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Finance Act, 1932

Alteration of certain allowances.

3.—(1) The following provision shall be substituted for section 16 of the Finance Act, 1920 , and Part II of that Act shall be construed and have effect accordingly, that is to say:—

“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall, for the purposes of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his earned income of a sum equal to—

(a) one-sixth of so much of that income as does not exceed four hundred and fifty pounds; and

(b) one-tenth of so much of that income as exceeds four hundred and fifty pounds;

but not exceeding, in the case of any individual, the sum of two hundred pounds.”

(2) Sub-section (1) of section 18 of the Finance Act, 1920 , shall be construed and have effect as if the words “one hundred and twenty-five pounds” were substituted therein for the words “one hundred and thirty-five pounds.”

(3) Sub-section (1) of section 21 of the Finance Act, 1920 , shall be construed and have effect as if the words “each such child to a deduction of fifty pounds” were substituted therein for the words “one child to a deduction of thirty-six pounds and in respect of each subsequent child to a deduction of twenty-seven pounds.”

(4) The following provision shall be substituted for section 23 of the Finance Act, 1920 , that is to say:—

“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall be entitled to be charged at half the standard rate of tax on the first one hundred pounds of his taxable income.”

All references in the Finance Act, 1920 , or any subsequent Act to the said section 23 or to any sum mentioned in that section shall be construed and have effect subject and with due regard to the substitution effected by this sub-section.