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Relief for small incomes.
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136.—(1) In this section—
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“total income” means total income from all sources as estimated in accordance with the provisions of this Act;
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“relevant income” means, in relation to any individual, his total income exclusive of any part thereof which arises to him by virtue or in consequence of a disposition within the meaning of section 442, and which, if subparagraphs (iii) and (iv) of section 439 (1) had been omitted, would, by virtue of Chapter I of Part XXVIII, be deemed to be income of the person by whom the disposition was made.
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(2) Subject to the provisions of this section, an individual who, in the manner prescribed by this Act, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that his total income for the year of assessment does not exceed £450, shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his relevant income of a sum equal to one-fourth of the amount of that income.
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(3) Subject as aforesaid, an individual not entitled to a deduction under subsection (2) shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, 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 which would have been payable if his total income had amounted to, but had not exceeded, £450 and one-half of the amount by which his total income exceeds £450.
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(4) For the purposes of subsection (3), the computation of the tax which would have been payable if the individual's total income had amounted to, but had not exceeded, £450 shall be made—
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(a) in a case in which the individual's relevant income amounts to not less than £450, on the basis that the income of £450 consisted wholly of relevant income, and
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(b) in a case in which the individual's relevant income is less than £450, on the basis that the income of £450 included the whole of the relevant income.
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(5) An individual shall not be entitled to any deduction or relief under this section if he is entitled to a deduction under section 135 and any deduction or relief under this section shall be in substitution for and not in addition to the deduction under section 134.
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(6) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to deductions or relief under this section.
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