Finance (No. 2) Act 1939
| Jurisdiction | UK Non-devolved |
Finance (No. 2) Act, 1939
(2 & 3 Geo. 6.) CHAPTER 109.
An Act to increase certain duties of customs and excise; to increase the standard rate of income tax for the year 1939-40 and the higher rates of income tax for the year 1938-39 and to make certain other amendments in the Income Tax Acts; to increase the rates of estate duty; to impose an excess profits tax; and for purposes connected with the matters aforesaid.
[12th October 1939]
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 Beer.
(1) In lieu of the duty of excise charged under section one of the Finance Act, 1933 , and the excise drawback allowed under that section—
(a ) there shall be charged in respect of beer brewed in the United Kingdom a duty of excise at the rates set out in Part I of the First Schedule to this Act; and
(b ) on the exportation from the United Kingdom as merchandise, or for use as ships stores, of beer in respect of which it is shown to the satisfaction of the Commissioners that the duty of excise charged under this subsection has been paid, there shall be allowed an excise drawback at the rates set out in Part II of that Schedule, subject to the provisions of that Part of that Schedule.
(2) In lieu of the duties of customs charged under section one of the Finance Act, 1933, and section two of the Finance Act, 1936 , and the customs drawbacks allowed under those sections—
(a ) there shall be charged in respect of beer imported into the United Kingdom—
(i) in the case of beer being an Empire product, a duty of customs at the rates set out in Part III of the First Schedule to this Act; and
(ii) in the case of beer not being an Empire product, a duty of customs at the rates set out in Part IV of that Schedule; and
(b ) on the exportation from the United Kingdom as merchandise, or for use as ships' stores, of beer on which it is shown to the satisfaction of the Commissioners that the duty of customs charged under this subsection has been paid, there shall be allowed—
(i) in the case of beer being an Empire product, a customs drawback at the rates set out in Part V of that Schedule, subject to the provisions of that Part of that Schedule; and
(ii) in the case of beer not being an Empire product, a customs drawback at the rates set out in Part VI of that Schedule, subject to the provisions of that Part of that Schedule.
(3) Where beer has been prepared by a process of mixing by a brewer for sale and the aggregate amount of the duty of excise charged under this section on the several constituents of the beer exceeds the amount of the duty which would have been so charged on the mixture, the Commissioners may, subject to such conditions as they may prescribe, remit or repay the excess.
The conditions prescribed under this subsection may, notwithstanding anything in any enactment, include conditions as to the method of computing the last mentioned amount and the method of ascertaining any matter by reference to which that amount is to be computed.
(4) In the foregoing provisions of this section and in the First Schedule to this Act—
(a ) the expression ‘beer’ does not include beer of any of the descriptions specified in subsection (1) of section two of the Finance Act, 1930 ;
(b ) the expression ‘Empire product’ has the same meaning as in subsection (1) of section eight of the Finance Act. 1919 .
(5) Sections two and three of the Finance Act, 1923 (which relate respectively to rebates from the excise duty and customs duty on beer) shall cease to have effect except in so far as they relate to beer of any of the descriptions specified in subsection (1) of section two of the Finance Act. 1930.
(6) The duty of customs charged, and the customs and excise drawbacks allowed, under this section shall be charged and allowed in addition to the duty and drawbacks charged and allowed in respect of beer under section two of the Finance Act, 1933.
(7) This section shall be deemed to have had effect as from the twenty-eighth day of September, nineteen hundred and thirty-nine.
2 Spirits.
(1) The duties of customs charged on spirits by 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 by 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 four pounds, two shillings and sixpence per gallon; and accordingly the said subsection (2) shall have effect as if for the words ‘three pounds, twelve shillings and sixpence’ there were substituted the words ‘four pounds, two shillings and sixpence.’
(3) This section shall be deemed to have had effect as from the twenty-eighth day of September, nineteen hundred and thirty-nine.
3 Wines.
(1) In lieu of the duties of customs charged on wines by section five of the Finance Act, 1927 , and paragraphs (a ) and (b ) of section three of the Ottawa Agreements Act, 1932 , there shall be charged on wines imported into the United Kingdom the following duties of customs, that is to say—
(a ) in the case of wines of the descriptions specified in the first column of Part I of the Third Schedule to this Act and not being Empire products, duties at the rates respectively specified in the second column of that Part of that Schedule;
(b ) in the case of wine not exceeding twenty-seven degrees of proof spirit and being an Empire product, a duty at a rate representing the full rate of duty for the time being chargeable on wine not exceeding twenty-five degrees of proof spirit and not being an Empire product, reduced by two shillings per gallon; and
(c ) in the case of wines of the descriptions specified in the first column of Part II of the said Schedule and being Empire products, duties at the rates respectively specified in the second column of that Part of that Schedule:
Provided that the provisos to section three of the Ottawa Agreements Act, 1932 (which provide for an increase in the rate of duty chargeable on wine of the description mentioned in paragraph (b ) of this subsection), shall have effect as if for any reference to paragraph (b ) of that section there were substituted a reference to paragraph (b ) of this subsection.
(2) Subsection (2) of section eight of the Customs and Inland Revenue Act, 1890 (which provides that wine rendered sparkling in warehouse is to be deemed to be sparkling wine for the purpose of certain duties charged on sparkling wine) shall apply for the purpose of the duty charged on sparkling wine by this section as it applied for the purpose of the duty mentioned in that subsection.
(3) In this section the expression ‘wine’ includes the lees of wine, and the expression ‘Empire product’ has the same meaning as in subsection (1) of section eight of the Finance Act, 1919.
(4) This section shall be deemed to have had effect as from the twenty-eighth day of September, nineteen hundred and thirty-nine.
4 Sweets.
(1) The duty of excise on sweets charged under section six of the Finance Act, 1927, shall—
(a ) in the case of sparkling sweets, be at the rate of nine shillings and sixpence instead of seven shillings and sixpence per gallon; and
(b ) in the case of other sweets, be at the rate of three shillings and sixpence instead of one shilling and sixpence per gallon.
(2) Subsection (2) of section eight of the Finance Act, 1933 (which provides for a reduction of duty in the case of sparkling sweets where a duty of one shilling and sixpence per gallon has been paid), shall have effect as if for the words ‘one shilling and sixpence’ there were substituted the words ‘three shillings and sixpence.’
(3) This section shall be deemed to have had effect as from the twenty-eighth day of September, nineteen hundred and thirty-nine.
5 Tobacco.
(1) In lieu of the duties of customs charged on tobacco by section one of the Finance Act, 1939 , there shall, subject to the provisions of section eight of the Finance Act, 1919, be charged on tobacco imported into the United Kingdom of the descriptions set out in the first column of Part I of the Fourth Schedule to this Act duties of customs at the rates respectively specified in the second column of that Part of that Schedule.
(2) In lieu of the duties of excise charged on tobacco by section one of the Finance Act, 1939, there shall be charged on tobacco grown in the United Kingdom of the descriptions set out in the first column of Part II of the Fourth Schedule to this Act duties of excise at the rates respectively specified in the second column of that Part of that Schedule.
(3) The drawback allowed under section one of the Manufactured Tobacco Act, 1863 , on tobacco exported from the United Kingdom or deposited in a bonded or King's warehouse shall, in cases where it is shown that the duties charged by this section have been paid, be allowed at the rates set out in...
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