Finance Act, 1939

Sur-tax for the year 1938-39.

2.—(1) Notwithstanding anything to the contrary contained in section 1 of the Finance Act, 1938 (No. 25 of 1938), the following provisions shall have effect in relation to the sur-tax charged for the year beginning on the 6th day of April, 1938, that is to say:—

(a) the rates at which the said sur-tax shall be charged in respect of the income of any individual which exceeds three thousand pounds but does not exceed eight thousand pounds shall (subject to the subsequent provisions of this section) be the several rates at which the said sur-tax is chargeable by virtue of the said section 1 increased, in the case of each such rate, by ten per cent.;

(b) the rates at which the said sur-tax shall be charged in respect of the income of any individual which exceeds eight thousand pounds shall (subject to the subsequent provisions of this section) be the several rates at which the said sur-tax is chargeable by virtue of the said section 1 increased, in the case of each such rate, by fifteen per cent.

(2) In the case of any individual to whom paragraph (a) of the foregoing sub-section of this section applies, the amount of the surtax with which he is charged by virtue of the said paragraph (a) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—

(a) the amount of the sur-tax which he would be liable to pay if his income had reached but had not exceeded three thousand pounds, and

(b) the amount by which his income exceeds three thousand pounds reduced by income tax at the standard rate on such excess.

(3) In the case of any individual to whom paragraph (b) of sub-section (1) of this section applies, the amount of the sur-tax with which he is charged by virtue of the said paragraph (b) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—

(a) the amount of the sur-tax which he would be liable to pay if his income had reached but had not exceeded eight thousand pounds, and

(b) the amount by which his income exceeds eight thousand pounds reduced by income tax at the standard rate on such excess.

(4) The amount payable by virtue of any assessment, made on or before the 10th day of May, 1939, in respect of sur-tax for the year beginning on the 6th day of April, 1938, to which any of the foregoing provisions of this section applies shall, by virtue of this section and without more, be deemed to be so varied as to give effect to such of the said provisions as is or are applicable.