Income and Corporation Taxes Act 1970

JurisdictionUK Non-devolved
Citation1970 c. 10


Income and Corporation Taxes Act 1970

1970 CHAPTER 10

An Act to consolidate certain of the enactments relating to income tax and corporation tax, including certain enactments relating also to other taxes.

[12th March 1970]

Be it enacted by the Queen'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 Charge of Income Tax, and General Provisions relating only to Income Tax

PART I

Charge of Income Tax, and General Provisions relating only to Income Tax

CHAPTER I

The Charge, and Dates for Payment

S-1 The charge.

1 The charge.

1. Where any Act enacts that income tax shall be charged for any year at any rates, then, subject to the provisions of the Income Tax Acts, the tax at those rates shall be charged for that year in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the following sections of this Act—

Schedule A—Section 67(1),

Schedule B—Section 91,

Schedule C—Section 93,

Schedule D—Section 108,

Schedule E—Section 181(1), and

Schedule F—Section 232(1),

and in accordance with the provisions of the Income Tax Acts respectively applicable to those Schedules.

S-2 Fractions of a pound, and yearly assessments.

2 Fractions of a pound, and yearly assessments.

(1) The due proportion of income tax shall be charged for every fractional part of one pound, but no tax shall be charged of a lower denomination than one penny.

(2) Every assessment and charge to income tax shall be made for a year commencing on the 6th April and ending on the following 5th April.

S-3 Effect of charging at a standard rate, and at higherrates for larger incomes.

3 Effect of charging at a standard rate, and at higherrates for larger incomes.

(1) Where any Act provides that income tax shall be charged for any year at a standard rate and, in the case of an individual whose total income exceeds a stated amount, at a rate or rates exceeding the standard rate in respect of any part or parts of his income in excess of that amount, then, subject to the provisions of the Income Tax Acts—

(a ) the Income Tax Acts, in so far as they relate to the tax at the standard rate, shall have effect as if income tax were charged for that year at the standard rate only, and, in the case of an individual whose total income exceeds the stated amount, the amount of the income tax charged at the standard rate shall, so far as that income tax is borne by him in respect of his income, be deemed to be an instalment at the standard rate of the amount of income tax for which he is chargeable for that year, and

(b ) where the amount of income tax payable by an individual for that year in respect of his total income is greater than the amount which would have been payable by him in respect thereof if income tax had been chargeable at the standard rate only, the difference between those two amounts (in the Income Tax Acts referred to as ‘surtax’) shall be computed, assessed, charged, collected and paid as a deferred instalment of income tax according to the provisions of the Income Tax Acts relating to surtax.

(2) Where, for a year for which income tax is charged in the manner specified in subsection (1) above, a person is required to be assessed and charged with income tax in respect of any property, profits or gains out of which he makes any payment in respect of—

(a ) any annuity or other annual payment (not being interest), or

(b ) any royalty or other sum in respect of the user of a patent, or

(c ) any rent, royalty or other payment which, by section 156 or 157 of this Act (mining etc. rents and royalties) is declared to be subject to deduction of tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent,

he shall, in respect of so much of the property, profits or gains as is equal to the said payment, and may be deducted in computing his total income, be charged at the standard rate only.

(3) All the provisions of the Income Tax Acts relating to persons who are to be chargeable to income tax at the standard rate, and to assessments to, and the collection and recovery of, such tax shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of surtax.

S-4 Dates for payment.

4 Dates for payment.

(1) Subject to the provisions of the Income Tax Acts, and, in particular, to subsection (2) below and section 204 of this Act (pay as you earn), income tax, other than surtax, contained in an assessment for any year shall be payable on or before the 1st January in that year, except that tax included in an assessment for any year which is made on or after the 1st January shall be deemed to be due and payable on the day next after the day on which the assessment is made.

(2) Income tax under Schedule D charged for any year on any individual or firm in respect of the profits or gains of any trade, profession or vocation shall, instead of being payable on or before the 1st January in that year or on such other date as is specified in subsection (1) above, be payable in two equal instalments, the first on or before the 1st January in that year or on such other day as aforesaid, and the second on or before the following 1st July, and the provisions of the Income Tax Acts as to the recovery of income tax shall apply to each instalment of the tax in the same manner as they apply to the whole amount of the tax:

Provided that, where the assessment is not made until after the said following 1st July, this subsection shall not have effect, and the tax shall be due and payable as provided in subsection (1) above.

(3) Surtax shall be due and payable as a deferred instalment of income tax on or before the 1st January next after the end of the year of assessment for which it is payable, except that surtax, or any part of any surtax, included in an assessment which is made on or after the said 1st January shall be deemed to be due and payable on the day next following the day on which the assessment is made.

CHAPTER II

Personal Reliefs

The reliefs

The reliefs

S-5 General.

5 General.

5. An individual who makes a claim in that behalf shall be entitled to such relief as is specified in sections 6 to 22 below, subject however to the provisions of sections 23 to 27.

S-6 Relief for small incomes.

6 Relief for small incomes.

(1) Subject to subsection (3) below, the claimant, if he proves that his total income for the year of assessment does not exceed 450, shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on two-ninths of the amount of that income.

(2) Subject as aforesaid, a claimant not entitled to relief under subsection (1) above, if he proves that his total income does not exceed 710, shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the income tax which would have been payable if his total income had amounted to, but had not exceeded, 450 and one-half of the amount by which his total income exceeds 450.

(3) A claimant shall not be entitled to relief under this section if he is entitled to relief under subsection (2) of section 9 below, and any relief under this section shall be in substitution for, and not in addition to, relief under subsection (1) of that section.

S-7 Relief for persons over sixty-five with small incomes.

7 Relief for persons over sixty-five with small incomes.

7. The claimant, if he proves that at any time within the year of assessment either he or his wife living with him was of the age of sixty-five years or upwards—

a ) shall be entitled to exemption from income tax if he also proves either—

(i) that his total income for that year does not exceed 425, or

(ii) that he would be entitled to the higher (or married person's) relief under section 8(1) below, and his total income for the year does not exceed 680, and

b ) shall be entitled, if he is not exempt under paragraph (a )above by reason only of his total income for the year exceeding 425 or 680, as the case may be, and the excess is less than 265, to have the income tax payable in respect of his total income reduced, where necessary, to an amount equal to nine-twentieths of that excess
S-8 Personal relief.

8 Personal relief.

(1) Subject to the provisions of this section and to section 15 below, the claimant shall be entitled—

(a ) if he proves—

(i) that for the year of assessment he has his wife living with him, or

(ii) that his wife is wholly maintained by him during the year of assessment, and that he is not entitled in computing the amount of his income for that year for income tax purposes to make any deduction in respect of the sums paid for the maintenance of his wife,

to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on 375;

(b ) in any other case, to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on 255.

(2) If the total income of the claimant includes any earned income of his wife, the deduction to be allowed under this section shall be increased by an amount equal to income tax at the standard rate on seven-ninths of the amount of that earned income or on 255, whichever is the less.

For the purposes of this subsection—

(a ) any earned income of the claimant's wife arising in respect of any pension, superannuation or other...

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