Finance Act, 1980
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Amendment of Part VI (differentiation and graduation of tax by means of reliefs) of Income Tax Act, 1967. |
3.—As respects the year 1980-81 and subsequent years of assessment, Part VI of the Income Tax Act, 1967 , is hereby amended by the substitution for sections 138 and 138A of the following sections: | |
Personal allowances. | ||
“138.—The deductions specified in this section for the purpose of ascertaining the taxable income (within the meaning of section 137) of an individual for a year of assessment are— | ||
(a) in a case in which the claimant is a husband— | ||
(i) who is assessed to tax for the year of assessment in accordance with the provisions of section 194, or | ||
(ii) who proves that his wife is not living with him but that she is wholly or mainly maintained by him for the year of assessment and that he is not entitled, in computing his income for tax purposes for that year, to make any deduction in respect of the sums paid by him for the maintenance of his wife, | ||
a deduction of £2,230: | ||
Provided that, where, but for this proviso, the husband would be entitled to a deduction of £2,230 under the foregoing provision he shall, if he proves that his marriage took place in that year of assessment, be entitled to a deduction of £2,345 in lieu of the deduction of £2,230, | ||
(b) in a case in which the claimant in the year of assessment— | ||
(i) is a widowed person, a deduction of £1,185, or | ||
(ii) is a widow whose husband has died in that year of assessment, a deduction of £2,230, and | ||
(c) in any other case, a deduction of £1,115. | ||
Additional allowance for widows and others in respect of children. | ||
138A.—If for any year of assessment the claimant proves that— | ||
(a) he is a person who is not entitled to a deduction mentioned in paragraph (a) or paragraph (b) (ii) of section 138, and | ||
(b) he is entitled, for that year of assessment, to a deduction under section 141 in respect of a child resident with him, | ||
he shall be entitled to a deduction of £500: | ||
Provided that this section shall not apply for any year of assessment in the case of a husband or a wife where the wife is living with her husband. | ||
Employee allowance. | ||
138B.—(1) If, for any year of assessment, the claimant proves that his total income for the year consists of or includes emoluments (including in the case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194, any emoluments of his wife which are deemed to be income of his by that section for the purposes referred to in that section)— | ||
(a) a deduction of £400 shall be made from so much, if any, of the emoluments (but not including, in the case where the claimant is a husband assessed as aforesaid the emoluments, if any, of his wife) as arise to the claimant, and | ||
(b) in the case where the claimant is a husband assessed as aforesaid, a deduction of £400 shall be made from so much, if any, of the emoluments as arise to his wife. | ||
(2) In this section— | ||
“emoluments” means emoluments to which Chapter IV of Part V applies, or is applied, save that it does not include— | ||
(a) emoluments paid, directly or indirectly, by a body corporate (or by any person who would be regarded as connected with the body corporate for the purposes of Part IV of the Finance (Miscellaneous Provisions) Act, 1968 ) to a proprietary director of the body corporate or to the spouse or child of such a proprietary director, and | ||
(b) emoluments paid, directly or indirectly, by an individual (or by a partnership in which the individual is a partner) to the spouse or child of the individual; | ||
“proprietary director” has the meaning assigned to it by section 226 of the Income Tax Act, 1967. ”. |