Finance Act 1946

Section 17.

FIFTH SCHEDULE Modification of Enactments Relating to Purchase Tax.

1 For subsection (3) of section twenty of the Finance (No. 2) Act, 1940 (as amended by Part I of the Second Schedule to the Finance Act, 1944), there shall be substituted the following subsection:—

“(3) An order under this section shall specify a date for its coming into operation, and such an order shall—

(a) for the purpose of determining whether tax is chargeable by virtue of a purchase of goods of the class to which the order relates and if so at what rate, have effect, subject as provided in subsection (4) of this section, in respect of goods of that class delivered under the purchase on or after the specified date, notwithstanding that the purchase was made before that date ; and

(b) for the purpose of determining whether tax is chargeable by virtue of the application of a chargeable process resulting in goods of the class to which the order relates and if so at what rate, have effect, subject as provided in subsection (4) of this section, in respect of goods of that class resulting from the application of a chargeable process completed on or after the specified date, notwithstanding that the process was applied in pursuance of a contract made before that date.”

2 At the end of section twenty-seven of the said Act there shall be inserted the following subsection :—

“(2) Where in pursuance of a contract made in the United Kingdom, a party to the contract applies a chargeable process to the order of another party thereto, he shall add to any invoice or similar document delivered by him to the said other party a statement indicating the amount due from the said other party to him by reference to the tax for which he may be accountable in respect of the application of the process.”

3 For subsection (1) of section twenty-nine of the said Act the following subsection shall be substituted :—

“(1) Where goods bought under a chargeable purchase, or goods appropriated or applied as mentioned in section twenty-five of this Act, or goods resulting from a chargeable process, are shown to the satisfaction of the Commissioners to have been exported from the United Kingdom by the seller under the purchase, or by a person by whom the goods were so appropriated or applied, or by the person who, apart from this subsection, would be accountable for the tax chargeable by reason of the application of the process, as the case may be, the tax which apart from this provision would be chargeable in respect of the goods shall not be chargeable.”

4 In subsections (1) and (2) of section thirty-one of the said Act after the words " by virtue of a purchase " there shall be inserted the words " or of the application of a chargeable process. "

5 In subsection (1) of section forty of the said Act, the references to purchases shall be construed as including references to the application of a chargeable process and the references to a chargeable purchase shall be construed as including references to the application of a chargeable process in such circumstances that tax becomes payable in respect thereof.

6 In subsection (4) of section eleven of the Finance Act, 1944, at the end of paragraph (a) there shall be inserted the words:—

“or had resulted from the application of a chargeable process in such circumstances that tax became chargeable on the completion of the process. and in paragraph (b) after the words " or importation " there shall be inserted the words " or resulting from the application of that process. ”