Finance Act 1942

28 Farming.

(1) In subsection (1) of section eleven of the [4 & 5 Geo. 6. c. 30.] Finance Act, 1941 (which specifies the cases where farming is exempted from compulsory assessment under Schedule D), for the words " three hundred pounds " there shall, as respects tax for the year 1942-43 and subsequent years of assessment, be substituted the words " one hundred pounds. "

(2) In the definition of the expression " assessable value " in Schedule B of the Income Tax Act, 1918, for the words " means in relation to tax under this Schedule an amount equal to the annual value " there shall be substituted the words " means in relation to tax under this Schedule an amount equal to three times the annual value ",

(3) Rule 5 of the Rules applicable to Schedule B (which allows farmers who would otherwise be charged under Schedule B to elect to be charged under Schedule D) shall not have effect as respects tax for the year 1942-43 or any subsequent year of assessment, except in so far as it is applied in relation to woodlands by Rule 7 of the said Rules.

(4) In considering, in relation to farming, whether any, and if so what, relief may be given to any person for the year 1942-43 or any subsequent year of assessment under section thirty-three of the Finance Act, 1926, or section twenty-nine of the Finance Act, 1927 (which relate to the carrying forward of losses) there may, if that person or a partnership of which he is a member is, by virtue of this section, chargeable under Schedule D for the year 1942-43 in respect of his or their farming, be carried forward to the year 1942-43 and subsequent years of assessment from the years of assessment preceding the year 1942-43 the amount (if any) which would have fallen to be carried forward to those years respectively if that person and every partnership of which he was a member had been charged under Schedule D in respect of his or their farming for all those preceding years and had been given in those preceding years all the relief which he or they could have been given under those sections if he or they had been so charged.

(5) Where on a claim made for the purposes of this subsection within twelve months from the end of the year 1942-43 it is proved that the profits or gains from farming in that year of any individual or partnership of individuals are less than the amount of the profits or gains by reference to which he or they is or are charged by virtue of this section for that year—

(a) that individual or partnership of individuals shall be entitled to such relief from income tax, other than surtax, as will reduce the amount of income tax, other than surtax, payable to the amount which would have been payable if he or they had been charged by reference to the actual profits or gains for that year ;

(b) the individual, or, in the case of a partnership of individuals, each of the individuals, shall be entitled to such relief from the surtax, if any, payable by him for that year as will reduce the amount of surtax so payable to the amount which would have been payable if the individual or, as the case may be, the partnership had been charged as aforesaid.

(6) In this section the expression " farming " has the same meaning as in section ten of the Finance Act, 194.1.