Finance Act 1926

JurisdictionUK Non-devolved
Citation1926 c. 22


Finance Act, 1926

(16 & 17 Geo. 5.) CHAPTER 22.

An Act to grant certain duties of Customs and Inland Revenue (including Excise), to alter other duties, and to amend the law relating to Customs and Inland Revenue (including Excise) and the National Debt, and to make further provision in connection with finance.

[4th August 1926]

Most Gracious Sovereign,

W e , Your Majesty's most dutiful and loyal subjects the Commons of the United Kingdom of Great Britain and Ireland in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Customs and Excise.

Part I.

Customs and Excise.

S-1 Duty on tea.

1 Duty on tea.

The duty of customs payable on tea until the first day of August, nineteen hundred and twenty-six, under section one of the Finance Act, 1925, shall, subject to the provisions of section eight of the Finance Act, 1919(which relates to imperial preference rates), continue to be charged, levied and paid until the first day of August, nineteen hundred and twenty-seven, that is to say—

Tea the lb., fourpence.
S-2 Continuation of increased medicine duties.

2 Continuation of increased medicine duties.

The additional duties of excise imposed by section eleven of the Finance (No. 2) Act, 1915, upon medicines liable to duty shall continue to be charged, levied and paid until the first day of August, nineteen hundred and twenty-seven.

S-3 Exemption of trade motor cars from customs duty to cease.

3 Exemption of trade motor cars from customs duty to cease.

The exemption from customs duty which is given by subsection (4) of section thirteen of the Finance (No. 2) Act, 1915, as applied by section three of the Finance Act, 1925, in respect of motor cars which are proved to the satisfaction of the Commissioners to be constructed and adapted for use and intended to be used solely for certain trade or other purposes, and chassis, component parts and accessories which are so proved to be intended to be used solely for any such motor cars, shall be deemed to have ceased as from the first day of May, nineteen hundred and twenty-six, except as respects any such cars, chassis, parts or accessories which are shown to the satisfaction of the Commissioners to have been imported and entered before the said first day of May:

Provided that, notwithstanding any repeal effected by this Act, the last paragraph of the said subsection (4) shall continue to have effect in relation to any motor car, chassis, component part or accessory which is shown to the satisfaction of the Commissioners to have been imported and entered before the said first day of May.

S-4 Repeal of excise duty on chicory.

4 Repeal of excise duty on chicory.

As from the commencement of this Act, no duty of excise shall be chargeable on chicory.

S-5 Amendment as to certain silk duties and drawbacks.

5 Amendment as to certain silk duties and drawbacks.

(1) In the case of silk tissue of which the warp or weft consists of yarn wholly or partly discharged and the weft or warp of undischarged yarn, the duty payable in respect of the tissue shall, instead of being charged at the rate of seven shillings and ninepence the pound as provided by Part I. of the Second Schedule to the Finance Act, 1925, be charged at the rate of five shillings and threepence the pound in respect of the undischarged yarn and at the rate of seven shillings and ninepence the pound in respect of the yarn wholly or partly discharged which is contained therein.

(2) Where, on or after the first day of August, nineteen hundred and twenty-six, any article of apparel made wholly or partly of silk is imported by any person for his own use and not for sale, the article, instead of being charged with duty in accordance with the provisions of Part I. of the Second Schedule to the Finance Act, 1925, may, at the option of the importer, be charged with a duty calculated on the whole weight of the article at a rate equal to twice the rate of the duty chargeable under the said Part I. in respect of the class of silk contained in the article.

For the purposes of this subsection—

(i) The expression ‘silk’ includes artificial silk;

(ii) Where silk of several classes is contained in the article, the article shall be chargeable with duty as if all the silk so contained were silk of that one of those classes in respect of which the highest rate of duty is payable under the said Part I.;

(iii) In determining the class to which any silk belongs, regard shall be had to the stage of manufacture in which the silk appears in the article.

(3) The drawback payable in respect of any silk or artificial silk yarn or tissue manufactured in Great Britain or Northern Ireland, which consists of more than one kind of yarn or tissue, shall be calculated by reference to the weight of each kind of yarn or tissue in the article in respect of which the drawback is claimed at the rate appropriate to that kind of yarn or tissue under the Finance Act, 1925.

(4) Paragraph 10 of Part III. of the said Second Schedule (which makes provision for an alternative scale of drawbacks in respect of artificial silk), shall be extended so as to apply to tissues of silk in respect of which under Part II. of the said Second Schedule drawback is allowed at the rates of four shillings and threepence the pound and five shillings and sixpence the pound respectively, and Part IV. of the said Second Schedule shall be amended by the insertion after the words ‘Part IV.’ of the following—

‘Alternative Scale of Drawbacks in respect of certain Silk Tissues.

If made from imported yarn on which a duty of customs was paid.

If made from yarn produced in Great Britain or Northern Ireland from materials on which a duty of customs was paid.

Silk tissues in respect of which drawback under Part II. of this Schedule is allowed at the rate of 4 s. 3 d. the pound the lb.

s.d.



5 3

s.d.



4 0

Silk tissues in respect of which drawback under Part II. of this Schedule is allowed at the rate of 5 s. 6 d. the pound the lb.

7 9 4 3,’

and by the insertion at the end thereof of the following:—

‘Made from imported doubled or twisted thread on which customs duty of 3 s. a lb. has been paid the lb.

s.d.


3 5.’

(5) Where by virtue of the last preceding subsection drawback in respect of tissue (being tissue manufactured in Great Britain or Northern Ireland) which is loaded is payable under the alternative scale contained in Part IV. of the said Second Schedule, as amended by this Act, the amount of the drawback shall, notwithstanding anything in paragraph 1 of Part III. of the said Second Schedule, be reduced by thirty per cent., unless the Commissioners are satisfied that the tissue was manufactured from imported yarn which was loaded at the time of importation.

(6) Part II. of the Second Schedule to the Finance Act, 1925 (which relates to drawbacks on silk and artificial silk), shall have effect as though after the words ‘In any other case . . . the lb., 5 s. 6 d.’ there were inserted the following:—

‘Waste, dressed or otherwise prepared for spinning—

Wholly discharged the lb. 3s.
Not wholly discharged the lb. 1s.
Noils the lb. 1s.

and as though after the words ‘Artificial silk . . . the lb., 1 s. 9 d. ,’ there were inserted the following:—

‘Waste, prepared for spinning,

including tops the lb 6d.
S-6 Provisions for securing customs and excise duties imposed by ways and means resolutions not having statutory effect.

6 Provisions for securing customs and excise duties imposed by ways and means resolutions not having statutory effect.

(1) Where a resolution providing for the imposition as from a specified date of a customs duty or an excise duty in respect of any goods (not being a resolution to which statutory effect can be given under section one of the Provisional Collection of Taxes Act, 1913 ), is passed by the Committee of Ways and Means of the House of Commons (being a Committee of the whole House) the following provisions shall have effect.

(2) If the duty so imposed is a customs duty, the Commissioners may require any person who, on or after the specified date, imports any goods to which the resolution applies to give security that he will, if and when an Act giving effect to the resolution comes into operation, pay the duty chargeable in respect of the goods under that Act.

(3) If the duty is an excise duty, the Commissioners may make regulations for the purpose of securing the payment of such duty as may by law become chargeable in the event of an Act giving effect to the resolution coming into operation, and may by those regulations apply to the duty and to any trade or business in connection with which the duty may become chargeable and to any premises used for the purpose of that trade or business any enactments relating to excise.

If any person contravenes or fails to comply with any regulations so made, he shall be liable to an excise penalty of fifty pounds and the goods in respect of which the offence is committed shall be forfeited.

S-7 Stabilisation of rates of imperial preference.

7 Stabilisation of rates of imperial preference.

(1) Where immediately before the first day of July, nineteen hundred and twenty-six, the duty of customs chargeable in respect of any article was by virtue of section eight of the Finance Act, 1919, as amended by any other...

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