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13 1955

FINANCE ACT, 1955

PART I.

Income Tax.

Income tax and sur-tax for the year 1955–56.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1955, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1955, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1954.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1955, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1955.

Increase of deductions in respect of children and of limit of income of child.

2. —(1) Subsection (1) of section 21 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of one hundred pounds” for “a deduction of eighty-five pounds” (inserted by section 4 of the Finance Act, 1954 (No. 22 of 1954)).

(2) Subsection (3) of section 21 of the Finance Act, 1920, is hereby amended by the substitution of “sixty pounds a year” for “forty pounds a year”.

Amendment as to exemption from income tax of profits of trades carried on by charities.

3. —Subsection (1) of section 30 of the Finance Act, 1921, is hereby amended by the substitution of the following paragraph for paragraph (c):

“(c) from income tax under Schedule D in respect of the profits of a trade carried on by any charity, if the profits are applied solely to the purposes of the charity and either—

(i) the trade is exercised in the course of the actual carrying out of a primary purpose of the charity, or

(ii) the work in connection with the trade is mainly carried on by beneficiaries of the charity.”

Relief in respect of payments for insurance against expenses of sickness.

4. —(1) If an individual makes a claim in that behalf in the manner prescribed by the Income Tax Acts, makes a return in the prescribed form of the total income of the individual and proves that, in the year preceding the year of assessment, the individual, or, if the individual is a married man, his wife, has made a payment to an authorised insurer under a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual medical, surgical or nursing expenses (including the cost of maintenance at a hospital, nursing home or sanatorium) resulting from sickness of or accident to the individual or the spouse of the individual or children or other dependants of the individual or of the spouse of the individual, then—

(a) where the payment covers no benefits other than such reimbursement or discharge, the full amount of the payment shall be deducted from or set off against any income for the year of assessment of the individual, if the individual made the payment, or of the wife of the individual, if she made the payment, and

(b) where the payment covers benefits other than such reimbursement or discharge, a like relief shall be granted in respect of so much of the payment as is referable to such reimbursement or discharge,

and tax shall, where necessary, be discharged or repaid accordingly and the total income of the individual for the year of assessment shall be calculated accordingly for all the purposes of the Income Tax Acts.

(2) Where an amount for deduction from or set off against income of one of the spouses is ascertained in accordance with subsection (1) of this section, then—

(a) if there is no income of the spouse for the year of assessment in relation to which relief under the said subsection can be given, the relief may be given in relation to income of the other spouse for that year, and

(b) if the amount ascertained as aforesaid exceeds the income of the spouse for the year of assessment, the excess may be deducted from or set off against any income of the other spouse for that year.

(3) Where relief is given under this section, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of the payment or part of a payment (as the case may be).

(4) All such provisions of the Income Tax Acts as apply in relation to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920, shall, with any necessary modifications, apply in relation to relief under this section.

(5) In this section—

authorised insurer” means any person lawfully carrying on in the State such business of insurance as is referred to in subsection (1) of this section;

total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts.

Payment of interest on stock of council of county, corporation of county or other borough or council of urban district.

5. —(1) Any stock under section 87 of the Local Government Act, 1946 (No. 24 of 1946), issued after the passing of this Act shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 2 of the Finance Act, 1924 (No. 27 of 1924), and that section shall apply accordingly.

(2) (a) Rule 6 of the Miscellaneous Rules applicable to Schedule D of the Income Tax Act, 1918, and Rules 19 and 21 of the General Rules applicable to Schedules A, B, C, D and E of that Act shall not apply to interest (in this subsection referred to as the said interest) which, by direction of the Minister for Finance given under section 2 of the Finance Act, 1924 , as applied by this section, is paid without deduction of tax.

(b) Where paragraph (a) of this subsection applies in relation to the council of a county, corporation of a county or other borough or council of an urban district (in this paragraph referred to as the local authority), the total tax payable by the local authority, by deduction or otherwise, for any year of assessment shall not exceed a sum to be ascertained by first computing the total tax which, but for this section, would have been payable by the local authority, by deduction or otherwise, for that year and then deducting therefrom a sum equal to tax on the amount of the said interest paid for that year by the local authority.

(3) There shall be added to Rule 1 of Case III of Schedule D of the Income Tax Act, 1918, the following clause, that is to say:

“(j) interest on stock under section 87 of the Local Government Act, 1946 (No. 24 of 1946), in cases where such interest is paid without deduction of tax.”