Finance Act, 1993

Cesser of section 337 (savings banks) of Income Tax Act, 1967.

43.—(1) Section 337 (as amended by section 61 of the Finance Act, 1990 ) of the Income Tax Act, 1967 , shall not apply or have effect in relation to any interest, dividends, profits or gains arising to a trustee savings bank, within the meaning of the Trustee Savings Banks Act, 1989 , on or after the 1st day of April, 1993:

Provided that the trading income of a trustee savings bank shall, for the purpose of assessment to corporation tax, be reduced—

(a) as respects accounting periods falling in the period beginning on the 1st day of April, 1993, and ending on the 31st day of March, 1994, by 75 per cent. of the amount of that income,

(b) as respects accounting periods falling in the period beginning on the 1st day of April, 1994, and ending on the 31st day of March, 1995, by 50 per cent. of the amount of that income, and

(c) as respects accounting periods falling in the period beginning on the 1st day of April, 1995, and ending on the 31st day of March, 1996, by 25 per cent. of the amount of that income.

(2) For the purposes of this section—

(a) where an accounting period begins before the 1st day of April, 1994, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1994, and the other beginning on the 1st day of April, 1994, and ending on the day on which the accounting period ends,

(b) where an accounting period begins before the 1st day of April, 1995, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1995, and the other beginning on the 1st day of April, 1995, and ending on the day on which the accounting period ends, and

(c) where an accounting period begins before the 1st day of April, 1996, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1996, and the other beginning on the 1st day of April, 1996, and ending on the day on which the accounting period ends,

and, in each case, both of the parts shall be treated as if they were separate accounting periods.