Finance Act, 1959
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Purchase and sale of securities: traders other than dealers in securities. |
9.—(1) If the first buyer carries on a trade not falling within section 7 of this Act, then, in ascertaining whether any, and, if so, what, repayment of tax is to be made to him under section 34 of the Income Tax Act, 1918, by reference to any loss sustained in the trade and the aggregate amount of his income for the year of assessment his income for which includes the interest, there shall be left out of account— | |
(a) the appropriate amount in respect of the interest, as determined in accordance with the First Schedule to this Act, and | ||
(b) any tax paid on that amount. | ||
(2) Where the first buyer is a company and carries on a trade not falling within section 7 of this Act or a business consisting mainly in the making of investments then, if any annual payment payable by the company is to any extent payable out of the interest, that annual payment shall be deemed to that extent not to be payable out of profits or gains brought into charge to tax, and Rule 21 of the General Rules shall apply accordingly. | ||
(3) In subparagraph (3) of paragraph 5 of the Third Schedule to Finance Act, 1958 , “and” shall be deleted at the end of clause (c), and after clause (d) there shall be inserted the following: | ||
“and | ||
(e) if the company is not engaged as aforesaid, but were it so engaged any reduction under section 7 of the Finance Act, 1959, would, or would but for subsection (3) of that section, fall to be made as respects the price paid by the company for securities (within the meaning of that section) bought by it in a year of assessment in the period, such amount as would, after deduction of income tax at the rate applicable to the payment, be equal to the amount of the reduction, so however that where the securities are of the description specified in paragraph 4 of the First Schedule to that Act the amount shall be the amount of the reduction,” | ||
and in subparagraph (3) of paragraph 4 of that Schedule after “clause (d)” there shall be inserted “or (e) ”. | ||
(4) In this section “company” includes any body corporate. |