOND SCHEDULE

      Spirits (Rates of Ordinary Customs Duty).

   3. THIRD SCHEDULE

      Tobacco (Rates of Duty and Drawback).

      1. PART I Customs Duties.

      2. PART II Excise Duties.

      3. PART III Drawback.

   4. FOURTH SCHEDULE

      Matches (Rates of Duty).

      1. PART I Rates op Customs Duties.

      2. PART II Rates of Excise Duties.

   5. FIFTH SCHEDULE

      Provisions as to Excess Profits Tax and National Defence Contribution in the case of interconnected companies.

      1. PART I

         1. Assessment of excess profits tax.

            1. 1. (1) If, for any period after the end of March,...

            2. 2. Every assessment to excess profits tax made in respect of...

            3. 3. Paragraph 1 of Part III of the Fifth Schedule to...

      2. PART II

         1. The group standard period and the group standard profits.

            1. 1. (1) This Part of this Schedule shall have effect with...

            2. 2. (1) If the trade or business of any of the...

            3. 3. (1) If the group is one to which the last...

            4. 4. (1) Whether the group is or is not such a...

      3. PART III

         1. Ascertainment of standard profits of members and ascertainment of excesses and deficiencies of profits.

            1. 1. The standard profits of a body corporate which is a...

            2. 2. (1) If the group is such a group as is...

            3. 3. (1) If the group is not such a group as...

            4. 4. If by virtue of an election of the principal company...

            5. 5. (1) If in the case of the trade or business...

      4. PART IV

         1. Miscellaneous Provisions.

            1. 1. (1) Subsection (1) of section seventeen of the Finance (No....

            2. 2. (1) In this paragraph, the expression " the borrowed money...

            3. 3. (1) This paragraph applies to a subsidiary member of a...

            4. 4. (1) In this paragraph— (a) the expression " period of...

            5. 5. If at any time after the thirty-first day of March,...

            6. 6. (1) Subject to the provisions of sub-paragraph (2) of this...

            7. 7. (1) Neither section nineteen of the Finance (No. 2) Act,...

            8. 8. (1) For each subsidiary member of a group of companies,...

            9. 9. (1) Section eighteen of the Finance (No. 2) Act, 1939,...

            10. 10. (1) In the case of a member of a group...

            11. 11. Any appeal from any assessment to, or determination with respect...

            12. 12. Any dispute arising between any bodies corporate with respect to...

            13. 13. (1) In this Schedule, the expression " new subsidiary," in...

   6. SIXTH SCHEDULE

      Additional provisions as to assessment and collection of excess profits tax and the national defence contribution.

      1. 1. On an appeal against an assessment to excess profits tax...

      2. 2. Where an appeal is pending against an assessment to excess...

      3. 3. The provisions of paragraphs 1 and 2 of this Schedule...

      4. 4. Where, for any period, excess profits tax would be assessable...

      5. 5. Any payment made under an assessment to excess profits tax...

      6. 6. In this Schedule the expression " subsisting assessment " means...

      7. 7. Where the chargeable accounting periods for the purposes of excess...

      8. 8. Any apportionment required to be made by the last preceding...

   7. SEVENTH SCHEDULE

      Provisions supplementary to section forty-six and succeeding provisions of part iv.

      1. Amounts to be taken into account in respect of benefits, and time when benefits are to be treated as accruing.

         1. 1. (1) The provisions of this paragraph shall have effect for...

         2. 2. (1) The provisions of this paragraph shall have effect for...

      2. Adjustments as to Distributed Assets and Additions to Assets.

         1. 3. (1) Where the assets of the company passing on the...

         2. 4. (1) Where the principal value of the assets of the...

      3. Prevention of duplication of charge in respect of benefits and charge in respect of shares.

         1. 5. For the purposes of subsection (2) of section fifty-one of...

      4. " Accounting year. ".

         1. 6. (1) The expression " accounting year " means if the...

   8. EIGHTH SCHEDULE

      Enactments Repealed.