Finance Act 1941
| Jurisdiction | UK Non-devolved |
| Citation | 1941 c. 30 |
Finance Act, 1941.
(4 & 5 Geo. 6.) CHAPTER 30.
An Act to grant certain duties, to alter other duties, and to amend the law relating to the Public Revenue and the National Debt, and to make further provision in connection with Finance.
[22nd July 1941]
Most Gracious Sovereign,
We , Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom 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:—
Part I.
CUSTOMS AND EXCISE.
1 Hops, &c. and beer.
(1) The duties charged by virtue of subsection (1) of section one of the Finance Act, 1937 , until the end of the fifteenth day of August, nineteen hundred and forty-one, namely—
(a ) the duties of customs charged on hops and extracts, essences or other similar preparations made from hops under subsection (1) of section seven of the Finance Act, 1925 ; and
(b ) the duty of customs charged on hop oil under the proviso to subsection (1) of section four of the Finance Act, 1929 ; and
(c ) the additional duty of customs charged in respect of beer under subsection (2) of section two of the Finance Act, 1933 ;
shall continue to be charged until the end of the fifteenth day of August, nineteen hundred and forty-five.
(2) The drawback allowed by virtue of subsection (2) of section one of the Finance Act, 1937, until the end of the fifteenth day of November, nineteen hundred and forty-one, namely, the additional excise drawback allowed in respect of beer under subsection (4) of section two of the Finance Act, 1933, shall continue to be allowed until the end of the fifteenth day of November, nineteen hundred and forty-five.
2 Extension of power to exempt from key industry duty.
2. The power of the Treasury, under subsection (5) of section ten and subsection (1) of section twelve of the Finance Act, 1926, to exempt articles from the duty imposed by section one of the Safeguarding of Industries Act, 1921, as amended by the said Act of 1926 shall extend to all articles for the time being chargeable with duty under the said Act of 1921, whether as amended by the said Act of 1926 or by any subsequent enactment for the time being in force.
3 Extension of section 8 of Finance Act, 1940, to officers, and men of the Merchant Navy.
(1) Section eight of the Finance Act, 1940 (which authorises the issue to members of His Majesty's naval, military or air forces of permits to use mechanically-propelled vehicles when on leave), shall, subject to any regulations made by the Minister of War Transport, apply in relation to masters and members of the crews of British sea-going ships as it applies to members of His Majesty's naval, military or air forces.
(2) This section shall be deemed to have come into operation on the first day of July, nineteen hundred and forty-one, and any regulations made under this section, or made under the said section eight as respects masters and members of the crews of British sea-going ships, may be made to apply retrospectively as from the said day.
Part II.
INCOME TAX.
4 Income tax for 1941-42.
(1) Income tax for the year 1941-42 shall be charged at the standard rate of ten shillings in the pound, and, in the case of an individual whose total income exceeds one thousand five hundred pounds, at such higher rates in respect of the excess over one thousand five hundred pounds as Parliament may hereafter determine.
(2) All such enactments as had effect with respect to the income tax charged for the year 1940-41, other than such enactments as by their terms relate only to tax for that year, shall have effect with respect to the income tax charged for the year 1941-42.
5 Higher rates of income tax for 1940-41.
5. Income tax for the year 1940-41 shall be charged at rates exceeding the standard rate in the case of individuals whose total incomes exceed two thousand pounds and in respect of the excess of their total incomes over that sum; and the said rates shall be rates in the pound which respectively exceed the standard rate for the year 1940-41 by the amounts specified in the second column of the Table in subsection (1) of section seven of the Finance (No. 2) Act, 1940.
6 Alteration of certain reliefs.
(1) Subsection (2) of section forty of the Finance Act, 1927 (which, as amended by subsequent enactments, provides for the reduction of the tax remaining chargeable after the allowance of other reliefs by a sum equal to seven-seventeenths of the amount so remaining chargeable or seven-seventeenths of the tax on one hundred and sixty-five pounds, whichever is the less) shall have effect as if the words ‘seven-twentieths’ were substituted for the words ‘seven-seventeenths’, in both places where they occur.
(2) Subsection (1) of section fifteen of the Finance Act, 1925 (which, as amended by subsequent enactments, provides for a deduction of tax on an amount equal to one-sixth of the amount of earned income, but not exceeding two hundred and fifty pounds) shall have effect as if—
(a ) the words ‘one-tenth’ were substituted for the words ‘one-sixth’; and
(b ) the words ‘one hundred and fifty pounds’ were substituted for the words ‘two hundred and fifty pounds’,
and subsection (2) of the said section fifteen (which, as amended by subsequent enactments, provides, in a case where an individual or his wife is of the age of sixty-five or upwards and his total income does not exceed five hundred pounds, for a deduction of tax on an amount equal to one-sixth of his income) shall have effect as if the words ‘one-tenth’ were substituted for the words ‘one-sixth’.
(3) Section eighteen of the Finance Act, 1920 (which, as amended by subsequent enactments, provides, in the case of married persons, for a deduction of tax on one hundred and seventy pounds, increased, in a case where the total income of the claimant includes earned income of his wife, by an amount equal to five-sixths of that earned income, and, in the case of single persons, for a deduction of tax on one hundred pounds) shall have effect as if—
(a ) the words ‘one hundred and forty pounds’ were substituted for the words ‘one hundred and seventy pounds’; and
(b ) the words ‘eighty pounds’ were substituted for the words ‘one hundred pounds’; and
(c ) the words ‘nine-tenths’ were substituted for the words ‘five-sixths’.
(4) Section nineteen of the Finance Act, 1935 (which, as amended by subsequent enactments, exempts from tax incomes not exceeding one hundred and twenty pounds and limits the tax on incomes exceeding one hundred and twenty pounds but less than one hundred and forty pounds to one-half of the excess) shall have effect as if—
(a ) the words ‘one hundred and ten pounds’ were substituted for the words ‘one hundred and twenty pounds’ in both places where they occur; and
(b ) the words ‘one hundred and thirty-three pounds’ were substituted for the words ‘one hundred and forty pounds’; and
(c ) the words ‘three-quarters’ were substituted for the words ‘one-half’.
7 Provision for the crediting of certain amounts of income tax.
(1) Subject, as respects married persons, to the provisions of subsection (2) of this section, for every year of assessment for which subsections (2), (3) and (4) of the last preceding section are in force, there shall be ascertained and recorded, in relation to every individual who is entitled to any relief under subsection (1) or subsection (2) of section fifteen of the Finance Act, 1925, or under section eighteen of the Finance Act, 1920, the amount of tax ultimately borne by him which is attributable to the passing of the said subsections (2), (3) and (4); and the amount so ascertained and recorded shall be notified to him as soon as possible and shall be credited to him on such date as may be fixed by the Treasury, being a date so soon as may be after the termination of hostilities in the present war.
(2) If—
(a ) a man's wife has income for any such year and, in relation to that year, he is, and she is not, such an individual as is mentioned in subsection (1) of this section; and
(b ) an application that this subsection shall have effect in relation to them for that year is made by either of them in such manner and within such period as may be prescribed by regulations made by the Commissioners of Inland Revenue,
the amount ascertained and recorded under the said subsection (1) in relation to that man for that year shall, instead of being credited wholly to him, be credited partly to him and partly to her, in such proportions as may be agreed between them, or as may, in default of agreement, be determined by—
(i) ascertaining what the said amount would have been if, in the said subsection (1), for the references to subsections (2), (3) and (4) of the last preceding section, there had been substituted references to so much of the said subsection (2) as amends subsection (1) of section...
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