Finance Act, 1965
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Provision as to charges under section 50 of Finance Act, 1959. |
54.—(1) Where for any year of assessment a charge under section 50 of the Finance Act, 1959 (hereafter in this section referred to as a joint charge) would have fallen to be made in charging the profits or gains of a partnership trade if the Income Tax Acts had provided that those profits or gains should be charged as specified in subsection (2) of section 52 of this Act, there shall be made on any partner in the partnership in charging the profits or gains of his several trade a charge under the said section 50 equal to his appropriate share of the joint charge. | |
(2) For the purposes of subsection (1) of this section a partner's appropriate share of a joint charge shall be arrived at in the same way as his appropriate share of a joint charge within the meaning of section 52 of this Act is to be arrived at by virtue of subsection (7) of that section. | ||
(3) Section 56 of the Finance Act, 1959 , is hereby amended by the substitution for subsection (2) of the following subsection: | ||
“(2) Where, under the provisions of Chapter V of this Part of this Act as modified by Part VIII of the Finance Act, 1965 , charges under section 50 of this Act fall to be made on two or more persons as being the persons for the time being carrying on a trade, and the relevant period, within the meaning of the said Part VIII, comes to an end, the provisions of subsection (1) of this section shall have effect in relation to the ending of the relevant period as they have effect where a body corporate commences to be wound up : | ||
Provided that— | ||
(a) the additional sums which, under the said subsection, fall to be charged for the year in which the relevant period ends shall be aggregated and apportioned among the members of the partnership immediately before the ending of the relevant period according to their respective interests in the partnership profits at that time and each partner (or, if he is dead, his personal representatives) charged for his proportion, and | ||
(b) each partner (or, if he is dead, his personal representatives) shall have the same right to require a reduction of the total income tax (including sur-tax) payable by him or out of his estate by reason of the increase as would have been exercisable by the personal representatives under the said subsection (1) in the case of a death, and the proviso to that subsection shall have effect accordingly but as if references to the amount of income tax (including sur-tax) which would have been payable by the deceased or out of his estate in the event therein mentioned were a reference to the amount of income tax (including sur-tax) which would in that event have fallen to be paid or borne by the partner in question or out of his estate.” |