Finance (No. 2) Act 1947
| Jurisdiction | UK Non-devolved |
| Citation | 1947 c. 9 |
| Year | 1947 |
Finance (No. 2) Act, 1947
(11 & 12 Geo. 6.) CHAPTER 9.
An Act to grant certain duties, to alter other duties and to make certain amendments in the law relating to the Public Revenue.
[18th December 1947]
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:—
1 Beer.
(1) Section one of the Finance (No. 2) Act, 1939 , (which imposes duties of excise and customs in respect of beer) shall have effect as if Parts I, III and IV of the First Schedule to this Act were respectively substituted for Parts I, III and IV of the First Schedule to that Act,
(2) In the case of beer in respect of which it is shown to the satisfaction of the Commissioners that the increased duty chargeable by virtue of this section has been paid, the provisions of the said section one relating to drawback shall have effect as if Parts II, V and VI of the First Schedule to this Act were respectively substituted for Parts II, V and VI of the First Schedule to the Finance (No. 2) Act, 1939.
(3) This section shall be deemed to have had effect as from the thirteenth day of November, nineteen hundred and forty-seven.
2 Spirits.
(1) The duties of customs charged on spirits under subsection (1) of section three of the Finance Act, 1920 shall have effect as if the said Schedule to this Act were substituted for Part I of the First Schedule to that Act.
(2) The rate of the duty of excise charged on spirits under subsection (2) of section three of the Finance Act, 1920, in addition to the duties specified in Part III of the First Schedule to that Act, shall be increased to nine pounds ten shillings and ten pence per gallon computed at proof; and accordingly the said subsection (2) shall have effect as if for the words ‘seven pounds seventeen shillings and sixpence’ there were substituted the words ‘nine pounds ten shillings and ten pence’.
(3) This section shall be deemed to have had effect as from the thirteenth day of November, nineteen hundred and forty-seven.
3 Wines.
(1) Section three of the Finance (No. 2) Act, 1939 (which imposes duties of customs on wines) shall have effect as if Parts I and II of the Third Schedule to this Act were respectively substituted for Parts I and II of the Third Schedule to that Act.
(2) This section shall be deemed to have had effect as from the thirteenth day of November, nineteen hundred and forty-seven.
4 Sweets.
(1) The duty of excise on sweets charged under section six of the Finance Act, 1927 , shall be charged at the rates specified in the Fourth Schedule to this Act, instead of at the rates mentioned in section four of the Finance Act, 1943 .
(2) This section shall be deemed to have had effect as from the thirteenth day of November, nineteen hundred and forty-seven.
5 Increase of rates of purchase tax.
(1) The higher, intermediate, basic and reduced rates of purchase tax shall be respectively five-fourths, three-fourths, one-half and one-third of the wholesale value of the goods and, accordingly, in section nineteen of the Finance (No. 2) Act, 1940 (as amended by subsection (3) of section ten of the Finance Act, 1947 ), in paragraphs (a ), (b ), (c ) and (d ) of subsection (2), for the words ‘one hundred per cent.’, ‘two-thirds’, ‘one-third’ and ‘one-sixth’ there shall be respectively substituted the words ‘five-fourths,’, ‘three-fourths’, ‘one-half’ and ‘one-third’:
Provided that this subsection shall not affect mechanically propelled road vehicles, mechanically propelled cycles, or bicycles or tricycles not mechanically propelled, and, where the tax becomes due on or after the ninth day of December, nineteen hundred and forty-seven, shall not affect—
(a ) electric dry batteries; or
(b ) accumulators, being accumulators suitable for use with wireless receiving sets of the domestic or portable type.
(2) This section shall be deemed to have come into operation on the thirteenth day of November, nineteen hundred and forty-seven and shall have effect—
(a ) in relation to a purchase of goods delivered under the purchase on or after that date notwithstanding that the purchase was made before that date;
(b ) in relation to the application of a chargeable process completed on or after that date notwithstanding that the process was applied in pursuance of a contract made before that date.
6 Pool betting duty.
(1) There shall be charged on all bets made by way of pool betting, other than bets made by means of a totalisator set up on an approved horse racecourse by or under the authority of the Racecourse Betting Control Board, a duty of excise, to be known as the pool betting duty, equal to ten per cent. of the amount of the stake money paid.
(2) The pool betting duty shall be paid, in the case of bets made by means of a totalisator, by the operator, that is to say, the person who (as principal) operates the totalisator, and, in the case of other bets, by the promoter.
(3) In paragraph 3 of the First Schedule to the Betting and Lotteries Act, 1934 (which relates to the distribution of the money staked by means of totalisators on dog racecourses), after the words ‘after deducting or causing to be deducted such percentage not exceeding six per cent. as he may have specified in the said notice’ there shall be inserted the words ‘and after deducting also any sums payable by him by way of the pool betting duty in respect of the bets made on that race or those races’.
(4) The supplemental provisions set out in the Fifth Schedule to this Act shall have effect with respect to the pool betting duty.
(5) Bets shall be deemed for the purposes of this section and the said Fifth Schedule to be made by way of pool betting whenever a number of persons make bets on terms that the winnings of such of those persons as are winners shall be, or be a share of, or be determined by reference to, the stake money paid or agreed to be paid by those persons, whether the bets are made by means of a totalisator, or by filling up and returning coupons or other printed or written forms, or otherwise howsoever.
(6) In this section and the said Fifth Schedule, the following expressions have the meanings hereby respectively assigned to them, that is to say—
‘approved horse racecourse’ and ‘totalisator’ have the same meanings as in Part I of the Betting and Lotteries Act, 1934;
‘bet’ does not include the taking of a ticket or chance in any lottery which by virtue of section twenty-three, section twenty-four or section twenty-five of the Betting and Lotteries Act, 1934, is to be deemed not to be an unlawful lottery;
‘promoter’ means, in relation to any pool betting, the person to whom the persons making the bets look for the payment of their winnings, if any.
(7) This section and the said Fifth Schedule shall apply in relation to all bets, wherever made, where the totalisator, or, as the case may be, the promoter of the betting, is in Great Britain but shall not apply in relation to any other bets:
Provided that this section and the said Fifth Schedule shall not apply in relation to any bet made before the fourth day of January, nineteen hundred and forty-eight.
7 Increase in profits tax rates.
(1) In subsection (1) of section thirty of the Finance Act, 1947 (which fixes the rate of the profits tax at twelve and a half per cent.), for the words ‘twelve and a half per cent.’ in both places where those words occur, there shall be substituted the words ‘twenty-five per cent.’
(2) In the following provisions of the said Act, that is to say—
(a ) subsections (2) and (3) of section thirty (which grant a relief from profits tax for profits not distributed and impose a charge to profits tax on certain distributions of profits, at a rate, in both cases, of seven and a half per cent.); and
(b ) subsection (3) of section thirty-six (which contains an incidental reference to the said rate),
for the words ‘seven and a half per cent.’, wherever those words occur, there shall be substituted the words ‘fifteen per cent.’
(3) In section forty-two of the said Act (which limits the amount of the profits tax chargeable on building societies to three per cent. of the amount of the profits, computed as mentioned in that section) for the words ‘three per cent.’ there shall be substituted the words ‘six per cent.’
(4) The preceding provisions of this section shall be deemed always to have had effect and any such additional assessments shall be made as are necessary to give effect to this subsection.
8 Interest on unpaid income-tax, profits tax and excess profits tax.
(1) Subject to the provisions of this section, any tax charged by any assessment to income tax made under Schedule D, or any assessment to surtax, to the profits tax or...
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