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Ways And Means

Volume 436: debated on Tuesday 22 April 1947

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REPORT [15 th April]

Resolutions reported:

Customs And Excise

Hydrocarbon Oils (Customs)

1. "That, as from six o'clock in the evening on the fifteenth day of April, nineteen hundred and forty-seven—

  • (a) the rate of any rebate allowed under Section two of the Finance Act, 1928, on the delivery for home consumption of—
  • (i) any oils which contain in solution an amount of hard asphalt of not less than one half of one per cent.; or
  • (ii) any oils of which not more than fifty per cent. by volume distils at a temperature not exceeding 240 degrees centigrade, and of which more than fifty per cent. by volume distils at a temperature not exceeding 340 degrees centigrade,
  • shall be increased from eightpence pen gallon to ninepence per gallon;
  • (b) the duty chargeable by virtue of Subsection (2) of Section eight of the Finance (No. 2) Act, 1945, on oils used in a refinery for generating heat, light or power, or for producing gas, shall cease to be chargeable.
  • And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913."

    Tobacco (Customs)

    2. "That, as from the sixteenth day of April, nineteen hundred and forty-seven, in lieu of the full and preferential duties of

    customs theretofore chargeable on tobacco imported into the United Kingdom, there shall be charged on tobacco so imported of the descriptions set out in the first column of the following Table—.

  • (a) in the case of tobacco not being an Empire product, duties of customs at the rates respectively specified in the second column of that Table; and
  • (b)in the case of tobacco being an Empire product, duties of customs at the rates respectively specified in the third column of that Table.
  • Table
    Description of Tobacco.Rates of duty per pound.
    Full rates.Preferential rates.
    £s.d.£s.d.
    Tobacco unmanufactured: containing 10 lbs. or more of moisture in every 100 lbs. weight thereof:
    unstripped21410213
    stripped21410½2133⅞
    containing less than 10 lbs. of moisture in every 100 lbs. weight thereof:
    unstripped21510214
    stripped21510½2141⅞
    Tobacco manufactured. namely:
    Cigars345315⅝
    Cigarettes30421711½
    Cavendish or Negrohead21942171
    Cavendish or Negrohead manufactured in bond2174215
    Other manufactured tobacco2177215
    Snuff:
    containing more than 13 lbs. of moisture in every 100 lbs. Weight thereof2161021411⅞
    containing not more than 13 lbs. of moisture in every 100 lbs. weight thereof21942171
    and so in proportion for any less quantity

    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the pro visions of the Provisional Collection of Taxes Act, 1913."

    Tobacco (Excise)

    3. "That, as from the sixteenth day of April, nineteen hundred and forty-seven, in lieu of the duties of excise theretofore charge able on tobacco grown in the United Kingdom, there shall be charged on tobacco so grown of the descriptions set out in the first column of the following Table duties of excise at the rates respectively specified in the second column of the Table.

    Table
    Description of Tobacco.Rates of duty per pound.
    £s.d.
    Tobacco unmanufactured:
    containing 10 lbs. or more of moisture in every 100 lbs. weight thereof213
    containing less than 10 lbs. of moisture in every 100 lbs. weight thereof21311½
    Tobacco manufactured, namely:
    Cavendish or Negrohead manufactured in bond215
    and so in proportion for any less quantity.

    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the pro visions of the Provisional Collection of Taxes Act, 1913."

    Tobacco (Drawback)

    4. "That, as respects tobacco on which there have been paid duties of customs or excise at the increased rates for which pro vision is made by any Resolution of the Committee of Ways and Means together with this Resolution, drawback shall be allowed at the rates set out in the following Table instead of at the rates set out in Part III of the Fourth Schedule to the Finance Act, 1943.

    Table
    Description of Tobacco.Rates per pound
    In respect of tobacco on which full customs duty has been paid.In respect of tobacco on which customs duty at a preferential rate or excise duty has been paid.
    £s.d.£s.d.
    Cigars21810217
    Cigarettes21510214
    Cut, roll, cake or other manufactured tobacco2157214
    Snuff (not being offal snuff)2154213
    Stalks, shorts or other refuse of tobacco, including offal snuff2151213

    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the pro visions of the Provisional Collection of Taxes Act, 1913."

    Artificial Silk (Customs And Excise)

    5. "That as from the first day of May, nineteen hundred and forty-seven—

  • (a) the duties of excise on artificial silk singles yarn or straw and on a licence to be taken out annually by a manufacturer of artificial silk yarn shall cease to be chargeable; and
  • (b) the rates of duties of customs chargeable under Section four of the Finance Act, 1925, in respect of artificial silk yarn and tissues shall be reduced by sixpence and shall be as follows, that is to say:
  • artificial silk yarnthe lb.9d.
    artificial silk tissuesthe lb.11d.,

    and the Silk Duties (No. 1) Order, 1934, shall have effect subject to the following amendments of Part II of the First Schedule to that Order (which sets out the rates of duties of customs on certain articles made wholly or partly of artificial silk), that is to say:

    in the second column—

  • (i) for the words' An amount equal to 43⅓ per cent. of the value of the article or an amount calculated at the rate of 5s. the pound on the weight of the article, whichever is the greater 'there shall be substituted the words' An amount equal to 42 per cent. of the value of the article or an amount calculated at the rate of 4s. 8d. the pound on the weight of the article, whichever is the greater'; and
  • (ii) for the words An amount equal to 43⅓per cent. of the value of the article 'where they last occur in that column there shall be substituted the words' Where any component is silk, an amount equal to 43⅓per cent. of the value of the article and where no component is silk, an amount equal to 42 per cent. of the value of the article ',
  • and Section nine of the Finance Act, 1933, shall have effect as if the preceding provisions of this paragraph of this Resolution were contained in an order made under that section:

    Provided that nothing in this Resolution shall affect any drawback of duty allowable in respect of artificial silk or any article made wholly or in part of artificial silk where the duty became chargeable on the artificial silk whether before or after the passing of this Resolution and before the said first day of May, nineteen hundred and forty-seven,

    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913."

    Allowance For Artificial Silk Used In Tyres (Customs)

    6. "That no allowance shall be paid under Section eleven of the Finance Act, 1946, in respect of any artificial silk on which a duty of customs has been paid contained in yarn or tissue used in the manufacture of tyres if that duty becomes chargeable on or after the first day of May, nineteen hundred and forty-seven."

    Purchase Tax

    Purchase Tax (Intermediate And Higher Rates)

    7. "That—

  • (a) as from the sixteenth day of April, nineteen hundred and forty-seven, purchase tax shall be charged in respect of goods of the classes specified in the following Table—
  • (i) where they are not goods of the classes specified in the Seventh Schedule to the Finance Act, 1942, at an intermediate rate equal to two-thirds of the value of the goods; and
  • (ii) where they are goods of the classes specified in the said Seventh Schedule, at the higher rate; and
  • (b) the Treasury shall have power undo Section twenty of the Finance (No. 2) Act, 1940, subject to approval by this House, by order to render chargeable at the intermediate rate goods not previously chargeable or chargeable at any other rate and to render goods previously chargeable at the intermediate rate chargeable at any other rate or not chargeable and the provisions of paragraph (a) of this Resolution shall have effect subject to any order under that Section.
  • Table

    Domestic appliances and domestic apparatus, being appliances and apparatus of a kind suitable for operation from electric or gas mains, but not including—

    lighting and wireless appliances and apparatus;

    gramophones and player pianos:

    clocks and parts of clocks;

    warming pads and blankets;

    hair drying machines;

    infra-red and ultra-violet ray lamps and radiant heat lamps.

    Lawn mowers of a kind suitable for operation from electric mains."

    No 7 Purchase Tax (Exemptions And Reductions Of Rates)

    8. "That, as from the sixteenth day of April, nineteen hundred and forty-seven, subject to any subsequent order under Section twenty of the Finance (No. 2) Act, 1940,—

  • (a) purchase tax shall cease to be chargeable in respect of goods of the class specified in Part I of the following Table; and
  • (b) purchase tax shall become chargeable at the reduced rate and at the basic rate in respect of goods of the classes specified respectively in Parts II and III of the said Table.
  • Table

    Part I

    Class of goods becoming exempt

    Domestic water filters designed to remove bacteria and other suspended impurities from drinking water by mechanical means, but not including filters also employing chemical reaction.

    Part Ii

    Classes of goods becoming chargeable at reduced rate

    Floor coverings, including linoleum, but not including carpets, carpeting, rugs, mats, matting and wooden floor coverings.

    Chambers not supplied as part of a toilet service, and chair pans and commode pans and lids for such chambers and pans as aforesaid.

    Hot water bottles of a kind designed for use as bed warmers or foot warmers.

    Requisites for cricket of the following descriptions—bats, balls, stumps and bails and wicket keepers' and batsmen's pads and gloves.

    Footballs, and part of footballs, and footballers' shinguards.

    Requisites for hockey, but not for ice hockey, of the following descriptions—sticks, balls and shinguards.

    Boxing gloves.

    Rowing boats specially designed as racing boats.

    Part Iii

    Classes of goods becoming chargeable at basic rate

    Razor strops and razor sharpeners, but not including strops and sharpeners supplied as part of a toilet set.

    Dental sticks and toothpicks."

    Income Tax

    Charge Of Tax

    9. "That—

  • (a) income tax for the year 1947–48 shall be charged at the standard rate of nine shillings in the pound, and, in the case of an individual whose total income exceeds two thousand pounds, at such higher rates in respect of the excess over two thousand pounds as Parliament may hereafter determine;
  • (b) subject to the provisions of any Act of the present Session relating to transport or electricity, all such enactments as had effect with respect to the income tax charged for the year 1946–47, other than such enactments as by their terms relate only to tax for that year, shall have effect with respect to the income tax charged for the year 1947–48.
  • And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913."

    Personal Reliefs

    10. "That—

  • (a) Subsection (r) of Section fifteen of the Finance Act, 1925 (which, as amended by subsequent enactments, provides for a deduction of tax on an amount equal to one-eighth, of the amount of earned income, but not exceeding one hundred and fifty pounds) and Subsection (2) of the said Section fifteen (which, as amended by subsequent enactments, provides, in a case where an individual or his wife has attained the age of sixty-five years and his total income does not exceed five hundred pounds, for a deduction of tax on a amount equal to one-eighth of his income) shall have effect as if the words 'one-sixth' were substituted for the words 'one-eighth' and the words two hundred and fifty pounds' were substituted for the words 'one hundred and fifty pounds';
  • (b) Section eighteen of the Finance Act, 1920 (which, as amended by subsequent enactments, provides, amongst other things, that the deduction of tax allowable in the case of married persons shall in certain cases be increased by an amount not exceeding seven-eighths of the earned income of the claimant's wife) shall have effect as if the words five-sixths' were substituted for the words 'seven-eighths';
  • (c) Section twenty-one of the Finance Act, 1920 (which, as amended by subsequent enactments, provides for a deduction of tax on fifty pounds in respect of each child with an income of fifty pounds or less) shall have effect as if the words sixty pounds' were substituted for the words 'fifty pounds' in Subsections (s) and (3) thereof; and
  • (d) Subsection (1) of Section sixteen of the Finance Act, 1943 (which provides, amongst other things, that the deduction of tax allowable in certain cases in respect of a relative of the claimant or of his or her wife or husband who is maintained by the claimant is limited to cases where the total income of the person maintained does not exceed eighty pounds a year and that the allowance is reduced if the total income of that person exceeds thirty pounds a year) shall have effect as if the words 'one hundred and twenty pounds' were substituted for the words 'eighty pounds' and the words 'seventy pounds' were substituted for the words thirty pounds ';
  • Provided that the additional relief afforded by this Resolution for the year 1947–48 shall not affect the amount of tax deductible or repayable before the seventh day of July, nineteen hundred and forty-seven.

    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913."

    Farm Animals

    11. "That, save in so far as may be otherwise provided by any Act of the present Session relating to Finance, animals and other living creatures kept for the purposes of farming or for the purposes of any trade whatsoever shall be treated for income tax purposes as trading stock or, in so far as an option conferred by the said Act to have them treated on an alternative basis has been duly exercised as respects them, on that alternative basis; and that where such an option is availed of or is or has been or may become available, such other consequences shall ensue for income tax purposes to all persons then or thereafter concerned as may be provided by the said Act."

    Double Taxation Relief

    12. "That the extent and incidence of in come tax, for the year 1946–47 and subsequent years of assessment, shall be varied so as to give effect to amendments of the law relating to the effects of provisions in arrangements with the governments of territories outside the United Kingdom for the crediting, against United Kingdom tax, of tax payable under the laws of those territories."

    Transfers Of Assets Under Coal Industry Nationalisation Act

    13. "That, as respects past, present and future years of assessment, the law applicable to the income tax of the National Coal Board and the other persons concerned shall be amended -in relation to cases where, whether before or after the passing of this Resolution, assets vest in that Board by virtue of any of the provisions of the Coal Industry Nationalisation Act, 1946."

    Exceptional Depreciation Allowances

    14. "That any exceptional depreciation allowance in respect of a building or structure for the year of assessment in which the appointed day (within the meaning of the Income Tax Act, 1945) falls shall, for the purposes of Section four of that Act, be written off as at the end of the immediately preceding year of assessment, and this Resolution shall apply to all years of assessment, including the year 1946–47."

    Benefits Procured For Directors And Employees

    15. "That it is expedient to impose liability to income tax where benefits (including benefits which are to be enjoyed only on the happening of particular contingencies) are or are to be procured or provided by bodies for persons who, as directors or otherwise, are taking part or are to take part or have taken part in the management of their affairs, or by employers of any kind for persons who are or are to be or have been their employees."

    Profits Tax And Excess Profits Tax Profits Tax

    16. "That the extent and incidence of the profits tax (for past and future chargeable accounting periods) be varied so as to give effect to amendments as to the rate of the tax, the scope of the tax, the computation of profits and losses for the purposes of the tax, the relief to be given for double taxation and the other conditions subject to which the tax is charged."

    Excess Profits Tax

    17. "That the extent and incidence of excess profits tax (for all chargeable accounting periods) be varied so as to give effect to amendments as to the meaning of the expression 'remuneration' in reference to directors and to provisions operating where there has been a direction under Section twenty-four of the Finance Act, 1943."

    Legacy And Succession Duties

    Charge Of Additional Duty

    18. "That there shall be charged on legacies derived from a testator or intestate dying on or after the sixteenth day of April, nineteen hundred and forty-seven, and successions arising on or after that day, on which legacy or succession duty is payable or has before that day been paid under the enactments now in force, a further legacy or succession duty at a rate equal to the rate of aggregate rate of the duty thereon under those enactments; and this Resolution shall apply also to other legacies and successions so as to authorise charging the further legacy or succession duty thereon on deaths and other events happening on or after the said sixteenth day of April."

    Stamps

    Conveyances, Transfers And Leases

    19. "That the stamp duties charged under or by reference to the headings Conveyance or

    Transfer, whether on sale or otherwise,' 'Conveyance or Transfer on sale of any property 'and' Lease or Tack' in the First Schedule to the Stamp Act, 1891, shall be double those now chargeable, but this Resolution—

  • (a) shall not affect the operation of any enactment limiting an ad valorem duty to ten shillings in certain cases;
  • (b) shall not apply to the duty chargeable on any conveyance or transfer on sale, other than of any stocks (including units under a unit trust scheme) or marketable securities, or to the duty chargeable in respect of any consideration other than rent for a lease at a rent not exceeding twenty pounds a year where the conveyance or transfer or the lease is not a transaction, and does not form part of a larger transaction, or of a series of transactions, in respect of which the amount or value of the aggregate amount or value of the consideration exceeds fifteen hundred pounds; and
  • (c) shall not apply to the duty chargeable on a lease (other than a lease operating as a voluntary disposition inter vivos) for an indefinite term or a term not exceeding thirtyfive years where the sole consideration is a rent not exceeding one hundred pounds a year."
  • Stocks, Marketable Securities And Letters Of Allotment, &C

    20. "That

  • (a) the stamp duties charged on marketable securities, share warrants and stock certificates to bearer, and on other instruments to bearer, shall be double those now chargeable;
  • (b) the stamp duties charged under Section one hundred and fourteen of the Stamp Act, 1891, as amended by subsequent enactments, and under Section thirty-seven of the Finance Act, 1939, by way of composition for the stamp duty chargeable on transfers of certain stocks and the stamp duty charged under Section one hundred and fifteen of the Stamp Act, 1891, as amended by subsequent enactments, by way of composition in respect of the transfer of certain stocks (including units under unit trust schemes) and otherwise shall be double those now chargeable;
  • (c) the stamp duties charged on contract notes in respect of stocks (including units under unit trust schemes) and marketable securities shall be double those now chargeable; and
  • (d) the stamp duties charged on letters of allotment, letters of renunciation and other documents having the effect of a letter of allotment, and on scrip certificates and similar documents shall be double those now chargeable."
  • Loan Capital, Bonds, Mortgages, &C

    21. "That—

  • (a) the stamp duty charged on loan capital under Section eight of the Finance Act, 1899, shall be double that now chargeable;
  • (b) the stamp duties charged under or by reference to the headings' Bond, Covenant or Instrument 'and' Mortgage, Bond, Debenture, Covenant and Warrant of Attorney' in the first Schedule to the Stamp Act, 1891, shall be double those now chargeable; and
  • (c) the reference in the heading 'Bond given pursuant to the directions of any Act', &C., in the said Schedule to duties of excise or customs shall include a reference to purchase tax."
  • Bonus Issues Of Securities

    22. "That where on or after the sixteenth day of April, nineteen hundred and forty-seven, a company issues any shares or other securities or increases the rights or reduces the liabilities attached to any shares or other securities and does so by way of bonus to members or debenture holders of itself or of another company, a statement shall be made of the value of the bonus, and that statement shall be charged with an ad valorem stamp duty of ten pounds for every hundred pounds or part of a hundred pounds of the value of the bonus, and any Act of the present Session relating to Finance may contain provision—

  • (a) for determining how far any. matter is to be treated as being by way of bonus to any persons, and in particular for so treating an issue if the offer is limited to those persons or if in connection with the issue those persons receive preferential treatment; and
  • (b) for determining the value of the bonus."
  • Miscellaneous

    Essential Commodities Reserves Fund

    23. "That the sum of nine hundred and seventy-three thousand and forty-one pounds fourteen shillings and sixpence be paid out of the Essential Commodities Reserves Fund into the Exchequer."