Provisional Collection of Taxes Act 1968

JurisdictionUK Non-devolved
Citation1968 c. 2


Provisional Collectionof Taxes Act 1968

1968 CHAPTER 2

An Act to consolidate the Provisional Collection of Taxes Act 1913 and certain other enactments relating to the provisional collection of taxes or matters connected therewith.

[1st February 1968]

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:—

S-1 Temporary statutory effect of House of Commons resolutions affecting income tax, purchase tax or customs or excise duties.

1 Temporary statutory effect of House of Commons resolutions affecting income tax, purchase tax or customs or excise duties.

(1) This section applies only to income tax, purchase tax and duties of customs and excise.

(2) Subject to that, and to the provisions of subsections (4) to (8) below, where the House of Commons passes a resolution which—

(a ) provides for the renewal for a further period of any tax in force or imposed during the previous financial year (whether at the same or a different rate, and whether with or without modifications) or for the variation or abolition of any existing tax, and

(b ) contains a declaration that it is expedient in the public interest that the resolution should have statutory effect under the provisions of this Act,

the resolution shall, for the period specified in the next following subsection, have statutory effect as if contained in an Act of Parliament and, where the resolution provides for the renewal of a tax, all enactments which were in force with reference to that tax as last imposed by Act of Parliament shall during that period have full force and effect with respect to the tax as renewed by the resolution.

In this section references to the renewal of a tax include references to its reimposition, and references to the abolition of a tax include references to its repeal.

(3) The said period is—

(a ) in the case of a resolution passed in March or April in any year, one expiring with 5th August in the same calendar year;

(b ) in the case of any other resolution, one expiring at the end of four months after the date on which it is expressed to take effect or, if no such date is expressed, after the date on which it is passed.

(4) A resolution shall cease to have statutory effect under this section unless within the next twenty-five days on which the House of Commons sits after the day on which the resolution is passed—

(a ) a Bill renewing, varying or, as the case may be, abolishing the tax is read a second time by the House, or

(b ) a Bill is amended by the House so as to include provision for the renewal, variation or, as the case may be, abolition of the tax.

(5) A resolution shall also cease to have statutory effect under this section if—

(a ) the provisions giving effect to it are rejected during the passage of the Bill containing them through the House, or

(b ) an Act comes into operation renewing, varying or, as the case may be, abolishing the tax, or

(c ) Parliament is dissolved or prorogued.

(6) Where, in the case of a resolution providing for the renewal or variation of a tax, the resolution ceases to have statutory effect by virtue of subsection (4) or (5) above, or the period specified in subsection (3) above terminates, before an Act comes into operation renewing or varying the tax, any money paid in pursuance of the resolution shall be repaid or made good, and any deduction made in pursuance of the resolution shall be deemed to be an unauthorised deduction.

(7) Where any tax as renewed or varied by a resolution is modified by the Act renewing or varying the tax, any money paid in pursuance of the resolution which would not have been payable under the new conditions affecting the tax shall be repaid or made good, and any deduction made in pursuance of the resolution shall, so far as it would not have been authorised under the new conditions affecting the tax, be deemed to be an unauthorised deduction.

(8) When during any session a resolution has had statutory effect under this section, statutory effect shall not be again given under this section in the same session to the same resolution or to a resolution having the same effect.

S-2 Payments and deductions made on account, and before renewal, of any temporary tax within s. 1.

2 Payments and deductions made on account, and before renewal, of any temporary tax within s. 1.

(1) Any payment or deduction made on account of a temporary tax to which section 1 above applies and within one month after the date of its expiry shall, if the payment or deduction would have been a legal payment or deduction if the tax had not expired, be deemed to be a legal payment or deduction, subject to the condition that—

(a ) if a resolution for the renewal or reimposition of the tax is not passed by the House of Commons within that month, or such a resolution is passed within that month but ceases to have statutory effect under the said section 1, any money so paid or deducted shall be repaid or made good, and

(b ) if the tax is ultimately renewed or reimposed at a different rate, or with modifications, any amount paid or deducted which could not properly have been paid or deducted under the new conditions affecting the tax shall be repaid or made good.

(2) In this section ‘temporary tax’ means a tax which has been imposed, or renewed or reimposed, for a limited period not exceeding eighteen months, and was in force or imposed during the previous financial year.

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