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Amount of profits or gains.
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313.—(1) Subject to subsection (3), the amount of the profits or gains on which a person has been charged to income tax for any year of assessment in respect of the profits or gains of a trade or profession shall, for the purposes of relief under section 311 from the assessment for that year, be taken to be the full amount of the profits or gains on which he was assessable for that year reduced by—
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(a) a sum equal to the total amount of the deductions, if any, in respect of capital allowances made in charging the profits or gains, and
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(b) a sum equal to the total amount of the deductions, if any, in respect of payments made or losses sustained, which fell to be made from the profits or gains in computing for income tax purposes the person's total income for the year, or would have fallen to be so made if the person were an individual, and
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(c) in the case of a body of persons, a sum equal to so much of the profits or gains as was applied in payment of dividends:
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Provided that where any deduction such as is mentioned in paragraph (b) may be treated in whole or in part either as having been made from the profits or gains or as having been made from other income, the deduction shall, as far as may be, be treated for the purposes of this subsection as made from the other income.
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(2) Where, under subsection (1) (b), the amount of the profits or gains on which a person was assessable for any year is reduced by reference to a payment made by him, a like reduction shall be made in the amount of the terminal loss for which relief may be given under section 311 for earlier years unless the payment was made wholly and exclusively for the purposes of the trade or profession.
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(3) Where a person claiming relief under section 311 on a discontinuance has, since the beginning of the third year of assessment preceding that in which the discontinuance occurs, carried on the trade or profession in partnership, the full amount of the profits or gains on which he was assessable for any year, or part of a year, prior to 1965-66 for which the partnership was assessed in respect of the trade or profession, shall, for the purposes of subsection (1), be taken to be the amount of his share, computed in accordance with this Act, of the profits or gains on which the partnership has been charged to tax and the amount of the profits or gains on which the partnership has been so charged shall, for this purpose, be computed as it would be computed under subsection (1) if that subsection applied to a partnership as it applies to a person.
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