PART I

Income Tax, Sur-tax and Corporation Profits Tax

Chapter I

Income Tax

1. —Section 142 (1) (as amended by the Finance Act, 1974 ) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£592” for “£489”, in both places where it occurs, by the substitution of “£95” for “£80”, in both places where it occurs, and by the substitution of “£497” for “£409” and the said section 142 (1), as so amended, is set out in the Table to this section.

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142.—(1) If the claimant proves that he maintains at his own expense any person, being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or his or his wife's widowed mother, whether incapacitated or not, and being a person whose total income from all sources is less than £592 a year, he shall be entitled to a deduction of £95 in respect of each person whom he so maintains, and a like deduction shall be made in the case of a claimant who, by reason of old age or infirmity, is compelled to depend upon the services of a person (being a person whose total income from all sources is less than £592 a year and being a son or daughter of the claimant) resident with and maintained by him or her:

Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds £497 a year, as if, instead of specifying a deduction of £95, it specified a deduction of that amount reduced by the amount of the excess.

2. — Section 143 of the Income Tax Act, 1967 , is hereby amended, with effect as on and from the 6th day of April, 1974, by the addition to subsection (3) (b) of the following proviso:

“Provided that where any of the taxable income is chargeable at one or more of the higher rates, the claimant shall be entitled to have the amount of the tax payable by him reduced so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax that would have been payable by him if the deduction from the total income had been two-thirds of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend and an amount representing tax at the standard rate on one-sixth of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend.”.

3. — Section 251 of the Income Tax Act, 1967 , is hereby amended by the substitution in subsection (4) (d) (inserted by the Finance Act, 1972 ) of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973 ).

4. — Section 254 of the Income Tax Act, 1967 , is hereby amended by the insertion after subsection (2) of the following subsection:

“(2A) Notwithstanding anything contained in subsections (1) and (2), this Chapter shall have effect—

(a) in relation to capital expenditure incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by reason of its use for a purpose specified in paragraph (a) or (b) of section 255 (1), as if ‘one-half’ were substituted for ‘one-tenth’, and

(b) in relation to capital expenditure incurred on or after the 6th day of April, 1974, on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by reason of its use for a purpose specified in paragraph (c) of section 255 (1), as if ‘one-fifth’ were substituted for ‘one-tenth’.”.

5. — Section 264 of the Income Tax Act, 1967 , is hereby amended—

(a) in relation to capital expenditure incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, by the substitution in subsection (1) of “one-twentyfifth” for “one-fiftieth”in each place where it occurs, and

(b) by the substitution for the proviso to subsection (3) of the following proviso:

“Provided that—

(i) in relation to a building or structure the capital expenditure on the construction of which has been incurred on or after the 1st day of January, 1960, and which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) by reason of its use for a purpose specified in paragraph (c) or (d) of that subsection, this Part shall have effect as if ‘tenth year’ were substituted for ‘fiftieth year’ in the foregoing provisions of this subsection, and

(ii) in relation to a building or structure the capital expenditure on the construction of which has been incurred on or after the 16th day of January, 1975, and before the 1st day of April, 1977, and which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) by reason of its use for a purpose specified in paragraph (a) or (b) of that subsection, this Part shall have effect as if ‘twentyfifth year’ were substituted for ‘fiftieth year’ in the foregoing provisions of this subsection.”.

6. — Section 22 (2) of the Finance Act, 1971 , is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973 ).

7. — Section 26 (1) of the Finance Act, 1971 , is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975” (inserted by the Finance Act, 1973 ).

8. — Section 8 of the Finance Act, 1973 , is hereby amended by the substitution of “the 1st day of April, 1977” for “the 1st day of April, 1975”.

9. — Section 19 of the Finance Act, 1973 , is hereby amended—

(a) by the insertion in subsection (2) after “made” of “by the Minister for Health or”, and

(b) by the addition thereto of the following subsection:

“(3) In so far as it relates to any payment made by the Minister for Health, subsection (2) shall apply to any such payment made after the 1st day of January, 1975.”,

and the said subsection (2), as so amended, is set out in the Table to this section.

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(2) This section applies to any income consisting of payments made by the Minister for Health or by the foundation known as the Hilfswerk für behinderte Kinder to or in respect of any person handicapped by reason of infirmity which can be linked with the taking by the person's mother during her pregnancy of preparations containing thalidomide.

10. — Section 3 of the Finance Act, 1974 , is hereby amended, in relation to tax for the year 1975-76 and any subsequent year of assessment, by the substitution for the Table in subsection (2) (c) of the following Table:

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11. —(1) Section 6 of the Finance Act, 1974 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) Where a deduction falls to be made from the total income of an individual for the year 1975-76 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this section and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

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(2) Part I of the First Schedule shall have effect for the purpose of supplementing subsection (1) (inserted by this section) of section 6 of the Finance Act, 1974 .