Finance Act, 1966
|
PART V Corporation Profits Tax | ||
|
Increase of rate of corporation profits tax. |
21.—(1) In lieu of the provisions of paragraphs (i), (ii) and (iii) of section 37 (1) of the Finance Act, 1963 , the following provisions shall, subject to the next subsection, apply and have effect in respect of every accounting period ending on or after the 1st day of April, 1966: | |
(i) subsection (1) of section 52 of the Finance Act, 1920 , shall be construed and have effect as if “twenty-three per cent.” were substituted for “five per cent.”; | ||
(ii) paragraph (a) of the proviso to that subsection shall be construed and have effect as if “tax shall be charged at a rate of seven and one-half per cent. on so much of the profits as does not exceed two thousand five hundred pounds, and where the profits are profits arising in some shorter accounting period, tax shall be charged at a rate of seven and one-half per cent, on such amount of the profits as bears to two thousand five hundred pounds” were substituted for “no tax shall be charged on the first five hundred pounds thereof, and where the profits are profits arising in some shorter accounting period, no tax shall be charged on such amount of the profits as bears to five hundred pounds”; | ||
(iii) paragraph (b) of that proviso shall be construed and have effect as if “thirty per cent.” were substituted for “ten per cent.”. | ||
(2) In the case of any such accounting period which began before the 1st day of April, 1966, the profits shall be apportioned between the part of the period before that day and the part thereof after the 31st day of March, 1966, in proportion to the respective lengths of those parts and— | ||
(a) as respects so much of the profits as is apportioned to the first-mentioned part, corporation profits tax shall be charged thereon at the rate of fifteen per cent., provided that tax shall be charged at the rate of five per cent. on so much thereof as bears to two thousand five hundred pounds the same proportion as that part bears to twelve months, | ||
(b) as respects so much of the profits as is apportioned to the second-mentioned part, corporation profits tax shall be charged thereon at the rate of twenty-three per cent., provided that tax shall be charged at the rate of seven and one-half per cent. on so much thereof as bears to two thousand five hundred pounds the same proportion as that part bears to twelve months, | ||
(c) the amount of tax payable by a company incorporated by or under the laws of the State shall in no case exceed the sum of the following amounts: | ||
(i) the amount represented by twenty per cent. of the balance of the profits apportioned to the first-mentioned part remaining after allowing such proportion of the deductions specified in paragraph (b) of the proviso to section 52 (1) of the Finance Act, 1920 , as would be appropriate to that part if those deductions were apportioned in the same manner as the profits are required by this subsection to be apportioned, and | ||
(ii) the amount represented by thirty per cent. of the balance of the profits apportioned to the second-mentioned part remaining after allowing such proportion of those deductions as would be appropriate to that part if those deductions were apportioned as aforesaid. |