Finance Act, 1952
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Alteration of reduced rate relief and consequential amendment of section 32 of Income Tax Act, 1918. |
4.—(1) The following provision shall be substituted for section 23 of the Finance Act, 1920 , as amended by subsection (4) of section 3 of the Finance Act, 1932 (No. 20 of 1932), that is to say:— | |
“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall be entitled to be charged at two-fifths of the standard rate of tax on the first one hundred pounds of his taxable income and at four-fifths of the standard rate of tax on the next one hundred pounds of that income.” | ||
(2) References in any enactment to the said section 23 of the Finance Act, 1920 , as amended by the said subsection (4) of section 3 of the Finance Act, 1932 , shall be construed and have effect subject and with due regard to the substitution effected by subsection (1) of this section and, in particular, references in any enactment to half the standard rate of tax in relation to the first one hundred pounds of taxable income shall, as respects the first one hundred pounds of taxable income, be construed as references to two-fifths of the standard rate of tax and shall, as respects the next one hundred pounds of taxable income, be construed as references to four-fifths of the standard rate of tax. | ||
(3) The following words shall be substituted for the words “half the standard rate of tax” in paragraph (i) of subsection (1) of section 32 of the Income Tax Act, 1918, as amended by section 26 of the Finance Act, 1920 , and in subparagraph (i) of paragraph (e) of subsection (3) of the said section 32 as so amended, that is to say: | ||
“the lesser of the two following rates: | ||
(A) half the standard rate of tax, | ||
(B) the rate obtained by dividing the tax payable by the person referred to in subsection (1) of this section, before deduction of any relief under this section or of any double taxation relief under any agreement between the Government and the Government of any other State, but after reduction in respect of any tax which he is entitled to charge against any other person, by the amount of his taxable income, which for this purpose shall be deemed to be reduced by the amount of any income the income tax upon which he is entitled to charge as aforesaid”, | ||
and references in any enactment to section 32 of the Income Tax Act, 1918, shall be construed and have effect accordingly. |