Finance Act, 1941

Excess corporation profits tax.

37.—(1) In addition to the corporation profits tax otherwise chargeable by law, there shall be charged, levied, and paid on the profits mentioned in the next following sub-section of this section corporation profits tax (referred to in this Part of this Act as excess corporation profits tax) at the rate of fifty per cent. of those profits.

(2) The profits on which excess corporation profits tax is made payable by the next preceding sub-section of this section are—

(a) so much of the profits (being profits to which Part V of the Finance Act, 1920 , as amended by subsequent enactments, applies) which arise or have arisen in any accounting period beginning on or after the 1st day of January, 1941, as exceeds the standard profits as defined in this Part of this Act, and

(b) so much of the profits (being profits to which Part V of the Finance Act, 1920 , as amended by subsequent enactments, applies) which have arisen in the part subsequent to the 31st day of December, 1940, of any accounting period which began before and ended on or after the 1st day of January, 1941, as exceeds the standard profits as defined as aforesaid.

(3) The following provisions shall apply and have effect in relation to excess corporation profits tax, that is to say:—

(a) the profits arising in an accounting period which began before and ended on or after the 1st day of January, 1941, shall be apportioned between the part of that accounting period which was prior to the 1st day of January, 1941, and the part thereof which was subsequent to the 31st day of December, 1940, in proportion to the respective lengths of those parts;

(b) the proviso to sub-section (1) of section 52 of the Finance Act, 1920 , shall not apply or have effect.

(4) Excess corporation profits tax shall be a corporation profits tax and accordingly all enactments for the time being in force in relation to corporation profits tax shall (save as is otherwise expressly provided by this Part of this Act) apply and have effect in relation to excess corporation profits tax.