Finance Act, 1974
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Amendment of section 221 of Income Tax Act, 1967. |
48.— Section 221 (2) of the Income Tax Act, 1967 , is hereby amended— | |
(a) by the insertion after the first subparagraph of paragraph (c) of the following proviso: | ||
“Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974— | ||
(a) for the year of assessment 1973-74, on the excess of the interest over £500, or | ||
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.”, | ||
(b) by the insertion after paragraph (e) of the following proviso: | ||
“Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed— | ||
(a) for the year of assessment 1973-74, the sum of £500, or | ||
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.”, and | ||
(c) by the addition to paragraph (g) of “or as a deduction authorised under section 81 (5) (e).”, | ||
and the said paragraphs, as so amended, are set out in the Table to this section. | ||
TABLE | ||
(2) (c) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) is made) without deduction of tax in accordance with subsection (1), it may claim, in a case in which section 220 applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise. | ||
Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974— | ||
(a) for the year of assessment 1973-74, on the excess of the interest over £500, or | ||
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000. | ||
Section 307 (5) (6) shall apply to a claim under this paragraph as those subsections apply to a claim under section 307, except that it shall not be necessary to use a prescribed form. | ||
(2) (e) In this subsection “the appropriate proportion” of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 220, have been the amount of the society's total income for that year. | ||
Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed— | ||
(a) for the year of assessment 1973-74, the sum of £500, or | ||
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000. | ||
(2) (g) Any reference in the foregoing provisions of this subsection to loan interest or other interest does not include a reference to interest which is allowable as a deduction in the computation of the profits or gains of a trade carried on by the society or as a deduction authorised under section 81 (5) (e). |