Finance Act 1963

• (3) For the purposes of this and the following paragraph the appropriate fraction of the amount chargeable on the superior interest is the sum which bears to that amount the same proportion as the period in respect of which the later chargeable amount arose bears to the period in respect of which the amount chargeable on the superior interest arose, and for those purposes the period in respect of which an amount arose—

• (a) where it arose under section 22 of this Act, shall be the period treated in computing the amount as being the duration of the lease; or

• (b) where it arose under section 23 of this Act, shall be the period treated in computing the amount as being the duration of the lease remaining at the date of the assignment, or

• (c) where it arose under section 24 of this Act, shall be the period beginning with the sale and ending on the date fixed under the terms of the sale as the date of the reconveyance or grant, or, if that date is not fixed, ending with the earliest date at which the reconveyance or grant could take place in accordance with the terms of the sale.

9

• (1) Where in relation to any premises tax has or would have become chargeable as mentioned in sub-paragraph (1)(a) or (b) of the foregoing paragraph in respect of a lease, estate or interest, then, subject to the provisions of the following sub-paragraph, the person for the time being entitled to the lease, estate or interest shall be treated for the purpose of deductions under the foregoing provisions of this Schedule from rent receivable by him in respect of those or other premises as paying rent for those premises (in addition to any actual rent), becoming due from day to day, during any part of the period in respect of which the amount chargeable on the superior interest arose for which he was entitled to the lease, estate or interest, and in all bearing to that amount the same proportion as that part of the period bears to the whole.

• (2) Where the foregoing paragraph has effect in relation to a lease granted out of, or disposition of, the lease, estate or interest in respect of which tax has or would have become so chargeable, sub-paragraph (1) above shall apply for the period in respect of which the later chargeable amount arose only if the appropriate fraction of the amount chargeable on the superior interest exceeds the later chargeable amount, and shall then apply as if the amount chargeable on the superior interest were reduced in the proportion which the said excess bears to the said appropriate fraction :

Provided that where the lease so granted, or the said disposition, extends to a part only of the premises, sub-paragraph (1) above and this sub-paragraph shall be applied separately in relation to that part and to the remainder of the premises, but as if for any reference to the amount chargeable on the superior interest there were substituted a reference to that amount proportionately adjusted.

10

• (1) Where the amount chargeable on the superior interest arose under section 22(2) of this Act by reason of an obligation which included the carrying out of work in respect of which any allowance has fallen or will fall to be made under Part )( or Part )(I of the Act of 1952, paragraphs 8 and 9 of this Schedule shall apply as if the obligation had not included the carrying out of that work and the said amount had been calculated accordingly.

• (2) Where an amount relevant for the purposes of paragraph 8 or 9 of this Schedule arose under section 24 of this Act and the reconveyance or grant in question takes place at a price different from that taken in calculating the amount or on a date different from that taken in determining the period in respect of which the amount arose, that paragraph shall be deemed to have had effect (for all relevant years of assessment) as it would have had effect if the actual price or date had been so taken, and such adjustment of liability to tax shall be made, by means of an additional assessment or otherwise, as may be necessary and may be so made at any time at which it could be made if it related only to tax for the year of assessment in which the reconveyance or grant takes place.

Deductions from rents: payments made before 1964-65

11

• (1) Except as provided by this and the following paragraph, no payment shall be deductible under the foregoing provisions of this Schedule if made before the beginning of the year 1964-65.

• (2) If the cost to the owner of any premises of maintenance, repairs, insurance and management during the five years ending with the year 1963-64 exceeded the relief available to him in respect of those five years, the excess shall be treated for the purposes of the foregoing provisions of this Schedule as if it were a payment in relation to the premises made by him in the year 1964-65 in respect of dilapidation attributable to that year:

Provided that there shall be disregarded for the purposes of this sub-paragraph—

• (a) any payment made during a period when the owner was in occupation of the premises, and any relief so far as it was available to him in respect of such a period ;

• (b) any payment in respect of which a deduction may be made by virtue of paragraph 12 of this Schedule ;

• (c) any payment for works falling within section 101(2) of the Act of 1952 (by virtue of which " maintenance" includes the replacement of farm buildings etc.), being a payment made after the end of the five years which, under section 101(7) of that Act, were treated as the five years preceding the year 1963-64, or would have been so treated if a claim under section 101 of that Act could have, and had, been made for that year,

and where during any period the owner was in occupation of a part only of the premises there shall be disregarded for those purposes so much of any payment made during the period, or relief available to him in respect of the period, as is attributable to that part.

• (3) Where relief available in respect of any land managed as one estate fell to be computed in accordance with section 101(4) of the Act of 1952, payments made in respect of the estate, and the relief so available, shall for the purposes of the foregoing sub-paragraph be treated as apportioned between the premises comprised in the estate in accordance with their annual values for purposes of Schedule A, but so that as respects any premises in relation to which the owner was chargeable under section 175 of the Act of 1952 (excess rents) the annual value shall be taken to be that determined as mentioned in subsection (1) of that section.

• (4) References in this paragraph to relief available to a person in respect of any premises are references to relief which was or, on a claim in that behalf, could have been allowed to him in respect of the premises under sections 99 to 101 or 176(1)(g) of the Act of 1952.

12

• (1) If, in respect of any payment such as is mentioned in paragraph 1 of this Schedule made by a person in relation to any premises before the beginning of the year 1964-65, a loss is by virtue of section 346 of the Act of 1952 (relief in respect of losses under Case VI of Schedule D) carried forward to that year, the amount of the loss shall be treated for the purposes of the foregoing provisions of this Schedule as if it were a like payment made by that person in respect of the premises in, and in respect of, that year.

• (2) Where by virtue of sub-paragraph (1) above a deduction falls to be made in any year it shall be made notwithstanding anything in subsection (3) of the said section 346 (which requires relief under that section to be given as far as possible from the first subsequent Case VI assessment), and relief shall not be given under that section in respect of a loss in so far as a deduction in respect of it is made under this paragraph.

Deductions from other receipts

13

• (1) Subject to the provisions of this Schedule, where the sum to which a person becomes entitled in the year of assessment is a sum other than rent payable under a lease there shall be deducted from that sum such amounts (if any) as are expressed to be deductible under the following sub-paragraph.

• (2) There shall be deductible—

• (a) so much of any payment made by that person as was made in respect of maintenance, repairs, insurance or management of premises to which the said sum relates and constituted an expense of the transaction under which he became entitled to that sum ;

• (b) so much of any rent, rentcharge, ground annual, feu duty or other periodical payment made by that person as was reserved in respect of, or was charged upon or issued out of, premises to which the sum relates and constituted an expense of that transaction ;

• (c) so much of any other payment made by that person as constituted an expense of that transaction, not being an expense of a capital nature ;

• (d) where, in or before the year, that person entered into any like transaction, any amount which, under the foregoing sub-paragraphs, is deductible from a sum to which he is entitled under that like transaction in the year, or was deductible from a sum to which he was so entitled in a previous year of assessment but has not been deducted.

14

No payment shall be deductible under the foregoing paragraph if made before the beginning of the year 1964-65 :

15

• (1) Where the person entitled to possession of any land is in the practice of granting sporting rights over the land for payment, but in any year of assessment such rights are for any reason not granted by him, the aggregate of any amounts paid by him which, if such rights had been granted in the year, would have been deductible under paragraph 13 above from payments receivable by him in respect of the grant shall be treated for the purposes of paragraph 4 of this Schedule as a deduction which by virtue of paragraph 2 thereof might have been made by him from rent to which he was entitled for that year under a lease of the land, being a lease at a full rent:

Provided that if in the year sporting rights over the land are exercised by that person or by any other person at his invitation or, where the first mentioned person is a company to which section 245 of the Act of 1952 applies, by any person who is a director or member of the company within the meaning of Chapter III of Part IX of that Act, the aggregate of the said amounts shall be treated as reduced by an amount equal to the price which might reasonably be expected to have been paid for that exercise of the rights if the person exercising them had had to give full consideration therefor.

• (2) For the purposes of the proviso to the foregoing sub-paragraph, an exercise of sporting rights shall be disregarded if it gives rise to a charge to tax under Schedule E by virtue of section 161 (benefits to directors etc.) of the Act of 1952.

• (3) In this paragraph " sporting rights " means rights of fowling, shooting or fishing, or of taking or killing game, deer or rabbits.

Expenditure on sea walls

16

• (1) Where in any year of assessment the owner or tenant of any premises incurs expenditure in the making of any sea wall or other embankment necessary for the preservation or protection of the premises against the encroachment or overflowing of the sea or any tidal river, he shall be treated for the purposes of this Schedule as making, in that year of assessment and in each of the succeeding twenty years of assessment, a payment in relation to the premises preserved or protected by the embankment of an amount equal to a twenty-first part of the expenditure and incurred in respect of dilapidation attributable to the year.

• (2) Where the whole of that person's interest in the premises, or any part thereof, is transferred, whether by operation of law or otherwise, to some other person, then—

• (a) the amount of the payment which he would be so treated as making for the year of assessment in which the transfer takes place shall be treated as being made partly by the transferor and partly by the transferee, as may be just; and

• (b) the transferee shall, to the exclusion of the transferor, be treated in any subsequent year, where the interest transferred is in the whole of the premises, as having made the whole of the payment for that year, and where the interest transferred is in part .only of the premises, as having made so much of the payment for the year as is properly referable to that part of the premises.

For the purposes of this sub-paragraph, where an interest in any premises is a lease and that lease comes to an end, that interest shall be deemed to have been transferred—

• (i) if an incoming lessee makes any payment to the outgoing lessee in respect of the embankment in question, to the incoming lessee ; and

• (ii) in any other case, to the owner of the interest in immediate reversion on the lease and, in relation to Scotland, the expression " the owner of the interest in immediate reversion on the lease" shall be construed as a reference to the landlord.

• (3) In relation to expenditure in respect of which an allowance under section 94(1)(c) of the Act of 1952 would, but for the provisions of this Act, have fallen to be made in respect of the premises for the year 1964-65, the foregoing provisions of this paragraph shall apply as if the expenditure had been incurred in the year of assessment following that in which it was actually incurred and, so far as the expenditure was incurred in repairing the embankment in question, shall apply as if it had been incurred in making it, but those provisions shall not otherwise apply to expenditure incurred before the beginning of the year 1964-65:

Provided that the person who under the foregoing provisions of this sub-paragraph would be treated, in respect of expenditure incurred in repairing the embankment, as having made in the year 1964-65 a payment as mentioned in sub-paragraph (1) of this paragraph may before the expiration of the year 1965-66 by notice in writing to the surveyor claim that so much of that expenditure as exceeded the total allowances made in respect of it under the said section 94(1)(c) shall instead be treated for the purposes of this Schedule as if it had been an amount paid by him in respect of the maintenance of the premises preserved or protected by the embankment in, and in respect of, the year 1964-65.

• (4) This paragraph shall not apply in relation to any expenditure in respect of which an allowance has been made under Part X or Part XI of the Act of 1952.

Supplemental

17

• (1) Subject to the provisions of this paragraph, where a sum or part of a sum deductible under the foregoing provisions of this Schedule can be deducted for the year of assessment in which the sum is paid it shall be so deducted, and where it cannot it shall be deducted for the earliest year of assessment for which it can be deducted.

• (2) Where for any year of assessment the amount from which deductions can be made under the foregoing provisions of this Schedule is sufficient to allow the' deduction therefrom of some, but not all, of different sums or parts of sums deductible under those provisions, the sum or parts to be deducted for that year shall in the aggregate be equal to the said amount, and subject to that requirement shall be such as the person whose liability to tax is in question may choose.

• (3) No deduction shall be made under this Schedule in respect of a payment made by a person—

• (a) to the extent to which the payment has been or will be balanced by the receipt of insurance moneys, or recovered from or in any other manner borne by some other person, otherwise than by means of an amount on the profits or gains arising from which the first-mentioned person would be chargeable under Case VIII, or

• (b) if the payment is payable under deduction of tax.

• (4) An amount or pant of an amount shall not be deducted under this Schedule more than once from any sum or from more than one sum, and shall not in any case be deducted thereunder if it has been otherwise allowed as a deduction in computing the income of any person for purposes of income tax.

• (5) Where, on account of a payment made in any year of assessment, a deduction falls to be made under this Schedule from any rents or receipts to which the person making the payment became entitled in a previous year, all such adjustments of liability to tax shall be made, by repayment or otherwise, as may be necessary to give effect to the deduction.

18

This Schedule has effect subject to the provisions of sections 476 and 477 of the Act of 1952.

19

In this Schedule references to a lease extend only to a lease conferring a right, as against the person whose interest is subject to the lease, to the possession of premises;

• " premises " includes any land ;

• " rent " includes a payment made by the tenant to defray the cost of work of maintenance of or repairs to the demised premises, not being work required by the lease to be carried out by the tenant; and

• " tenant's repairing lease " means a lease where the lessee is under an obligation to maintain and repair the whole, or substantially the whole, of the premises comprised in the lease,

and for the purposes of this Schedule a lease shall be taken to be at a full rent if the rent reserved under the lease (including an appropriate sum in respect of any premium under the lease) is sufficient, taking one year with another, to defray the cost to the lessor of fulfilling his obligations under the lease and of meeting any expenses of maintenance, repairs, insurance and management of the premises subject to the lease which fall to be borne by him.

SCHEDULE 5

1

The annual value shall be taken to be the rent which might reasonably be expected to be obtained on a letting from year to year if the tenant undertook to pay all usual tenant's rates and taxes, and if the landlord undertook to bear the costs of the repairs and insurance, and the other expenses, if any, necessary for maintaining the subject of the valuation in a state to command that rent.

2

Section 6 of the Rating and Valuation Act 1961 (adjustment of gross value by reference to provision of or payment for services, etc.) shall apply for the purposes of the foregoing paragraph, and in relation to land in Scotland or Northern Ireland shall apply as if it extended to the whole of the United Kingdom.

SCHEDULE 6

1

The relief shall be computed in accordance with the following provisions of this Schedule, and in those provisions—

• " chargeable sum " means an amount to which, under subsection (1), (2), (3) or (4) of section 22 of this Act, the claimant is treated as becoming entitled in the year of assessment, or in respect of which he is, by virtue of subsection (5) of that section or section 23 or 24 of this Act chargeable to tax for the year under Case VI of Schedule D ;

• " relevant period ", in relation to any chargeable sum, means the period treated in computing the amount of the sum as being the duration of the lease in respect of which it arises or, where it arises (by virtue of the said section 24) in connection with the sale of an estate or interest in land, means the period mentioned in subsection (1) of that section;

• " yearly equivalent ", in relation to any chargeable sum, means the amount which bears to that sum the same proportion as one bears to the number of years and fractions of years in the relevant period.

2

There shall be computed—

• (a) the amount of the tax which, in respect of the chargeable sum or the aggregate of the chargeable sums, as the case may be, would be chargeable if—

• (i) the relief were not given, and

• (ii) that sum or aggregate were treated as the highest part of the claimant's total income, and

• (iii) amounts deductible in computing the tax were so far as possible deducted from other sums from which they are deductible in the year rather than from that sum or aggregate ; and

• (b) the amount of the tax which, in respect of that sum or aggregate, would be chargeable if calculated by reference to the yearly equivalent of that sum or of each sum comprised in that aggregate, as the case may be, in accordance with the following paragraph,

and the relief shall consist of a reduction or repayment of tax equal to the difference between those amounts.

3

• (1) Where the relief is to be given in respect of one chargeable sum only, the tax shall be calculated for the purposes of paragraph 2(b) of this Schedule as follows, that is to say—

• (a) from the yearly equivalent of that sum there shall be deducted such amounts as, following the principle set out in paragraph 2(a)(iii) of this Schedule, are deductible from that sum;

• (b) if any balance of the yearly equivalent remains, the tax in respect of the chargeable sum shall be calculated at the rate which, apart from the relief, would apply if the amount of the sum were reduced to the amount of that balance and were then treated as the highest part of the claimant's total income or, if two or more rates would then apply, at those rates in corresponding proportions ;

• (c) if no such balance remains, the tax shall be calculated at the rate applicable to the highest part of the remainder of the claimant's total income for the year of assessment,

and whether or not any such balance remains the tax shall be arrived at by applying the said rate or rates to so much of the chargeable sum as remains after deducting such amounts as, following the principle set out in the said paragraph 2(a)(iii) are deductible from that sum.

• (2) Where the relief is to be given in respect of two or more chargeable sums, the tax for each shall be calculated for the said purposes as provided by the foregoing sub-paragraph, but so mat—

• (a) the rate of tax on a sum arising in respect of any relevant period shall be calculated before the rate of tax on any sum arising in respect of a shorter relevant period ;

• (b) in calculating the rate of tax on a sum arising in respect of any relevant period and the deductions from that sum, an amount deducted in respect of a sum tax for which has already been calculated shall not again be deducted, and in calculating a rate of tax—

• (i) any chargeable sum tax for which has not already been calculated or in respect of which no balance of the yearly equivalent remains shall be disregarded ;

• (ii) as respects any other chargeable sum, the total income of the claimant shall be taken to include the sum, but on the assumption that the amount of it was only that of the balance remaining of the yearly equivalent.

• (3) Where two or more chargeable sums arise in respect of relevant periods of equal duration they shall be treated for the purposes of this paragraph as a single chargeable sum of an amount equal to the aggregate of those sums and arising in respect of a relevant period of like duration.

4

A provision of paragraph 2 or 3 of this Schedule requiring tax to be calculated as if an amount were treated as the highest part of the claimant's total income shall apply notwithstanding any provision of the Income Tax Acts directing other income to be treated as the highest part of his total income, but for the purposes of those paragraphs his total income shall be deemed not to include any amount in respect of which he is chargeable to tax under section 37 of the Finance Act 1960 (payments on retirement or removal from office or employment).

5

A provision of paragraph 2 or 3 of this Schedule shall apply in relation to any part of the claimant's total income (as computed for the purpose of that provision) as respects which he would be entitled under Part VIII of the Act of 1952 (personal and other reliefs) to a deduction equal to tax at the standard rate on that part as if that part were subject to a nil rate of tax, and shall apply in relation to any part thereof as respects which he would be entitled under section 220 of that Act (reduced rate relief) to a deduction equal to tax at any other rate on that part as if that part were subject to a rate of tax equal to the difference between the standard rate and that other rate.

6

• (1) Sections 224 and 227 of the Act of 1952 shall apply, subject to any necessary modifications, in relation to claims for relief under this Schedule as they apply in relation to claims for relief under Part VIII of that Act, and a claim for relief under this Schedule in respect of surtax may be made to the Special Commissioners by an individual at the time of making his return for the year of assessment for the purposes of surtax or at any subsequent time not later than six years after the end of the year of assessment.

• (2) Except in relation to a claim in respect of surtax, section 19 of this Act shall not apply as respects relief under this Schedule, and in relation to a claim in respect of surtax shall apply as if references to the surveyor and the Commissioners concerned were references to the Special Commissioners, and as if proviso (c) were omitted.

7

For the purposes of any provision of the Income Tax Acts (other than this Schedule) requiring income of any description to be treated as the highest part of a person's income, his income shall be calculated without regard to any chargeable sum; and where for any year of assessment a person claims relief both under this Schedule and under paragraph 7 of Schedule 4 to the Finance Act 1960 then, in calculating relief under the said paragraph 7, the claimant's income shall be deemed to include, in respect of any chargeable sum (including two or more sums treated for the purposes of paragraph 3 of this Schedule as one chargeable sum), no greater amount than the balance (if any) of the yearly equivalent thereof remaining after the making of any deduction required by the said paragraph 3.

SCHEDULE 7

1

Mines and quarries (including gravel pits, sand pits and brickfields).

2

Ironworks, gasworks, salt springs or works, alum mines or works (not being mines falling within the preceding paragraph), and waterworks and streams of water.

3

Canals, inland navigations, docks, and drains or levels.

4

Fishings.

5

Rights of markets and fairs, tolls, bridges and ferries.

6

Railways and other ways.

7

Other concerns of the like nature as any of the concerns specified in paragraphs 2 to 5 of this Schedule.

SCHEDULE 8

1

Subject to the provisions of this Schedule, an allowance under this Schedule shall be made to the person carrying on a trade where land which was occupied by him at any time before the end of the year 1962-63 for the purposes of the trade permanently ceases to be occupied by him for those purposes.

2

The amount of the allowance shall be the excess of—

• (a) the aggregate of any deductions in respect of the annual value of the land which, by virtue of section 136 of the Act of 1952, would have been made in computing the profits or gains of the trade for the years 1963-64 and 1964-65 but for section 29 (1) of this Act and the repeal by this Act of the said section 136, over

• (b) the aggregate of any deductions relating to the land made in computing the profits or gains of the trade for those years, being—

• (i) deductions permitted by section 29 (2) of this Act, so far as made in respect of the period in respect of which the deductions mentioned in paragraph (a) above would have been made, or

• (ii) deductions in respect of rent from which an amount representing tax was deducted under section 173 of the Act of 1952, so far as made in respect of that period.

3

The allowance shall be made by—

• (a) treating the amount of it as rent paid for the land by the said person (in addition to any actual rent) becoming due from day to day during the period defined in paragraph 4 of this Schedule, and

• (b) allowing deductions accordingly in computing the profits or gains of the trade chargeable under Case I of Schedule D for any year of assessment the profits or gains for which fall to computed by reference to a period including that period or any part thereof.

4

The said period is that ending when the land permanently ceases to be occupied by the said person for the purposes of the trade, and of a duration equal to the aggregate of—

• (a) the number of months and fractions of months during which the land was occupied by him for the purposes of the trade in so much of the period by reference to which the profits or gains of the trade for the year 1963-64 fall to be computed as fell before the beginning of that year, and

• (b) the number of months and fractions of months during which the land was so occupied in so much of the period by reference to which the profits or gains of the trade for the year 1964-65 fall to be computed as fell before the beginning of the year 1963-64.

5

No allowance shall be made under this Schedule where the date on which the land permanently ceases to be occupied by the said person for the purposes of the trade—

• (a) falls within a year of assessment and also within a period by reference to which the profits or gains of the trade for that year of assessment fall to be computed, or

• (b) falls within a year of assessment in which he permanently ceases to carry on the trade.

6

Where there is a change in the persons carrying on the trade, but by virtue of section 19(3) of the Finance Act 1953 or section 17(1) of the Finance Act 1954 the trade does not by reason of the change fall to be treated for any of the purposes of the Income Tax Acts as permanently discontinued, this Schedule (including this paragraph) shall apply as if any occupation of the land before the change occurred by ithe persons carrying on the trade immediately before it occurred were occupation by the persons carrying on the trade immediately after it occurred.

7

Where, by reason of a change in the persons carrying on the trade, the trade falls to be treated for any of the purposes of the Income Tax Acts as permanently discontinued, a person engaged in carrying on the trade immediately before the change occurred who continues to be so engaged immediately after it occurred shall be treated for the purposes of this Schedule as not having been in occupation of the land at any time before it occurred.

8

The foregoing provisions of this Schedule shall apply in relation to a profession or vocation as they apply in relation to a trade, but as if the reference in paragraph 3 to Case I of Schedule D were a reference to Case II of that Schedule.

SCHEDULE 9

1

In this Schedule:—

• " the amount chargeable " means the amount referred to in section 29(3) of this Act, and

• " the relevant period "— where the amount chargeable arose under section 22 of this Act, means the period treated in computing that amount as being the duration of the lease ; where that amount arose under section 23 of this Act, means the period treated in computing the amount as being the duration of the lease remaining at the date of the assignment; where that amount arose under section 24 of this Act, means the period beginning with the sale and ending on the date fixed under the terms of the sale as the date of the reconveyance or grant, or, if that date is not fixed, ending with the earliest date at which the reconveyance or grant could take place in accordance with the terms of the sale.

2

Subject to the provisions of this Schedule, where during any part of the relevant period the land in relation to which the amount chargeable arose is occupied by the person for the time being entitled to the lease, estate or interest as respects which it arose for the purposes of a trade, profession or vocation carried on by him, he shall be treated, in computing the profits or gains of the trade, profession or vocation chargeable to tax under Case I or II of Schedule D, as paying in respect of that land rent for the period (in addition to any actual rent) becoming due from day to day of an amount which bears to the amount chargeable the same proportion as that part of the relevant period bears to the whole.

3

As respects any period during which a part only of the land in relation to which the amount chargeable arose is occupied as mentioned in the foregoing paragraph, that paragraph shall apply as if the whole were so occupied, but the amount chargeable shall be treated as reduced by so much thereof as, on a just apportionment, is attributable to the remainder of the land.

4

Where a person, although not in occupation of the said land or a part thereof, deals with his interest in the land or that part as property employed for the purposes of a trade, profession or vocation carried on by him, paragraphs 2 and 3 of this Schedule shall apply as if the land or part were occupied by him for those purposes:

5

Where, in respect of expenditure on the acquisition of his interest in the land in relation to which the amount chargeable arose, a person has become entitled to an allowance under section 37 of this Act (mineral depletion) for any year of assessment, then—

• (a) if the allowance is in respect of the whole of the expenditure, no deduction shall be allowed him under this Schedule for that or any subsequent year, or

• (b) if the allowance is in respect of part only of the expenditure, a deduction allowed him under this Schedule for that or any subsequent year shall be of an amount bearing to the amount which apart from this paragraph would fall to be deducted the same proportion as the remainder of the expenditure bears to the whole.

6

Where the amount chargeable arose under section 22(2) of this Act by reason of an obligation which included the carrying out of work in respect of which any allowance has fallen or will fall to be made under Part X or Part XI of the Act of 1952, this Schedule shall apply as if the obligation had not included the carrying out of that work and the amount chargeable had been calculated accordingly.

7

Where the amount chargeable arose under section 24 of this Act and the reconveyance or grant in question takes place at a price different from that taken in calculating that amount or on a date different from that taken in determining the relevant period, the foregoing provisions of this Schedule shall be deemed to have had effect (for all relevant years of assessment) as they would have had effect if the actual price or date had been so taken, and such adjustment of liability to tax shall be made, by means of an additional assessment or otherwise, as may be necessary and may be so made at any time at which it could be made if it related only to tax for the year of assessment in which the reconveyance or grant takes place.

SCHEDULE 10

1

A claim under section 43 of this Act shall be made to the surveyor, and shall not be made later than two years after the end of the year of assessment to which, or to a part of which, it relates.

2

• (1) No such claim shall have effect unless it is proved that during the year or part of a year to which the claim relates—

• (a) no property belonging to the association making the claim was let otherwise than to a member of the association;

• (b) no property let by the association, and no part of such property, was occupied, whether solely or as joint occupier, by a person not being a member of the association ;

• (c) the association making the claim satisfies the conditions specified in section 43(5)(i) and (ii) of this Act and has complied with the conditions prescribed under section 43(5)(iii) thereof for the time being in force ; and

• (d) any covenants required to be included in grants of tenancies by those conditions have been observed :

Provided that where the Commissioners of Inland Revenue are satisfied that the requirements of sub-paragraphs (a) to (d) of this paragraph are substantially complied with they may direct that the claim shall have effect, but if subsequently information comes to the knowledge of the Commissioners which satisfies them that the direction was not justified they may revoke the direction and thereupon the liability of all persons concerned to income tax for all relevant years shall be adjusted by the making of assessments or additional assessments or otherwise.

• (2) For the purposes of sub-paragraph (1)(b) of this paragraph occupation by any other person in accordance with the will, or the provisions applicable on the intestacy, of a deceased member, shall be treated during the first six months after the death as if it were occupation by a member.

3

Any such claim shall be in such form and contain such particulars as may be prescribed by the Commissioners of Inland Revenue, and, without prejudice to the generality of this provision, the required particulars may include an authority granted by all members of the association for any relevant information contained in any return or statement made by a member under the provisions of the Income Tax Acts to be used by the Commissioners in such manner as they may think fit for determining whether the claim ought to be allowed.

SCHEDULE 11

Part I — . . .

Part II — Revised table of stamp duties on leases (paragraph (3) of heading)

SCHEDULE 12

PART I — Amendments of the Income Tax Acts

The War Damage (Public Utility Undertakings, &c.) Act 1949 — (12, 13 & 14 Geo. 6. c. 36)

1

In section 28(2), the following shall be substituted for paragraph (b)—

(b) the profits or gains of any person chargeable to income tax under Case VIII of Schedule D ;

.

The Income Tax Act 1952 — (15 & 16 Geo. 6. & 1 Eliz. 2. c. 10)

2

In subsections (1) and (4) of section 34 and in section 35, for the words " Schedules A and B " in each place where they occur there shall be substituted the words " Schedule B ".

3

In section 123(1), in paragraph (a) of Case III, after the word " periods " there shall be inserted the words " but not including any payment chargeable under Case VIII of Schedule D "; and in Case VI for the words " any of the foregoing Cases " there shall be substituted the words " any other Case of Schedule D ".

4

In section 153, in subsection (1), for the words " the proviso to paragraph 1 of Schedule A " there shall be substituted the words " Schedule 7 to the Finance Act 1963 ", and in subsection (5), for the words " the proviso to paragraph 1 of Schedule A " there shall be substituted the words " section 26(1) of the Finance Act 1963 ".

5

• (1) At the end of section 162(4) there shall be inserted the words " In the case of an asset being land, the annual value of the use of the asset shall be taken for the purposes of this subsection to be the annual value of the land determined in accordance with Schedule 5 to the Finance Act 1963 ".

• (2) This paragraph shall have effect in relation to tax for the year 1963-64.

6

In section 169, the following subsections shall be inserted at the end—

(4) This section shall not apply to any rents or other sums in respect of which the person entitled to them is chargeable to tax under Case VIII of Schedule D or would be so chargeable if he were not exempt from tax. (5) Any payment made for the period ending on the 15th May in any year in respect of yearly interest secured on land in Scotland shall be treated for the purposes of this section as if it had become due at the commencement of that period.

7

In section 170, the following subsection shall be inserted at the end—

(5) Except as provided by section 16 (6) of the Finance Act 1963, this section shall not apply to any rents or other sums in respect of which the person entitled to them is chargeable to tax under Case VIII of Schedule D or would be so chargeable if he were not exempt from tax.

8

In subsections (1) and (2) of section 180, for the words "the proviso to paragraph 1 of Schedule A" in each place where they occur there shall be substituted the words " Schedule 7 to the Finance Act 1963 ".

9

In section 262, in subsection (5), for the words " for the purposes of a claim by the company for relief under section one hundred and one of this Act" there shall be substituted the words " in computing profits or gains of the company for the purposes of Case VIII of Schedule D ", and in subsection (8), after the words " Schedule B, income ", there shall be inserted the words " (other than yearly or other interest) ", and for the words from " means lands" to " heritages" there shall be substituted the words " includes any interest in or right over land ".

10

In section 270(6)(a), for the words " Schedule A " there shall be substituted the words " Case VIII of Schedule D ".

11

• (1) Section 313 shall be amended as provided by the following sub-paragraphs.

• (2) For the words " the owner" there shall be substituted the words " in the case ".

• (3) For paragraphs (a) and (b) there shall be substituted the following—

(a) the deduction of a sum in respect of payments in the year of assessment for maintenance, repairs, insurance or management of the estate, or in respect of allowances for machinery or plant provided for use or used on the estate, is provided for by section 15(3) of the Finance Act 1963 or section 72 of the Finance Act 1960 ; and (b) owing to the insufficiency of rents and receipts to which the owner of the estate becomes entitled in the year, whether from the estate or other property, the sum cannot be deducted (other amounts deductible under Case VIII of Schedule D being treated as deductible in priority to that sum),

.

• (4) In paragraph (i) of the proviso, for the words " of the units of assessment included therein " there shall be substituted the words " parts thereof ".

• (5) In paragraph (ii) of the proviso, for the words " where units of assessment included in the estate" there shall be substituted the words " payments or allowances in respect of parts thereof which ", and for the word " units " in the third place where it occurs there shall be substituted the word " parts ".

12

In section 315, in the definitions of "agricultural income" and " forestry income " for the words " Schedule A " in each place where they occur there shall be substituted the words " Case VIII of Schedule D " ; and in the definition of " estate ", for the words from " or houses " to the end there shall be substituted the words " (including any houses or other buildings) managed as one estate ".

13

In section 345(2), the following paragraph shall be inserted at the end—

(f) any payment to which the said section 170 applies by virtue of section 16(6) of the Finance Act 1963.

14

In section 425(3) for the words from " as to which " to the end there shall be substituted the words " which are deductible in computing profits or gains of the company for the purposes of Case VIII of Schedule D ".

15

In section 451(1), for the words from "Schedule A in " to "Schedule D" there shall be substituted the words " Schedule D in respect of any land (including an interest in or right over land) vested in them ".

16

In Schedule 23, in Part I, in paragraph 1, for the words " Schedules A and B " there shall be substituted the words " Schedule B ", and in paragraph 4, in sub-paragraph (2), after the words " upon him " there shall be inserted the words " or on any question as to the annual value of land ", for the words " his appeal " there shall be substituted the words " the matter ", after the words " was made " there shall be inserted the words " or the land is situated " and for the word " appeal" where it last occurs there shall be substituted the word " determination ", and in sub-paragraph (3), for the word " appeal " there shall be substituted the word " matter " and after the word " against" there shall be inserted the words " or, as the case may be, the question of annual value ".

The Finance Act 1952 — (15 & 16 Geo. 6. & 1 Eliz. 2. c. 33)

17

• (1) Section 26 shall be amended as provided by the following sub-paragraphs.

• (2) In subsection (6), for the words from "section one hundred and seventy-five" to the end there shall be substituted the words " Case VIII of Schedule D ".

• (3) In subsection (7)—

• (a) for the words from " is chargeable " to " payable to him " there shall be substituted the words " becomes entitled to any rent under a lease comprising the tied premises and other premises ";

• (b) for the words "the section in question, his liability under that section" there shall be substituted the words " Case VIII of Schedule D, his liability in respect of the rent ";

• (c) for the words from " of the land " to " may be " there shall be substituted the word " thereof ".

• (4) In subsection (9) for the word " (5)" there shall be substituted the word " (3) ".

• (5) For subsection (10) there shall be substituted the following—

(10) In this section ' lease ' includes an agreement for a lease if the term to be covered by the lease has begun, and any tenancy, but does not include a mortgage or heritable security, and ' lessor' shall be construed accordingly, and includes the successors in title of a lessor.

The Finance Act 1960 — (8 & 9 Eliz. 2. c. 44)

18

• (1) Section 72 shall be amended as provided by the following sub-paragraphs.

• (2) In subsection (2)(b), for the words from " the owner " to the end there shall be substituted the words " a person entitled to rents or receipts falling within Case VIII of Schedule D for the maintenance, repair or management of premises in respect of which those rents or receipts arise. "

• (3) In subsection (3), for the words " or his maintenance claim in respect of the land or houses referred to in paragraph (b) thereof " there shall be substituted the words " or in computing his profits or gains for the purposes of Case VIII of Schedule D ".

• (4) In subsection (4)(b)(ii), for the words from " on a maintenance claim " to the end there shall be substituted the words " in computing profits or gains for purposes of Case VIII of Schedule D, means expenditure on maintenance, repairs and management of the premises which under Schedule 4 to the Finance Act 1963 is deductible in computing those profits or gains ".

• (5) In subsection (7), for the words " or a maintenance claim, as the case may be " there shall be substituted the words " in the case mentioned in paragraph (a) of subsection (2) of this section and by notice in writing to the surveyor in the case mentioned in paragraph (b) thereof " ; for the words " land or houses " where they first occur, there shall be substituted the words " premises " ; and for the words " or of the land or houses in question " there shall be substituted the words " or, as the case may be, payments made in that or a subsequent year of assessment for the maintenance, repair or management of the relevant premises have been taken into account in an assessment or claim to repayment of tax which has been finally determined ".

• (6) In subsection (8), after the word " claim " where first occurring, there shall be inserted the words " or in computing profits or gains for the purposes of Case VIII of Schedule D " ; and for the words " the said section one hundred and seventy-six " there shall be substituted the words " Case VIII of Schedule D ".

The Finance Act 1961 — (9 & 10 Eliz. 2. c. 36)

19

• (1) In section 20(1) for the words from " paragraph (a)" to " under Schedule A) " there shall be substituted " section 47 of the Finance Act 1963 (accommodation occupied by holder of an office or employment) ", the words from " or in which" to " such a person " shall be omitted, and for the words " owned and occupied by a charity " there shall be substituted the words " occupied otherwise than by the holder of the office ".

• (2) This paragraph shall have effect in relation to tax for the year 1963-64.

The Finance Act 1962 — (10 & 11 Eliz. 2. c. 44)

20

In Schedule 9, in paragraph 17(3)—

• (a) for the words from " under section one hundred and one " in the first place where they occur to " enactments " there shall be substituted the words " in computing his profits or gains for purposes of Case VIII of Schedule D, but where it has been taken into account in computing those profits or gains ";

• (b) for the words from " expenditure so incurred " to the end there shall be substituted the words " payments made by him which are deductible in computing his profits or gains for purposes of Case VIII of Schedule D ".

PART II — Miscellaneous Amendments

The Land Drainage Act 1930 — (20 & 21 Geo. 5. c. 44)

21

• (1) Section 29 shall be amended as provided by the following sub-paragraphs.

• (2) In subsection (2), for the words from " is " to " enactment" there shall be substituted the words " was not assessed for the purposes of income tax under Schedule A for the year of assessment 1962-63 ", and after " Schedule A " in the second place where it occurs there shall be inserted the words " for that year of assessment ".

• (3) In subsection (4), for the words " of the Income Tax Act, 1918, as amended by any subsequent enactment" there shall be substituted the words " for the year of assessment 1962-63 ".

• (4) This paragraph shall have effect in relation to drainage rates for periods beginning after the 31st March 1964.

The Tithe Act 1936 — (26 Geo. 5. & 1 Edw. 8. c. 43)

22

The following section shall be inserted after section 14—

(14A) (1) Section 14 of this Act shall not apply as respects an instalment of an annuity payable after the 1st October 1963, but where, as respects an instalment of an annuity payable on that date, a sum is remitted under that section the Commissioners of Inland Revenue shall by order make a reduction in the amount of the annuity equal to that sum. (2) In relation to an instalment payable on the 1st October 1963, subsection (3) of the said section 14 and Schedule 4 to this Act shall have effect as if, instead of requiring an application for a certificate of annual value to be made before the 1st March in that year, those provisions required it to be made before the 1st March 1964.

The Drainage Rates Act 1958 — (6 & 7 Eliz. 2. c. 37)

23

• (1) In section 1(1), for the words " is made under Schedule A " there shall be substituted the words " was made under Schedule A for the year of assessment 1962-63 ", and for the words from " the last" to the end there shall be substituted the words " that year ".

• (2) This paragraph shall have effect in relation to drainage rates for periods beginning after the 31st March 1964

The Land Drainage Act 1961 — (9 & 10 Eliz. 2. c. 48)

24

• (1) Section 7 shall be amended in accordance with the four following sub-paragraphs.

• (2) In subsection (1), for the words from " the last" to " is raised " there shall be substituted the words " the year of assessment 1962-63 ".

• (3) In subsection (2), for the words " is made under Schedule A " there shall be substituted the words " was made under Schedule A for the year of assessment 1962-63 ".

• (4) In subsection (4), for the words "is not" there shall be substituted the words " was not ", and after the words " Schedule A " there shall be inserted the words " for the year of assessment 1962-63 ".

• (5) In subsection (6), for the words "from time to time" there shall be substituted the words " at any time before the 6th April 1969 ", and after the words " Schedule A" there shall be inserted the words " for the year of assessment 1962-63 ".

• (6) In section 14, the following subsection shall be inserted at the end—

(7) A request by the owner of a chargeable hereditament under section 110 of the Income Tax Act 1952 having effect for the year of assessment 1963-64 shall be treated for the purposes of this section as if it continued to have effect for subsequent years of assessment, but, without prejudice to subsection (4) of this section, subsection (1) thereof shall not apply to the hereditament in respect of a drainage charge raised for any period— (a) beginning after the owner either serves on the river board a notice in writing requiring that the said subsection (1) shall no longer so apply or ceases to be the owner of the hereditament; or (b) following a period for which a drainage charge is not assessed in respect of the hereditament.

;

and in subsection (4) of that section, paragraph (b), the word " and " preceding it, and the words " or cancellation" shall be omitted, and in subsection (6), for the words " from time to time there shall be substituted the words " at any time before the 6th April 1965 ".

• (7) In section 23, in subsection (4)(b), for the words from " or under " to " that Act" there shall be substituted the words " for the year of assessment 1962-63 ", and in subsection (6), after the words "Schedule A" there shall be inserted the words " for the year of assessment 1962-63 ".

• (8) This paragraph shall have effect in relation to drainage rates and charges for periods beginning after the 31st March 1964.

SCHEDULE 13

PART I — Income Tax Repeals

PART II — Profits Tax Repeals

PART III — Estate Duty Repeals

PART IV — Other Repeals

SCHEDULE 14

Part I — . . .

Part II — Income Tax Repeals

Part III — Repeal Relating to Estate Duty

Part IV — Stamp Duty Repeals

Part V — Land Tax Redemption Repeals

Part VI — Other Land Tax Repeals

Part VII — Irish Land Purchase Repeals

Part VIII — . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

52

SCHEDULE 1.

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SCHEDULE 2.

SCHEDULE 3.

SCHEDULE 12.

SCHEDULE 13.

Part I — Income Tax Repeals

Part II — Profits Tax Repeals

Part III — Estate Duty Repeals

Part IV — Other Repeals

Editorial notes