Finance Act, 1970

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Cash basis, etc.: relief for individuals.

25.—(1) If an individual born before the 6th day of April, 1919, or the personal representative of such an individual, is chargeable to tax under section 20 or 26 and—

(a) the individual was engaged in carrying on the trade or profession on the date of the passing of this Act, and

(b) the profits or gains of the trade or profession were not computed by reference to earnings in the period in which the date specified in paragraph (a) fell, or in any subsequent period ending before or with the relevant date,

the net amount with which he is so chargeable to tax shall be reduced by multiplying that net amount by the fraction given below.

(2) Where section 26 applies in relation to a change of basis taking place on a date before the date of the passing of this Act, then, in relation to tax chargeable by reference to that change of basis, subsection (1) shall have effect—

(a) as if that earlier date were substituted for the date specified in paragraph (a), and

(b) as if paragraph (b) were deleted.

(3) The said fraction is—

(a) where on the 6th day of April, 1970, the individual had not attained the age of fifty-two, nineteen-twentieths,

(b) where on that date he had attained the age of fifty-two, but had not attained the age of fifty-three, eighteen-twentieths, and so on, reducing the fraction by one-twentieth for each year he had attained, up to the age of sixty-four,

(c) where on that date he had attained the age of sixty-five or any greater age, five-twentieths.

(4) In this section—

“the net amount” with which a person is chargeable to tax under section 20 means the amount with which he is so chargeable after making any deduction authorised by section 20 (4) but before giving any relief under this section;

“relevant date”—

(a) in relation to tax under section 20, means the date of the permanent discontinuance,

(b) in relation to tax under section 26, means the date of the change of basis.