Finance Act, 1979
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Chapter V Income Tax and Corporation Tax | ||
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Amendment of provisions relating to relief in respect of increase in stock values. |
23.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended— | |
(a) by the substitution of the following paragraphs for paragraphs (ii) and (iii) of the proviso (inserted by the Finance Act, 1977 ) to subsection (4) (a)— | ||
“(ii) the company's trading income to be taken into account in computing a deduction shall be that income before any deduction is made under this section or the Fifth Schedule, | ||
(iii) in relation to an accounting period which ends on or after the 6th day of April, 1978, the amount of the deduction under this section shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph of this proviso, would be the amount of the deduction for that accounting period, and | ||
(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1979.”, | ||
(b) by the substitution of the following paragraph for paragraph (b) of subsection (5)— | ||
“(b) the 31st day of December next following the end of the year of assessment in which the accounting period ends,”, and | ||
(c) by the substitution of “1979” for “1978”— | ||
(i) in subsection (7) (inserted by the Finance Act, 1977 ), and | ||
(ii) in subsection (9) (inserted by the Finance Act, 1977 ) in each place where it occurs, | ||
and the said subsection (7) (other than the proviso) and the said subsection (9) (other than the proviso), as so amended, are set out in the Table to this subsection. | ||
TABLE | ||
(7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1979, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period : | ||
(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1979, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where— | ||
A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1979, | ||
B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1979, and | ||
C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods : | ||
(2) Section 12 of the Finance Act, 1976 , is hereby amended— | ||
(a) by the insertion of the following paragraph after paragraph (b) of subsection (2)— | ||
“(c) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for the year 1979-80, the amount of the deduction shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph, would be the amount of the deduction for that accounting period.”, | ||
(b) by the substitution in subsection (3) of “1979-80” for “1978-79” (inserted by the Finance Act, 1978 ), | ||
(c) by the substitution of the following paragraph for paragraph (b) of subsection (4)— | ||
“(b) the 31st day of December in the year of assessment for which the assessment is made”, | ||
(d) by the substitution of “1979” for “1978” in each place where it occurs in subsection (5) (inserted by the Finance Act, 1978 ) and subsection (6) (inserted by the Finance Act, 1977 ), and | ||
(e) by the substitution of the following subsection for subsections (7) (inserted by the Finance Act, 1977 ) and (7A) (inserted by the Finance Act, 1978 )— | ||
“(7) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for a year of assessment (being a year of assessment later than 1978-79) (in this subsection referred to as ‘the relevant year’)— | ||
(a) the person shall not be entitled to relief— | ||
(i) under section 309 of the Income Tax Act, 1967 , for any year of assessment later than the relevant year in respect of a loss sustained in the trade before the commencement of the relevant year, or | ||
(ii) under section 311 of the Income Tax Act, 1967 , for any year of assessment earlier than the relevant year in respect of a loss sustained in the trade, | ||
(b) the provisions of section 241 (3) of the Income Tax Act, 1967 , or of that section as applied by any other provision of the Income Tax Acts, shall not apply as respects a capital allowance or part of a capital allowance which is, or is deemed to be, all or part of a capital allowance for the relevant year and to which full effect has not been given in that year owing to there being no profits or gains chargeable for that year or an insufficiency of profits or gains chargeable for that year, and | ||
(c) the provisions of section 318 of the Income Tax Act, 1967 , shall not apply to the capital allowances or any part thereof for the relevant year.”, | ||
and the said subsection (3), the said subsection (5) (other than the proviso) and the said subsection (6) (other than the proviso), as so amended, are set out in the Table to this subsection. | ||
TABLE | ||
(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1979-80. | ||
(5) In the computation of a person's trading income for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1979, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period : | ||
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(6) In the computation of a person's trading income for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1979, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C | ||
where— | ||
A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1979, | ||
B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1979, and | ||
C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1979 : |