Finance (No. 2) Act 1945

20 Tax free annuities, etc..

(1) The amendments of section twenty-five of the Finance Act, 1941, specified in this section shall have effect-for the purpose of rendering the said section twenty-five (which provides for a reduction of tax free annuities, etc., in years of assessment where the standard rate of income tax is ten shillings in the pound) applicable with modifications to all years of assessment for which the standard rate of income tax is over five shillings and sixpence in the pound.

(2) In subsection of the said section twenty-five, for the words " is ten shillings " there shall be substituted the words " exceeds five shillings and six pence. "

(3) For the words '' twenty twenty-ninths '' wherever they occur in the said section twenty-five there shall be substituted the words '' the appropriate fraction ''; and at the end of the said section twenty-five there shall be inserted the following subsection—

“(6) In this section, the expression ' the appropriate fraction ' means, in relation to any year of assessment, the fraction the denominator of which is twenty-nine and the numerator of which is twenty-nine decreased by one for every complete sixpence in the pound by which the standard rate of income tax for the year exceeds five shillings and six pence in the pound.”

(4) In sub-paragraph (ii) of paragraph (b) of subsection (4) of the said section twenty-five, for the words " ten shillings in the pound " there should be substituted the words " the standard rate of tax for the year of assessment in which the payment falls to be made. "

(5) Nothing in this section affects any payments falling to be made before the sixth day of April, nineteen hundred and forty-one.