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The Consular Relations (Merchant Shipping) (Kingdom of Belgium) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4, 5, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (Kingdom of Belgium) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Articles 3 and 4 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 5 of this Order a ship shall be treated as belonging to the Kingdom of Belgium if it is registered under Belgian law for the purposes of navigation at sea. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the Kingdom of Belgium shall not be entertained by any court in the United Kingdom unless a consular officer of the Kingdom of Belgium has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 Where an offence is alleged to have been committed on board any ship belonging to the Kingdom of Belgium by the master or a member of the crew, proceedings for the offence instituted otherwise than at the request or with the consent of a consular officer of the Kingdom of Belgium shall not be entertained by any court in the United Kingdom, unless — a the offence is alleged to have been committed — i by or against a person who is a citizen of the United Kingdom and Colonies, a citizen of Southern Rhodesia, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948; or ii against a person other than the master or a member of the crew; or b the offence is one involving the tranquillity or safety of a port, or the law relating to safety of life at sea, public health, oil pollution, wireless telegraphy, immigration or customs; or c the offence is one punishable (on a first conviction) with imprisonment for a term that may extend to five years or with a more severe sentence. 5 The Kingdom of Belgium is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The Smallholdings (Full-Time Employment) Regulations 1970 The Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales, acting jointly, in exercise of the powers conferred on them by section 39(2) and section 63 of the Agriculture Act 1970, and of all other powers enabling them in that behalf, hereby make the following regulations: — Citation and commencement 1 These regulations may be cited as the Smallholdings (Full-Time Employment) Regulations 1970, and shall come into operation on 1st August 1970. Interpretation 2 1 In these regulations, unless the context otherwise requires — “ the Act ” means the Agriculture Act 1970; “ the appropriate Minister ” means , in relation to England, except Monmouthshire, the Minister of Agriculture, Fisheries and Food and, in relation to Wales, including Monmouthshire, the Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales acting jointly. 2 The Interpretation Act 1889 applies for the interpretation of these regulations as it applies for the interpretation of an Act of Parliament. Estimate of full-time employment capability 3 1 For the purposes of section 39(2) of the Act (which relates to a holding which shall be treated as falling within the upper limit for a small-holding), the number of men for whom a holding is capable, when farmed under reasonably skilled management, of providing full-time employment shall be estimated by reference to the standard labour requirements of the holding in accordance with the Schedule to these regulations, it being assumed that a system of husbandry suitable for the district is followed and that the greater part of the feeding stuffs required by any livestock kept on the holding is grown there. 2 A holding shall be treated as being capable of providing full-time employment for not more than two men (including the person to whom it is let) with or without additional part-time employment for another man if its standard labour requirements are less than 900 standard man-days in aggregate in a year on average. In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 6th July 1970. J.M.L. Prior Minister of Agriculture, Fisheries and Food Given under my hand on 14th July 1970. Peter Thomas Secretary of State for Wales SCHEDULE Regulation 3 In this Schedule — “ existing smallholding ” means a holding which, being a holding held by a smallholdings authority for the purposes of smallholdings, is let as a smallholding at the time when the authority submit proposals, in which that holding is included, to the appropriate Minister under the provisions of section 40, section 42 or section 43 of the Act or, if the holding is not at that time let as a smallholding and is not being used for any purpose, is a holding which, when it was last let, was let as a smallholding; and “ proposed smallholding ” means a holding which a smallholdings authority, in any proposals submitted by them to the appropriate Minister under the provisions of section 40, section 42 or section 43 of the Act propose to form by carrying out any such transaction as is mentioned in paragraph (a) or paragraph (c) of section 40. 1 The standard labour requirements of an existing smallholding shall be expressed in standard man-days estimated, except as is otherwise provided in paragraphs 3 to 6 of this Schedule, by multiplying respectively the number of standard man-days set out in the table below in relation to any kind of crop or livestock therein mentioned by the total number of acres (or other units to which the standard man-days are related in the table) of that kind of crop, or the average of the numbers of that kind of livestock, shown to the satisfaction of the appropriate Minister to be comprised in the agricultural operations carried on on the holding in the course of an average period of twelve months, adding together the results so obtained and increasing the total by 15 per cent. 2 The standard labour requirements of a proposed smallholding shall be expressed in standard man-days estimated, except as is otherwise provided in paragraphs 5 and 6 of this Schedule, by multiplying respectively the number of standard man-days set out in the table below in relation to any kind of crop or livestock therein mentioned by the total number of acres (or other units to which the standard man-days are related in the table) of that kind of crop, or the average of the numbers of that kind of livestock, which are shown to the satisfaction of the appropriate Minister to be capable of being comprised in the agricultural operations carried on on the holding, when it is farmed under reasonably skilled management, in the course of an average period of twelve months, adding together the results so obtained and increasing the total by 15 per cent. 3 Where double cropping is practised on land forming part of an existing smallholding the area of both crops shall be included in the estimate. 4 Agisted livestock shall be deemed to be on an existing smallholding while they are on land forming part of the holding and not otherwise. 5 A cow of a dairy type which suckles calves shall be classified as a beef cow. 6 Calves less than seven days old, unweaned piglets, and unweaned lambs shall not be included in the estimate. TABLE CROPS Standard man-days (per acre) Wheat 2 Barley 2 Oats 3 Mixed corn 3 Rye — for threshing 2·5 Potatoes — first early 15 — main crop and second early 15 Beans for stockfeeding 3 Turnips, swedes and fodder beet for stockfeeding 9 Mangolds 11 Rape or cole for stockfeeding 1 Kale for stockfeeding 1·5 Cabbage, savoys and kohlrabi for stockfeeding 5 Mustard for seed, fodder or ploughing-in 3 Other crops for stockfeeding (inc. vetches and tares but not lucerne and grasses) 3 Sugar beet 10 Hops 70 Orchards grown commercially 23 Orchards not grown commercially 1 Small fruit: Strawberries 70 Raspberries 80 Currants, black 40 Gooseberries 40 Other small fruit 60 All brassicas 20 Carrots, earlies 60 Carrots, main crop 10 Parsnips 25 Turnips and swedes 20 Beetroot (red beet) 30 Onions, salad 100 Onions, harvesting dry 25 Beans, broad 30 Beans, runner: bush 30 climbing 80 Beans, french 25 Peas, green for market 30 Peas, all others for processing 3 Celery 40 Lettuce, not under glass 30 Other vegetables and mixed areas 50 Hardy nursery stock 50 Bulbs 100 Other flowers not under glass 250 Crops under glass or sheds 1,300 Other crops not for feeding to farm livestock 3 Bare fallow 0·5 Lucerne 1·25 Clover, sainfoin and temporary grasses 0·75 Permanent grass 0·5 LIVESTOCK Standard man-days (per head per annum) Dairy cows in milk or in calf and heifers in milk 10 Dairy heifers in calf 3·5 Beef cows in milk or in calf and heifers in milk 3 Bulls being used for service 6 All other cattle 2·5 Ewes 0·7 Rams 0·7 Wethers and other sheep 1 year old and over 0·2 Breeding sows and gilts 4 Boars 4 Other pigs over 2 months old 1 Poultry — Hens and pullets (other than growing pullets), geese and turkeys 0·1 — Fowls for breeding 0·15 — Ducks 0·2 — Broilers, growing pullets and other table fowl 0·05

The London Government Order 1970 The Minister of Housing and Local Government, in exercise of his powers under section 84 of the London Government Act 1963 and as regards article 9 of this order under that section as extended by section 35 of the Administration of Justice Act 1964, and of all other powers enabling him in that behalf, hereby makes the following order — Title and commencement 1 This order may be cited as the London Government Order 1970, and shall come into operation on 1st March 1970. Interpretation 2 1 The Interpretation Act 1889 applies to the interpretation of this order as it applies to the interpretation of an Act of Parliament. 2 In this order — “ the Act ” means the London Government Act 1963 ; “ the City ” means the City of London ; and “ the Common Council ” means the Common Council of the City of London . 3 In this order, unless the context otherwise requires, references to any enactment shall be construed as references to that enactment as amended, extended or applied by or under any other enactment. Miscellaneous provision as to public general and other Acts 3 1 In the Electricity (Supply) Act 1919, in section 21, the reference to the local planning authority within the meaning of the Town and Country Planning Act 1947 shall be construed, in relation to land in a London borough or in the City, as including a reference to the Greater London Council but not to the borough council or to the Common Council. 2 In the Children and Young Persons Act 1933, in section 12(5), after “county borough” where first occurring there shall be inserted “or the Greater London Council” . 3 In the Crown Lands Act 1936, in section 2(4) , for “the London County Council” there shall be substituted “the Greater London Council” . 4 In the Water Act 1945, in Schedule 3, in paragraph 94(1), there shall be added “or where they supply, or propose to supply, water, or have, or propose to construct, any waterworks, in Greater London, with the clerk to the Greater London Council” . 5 In the Marriage Act 1949, in section 57(4) , for the words following “the certified copy” there shall be substituted — and that sum shall be reimbursed to the superintendent registrar — a in the case of a registration district in the City of London, the Inner Temple and the Middle Temple, by the Common Council of the City of London; b in any other case, by the council of the county, county borough or London borough in which his registration district is situated . 6 In section 42 of the London County Council (General Powers) Act 1953 (which makes provision as to the proof of resolutions passed, orders made and reports received by the Greater London Council and the councils of the inner London boroughs and of appointments of officers made and authorities to officers given by such councils) — a in subsections (1) and (2) — for “the council or a committee thereof” there shall be substituted “the council, or a predecessor, or a committee of any such body” ; for “the council or committee” there shall be substituted “the council, or predecessor, or committee” ; b in subsection (3), there shall be added — and “ predecessor ” means, in the case of any council named in column (1) of the following table, a council specified in respect of such council in column (2) . TABLE (1) (2) The Greater London Council The London County Council The county council of Middlesex The council of the London borough of Camden The council of the metropolitan borough of Hampstead, Holborn or St. Pancras The council of the London borough of Greenwich The council of the metropolitan borough of Greenwich or Woolwich The council of the London borough of Hackney The council of the metropolitan borough of Hackney, Shoreditch or Stoke Newington The council of the London borough of Hammersmith The council of the metropolitan borough of Fulham or Hammersmith The council of the London borough of Islington The council of the metropolitan borough of Finsbury or Islington The council of the Royal borough of Kensington and Chelsea The council of the metropolitan borough of Chelsea or Kensington The council of the London borough of Lambeth The council of the metropolitan borough of Lambeth The council of the London borough of Lewisham The council of the metropolitan borough of Deptford or Lewisham The council of the London borough of Southwark The council of the metropolitan borough of Bermondsey, Camberwell or Southwark The council of the London borough of Tower Hamlets The council of the metropolitan borough of Bethnal Green, Poplar or Stepney The council of the London borough of Wandsworth The council of the metropolitan borough of Battersea or Wandsworth The council of the City of Westminster The council of the metropolitan borough of Westminster, Paddington or St. Marylebone . 7 In the Forestry Act 1967, in section 40(2)(c) , after “parish” , there shall be inserted “the Greater London Council,” . 8 The enactments specified in the Schedule to this order are hereby repealed to the extent mentioned in column (3) thereof. Construction of references to superseded provisions 4 Where by or under the Act — a a provision of an enactment or instrument has been repealed or revoked; and b a corresponding provision has been applied to the relevant area or to any part thereof any reference in any local Act or in any instrument made under any Act to the provision mentioned in (a) shall, in the application of such Act or instrument to the relevant area or to such part, as the case may be, unless the contrary intention appears, be construed as a reference to the provision mentioned in (b). In this article — “ the relevant area ” has the meaning assigned to it by section 87(9) of the Act ; and “ local Act ” includes an Act confirming a provisional order . Deposit of plans and documents 5 All enactments or statutory orders relating to the deposit of plans or documents, other than those relating to judicial business, shall, in their application to Greater London, be construed as if the clerk to the Greater London Council were therein substituted for the clerk of the peace. When acting under any such enactment or statutory order, the said clerk shall act under the direction of the Greater London Council. In this article, “ enactment ” and “ statutory order ” have the same meanings as in the Local Government Act 1933 . Drainage of contiguous premises 6 1 In paragraph 14(5) of Part III of Schedule 9 to the Act (which as extended to the City by the London Government ( No. 2)Order 1965 enables the drainage in common of certain houses to be required by the council of an inner London borough or the Common Council), there shall be added — In this sub-paragraph, “ house ” includes a school and also a factory or other building in which persons are employed and, in relation to a house as hereinbefore defined, includes the curtilage thereof . . 2 Paragraph 14(6) of the said Part III shall apply to the City and in such application the reference to a borough council shall be read as a reference to the Common Council. Compensation for injury to or the death of officers of the London County Council 7 Section 75 of the Act (which makes provision for compensation for injury to or the death of officers), in its application to the Greater London Council, shall, in so far as it empowers the increase of compensation paid by periodical payments, extend to any officer of the London County Council, or to any widow or widower or child of any such officer, to whom compensation was being paid immediately before 1st April 1965 under section 44 of the London County Council (General Powers) Act 1895 or section 92 of the London Government Act 1939. The said section shall also extend to the payment of compensation to the widow or widower or child of any such officer. Common Council — Legal proceedings in relation to certain functions 8 In relation to — a any functions of the Greater London Council delegated to the Common Council under section 5(1) of the Act; b any administrative, clerical, professional, scientific or technical services undertaken by the Common Council for the Greater London Council under section 5(3)(a) of the Act, but subject in the case of item (a) to any restrictions or conditions imposed by the Greater London Council under the said section 5(1), sections 276 (Power of local authority to prosecute or defend legal proceedings) and 277 (Appearance of local authority in legal proceedings) of the Local Government Act 1933 shall apply to the Common Council as if it were a local authority within the meaning of that Act. Appointment of auditors of accounts of certain conservators of commons 9 In any provision specified in column (1) of the following table, for the words specified in respect of such provision in column (2) there shall be substituted the words so specified in column (3). TABLE (1) (2) (3) Section 30(5) of the Wimbledon and Putney Commons Act 1871 “the chairman of the Court of Quarter Sessions for the county of Surrey” “the chairman of the court of quarter sessions for the south-west London area” Clause 27 of the scheme approved by the Metropolitan Commons (Mitcham) Supplemental Act 1891 “the chairman of quarter sessions for the county of Surrey” do. Clause 20 of the scheme approved by the Metropolitan Commons (Harrow Weald) Supplemental Act 1899 “the Chairman of Quarter Sessions for the county of Middlesex” “the chairman of the court of quarter sessions for the Middlesex area” Corporation of wardens of the parish of St. Saviour, Southwark 10 The power of electing five wardens, namely the Warden of the Great Account, the Renter Warden, the College Warden, the Bell Warden and the Newcomen's Warden, of the corporation of wardens of the parish of St. Saviour, Southwark, shall be exercisable by the council of the London borough of Southwark. An appointment of a person to be such a warden shall not be made except on the nomination of councillors for the ward or wards consisting of or comprising the area of the parish of St. Saviour, Southwark, as existing in the metropolitan borough of Southwark until 31st March 1930: Provided that if in any case such councillors fail to make a nomination within one calendar month from the time for which a meeting of the councillors was first summoned for the purpose, the council may make the appointment without any such nomination. A nomination under this article shall be made in accordance with rules made or approved by the Charity Commissioners. Southwark Borough Market 11 1 In the Southwark (Borough Market) Scheme 1907 — a in the sixth recital, “(which council is in this Scheme referred to as the Borough Council)” shall be omitted; b in section 2(1), for “the said St. Saviour's Ward” there shall be substituted “the ward or wards consisting of or comprising the specified area” ; c in section 2(3), for “a ratepayer of the parish of St. Saviour” there shall be substituted “a ratepayer of the specified area” ; d in section 6 — i for “in relief of the rates of the parish of St. Saviour” there shall be substituted “in relief of the rates chargeable on hereditaments in the specified area” ; and ii for “over the parish of St. Saviour” there shall be substituted “over the specified area” ; e in section 10 the following paragraph shall be inserted — 2A In the foregoing sections of this Scheme — “ Borough Council ” means the council of the London borough of Southwark ; and “ the specified area ” means the area of the parish of St. Saviour, Southwark, as existing in the metropolitan borough of Southwark until 31st March 1930.” ; ; f in rule 1 in the Schedule, for “councillors of St. Saviour's ward” there shall be substituted “councillors of the ward or wards described in section 2(1) ” ; g in rule 2 in the Schedule, for “of the St. Saviour's Ward” there shall be substituted “of the said ward or wards” , and h in rule 3 in the Schedule, for “four” there shall be substituted “two” . 2 The trustees appointed by the council of the London borough of Southwark in office at the coming into operation of this order shall remain in office as if they had been appointed in accordance with the Southwark (Borough Market) Scheme 1907 as amended by paragraph (1) of this article. 3 Article 13(a) of the Metropolitan Borough of Southwark (Union of Parishes) Order 1930 shall cease to have effect. Victoria Embankment and the Thames adjoining 12 The embankment southward of the gardens of the Societies of the Inner and Middle Temples, respectively, referred to in section 29 of the Thames Embankment Act 1862, the road thereon, and the river Thames adjoining, to the middle of the river, shall form part of the City. The boundaries established by this article shall be mered by Ordnance Survey. Festival Pleasure Gardens and Pier 13 1 In section 3 of the Festival of Britain (Supplementary Provisions) Act 1949, any reference to the London County Council shall be construed as a reference to the Greater London Council. 2 In relation to the Festival Pleasure Gardens Pier (being a landing stage constructed by the London County Council under section 1 of the Public Works (Festival of Britain) Act 1949 as extended by section 7 of the Festival of Britain (Supplementary Provisions) Act 1949), any reference in section 1 or 11(9) of the first-mentioned Act or in section 7 of the Act secondly mentioned to the London County Council shall be construed as a reference to the Greater London Council. Contributions in respect of Knockholt sewerage scheme 14 The liability of the Kent County Council under the agreement made under section 2 of the Rural Water Supplies and Sewerage Act 1944 with the Orpington Urban District Council in respect of the Knockholt sewerage scheme shall cease in respect of any contributions payable between 31st March 1965 and 1st April 1969. Contribution by the Greater London Council to the London borough council of Enfield 15 The Greater London Council may contribute to the London borough council of Enfield, in respect of expenses incurred by that council in the relocation of Sumex Paints Ltd. following the acquisition of their premises (such acquisition and relocation having been approved by the county council of Middlesex), such sum as may be agreed between the two councils. Given under the official seal of the Minister of Housing and Local Government on 12th February 1970. Anthony Greenwood Minister of Housing and Local Government SCHEDULE REPEALS (1) (2) (3) Chapter Short Title Extent of Repeal 1894 c.60 The Merchant Shipping Act 1894 In section 214(7), the words “in the administrative county of London the county council, and elsewhere” 1906 c.33 The Local Authorities (Treasury Powers) Act 1906 In section 1(1), the words “except the London County Council” 1907 c.40 The Notification of Births Act 1907 In any application to Greater London, the whole Act In section 2(4) the words “(other than the county of London)” 1908 c.36 The Small Holdings and Allotments Act 1908 In any application to Greater London, section 52(1) Section 53(1) In section 53(4), paragraphs (a) and (b) 1913 c.19 The Local Government (Adjustments) Act 1913 The whole Act 1926 c.52 The Small Holdings and Allotments Act 1926 In any application to Greater London, the words “under section fifty-two of the principal Act” in s.14(4) 1939 c.73 The Housing (Emergency Powers) Act 1939 In section 3(1A), the words “the London County Council”

The Redundancy Payments (Exemption) (No. 1) Order 1970 WHEREAS the parties to the agreement dated the 20th day of January 1970 set out in the Schedule to this Order made application to the Secretary of State pursuant to section 11(1) of the Redundancy Payments Act 1965 (hereafter referred to as “ the Act ”) on the 6th February 1970: AND whereas the agreement is between the following parties: — The Electricity Council The North of Scotland Hydro-Electric Board The South of Scotland Electricity Board The Amalgamated Union of Engineering and Foundry Workers The Electrical, Electronic and Telecommunications Union — Plumbing Trades Union The General and Municipal Workers Union The Transport and General Workers Union The National Federation of Construction Unions The Clerical and Administrative Workers Union The National and Local Government Officers Association The Electrical Power Engineers Association The Association of Managerial Electrical Executives AND whereas the parties to the agreement are employers and trade unions representing employees: AND whereas under the said agreement employees of the employers who are party to the agreement have a right in certain circumstances to payments on the termination of their contracts of employment: AND whereas, in pursuance of section 11(1) and (2) of the Act the Secretary of State, having regard to the provisions of the agreement, is satisfied that section 1 of the Act should not apply to the said employees: NOW, therefore, the Secretary of State in exercise of her powers under section 11(1) of the Act and of all other powers enabling her in that behalf, hereby makes the following Order: — Citation and commencement 1 This Order may be cited as the Redundancy Payments (Exemption) (No. 1) Order 1970 and shall come into operation on 31st March 1970. Interpretation 2 1 The Interpretation Act 1889 shall apply to the interpretation of this Order as it applies to the interpretation of an Act of Parliament. 2 In this Order, unless the context otherwise requires, the following expressions have the meanings hereby assigned to them respectively, that is to say — “ the Act ” means the Redundancy Payments Act 1965; “ employee ” has the same meaning as in section 25(1) of the Act and cognate expressions shall be construed accordingly; “ Electricity Board ” means the Electricity Council, the North of Scotland Hydro-Electric Board, the South of Scotland Electricity Board, the Central Electricity Generating Board, or an Area Electricity Board and shall, as the case may require, include their predecessors. “ The exempted agreement ” means the agreement set out in the Schedule hereto. Exemption of Electricity Board employees 3 Section 1 of the Act shall not apply to any person in respect of his employment with an Electricity Board, being an employment to which the exempted agreement applies. Signed by order of the Secretary of State. K. Barnes Deputy Under Secretary of State Department of Employment and Productivity 6th March 1970 SCHEDULE Article 3 AGREEMENT THIS AGREEMENT is made the Twentieth day of January One thousand nine hundred and seventy BETWEEN THE ELECTRICITY COUNCIL (hereinafter called “ the Council ”) THE NORTH OF SCOTLAND HYDRO-ELECTRIC BOARD and THE SOUTH OF SCOTLAND ELECTRICITY BOARD (hereinafter with the Council collectively called “ the Employers ”) of the one part and the TRADE UNIONS whose names are set out in the Appendix 1 to this Agreement who are collectively referred to in this Agreement as “ the Unions ” of the other part WHEREAS: — THE expression “ Electricity Board ” when used in this Agreement in the singular or the plural shall mean or include the Council, the North of Scotland Hydro-Electric Board, the South of Scotland Electricity Board, the Central Electricity Generating Board or an Area Electricity Board (all of whose names are set out in the Appendix 2 to this Agreement) and where appropriate shall include their predecessors. THE Council have consulted with the Central Electricity Generating Board and the Area Electricity Boards in England and Wales and have been authorised by them to enter into this Agreement on their behalf. AT a meeting of the National Joint Industrial Council on the eighteenth day of December One thousand nine hundred and sixty-nine, of the National Joint (Building and Civil Engineering) Committee on the fourteenth day of January One thousand nine hundred and seventy, of the National Joint Council on the thirteenth day of January One thousand nine hundred and seventy, of the National Joint Board on the sixteenth day of December One thousand nine hundred and sixty-nine and of the National Joint Managerial and Higher Executive Grades Committee on the nineteenth day of December One thousand nine hundred and sixty-nine it was resolved that this Agreement a copy of which was tabled at the said meetings shall form part of the terms and conditions of employment of each individual employee of the Electricity Boards immediately on the coming into operation of an exemption order under section 11 of the Redundancy Payments Act 1965 in respect of this Agreement and the Joint Secretaries of the respective negotiating Councils, Committees or Board were authorised to sign this Agreement on behalf of the Employers and of the Unions as indicated in the Appendix 1 hereto. NOW in order to secure the continuity of employment of Electricity Board employees transferred between Electricity Boards, the Electricity Boards and the Unions mutually agree with each other as follows: — 1 The Electricity Boards and the Unions shall apply to the First Secretary of State being the Minister now responsible for the administration of the Redundancy Payments Act for an Order to be made under section 11 of the Redundancy Payments Act 1965 in respect of this Agreement that section 1 of the Act shall not apply to any person in respect of his employment with an Electricity Board, being an employment to which this Agreement applies. 2 The Electricity Boards and the Unions agree that Electricity Board employees shall have a right to payments on the termination of their contract of employment for reasons of redundancy on terms and provisions which subject to this clause are not less favourable than those laid down in the Redundancy Payments Act 1965 or any statutory modification thereof and although the Electricity Boards are not “associated companies” as defined in section 48 of the Redundancy Payments Act 1965 continuity of employment shall not have been or be broken where an employee has been or is during his employment with an Electricity Board transferred to another Electricity Board for any reason and re-engagement made by an Electricity Board or an offer of employment by an Electricity Board shall be treated as if the re-engagement or offer was made by an associated company as defined under section 48 of the Act but subject to the provisions of section 24 of the Redundancy Payments Act 1965 in the case of an employee to whom a previous redundancy payment has been paid and the provisions of this paragraph shall apply to every employee in whatever capacity he may have been or be employed by an Electricity Board immediately before or after the date of his transfer from one Electricity Board to another. 3 The Electricity Boards and the Unions are willing to submit to such a tribunal as is referred to in section 9 of the Redundancy Payments Act 1965 any question arising under this Agreement as to the right of an employee to a payment on the termination of his employment or as to the amount of such a payment as if the payment were a redundancy payment and the question arose under Part I of the Redundancy Payments Act 1965. 4 In order that all employees shall enjoy the advantages of this Agreement this Agreement shall form part of the contract of employment of each individual employee and this Agreement shall be incorporated into each individual contract of employment either specifically or by setting out this Agreement in a handbook which the individual contracts of employment will incorporate by reference. 5 Clauses 2 to 4 of this Agreement shall commence on the date of the coming into operation of the exemption order under section 11 of the Redundancy Payments Act 1965 for which application is to be made to the First Secretary of State in accordance with Clause 1 of this Agreement. AS WITNESS the hands of Howard Sallis and Walter John Cyril Biggin, the Joint Secretaries of the National Joint Industrial Council, the said Howard Sallis and Harry Job Owen Weaver, the Joint Secretaries of the National Joint (Building and Civil Engineering) Committee, Wilfred James Browning and Thomas George Allcock, the Joint Secretaries of the National Joint Board, William George Frederick John and Philip Henry Rowley, the Joint Secretaries of the National Joint Council and the said William George Frederick John and the said Thomas George Allcock, the Joint Secretaries of the National Joint Managerial and Higher Executive Grades Committee the day and year first before written. APPENDIX 1 ( a ) Trade Unions represented on the National Joint Industrial Council — Amalgamated Union of Engineering and Foundry Workers Electrical, Electronic and Telecommunications Union — Plumbing Trades Union General and Municipal Workers Union Transport and General Workers Union ( b ) Trade Union represented on the National Joint (Building and Civil Engineering) Committee — National Federation of Construction Unions ( c ) Trade Unions represented on the National Joint Council — Clerical and Administrative Workers Union National and Local Government Officers Association General and Municipal Workers Union Transport and General Workers Union ( d ) Trade Union represented on the National Joint Board — Electrical Power Engineers Association ( e ) Trade Unions represented on the National Joint Managerial and Higher Executive Grades Committee — Association of Managerial Electrical Executives Electrical Power Engineers Association National and Local Government Officers Association APPENDIX 2 The Electricity Council The Central Electricity Generating Board London Electricity Board South Eastern Electricity Board Southern Electricity Board South Western Electricity Board Eastern Electricity Board East Midlands Electricity Board Midlands Electricity Board South Wales Electricity Board Merseyside and North Wales Electricity Board Yorkshire Electricity Board North Eastern Electricity Board North Western Electricity Board South of Scotland Electricity Board North of Scotland Hydro-Electric Board

The Import Duty Reliefs (No. 3) Order 1970 Whereas it appears to the Treasury expedient that the relief from import duties provided by this Order should be allowed with a view to conforming with an agreement concerning co-operation in the development and production of a family of light tracked vehicles which has been made between Her Majesty's Government in the United Kingdom and the Government of the Kingdom of Belgium and is embodied in a Memorandum signed on 2nd October 1970: Now therefore, the Lords Commissioners of Her Majesty's Treasury, by virtue of the powers conferred on them by section 5 of the Import Duties Act 1958 and of all other powers enabling them in that behalf, on the recommendation of the Secretary of State, hereby make the following Order: — 1 1 This Order may be cited as the Import Duty Reliefs (No. 3) Order 1970. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 This Order shall come into operation on 6th November 1970. 2 Payment shall not be required of any import duty chargeable on goods in the case of which it is shown to the satisfaction of the Commissioners of Customs and Excise that they are imported solely for purposes connected with the carrying into effect of the said agreement. Bernard Weatherill H.S.P. Monro Two of the Lords Commissioners of Her Majesty's Treasury 30th October 1970

The Children and Young Persons Act 1969 (Transitional Modifications of Part I) Order 1970 In exercise of the powers conferred upon me by section 34 of the Children and Young Persons Act 1969, I hereby make the following Order: — 1 This Order may be cited as the Children and Young Persons Act 1969 (Transitional Modifications of Part I) Order 1970 and shall come into operation on 1st January 1971. 2 In this Order “ the Act ” means the Children and Young Persons Act 1969. 3 Any reference to a child in section 13(2) (selection of supervisor) or 28(4) or (5) (detention of children and young persons by constables) of the Act shall be construed as excluding a child who has attained the age of 10 years. 4 1 Any reference to a young persons in any provision of the Act specified in paragraph (2) of this Article shall be construed as including a child who has attained the age of 10 years. 2 The provisions of the Act referred to in paragraph (1) of this Article are sections 5(8) (decision to lay an information against a young person to be notified to the appropriate local authority), 7(7) (orders in criminal proceedings against young persons), 7(8) (remittals), 9(1) (investigations by local authorities), 23(1) (remand to care of local authorities) and 29(1) (release or further detention of arrested children and young persons). 5 The age of 10 years is hereby specified for the purposes of section 34(2) and (3) of the Act (which, in relation to proceedings against persons who have attained an age to be specified, provide for notice of the proceedings to be given to a probation officer and for the modification of a local authority's duty under section 9 to make investigations and provide the court with information). R. Maudling One of Her Majesty's Principal Secretaries of State Home Office Whitehall 11th December 1970

The Consular Relations (Privileges and Immunities) (Italian Republic) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Italian Republic) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer of the Italian Republic of which the Italian Republic or any person acting on its behalf is the owner or lessee. 4 A consular bag exchanged between a consular officer of the Italian Republic in the United Kingdom and the Government, a diplomatic mission or another consular post of the Italian Republic, shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964. W. G. Agnew

The Double Taxation Relief (Taxes on Income) (Barbados) Order 1970 At the Court at Buckingham Palace, the 26th day of June 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order was laid before the Commons House of Parliament in accordance with the provisions of section 497(8) of the Income and Corporation Taxes Act 1970, and an Address has been presented to Her Majesty by that House praying that an Order may be made in the terms of this Order: Now, therefore, Her Majesty, in exercise of the powers conferred upon Her by section 497 of the said Income and Corporation Taxes Act 1970 and section 39 of the Finance Act 1965, as amended, and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Double Taxation Relief (Taxes on Income) (Barbados) Order 1970. 2 It is hereby declared — a that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of Barbados with a view to affording relief from double taxation in relation to income tax, corporation tax or capital gains tax and taxes of a similar character imposed by the laws of Barbados; and b that it is expedient that those arrangements should have effect. W. G. Agnew SCHEDULE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF BARBADOS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Barbados; Desiring to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains; Have agreed as follows: Taxes covered ARTICLE 1 1 The taxes which are the subject of this Agreement are: a in the United Kingdom of Great Britain and Northern Ireland: i the income tax (including surtax); ii the corporation tax; and iii the capital gains tax (hereinafter referred to as “ United Kingdom tax ”); b in Barbados: i the income tax; ii the petroleum winning operations tax; and iii the trade tax (hereinafter referred to as “ Barbados tax ”). 2 This Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. General definitions ARTICLE 2 1 In this Agreement, unless the context otherwise requires: a “ United Kingdom ” means Great Britain and Northern Ireland, including any area outside the territorial sea of the United Kingdom which in accordance with international law has been or may hereafter be designated, under the laws of the United Kingdom concerning the Continental Shelf, as an area within which the rights of the United Kingdom with respect to the sea bed and sub-soil and their natural resources may be exercised; b “ Barbados ” means the island of Barbados and the territorial waters thereof including any area outside such territorial waters which in accordance with international law and the laws of Barbados is an area within which the rights of Barbados with respect to the sea bed and sub-soil and their natural resources may be exercised; c “ company ” means any body corporate or any entity which is treated as a body corporate for tax purposes; d “ a Contracting State ” and “ the other Contracting State ” means the United Kingdom or Barbados, as the context requires; e “ enterprise of a Contracting State ” and “ enterprise of the other Contracting State ” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; f “ international traffic ” includes traffic between places in one country in the course of a voyage which extends over more than one country; g “ national ” means : i in relation to the United Kingdom: any citizen of the United Kingdom and Colonies who derives his status as such from connection with the United Kingdom; any legal person, association or other entity deriving its status as such from the law of the United Kingdom; ii in relation to Barbados: any individual who is a citizen of Barbados; any legal person, partnership or association deriving its status as such from the law of Barbados; h “ person ” comprises an individual, a company and any other body of persons; i “ tax ” means United Kingdom tax or Barbados tax, as the context requires; j “ taxation authorities ” means, in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative ; in the case of Barbados, the Commissioner of Inland Revenue or his authorised representative. 2 In the application of the provisions of this Agreement by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Agreement. Fiscal domicile ARTICLE 3 1 For the purposes of this Agreement, “ resident of a Contracting State ” means, subject to the provisions of paragraphs (2) and (3) of this Article, any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein. The terms “ resident of the United Kingdom ” and “ resident of Barbados ” shall be construed accordingly. 2 Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules: a he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (hereinafter referred to as his “ centre of vital interests ”); b if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; d if he is a national of both Contracting States or of neither of them, the taxation authorities of the Contracting States shall determine the question by mutual agreement. 3 Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. Permanent establishment ARTICLE 4 1 For the purposes of this Agreement, “ permanent establishment ” means a fixed place of business in which the business of the enterprise is wholly or partly carried on. 2 A permanent establishment shall include especially: a a place of management; b a branch; c an office; d a factory; e a workshop; f a mine, quarry or other place of extraction of natural resources; g a building site or construction or assembly project which exists for more than six months; h a farm or plantation. 3 “Permanent establishment” shall not be deemed to include: a the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise; e the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise. 4 An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if: a it carries on supervisory activities in that other State for more than six months in connection with a construction, installation or assembly project which is being undertaken in that other State; b it carries on a business which consists of providing the services within that other State of public entertainers or athletes referred to in Article 18. 5 A person acting in a Contracting State on behalf of an enterprise of the other Contracting State (other than an agent of an independent status to whom the provisions of paragraph (6) of this Article apply) shall be deemed to be a permanent establishment in the former Contracting State if: a he has, and habitually exercises in that former State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or b he maintains in that former State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders on behalf of the enterprise. 6 An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, a general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business. 7 The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. Limitation of relief ARTICLE 5 Where under any provision of this Agreement any income is exempt from tax or is taxed at a reduced rate in a Contracting State if (with or without other conditions) it is subject to tax in the other Contracting State and that income is subject to tax in that other State by reference to the amount thereof which is remitted to or received in that other State, the exemption or reduction of tax to be allowed under this Agreement in the first-mentioned Contracting State shall apply only to the amounts so remitted or received. Business profits ARTICLE 6 1 The industrial or commercial profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on a trade or business in the other Contracting State through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by that other State, but only on so much of them as is attributable to that permanent establishment. 2 Where an enterprise of a Contracting State carries on a trade or business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the industrial or commercial profits which it might be expected to make if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment. 3 In determining the industrial or commercial profits of a permanent establishment, there shall be allowed as deductions all expenses of the enterprise which are incurred for the purposes of the permanent establishment, including executive and general administration expenses so incurred, whether incurred in the Contracting State in which the permanent establishment is situated or elsewhere (other than expenses which would not be deductible if the permanent establishment were a separate enterprise). 4 No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5 Nothing in this Article shall apply to either Contracting State to prevent the operation in the State of any provisions of its law relating specifically to the taxation of any person who carries on a business of any form of insurance. Provided that if the law in force in either Contracting State at the date of signature of this Agreement relating to the taxation of such persons is varied (otherwise than in minor respects so as not to affect its general character, or by this Agreement), the Contracting Government's shall consult with each other with a view to agreeing to such amendment of this paragraph as may be necessary. Associated enterprises ARTICLE 7 Where — a an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or b the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and, in either case, conditions are made or imposed between the two enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. Shipping and air transport ARTICLE 8 A resident of a Contracting State shall be exempt from tax in the other Contracting State on profits from the operation of ships or aircraft other than profits from voyages of ships or aircraft confined solely to places in that other State. Dividends ARTICLE 9 1 Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State who is subject to tax in that other State in respect thereof shall be exempt from any tax in that first-mentioned Contracting State which is chargeable on dividends in addition to the tax chargeable in respect of the profits or income of the company. 2 The provisions of paragraph (1) of this Article shall not apply where a resident of a Contracting State has a permanent establishment in the other Contracting State and the holding giving rise to the dividends is effectively connected with that permanent establishment; in such event the dividends shall be treated as if they were industrial or commercial profits to which the provisions of Article 6 are applicable. 3 Where a company which is a resident of a Contracting State derives profits or income from sources within the other Contracting State, that other State shall not impose any form of taxation on dividends paid by the company to persons not resident in that other State, or any tax in the nature of an undistributed profits tax on undistributed profits of the company, by reason of the fact that those dividends or undistributed profits represent, in whole or in part, profits or income so derived. 4 Subject to the provisions of paragraph (5) of Article 10 and paragraph (5) of Article 11 the term “ dividends ” includes any item which, under the law of the Contracting State of which the company paying the dividend is a resident, is treated as a distribution of a company. 5 If the recipient of a dividend is a company which owns 10 per cent or more of the class of shares in respect of which the dividend is paid then the provisions of paragraph (1) of this Article shall not apply to the dividend to the extent that it can have been paid only out of profits which the company paying the dividend earned or other income which it received in a period ending twelve months or more before the relevant date. For the purposes of this paragraph the term “ relevant date ” means the date on which the beneficial owner of the dividend became the owner of 10 per cent or more of the class of shares in question. Provided that this paragraph shall not apply if the beneficial owner of the dividend shows that the shares were acquired for bona fide commercial reasons and not primarily for the purpose of securing the benefit of this Article. Interest ARTICLE 10 1 Where interest is derived from sources within a Contracting State by a resident of the other Contracting State who is subject to tax in that other State in respect thereof, the rate of tax imposed thereon in the first-mentioned Contracting State shall not exceed 15 per cent. 2 The provisions of paragraph (1) of this Article shall not apply where a resident of a Contracting State has a permanent establishment in the other Contracting State and such interest is attributable to that permanent establishment; in such event such interest as is attributable to that permanent establishment shall be treated as if it were industrial or commercial profits to which the provisions of Article 6 are applicable. 3 In this Article, the term “ interest ” means income from Government securities, from bonds or debentures, whether or not secured by mortgage, or from any other form of indebtedness, as well as all other income assimilated to income from money lent by the taxation law of the Contracting State in which the income arises. 4 Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, having regard to the indebtedness in respect of which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. 5 Any provision of the law of a Contracting State which relates only to interest paid to a non-resident company shall not operate so as to require such interest paid to a company which is a resident of the other Contracting State to be left out of account as a deduction in computing the taxable profits of the company paying the interest as being a dividend or distribution. 6 The provisions of this Article shall not apply if the form of indebtedness in respect of which the interest is payable was created or assigned mainly for the purpose of taking advantage of this Article and not for bona fide commercial reasons. Royalties ARTICLE 11 1 Any royalty derived from sources within a Contracting State by a resident of the other Contracting State who is subject to tax in that other State in respect thereof, shall be exempt from tax in that first-mentioned Contracting State. Provided that, where any such royalty is in respect of cinematograph or television films, tax may be imposed thereon in the Contracting State from which the royalty is derived, but the tax so imposed shall not exceed tax at the rate applicable to companies on 15 per cent of the gross amount of the royalty. 2 In this Article, the term “ royalty ” means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade-mark, or other like property, and includes any rental or like payment in respect of cinematograph or television films, but does not include any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources. 3 The provisions of paragraph (1) of this Article shall not apply where a resident of a Contracting State has a permanent establishment in the other Contracting State and the royalty is attributable to that permanent establishment; in such event the royalty shall be treated as if it were industrial or commercial profits to which the provisions of Article 6 are applicable. 4 Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalty, having regard to the use, right or property for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of the preceding paragraphs of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. 5 Royalties paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall not be treated as a distribution of that company. The preceding sentence shall not apply to royalties paid to a company where: a the same persons participate directly or indirectly in the management or control of the company paying the royalties and the company deriving the royalties; and b more than 50 per cent of the voting power in the company deriving the royalties is controlled, directly or indirectly, by a person or persons resident in the first-mentioned Contracting State. Immovable property ARTICLE 12 1 Income from immovable property may be taxed in the Contracting State in which such property is situated. 2 The term “immovable property” shall be defined in accordance with the laws of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment of agricultural and forestry enterprises, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3 The provisions of paragraph (1) of this Article shall apply to income derived from the direct use or from the letting of immovable property or the use in any other form of such property, including income from agricultural or forestry enterprises. 4 The provisions of paragraphs (1) and (3) of this Article shall also apply to the income from immovable property of any enterprises other than agricultural or forestry enterprises and to income from immovable property used for the performance of professional services. Capital gains ARTICLE 13 1 Capital gains from the alienation of immovable property, as defined in paragraph (2) of Article 12, may be taxed in the Contracting State in which such property is situated. 2 Capital gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State. 3 Notwithstanding the provisions of paragraph (1) of this Article, capital gains derived by a resident of a Contracting State from the alienation of ships and aircraft operated in international traffic and of movable property pertaining to the operation of such ships and aircraft shall be taxable only in that State. 4 Capital gains from the alienation of any property other than those mentioned in paragraphs (1) and (2) of this Article which are subject to tax in the Contracting State of which the alienator is a resident shall be taxable only in that State. 5 The provisions of paragraph (4) of this Article shall not affect the right of a Contracting State to levy according to its own law a tax on capital gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property. Governmental functions ARTICLE 14 1 Remuneration, including pensions, paid by a Contracting State to an individual for services rendered to that State in the discharge of governmental functions shall be exempt from tax in the other Contracting State if the individual is not ordinarily resident in that other State or (where the remuneration is not a pension) is ordinarily resident in that other State solely for the purpose of rendering those services. 2 The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Contracting States for purposes of profit. Pensions ARTICLE 15 1 Any pension (other than a pension of the kind referred to in paragraph (1) of Article 14) and any annuity, derived from sources within a Contracting State by an individual who is a resident of the other Contracting State and subject to tax in that other State in respect thereof, shall be exempt from tax in the first-mentioned Contracting State. 2 The term “ annuity ” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. Independent personal services ARTICLE 16 1 Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be subjected to tax only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, such part of that income as is attributable to that base may be taxed in that other Contracting State. 2 The term “ professional services ” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Employments ARTICLE 17 1 Subject to the provisions of Articles 14, 15 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be subjected to tax only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2 Notwithstanding the provisions of paragraph (1) of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be subjected to tax only in the first-mentioned State if: a the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and b the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and c the remuneration is not deducted from the profits of a permanent establishment or a fixed base which the employer has in the other State. 3 In relation to remuneration of a director of a company derived from the company the preceding provisions of this Article shall apply as if the remuneration were remuneration of an employee in respect of an employment, and as if references to employers were references to the company. 4 Notwithstanding the preceding provisions of this Article, remuneration for personal services performed aboard a ship or aircraft in international traffic may be taxed in the Contracting State of which the person deriving the profits from the operation of the ship or aircraft is a resident. Artistes and athletes ARTICLE 18 Notwithstanding anything contained in this Agreement, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised. Teachers ARTICLE 19 A professor or teacher who visits a Contracting State for a period not exceeding two years for the purpose of teaching at a university, college, school or other educational institution and who immediately before that visit is a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching in respect of which he is subject to tax in the other Contracting State. Students ARTICLE 20 Payments which a student or business apprentice, who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training, shall not be taxed in the first-mentioned State, provided that such payments are made to him from sources outside that State. Income not expressly mentioned ARTICLE 21 Items of income of a resident of a Contracting State being income of a class or from sources not expressly mentioned in the foregoing Articles of this Agreement in respect of which he is subject to tax in that State shall be taxable only in that State. Provided that this Article shall not be construed as affecting the taxation of income attributable to a permanent establishment which a resident of one Contracting State has in the other Contracting State. Elimination of double taxation ARTICLE 22 1 Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principal hereof): a Barbados tax payable under the laws of Barbados and in accordance with this Agreement, whether directly or by deduction, on profits or income from sources within Barbados shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which the Barbados tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable. b Where a company which is a resident of Barbados pays a dividend to a company resident in the United Kingdom which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account (in addition to any Barbados tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the Barbados tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid. 2 For the purposes of paragraph (1) of this Article, the term “Barbados tax payable” shall be deemed to include any amount which would have been payable as Barbados tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under — a any of the following provisions, that is to say: i Sections 14(2), 15(2), 19(2) and 20 of the Pioneer Industries Act, 1958-54, as amended; ii Sections 10, 15(2) and 16(1) of the Industrial Development (Export Industries) Act, 1969-43; iii Sections 12, 14(2), 17(2) and 18(1) of the Industrial Incentives Act, 1963-31; iv Sections 12, 14(2) and 15(1) of the Industrial Incentives (Factory Construction) Act, 1965-29; v Sections 3 and 5 of the Hotel Aids Act, 1967-25; vi Sections 21 and 46 of the Income Tax Act, 1968-51; so far as they were in force on, and have not been modified since, the date when this Agreement was signed, or have been modified only in minor respects so as not to affect their general character; or b any other provision which may subsequently be made granting an exemption which is agreed by the taxation authorities of the United Kingdom and Barbados to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character. Provided: i that relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption from, or reduction of, Barbados tax was first granted in respect of that source; ii that where the relief is a relief accorded by the Industrial Development (Export Industries) Act, 1969-43, it shall be taken into account for the purposes of this Article if, and only if, the company qualifying for the relief could have been declared to be a company either: which was engaging in a pioneer industry under the provisions of Section 3 of the Pioneer Industries Act, 1958-54, as amended; or which was an approved enterprise under the provisions of Section 4 of the Industrial Incentives Act, 1963-31. 3 Subject to the provisions of the law of Barbados regarding the allowance as a credit against Barbados tax of tax payable in a territory outside Barbados (which shall not affect the general principle hereof): a United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Agreement, whether directly or by deduction, on profits or income from sources within the United Kingdom shall be allowed as a credit against any Barbados tax computed by reference to the same profits or income by reference to which the United Kingdom tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable. b Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Barbados which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid. 4 For the purposes of this Article: a profits or remuneration for personal (including professional) services performed in a Contracting State shall be deemed to be income from sources within that State; b the services of an individual whose services are wholly or mainly performed in ships or aircraft shall be deemed to be performed in the Contracting State of which the person deriving the profits from the operation of the ships or aircraft is a resident; c any amount which is included, for the purposes of tax in a Contracting State, in the chargeable profits or taxable income of a person who is a resident of the other Contracting State, and which is so included under any provision of the law of the first-mentioned Contracting State for the time being in force regarding taxation of income of a business of any form of insurance shall be treated as having a source in that first-mentioned Contracting State. Excluded companies ARTICLE 23 This Agreement shall not apply to companies entitled to any special tax benefit under the Barbados International Business Companies (Exemption from Income Tax) Act 1965-50 as in effect on 26th July 1965 or any substantially similar law enacted by Barbados after that date. Exchange of information ARTICLE 24 The taxation authorities of the Contracting State shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of this Agreement or for the prevention of fraud or for the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of this Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of this Agreement. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process. Consultation ARTICLE 25 The taxation authorities of the Contracting State may communicate with each other directly for the purpose of giving effect to the provisions of this Agreement and for resolving any difficulty or doubt as to the application or interpretation of the Agreement. Non-discrimination ARTICLE 26 1 The residents of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which the residents of that other State in the same circumstances are or may be subjected. 2 Subject to the provisions of paragraph (5) of Article 6 of this Agreement, the taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 3 Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected. 4 In this Article the term “ taxation ” means taxes of every kind and description. 5 Nothing contained in this Article shall be construed as obliging either of the Contracting State to grant to persons not resident in that State those personal allowances and reliefs for tax purposes which are by law available only to persons who are so resident, nor as restricting the taxation of dividends paid to a company which is a resident of the other Contracting State. Territorial extension ARTICLE 27 1 This Agreement may be extended, either in its entirety or with modifications, to any territory for whose international relations the United Kingdom is responsible, and which imposes taxes substantially similar in character to those which are the subject of this Agreement, and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed between the Contracting States in letters to be exchanged for this purpose. 2 The termination in respect of the United Kingdom or Barbados of this Agreement under Article 29 shall, unless otherwise expressly agreed by both Contracting States, terminate the application of this Agreement to any territory to which the Agreement has been extended under this Article. Entry into force ARTICLE 28 1 This Agreement shall come into force on the date when the last of all such things shall have been done in the United Kingdom and Barbados as are necessary to give the Agreement the force of law in the United Kingdom and Barbados respectively, and shall thereupon have effect: a in the United Kingdom: i as respects income tax, surtax and capital gains tax, for any year of assessment beginning on or after 6th April, 1969; ii as respects corporation tax, for any financial year beginning on or after 1st April, 1969; b in Barbados: i as respects income tax, for any year of assessment beginning on or after 1st January, 1969; ii as respects petroleum winning operations tax, for any accounting period beginning on or after 1st January, 1969; iii as respects trade tax, for any taxing period beginning on or after 1st April, 1969. 2 Subject to the provisions of paragraph (3) of this Article, the Arrangement which was made in 1949 between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Barbados , shall terminate and cease to be effective as respects taxes to which this Agreement in accordance with paragraph (1) of this Article applies. 3 Where any provision of the Arrangement referred to in paragraph (2) of this Article would have afforded any greater relief from tax than is afforded by this Agreement any such provision as aforesaid shall continue to have effect for the first year of assessment or financial year for which this Agreement has effect in accordance with paragraph (1) of this Article. Termination ARTICLE 29 1 This Agreement shall continue in effect indefinitely but either of the Contracting Governments may, on or before the thirtieth day of June in any calendar year after the year 1974, give notice of termination to the other Contracting Government and, in such event, the Agreement shall cease to be effective: a in the United Kingdom: i as respects income tax, surtax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; ii as respects corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the notice is given; b in Barbados: i as respects income tax, for any year of assessment beginning on or after 1st January in the calendar year next following that in which such notice is given; ii as respects petroleum winning operations tax, for any accounting period beginning on or after 1st January in the calendar year next following that in which such notice is given; iii as respects trade tax, for any taxing period beginning on or after 1st April in the calendar year next following that in which such notice is given. 2 The termination of this Agreement shall not have the effect of reviving any agreement or arrangement abrogated by this Agreement. In Witness Whereof the undersigned, duly authorised thereto, have signed this Agreement. Done in duplicate at Bridgetown, this 26th day of March one thousand nine hundred and seventy. For the Government of the United Kingdom of Great Britain and Northern Ireland: JOHN S. BENNETT High Commissioner For the Government of Barbados: ERROL W. BARROW Prime Minister and Minister of Finance

The London Transport (Alteration of Pension Schemes) Order 1970 The Secretary of State for the Environment, in exercise of his powers under section 74 of the Transport Act 1962 as read with section 18 of the Transport (London) Act 1969, and of all other enabling powers, hereby makes the following Order on the application of the London Transport Executive made with the approval of the Greater London Council: — Commencement, citation and interpretation 1 1 This Order shall come into operation on the 31st December 1970, and may be cited as the London Transport (Alteration of Pension Schemes) Order 1970. 2 In this Order, unless the context otherwise requires — “ the Executive ” means the London Transport Executive; “ the New Fund ” means the London Transport 1970 Superannuation Fund, which is a funded pension scheme established by the Executive under the terms of an Interim Trust Deed executed by the Executive on the 1st December 1970; “ the persons administering ”, in relation to a pension scheme, means the persons responsible for administering the scheme under the terms thereof, and includes the trustees, if any, of the scheme; “ the service ” means — whole time employment by the Executive or by a subsidiary of the Executive, or where the employment began on the 1st January 1970, by virtue of section 16(2) of the Transport (London) Act 1969, immediately following whole time employment by the former London Transport Board, whole time employment by London Country Bus Services Limited; “ term ”, in relation to a pension scheme to which this Order applies, includes any rule or provision of the scheme, or of any statutory provision relating to the scheme, or of any deed or other instrument made for the purposes of the scheme. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. Application of Order 2 1 This Order shall apply to the New Fund and the other pension schemes mentioned in this Order. 2 A pension scheme to which this Order applies shall be construed and have effect as if the relevant provisions of this Order were terms of the scheme, any other term thereof, whether expressed or implied, to the contrary notwithstanding. Alterations in the terms of certain schemes for providing pensions and other benefits 3 1 This Article shall apply to the pension schemes listed in the Schedule to this Order. 2 A person who becomes a member of the New Fund on or after the 1st January 1971 shall, so long as he is a contributing member of the New Fund, be ineligible for admission to a pension scheme to which this Article applies. 3 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 1st January 1971, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall cease to be a member of that pension scheme and (except as hereinafter provided) his liability to pay contributions to and his right to receive benefit from that scheme shall cease; and b as soon as may be after that date the persons administering that pension scheme shall pay to the New Fund an appropriate transfer value in respect of the accrued pension rights of that member in that scheme. 4 Where by reason of the foregoing provisions of this Article a person ceases to be a member of the London Transport (Administrative and Supervisory) Staff Superannuation Fund or of the Railway Clearing System Superannuation Fund and immediately before that cessation he was, in the case of a member of the former fund, a member of the Managing Committee or of the Council of that fund, or of both the said Committee and the said Council, or, in the case of a member of the latter fund, a member of the Committee of that fund, then he may, notwithstanding the cessation of his membership of the fund in question, continue to act as a member of the body or bodies of which he was a member as aforesaid, for a period not exceeding three years from the date of that cessation, but subject, however, to all the other provisions applicable to the office of such member. Ascertainment and payment of transfer values 4 1 Where under the provisions of Article 3 of this Order there falls to be paid in relation to a member of a pension scheme to which that Article applies a transfer value in respect of his accrued pension rights in that scheme, then the amount to be paid shall be ascertained by first determining the portion of the funds of that scheme properly attributable to the accrued pension rights of that member in that scheme and then by deducting therefrom such sum as may be necessary to cover the cost actually incurred by the persons administering that scheme in making the apportionment and the payment and also an amount equal to any income tax which may then become payable by virtue of regulations made, or having effect as if made, under section 208 of the Income and Corporation Taxes Act 1970. 2 Any payment of a transfer value may take the form of a transfer of securities, deposits or other assets, valued as at the date of the transfer, and any question whether a transfer value shall be paid in cash or in the form of such a transfer as aforesaid shall be determined in each case when the transfer value falls to be paid. Consequential provisions 5 1 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies, such cessation shall be without prejudice to the obligation of that person to pay any outstanding contributions to that scheme in respect of any period before such cessation, and at the rate appropriate to that period, and to the right of his employer to deduct such contributions from his emoluments. 2 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies, his rights to benefit from that scheme shall terminate with the cessation of his membership of that scheme. Determination of questions 6 Where under the foregoing provisions of this Order any matter or thing is to be determined in relation to a member of a pension scheme to which this Order applies who becomes a member of the New Fund, that matter or thing shall be determined by agreement between the persons administering that pension scheme on the one hand and the persons administering the New Fund on the other hand, or, in default of such agreement, by the Secretary of State. Safeguarding of existing rights 7 No person who is a member of, or has a right of re-admission to, a pension scheme to which this Order applies (other than the New Fund) shall be required by a term of his employment in the service to become a member of the New Fund. Signed by authority of the Secretary of State. R. Graham Page Minister for Local Government and Development Department of the Environment 16th December 1970 THE SCHEDULE Schemes for providing pensions and other benefits British Railways Superannuation Fund — LNER Section British Railways Superannuation Fund — GWR Section British Railways Superannuation Fund — SR Section British Railways Superannuation Fund — LMSR Section Cooks Pension Fund London Transport (Administrative and Supervisory) Staff Superannuation Fund Metropolitan Railway Pension Fund National Freight Salaried Staff Pension Fund Railway Clearing System Superannuation Fund Tilling Group Pension Fund

Local Authority Social Services Act 1970 Local authorities 1 The local authorities for the purposes of this Act shall be the councils of counties, county boroughs and London boroughs and the Common Council of the City of London. Local authority to establish social services committee 2 1 Every local authority shall establish a social services committee and, subject to subsection (3) below, there shall stand referred to that committee all matters relating to the discharge by the authority of — a their functions under the enactments specified in the first column of Schedule 1 to this Act (being the functions which are described in general terms in the second column of that Schedule); and b such other of their functions as, by virtue of the following subsection, fall within the responsibility of the committee. 2 The Secretary of State may by order designate functions of local authorities under any other enactment for the time being in force as being appropriate for discharge through a local authority's social services committee other than functions which by virtue of that or any other enactment are required to be discharged through some other committee of a local authority ; and any functions designated by an order under this section which is for the time being in force shall accordingly fall within the responsibility of the social services committee. 3 Matters relating to the discharge by a local authority of the following functions of the authority, that is to say — a functions under section 22 of the National Health Service Act 1946 (care of certain mothers and young children) relating to the dental care of such mothers and children as are mentioned in subsection (1) of that section ; and b any other functions under subsection (1) or (2) of the said section 22 specified in a direction given under subsection (4) below and for the time being in force, and any functions under section 12 of the Health Services and Public Health Act 1968 (prevention of illness and care and after-care of the sick) so specified, shall not stand referred to a local authority's social services committee. 4 The Secretary of State may direct that such of the functions mentioned in subsection (3)(b) above as are specified in the direction, being functions which appear to him to be mainly medical in nature, shall stand referred to the health committee of a local authority. 5 A direction given under subsection (4) above may apply either to local authorities generally or to particular local authorities specified in the direction and may be revoked or varied by a subsequent direction so given. 6 A matter which by this section stands referred to a local authority's social services committee shall not be included among the matters which stand referred to the authority's health committee under Part II of Schedule 4 to the National Health Service Act 1946. 7 Section 33(2) of the National Assistance Act 1948 and Schedule 3 to that Act (establishment of committees or joint boards for the purposes of the functions of local authorities under Part III of that Act) and section 39 of the Children Act 1948 (establishment of children's committees of local authorities), shall cease to have effect. Business of social services committee 3 1 Except with the consent of the Secretary of State (which may be given either generally or with respect to a particular authority) or as provided by this section, no matter, other than a matter which by virtue of section 2 of this Act stands referred to a local authority's social services committee, shall be referred to, or dealt with by, the committee. 2 A local authority may refer to their social services committee a matter arising in connection with the authority's functions under — a section 5(1)(c) of the Health Visiting and Social Work (Training) Act 1962 (research into matters relating to functions of local health authorities), or b section 65 of the Health Services and Public Health Act 1968 (financial and other assistance to voluntary organisations), and appearing to the authority to relate to their social services ; and a matter which by virtue of paragraph (a) above is referred to a local authority's social services committee shall not stand referred to the authority's health committee under Part II of Schedule 4 to the National Health Service Act 1946. 3 A local authority may delegate to their social services committee any of their functions matters relating to which stand referred to the committee by virtue of section 2 of this Act or this section (hereafter in this Act referred to as " social services functions ") and, before exercising any of those functions themselves, the authority shall (unless the matter is urgent) consider a report of the committee with respect to the matter in question. 4 Nothing in section 2 of this Act or this section prevents a local authority from referring to a committee other than their social services committee a matter which by virtue of either of those sections stands referred to the social services committee and which in the authority's opinion ought to be referred to the other committee on the ground that it relates to a general service of, the authority; but before referring any such matter the authority shall receive and consider a report of the social services committee with respect to the subject matter of the proposed reference. Joint committees and sub-committees 4 1 Two or more local authorities may, instead of establishing social services committees for themselves, concur in establishing a joint social services committee; and references in this Act to a local authority's social services committee shall, in relation to an authority which has so concurred with another or others, be construed as references to the joint committee, except where the context otherwise requires. 2 A social services committee may, subject to any restrictions imposed by the local authority or, as the case may be, the local authorities concurring in the establishment of the committee, establish sub-committees and delegate to them any of the functions of the committee. 3 The social services committees of two or more local authorities may concur in the establishment of joint subcommittees and may, subject to any restrictions imposed by the local authorities concerned, delegate to them any of the functions of either or any of the committees. Membership of committees and sub-committees 5 1 Subject to subsection (3) below, the members of a local authority's social services committee may include persons who are not members of the authority or, as the case may be, of any authority concurring in the establishment of the committee, provided that they are not disqualified from being members of that authority or any such authority. 2 Subject to subsection (3) below, a social services committee may, if authorised to do so by the local authority or, as the case may be, the local authorities concurring in the establishment of the committee and subject to any restrictions imposed by that authority or those authorities, co-opt persons to serve as members of the committee, provided that they are not disqualified from being members of that authority or any of the said authorities. 3 At least a majority of the members of a local authority's social services committee shall be members of that authority or, as the case may be, of the authorities concurring in the establishment of the committee. 4 The members of a sub-committee established under section 4(2) of this Act — a shall include at least one member of the local authority or, as the case may be, of each of the local authorities concerned; and b may include persons who are not members of the social services committee, provided that they are not disqualified from being members of the local authority or, as the case may be, of any of the said authorities. 5 The members of a joint sub-committee established under section 4(3) of this Act — a shall include at least one member of each of the local authorities concerned; and b may include persons who are not members of any social services committee concurring in the establishment of the sub-committee, provided that they are not disqualified from being members of any of the said authorities. 6 In this section " disqualified " means disqualified under section 59 of the Local Government Act 1933 (which relates to office-holders under local authorities, bankrupts, persons who have been convicted, etc.). The director of social services 6 1 A local authority shall appoint an officer, to be known as the director of social services, for the purposes of their social services functions. 2 Two or more local authorities may, if they consider that the same person can efficiently discharge, for both or all of them, the functions of director of social services, concur in the appointment of a person as director of social services for both or all of those authorities. 3 The Secretary of State may make regulations prescribing the qualifications requisite for a person's appointment as a local authority's director of social services. 4 Until the first coming into force of regulations made under subsection (3) above, a local authority shall not appoint, nor concur in the appointment of, a director of social services except after consultation with the Secretary of State ; and — a for the purpose of such consultation an authority shall send to the Secretary of State particulars of the name, age, experience and qualifications of each of the persons from whom a selection is proposed to be made; and b if the Secretary of State is of opinion that any of those persons is not a fit person to be the director of social services, he may give directions prohibiting his appointment. 5 The director of social services of a local authority shall not, without the approval of the Secretary of State (which may be given either generally or in relation to a particular authority), be employed by that authority in connection with the discharge of any of the authority's functions other than their social services functions. 6 A local authority which have appointed, or concurred in the appointment of, a director of social services, shall secure the provision of adequate staff for assisting him in the exercise of his functions. 7 The authority or authorities appointing a director of social services may pay to him such reasonable remuneration as they may determine; and he shall hold office during their pleasure. 8 Section 41 of the Children Act 1948 (appointment of children's officer) shall cease to have effect. Local authorities to exercise social services functions under guidance of Secretary of State 7 1 Local authorities shall, in the exercise of their social services functions, including the exercise of any discretion conferred by any relevant enactment, act under the general guidance of the Secretary of State. 2 Subsection (1) above shall not affect a local authority's duty to exercise their functions under — a sections 21 and 24 of the National Assistance Act 1948 (provision of residential or temporary accommodation for the aged, infirm, etc.), or b section 29 of that Act (welfare of the handicapped), or c section 3 of the Disabled Persons (Employment) Act 1958 (provision for employment and training of persons who are seriously disabled), in accordance with any scheme under any of those sections which is in force with the approval of a Minister of the Crown given under section 34 of the said Act of 1948 or in accordance with a scheme made by a Minister of the Crown under the said section 34. The foregoing provision is without prejudice to subsection (2) of section 2 of the Chronically Sick and Disabled Persons Act 1970 (which excludes arrangements made in pursuance of subsection (1) of the said section 2 and certain other arrangements from the requirement that arrangements made by a local authority under section 29 of the said Act of 1948 shall be carried into effect in accordance with a scheme made thereunder). 3 Subsection (1) above shall not affect a local authority's duty to carry out their duties under — a section 22 of the National Health Service Act 1946 (care of certain mothers and young children), or b section 12 of the Health Services and Public Health Act 1968 (prevention of illness and care and aftercare of the sick), in accordance with proposals approved or made by a Minister of the Crown under section 20 of the said Act of 1946. Accounts of certain local authorities 8 1 The council of a county borough may, if they think it convenient so to do, keep separate accounts of the sums received and expended by them in the exercise of their social services functions. 2 Accounts kept under this section shall be made up and audited in like manner as the accounts of a county council. 3 The enactments relating to the audit of accounts by a district auditor and to the matters incidental to such audit and consequential thereon shall have effect in relation to the accounts which the council of a county borough keep under this section as they have effect in relation to the accounts of a county council. 4 The foregoing provisions of this section shall apply to the Common Council of the City of London and to accounts kept by that council under this section as they apply to the council of a county borough and to accounts kept by such a council thereunder. 5 Section 49 of the Children Act 1948 (certain councils required to keep separate accounts of sums received and expended by them in exercising functions under the enactments relating to children and young persons) and, in so far as they relate to social services functions, section 55 (1) of the National Health Service Act 1946 (similar provision relating to functions of certain local health authorities) and section 59 of the National Assistance Act 1948 (similar provision relating to functions of certain councils under that Act) shall not apply to the council of a county borough who keep accounts under this section or, if the Common Council of the City of London keep accounts thereunder, to that council. 6 Section 49 of the Children Act 1948 shall cease to apply to London borough councils. Protection of interests, etc. of local authority staffs 9 1 The Secretary of State shall by order make provision for the protection of the interests of any existing staff affected by the provisions of section 2 or 6 of this Act, and that order may contain provisions applying, amending or repealing any provision made by or under any enactment and relating to the conditions of service of, or the payment of superannuation or other benefits to or in respect of, existing staff. 2 Regulations under section 60(2) of the Local Government Act 1958 (provision to be made by regulations for the payment of compensation in certain cases) may make provision in relation to persons who suffer loss of employment or loss or diminution of emoluments which is attributable to the provisions of section 2 or 6 of this Act. 3 Regulations made by virtue of subsection (2) above may be so framed as to have effect from a date earlier than that on which they are made, so however that so much of any regulations as provides that any provision thereof is to have effect from a date earlier than that on which they are made shall not place any person (other than the person required by the regulations to pay compensation) in a worse position than he would have been in if the regulations had been so framed as to have effect only as from the date on which they are made. 4 In this section " existing staff " means — a persons who both immediately before and immediately after the coming into force in the area of a local authority of section 2 or 6 of this Act are employed by the authority in connection with the discharge by the authority of any function which immediately after the coming into force in that area of the said section 2 or 6, as the case may be, is a social services function of the authority ; and b persons who both immediately before and immediately after the coming into force in the area of a local authority of — i an order under section 2(2) of this Act, or ii a direction under section 2(4) thereof, not being a direction which comes into force in that area on the same date as that on which that section comes into force therein, are employed by the authority in connection with the discharge by the authority of any function to which the order or direction, as the case may be, relates. Delegation schemes to be revoked, so far as they relate to social services functions 10 1 After the date of the coming into force of this section no delegation scheme shall be made under section 46 of the Local Government Act 1958 (certain functions of a county council, so far as they relate to a county district for which a delegation scheme under that section is in force, to be exercisable by the council of that district on behalf of the county council) and no steps shall be taken under section 47 of that Act (procedure for bringing a delegation scheme into operation) to bring into operation any scheme which is not in operation on that date. 2 The council of a county district for which a delegation scheme is in force immediately before the said date shall, within such period as the Secretary of State may direct, make in accordance with section 48(1) of the said Act of 1958 a subsequent scheme varying the delegation scheme by revoking it in so far as it relates to functions which at the time when the scheme is made are social services functions of the county council by virtue of section 2 of this Act. 3 Subsection (2) above shall not be taken as affecting the power of the council of a county district under the said section 48(1) to revoke a delegation scheme, whether such a delegation scheme as is referred to in subsection (2) above or that scheme as varied in accordance with that subsection. 4 A direction given under subsection (2) above may prescribe different periods for different counties or for different county districts in a county and may be varied by a subsequent direction so given. 5 Section 47(3) of the said Act of 1958 (which, as applied by section 48(1) of that Act, specifies the times at which subsequent schemes under section 48(1) may be made), and section 51 of that Act (which enables delegation schemes to be made by certain joint boards), shall cease to have effect. 6 In section 46(5) of the said Act of 1958 (which provides that the power of a county council, in the exercise of functions to which a delegation scheme relates, to make contributions to voluntary organisations may be exercised by the county council as well as by the council of the county district for which the scheme is in force) for the words " make contributions to voluntary organisations " there shall be substituted the words " assist voluntary organisations in any manner mentioned in subsection (1) or (2) of section 65 of the Health Services and Public Health Act 1968 ". Amendment of Health Visiting and Social Work (Training) Act 1962 11 1 The two Councils constituted under the Health Visiting and Social Work (Training) Act 1962 shall be re-named respectively the Council for the Education and Training of Health Visitors and the Central Council for Education and Training in Social Work and, accordingly, for the words " Council for the Training of Health Visitors " and " Council for Training in Social Work ", wherever they occur in that Act, there shall be substituted respectively the words " Council for the Education and Training of Health Visitors " and " Central Council for Education and Training in Social Work ". 2 For paragraph 2 of Schedule 1 to the said Act of 1962 (which requires the Privy Council to appoint one person to be chairman of both the Council for the Training of Health Visitors and the Council for Training in Social Work) there shall be substituted — 2 The chairman of each Council shall be appointed by the Privy Council ; and in paragraph 12 of that Schedule (term of office of the chairman of the Councils) for the words " the Councils " there shall be substituted the words " each Council ". Isles of Scilly 12 1 The Secretary of State may by order direct that this Act shall have effect as if the Council of the Isles of Scilly were a local authority for the purposes of this Act. 2 In its application to the Isles of Scilly by virtue of an order made under this section, this Act shall have effect with such modifications as may be specified in the order. Orders and regulations 13 1 Orders and regulations of the Secretary of State under this Act shall be made by statutory instrument. 2 Any order made under any provision of this Act, except an order under section 14(3), may be varied or revoked by a subsequent order so made. 3 In the case of a statutory instrument containing an order under section 2(2) or 14(3) of this Act or regulations under section 6(3) thereof, a draft of the instrument shall be laid before Parliament, and an instrument containing an order under the said section 2(2) shall not be made unless the draft has been approved by a resolution of each House of Parliament. 4 A statutory instrument containing an order under section 9(1) or 12 of this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament. 5 Any order or regulations under this Act may be made so as to apply to England only or to Wales only. For the purposes of this subsection, Monmouthshire shall be deemed to be part of Wales and not of England. Minor and consequential amendments, repeals and saving for certain schemes 14 1 The enactments specified in Schedule 2 to this Act shall have effect subject to the amendments specified in relation thereto in that Schedule, being minor amendments and amendments consequential on the provisions of this Act. 2 The enactments specified in Schedule 3 to this Act are hereby repealed to the extent specified in column 3 of that Schedule. 3 The Secretary of State may by order repeal or amend any provision in any local Act, including an Act confirming a provisional order, or in an instrument in the nature of a local enactment under any Act, where it appears to him that that provision is inconsistent with, or has become unnecessary or requires modification in consequence of, any provision of this Act or corresponds to any provision repealed by this Act. 4 Nothing in paragraph 7 of Schedule 2 to this Act or in any provision of Schedule 3 thereto shall affect any delegation scheme made under section 46 of the Local Government Act 1958 and in force immediately before the coming into force of section 10 of this Act until the date on which a scheme made in pursuance of subsection (2) of the said section 10 and varying that delegation scheme comes into operation, and until that date the delegation scheme shall have effect, and the functions to which it relates shall be exercisable in accordance with it, as if this Act had not passed. Citation, interpretation, commencement and extent 15 1 This Act may be cited as the Local Authority Social Services Act 1970. 2 In this Act " functions " includes powers and duties and " social services functions " has the meaning given by section 3(3) of this Act. 3 Any reference in this Act to an enactment shall be construed as including a reference to that enactment as amended, applied or extended by or under any other enactment, including this Act. 4 This Act shall come into force on a day appointed by the Secretary of State by order; and different days may be so appointed for different provisions of this Act. 5 If it appears to the Secretary of State desirable in the interest of the efficient discharge of the functions of a particular local authority to postpone the coming into force of any provision of this Act in the area of that authority, the Secretary of State may by an order under subsection (4) above relating to that provision either appoint a different day later in date for the coming into force of that provision in the area of that authority or except that area from the operation of the order and make a subsequent order under that subsection appointing a day for the coming into force of that provision in that area. 6 This Act, except section 11, shall not extend to Scotland. 7 This Act, except section 11 and this subsection, shall not extend to Northern Ireland; the amendments of the Health Visiting and Social Work (Training) Act 1962 made by section 11 shall be treated for the purposes of section 6 of the Government of Ireland Act 1920 (which restricts the power of the Parliament of Northern Ireland to alter Acts of the Parliament of the United Kingdom passed after the day appointed for the purposes of that section) as having been made by an Act passed before that day. SCHEDULES SCHEDULE 1 Enactments Conferring Functions Assigned to Social Services Committee Section 2. Enactment Nature of functions Children and Young Persons Act 1933 (c. 12) Part III Protection of the young in relation to criminal and summary proceedings; children appearing before court as in need of care, protection or control; committal of children to approved school or care of fit person, etc. Part IV Remand homes, approved schools and children in care of fit persons. National Health Service Act 1946 (c. 81) Section 22(1) and (2) Care of expectant and nursing mothers and vouna children. Section 29 Provision of domestic help for certain households. The following sections, so far as they apply in relation to any function under the said section 22 or 29 or section 12 or 13 of the Health Services and Public Health Act 1968 (c. 46) , being a social services function: — Section 20 Submission of proposals for provision of certain services. Section 58(2) Acquisition of land. Section 63 Use of certain premises and equipment. Section 65 Provision of accommodation for staff. National Assistance Act 1948 (c. 29) Sections 21 to 27 Provision of residential accommodation for the aged, infirm, needy. etc. Sections 29 and 30 Welfare of persons who are blind, deaf, dumb or otherwise handicapped or are suffering from mental disorder; use of voluntary organisations for administration of welfare schemes. Sections 37 to 41 Registration of disabled or old persons' homes, residential homes for mentally disordered persons and charities for disabled. Sections 43 to 45 Recovery of costs of providing certain services. Section 48 Temporary protection of property belonging to persons in hospital or accommodation provided under Part III of the Act, etc. Section 49 Defraying expenses of local authority officer applying for appointment as receiver for certain patients. Section 50(3) and (4) Burial or cremation of person dying in accommodation provided under the said Part III; recovery of funeral expenses from his estate. Section 56(3) except so far as it relates to an offence under section 47(11). Prosecution of offences. Section 58 Acquisition of land. Children Act 1948 (c. 43) Provision for orphans, deserted children, children suffering from mental disorder, etc.; assumption by local authority of parental rights; local authority as fit person under Act of 1933; children in care; financing of children's maintenance and education, etc.; registration of voluntary children's homes and use of voluntary organisations. Nurseries and Child-Minders Regulation Act 1948 (c. 53) Regulation of nurseries and child-minders. Disabled Persons (Employment) Act 1958 (c. 33) Section 3 Provision of facilities for enabling disabled persons to be employed or work under special conditions. Children Act 1958 (c. 65) Protection of children living away from their parents; prosecution of offences. Adoption Act 1958 (7 & 8 Eliz. 2. c. 5) Making, etc. arrangements for the adoption of children; regulation of adoption societies; care, possession and supervision of children awaiting adoption; prosecution of offences. Mental Health Act 1959 (c. 72) Parts II to VI and IX except — sections 12 and 13; sections 14 to 18 and section 23 so far as it relates to offences under those sections or any enactment thereby applied; sections 28(2), 37, 47(3) and 56(2)(d); section 131 in its application to offences relating to a mental nursing home or a patient admissible to, or receiving treatment in or at, such a home. Welfare of the mentally disordered while in hospital or mental nursing home; guardianship of persons suffering from mental disorder including such persons removed to England and Wales from Scotland or Northern Ireland; exercise of functions of nearest relative of person so suffering. Matrimonial Proceedings (Magistrates' Courts) Act 1960 (c. 48) Section 2(1)(f) Supervision of child subject to court order in matrimonial proceedings. Mental Health (Scotland) Act 1960 (c. 61) Section 10 Welfare of certain persons while in hospital in Scotland. Health Visiting and Social Work (Training) Act 1962 (c. 33) Section 5(1)(b), and as extended by section 45(9) of the Health Services and Public Health Act 1968 (c. 46) . Research into matters relating to local authority welfare services. Children and Young Persons Act 1963 (c. 37) Part I Promotion of welfare of children; powers relating to young persons in need of care, protection or control; further provisions for protection of the young in relation to criminal proceedings; recovery of contributions in respect of child. Part III, except section 56 Research into matters connected with functions under enactments relating to children and young persons; provisions relating to children in respect of whom parental rights assumed by local authority; assistance of persons formerly in care. Matrimonial Causes Act 1965 (c. 72) Section 37 Supervision of child subject to court order in matrimonial proceedings. Ministry of Social Security Act 1966 (c. 20) Schedule 4 Provision and maintenance of reception centres for persons without a settled way of living. Health Services and Public Health Act 1968 (c. 46) Section 12 Prevention of illness and care and after-care of the sick. Section 13 Provision of home help and laundry facilities for certain households. Section 45 Promotion of welfare of old people. Social Work (Scotland) Act 1968 (c. 49) Sections 75(2) and 76(4) Reference for consideration, etc. of case of child in care whose parent moves to Scotland and transfer of child. Family Law Reform Act 1969 (c. 46) Section 7(4) Supervision of ward of court. Children and Young Persons Act 1969 (c. 54) The whole Act except sections 1, 2 and 9 in so far as they assign functions to a local authority in their capacity of a local education authority. Care and other treatment of children and young persons through court proceedings; accommodation for children in care; welfare, etc. of foster children. Chronically Sick and Disabled Persons Act 1970 (c. 44) Section 1 Obtaining information as to need for, and publishing information as to existence of, certain welfare services. Section 2 Provision of certain welfare services. Section 18 Provision of certain information required by Secretary of State. Section 6 of this Act Appointment of director of social services, etc. SCHEDULE 2 Minor and Consequential Amendments of Enactments Section 14. The Children and Young Persons Act 1933 (c. 12) 1 In section 96(7) of the Children and Young Persons Act 1933 (which provides that subject to the provisions of section 39 of the Children Act 1948 a local authority may refer certain matters to committees) for the words from " section thirty-nine " to " that committee) " there shall be substituted the words " sections 2 and 3 of the Local Authority Social Services Act 1970 (which require certain matters to be referred to the social services committee and restrict the reference of other matters to that committee). " The National Health Service Act 1946 (c. 81) 2 At the end of section 22(4) of the National Health Service Act 1946 (which enables regulations to provide in certain cases for the making, variation, etc., of schemes of divisional administration relating to the functions of local health authorities under subsection (1) of that section with respect to the care of certain children and certain other functions of such authorities) there shall be added the words " other than functions under the said subsection (1) which are for the time being social services functions within the meaning of the Local Authority Social Services Act 1970 ". 3 In paragraph 1 of Part II of Schedule 4 to the said Act of 1946 (which provides that certain matters shall stand referred to a local authority's health committee) after the words " a local health authority" there shall be inserted the words " other than matters which by virtue of section 2 or 3(2)(a) of the Local Authority Social Services Act 1970 stand referred to the authority's social services committee ". 4 In paragraph 3 of the said Part II (which empowers a local health authority to authorise their health committee to exercise on their behalf certain functions) after the word " except " there shall be inserted the words " any such functions which are for the time being social services functions within the meaning of the Local Authority Social Services Act 1970 and except ". The Children Act 1948 (c. 43) 5 In section 45(1) of the Children Act 1948 (which authorises the making of grants to persons undergoing training with a view to, or in the course of, employment for the purposes of any of the enactments specified in section 39(1) of that Act or employment by a voluntary organisation for similar purposes) for the words " subsection (1) of section thirty-nine of this Act" there shall be substituted the words " subsection (1A) of this section " and after subsection (1) of the said section 45 there shall be inserted — 1A The enactments referred to in subsection (1) of this section are — a Parts III and IV of the Children and Young Persons Act 1933 ; b this Act; c the Children Act 1958 ; d the Adoption Act 1958 ; e section 2(1)(f) of the Matrimonial Proceedings (Magistrates' Courts) Act 1960, section 37 of the Matrimonial Causes Act 1965 and section 7(4) of the Family Law Reform Act 1969 ; f the Children and Young Persons Act 1963, except Part II and section 56 ; and g the Children and Young Persons Act 1969. 6 In section 49(1) of the said Act of 1948 (which requires county borough councils to keep separate accounts of sums received and expended by them in the exercise of their functions under any of the enactments mentioned in section 39(1) of that Act) for the words " subsection (1) of section thirty-nine of this Act" there shall be substituted the words " subsection (1A) of this section " and after subsection (1) of the said section 49 there shall be inserted — 1A The enactments referred to in subsection (1) of this section are — a the enactments specified in section 45(1 A) of this Act; b section 9 of the Mental Health Act 1959 and section 10 of that Act so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section ; and c section 10 of the Mental Health (Scotland) Act 1960 so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section. The Local Government Act 1958 (c. 55) 7 In section 46(1) of the Local Government Act 1958 (functions of a county council under certain enactments may be exercised by council of county district for which delegation scheme under that section is in force) for paragraph (a) there shall be substituted — a Part III of the National Health Service Act 1946, section 1 of the National Health Service (Family Planning) Act 1967 and sections 10, 11 and 12 of the Health Services and Public Health Act 1968 (midwifery services, health visiting, district nursing and prevention of illness and care and after-care of the sick), except functions under section 27 of the said Act of 1946 (ambulance services) and section 29 thereof (domestic help for certain households) and any functions under section 22 of that Act (care of certain mothers and young children) or section 12 of the said Act of 1968 which immediately after the coming into operation of a scheme made by the council of that district in pursuance of section 10(2) of the Local Authority Social Services Act 1970 were not exercisable by the council of that district by virtue of the delegation scheme ; and for paragraph (d) there shall be substituted — d sections 12 to 18 of the Mental Health Act 1959, section 23 of that Act so far as it relates to offences under sections 14 to 18 thereof or any enactment applied by those sections, sections 28(2), 37, 47(3) and 56(2)(d) of that Act and, in its application to offences relating to a mental nursing home or a patient admissible to, or receiving treatment in or at, such a home, section 131 of that Act . 8 In section 60(2) of the said Act of 1958 (provision to be made by regulations for the payment of compensation in certain cases) after the words " section 46 of the Children and Young Persons Act 1969 " there shall be inserted the words " or of section 2 or 6 of the Local Authority Social Services Act 1970 ". The London Government Act 1963 (c. 33) 9 In section 47(3) of the London Government Act 1963 (which specifies enactments functions under which are to be exercisable by London borough councils and the Common Council of the City of London) for paragraph (f) there shall be substituted — f section 9 of the Mental Health Act 1959 and section 10 of that Act so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section ; g section 10 of the Mental Health (Scotland) Act 1960 so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section; h section 2(1)(f) of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 ; i the Children and Young Persons Act 1963, except Part II and section 56 . The Children and Young Persons Act 1963 (c. 37) 10 In section 56(2) of the Children and Young Persons Act 1963 (prosecution of certain offences) for the words " subsection (2) of section 39 of the Children Act 1948 " there shall be substituted the words " subsection (1) of section 3 of the Local Authority Social Services Act 1970 " and for the words " those sections " there shall be substituted the words " the said section 85 and section 2 of the said Act of 1970 ". The Children and Young Persons Act 1969 (c. 54) 11 1 In subsection (1)(a) of section 63 of the Children and Young Persons Act 1969 (which requires every local authority to make returns to the Secretary of State with respect to the performance by the authority of the functions specified in section 39(1) of the Children Act 1948) for the words from " the functions " to " committees)" there shall be substituted the words " their functions under the enactments mentioned in subsection (6) of this section ". 2 In subsection (5) of the said section 63 (which requires the Secretary of State to lay before Parliament reports with respect to certain matters, including the exercise by local authorities of the functions specified in the said section 39(1)) for the words from " the functions " to " 1948 " there shall be substituted the words " their functions under the enactments mentioned in subsection (6) of this section ". 3 At the end of the said section 63 there shall be added the following subsection: — 6 The enactments referred to in subsections (1) and (5) of this section are — a Parts III and IV of the Children and Young Persons Act 1933 ; b the Children Act 1948 ; c the Children Act 1958 ; d the Adoption Act 1958 ; e section 9 of the Mental Health Act 1959 and section 10 of that Act so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section ; f section 10 of the Mental Health (Scotland) Act 1960 so far as it relates to children and young persons in respect of whom the rights and powers of a parent are vested in a local authority as mentioned in subsection (1)(a) of that section ; g section 2(1)(f) of the Matrimonial Proceedings (Magistrates' Courts) Act 1960, section 37 of the Matrimonial Causes Act 1965 and section 7(4) of the Family Law Reform Act 1969 ; h the Children and Young Persons Act 1963, except Part II and section 56 ; i this Act. The Chronically Sick and Disabled Persons Act 1970 (c. 44) 12 1 In section 2(1) of the Chronically Sick and Disabled Persons Act 1970 (which imposes a duty on local authorities to make arrangements for certain matters in exercise of their functions under section 29 of the National Assistance Act 1948) the words " under the general guidance of the Secretary of State and " shall be omitted, and after the words " the purpose) " there shall be inserted the words " and to the provisions of section 7(1) of the Local Authority Social Services Act 1970 (which requires local authorities in the exercise of certain functions, including functions under the said section 29, to act under the general guidance of the Secretary of State) ". 2 In section 2(2) of the said Act of 1970 (which makes provision in connection with the carrying into effect of the said arrangements) after the words " section 35(2)" there shall be inserted the words " and to the said section 7(1) ". SCHEDULE 3 Repeals Section 14. Chapter Short title Extent of repeal 11 & 12 Geo.6. c. 29 . The National Assistance Act 1948. Section 33(2). In section 35(2), the words " under the general guidance of the Minister and ". Schedule 3. 11 & 12 Geo.6. c. 43 . The Children Act 1948. Sections 39 to 42. In Schedule 3, the entry relating to section 96(7) of the Children and Young Persons Act 1933. 6 & 7 Eliz. 2. c. 33 . The Disabled Persons (Employment) Act 1958. In section 3(3), the words from "and subject" onwards. In the Schedule, paragraph 2 and in paragraph 3(3) the words from " and in particular " to " three ". 6 & 7 Eliz. 2. c. 55 . The Local Government Act 1958. In section 46, in subsection (1), paragraphs (b), (c) and (e) and the words from " and, subject " onwards, subsections (2) and (3) and in subsection (4), the words from " or Part I" to " 1948 ". Section 47, except subsections (1), (2), (6) and (7) as applied by section 48(1) of that Act, and subsections (5) and (8) as applied by section 52(2) thereof, and in subsection (2) the words from " (except " to " section) ". In section 48, in subsection (1), the words from " subject " onwards. In section 50, in subsection (1), the words from " or the amendment" to " 1948 " and the words from " or for the amendment " onwards and, in subsection (2), the words " or varying or revoking schemes ", the words " or a scheme ", the words " or fails " and the words " or scheme ". Section 51. 7 & 8 Eliz. 2. c. 5 . The Adoption Act 1958. In Schedule 4, the entry relating to section 39 of the Children Act 1948. 7 & 8 Eliz. 2. c. 72 . The Mental Health Act 1959. In Schedule 7, Part II, the entry relating to the Children Act 1948. 8 & 9 Eliz. 2. c. 48 . The Matrimonial Proceedings (Magistrates' Courts) Act 1960. Section 3(7). 8 & 9 Eliz. 2. c. 61 . The Mental Health (Scotland) Act 1960. In Schedule 4, the entry relating to section 39 of the Children Act 1948. 1963 c. 33 . The London Government Act 1963. In section 3(2)(d), the words " 47(3) and ". In section 47(2), the words from " and, without " onwards. 1963 c. 37 . The Children and Young Persons Act 1963. In Schedule 3, paragraph 41. 1965 c. 72 . The Matrimonial Causes Act 1965. Section 37(3). 1968 c. 46 . The Health Services and Public Health Act 1968. In section 45, in subsection (5)(b), the words from " and Parts I " to " 1(1)) " and subsections (6), (7) and (8). Section 68. In Schedule 3, Part I, in the entry relating to the Disabled Persons (Employment) Act 1958, the second paragraph and in the entry relating to the Local Government Act 1958, paragraph (a), in paragraph (b) the words from " (e)" to " 1968 ", where next occurring, and paragraph (c) . 1969 c. 46 . The Family Law Reform Act 1969. In section 7(4), the words " and (3)". 1969 c. 54 . The Children and Young Persons Act 1969. In Schedule 5, paragraph 18.

The Maintenance Orders (Facilities for Enforcement) (Amendment) Rules 1970 The Lord Chancellor, in exercise of the power conferred on him by Section 15 of the Justices of the Peace Act 1949, as extended by section 122 of the Magistrates' Courts Act 1952, after consultation with the Rule Committee appointed under the said section 15, hereby makes the following Rules: — 1 These Rules may be cited as the Maintenance Orders (Facilities for Enforcement) (Amendment) Rules 1970 and shall come into operation on 1st July 1970. 2 In Rule 6 of the Maintenance Orders (Facilities for Enforcement) Rules 1922 there shall be inserted, after the words “originally issued” where first occurring, the words “or to such other person or authority as that court or the Secretary of State may from time to time direct” . Gardiner, C Dated 15th May 1970

The Consular Relations (Privileges and Immunities) (Spanish State) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) : Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:- 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Spanish State) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a consular officer of the Spanish State of which the Spanish State or any person acting expressly on its behalf is the owner or lessee. 4 1 Except in respect of importations of consumable goods (such as wines, spirits and tobacco), paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the Spanish State who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted, provided that no such consular employee shall have in his possession or use at any time more than one vehicle in respect of which exemption from customs duty has been given on importation. 2 The conditions referred to in paragraph (1) of this Article are that the consular officer or employee concerned — a is a Spanish subject, and is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom, and d is in receipt of regular emoluments from the Spanish State. W. G. Agnew

The Superannuation (Local Government and Approved Employment) Interchange (Amendment) Rules 1970 The Minister of Housing and Local Government, in exercise of his powers under sections 2 and 15 of the Superannuation (Miscellaneous Provisions) Act 1948, as amended by section 11(6) of the Superannuation (Miscellaneous Provisions) Act 1967, and of all other powers enabling him in that behalf, hereby makes the following rules: — Title and commencement 1 These rules may be cited as the Superannuation (Local Government and Approved Employment) Interchange (Amendment) Rules 1970, and shall come into operation on 1st September 1970. Interpretation 2 1 In these rules “ the principal rules ” means the Superannuation (Local Government and Approved Employment) Interchange Rules 1969 . 2 The Interpretation Act 1889 shall apply for the interpretation of these rules as it applies for the interpretation of an Act of Parliament. Amendment of principal rules 3 1 In rule 7 of the principal rules, after paragraph (3) there shall be inserted the following paragraph — 3A The transfer value payable in respect of a person who enters approved employment in which he is a member of the superannuation scheme established by virtue of the Teachers (Superannuation) Act (Northern Ireland) 1950 shall be calculated as if the words “not being such service as is mentioned in proviso (a) to that subsection” had been omitted from the definition of “service” in paragraph 1 of schedule 1 to the transfer value regulations. 2 Schedules 1 and 4 of the principal rules shall each be amended by adding thereto the appropriate entries set out in the schedule to these rules. 3 In schedule 1 to the principal rules, the entries relating to the National Association for the Care and Resettlement of Offenders and the Royal London Prisoners' Aid Society shall be omitted. Adjustment of certain references to dates 4 In relation to any person who becomes eligible, subject to compliance with conditions, for the application of Part II or III of the principal rules by virtue of rule 3(2) above, the principal rules shall have effect as if — a any references therein to 18th August 1968 were references to 1st September 1969 and b any references therein, however expressed, to 18th August 1969 were references to 1st September 1970. Given under the official seal of the Minister of Housing and Local Government on 28th July 1970. Peter Walker Minister of Housing and Local Government SCHEDULE ENTRIES TO BE ADDED TO SCHEDULE 1 Rule 3(2) Approved body Approved pension scheme Prescribed date for rule 5 Prescribed date for rule 9 (1) (2) (3) (4) Arts Council of Great Britain Arts Council of Great Britain Pension Fund and Cash Benefits Scheme 1st January 1965 1st January 1965 British Steel Corporation, or any company participating in their approved pension scheme British Steel Corporation Staff Superannuation Scheme 28th April 1966 28th April 1967 British Tourist Authority, or any body participating in their approved pension scheme The British Tourist Boards' Staff Pension Scheme 14th July 1956 14th July 1957 Consumer Council The Consumer Council Staff Superannuation Fund and Staff Life Assurance Scheme 15th March 1964 15th March 1965 Electrical Research Association The Electrical Research Association Pension Fund 1st June 1965 1st June 1965 Highlands and Islands Development Board Highlands and Islands Development Board Superannuation and Cash Benefit Schemes 1st November 1964 1st November 1965 House of Commons Offices The House of Commons Staff Superannuation Scheme 27th December 1953 31st December 1967 Immigration Appeals Adjudicators Adjudicators (Immigration Appeals Act 1969) Superannuation Scheme 1st March 1969 1st March 1970 London School of Economics and Political Science, or any associated organisation participating in their approved pension scheme The London School of Economics and Political Science 1965 Pension and Assurance Scheme 1st August 1964 1st August 1965 Meat and Livestock Commission Meat and Livestock Commission Pension Plan 1st October 1967 1st October 1968 National Ports Council National Ports Council Pension Fund and Retirement Benefits Fund 15th June 1963 15th June 1964 National Union of Teachers National Union of Teachers Staff Superannuation Fund 1st September 1965 1st September 1965 Post Office The Post Office Staff Superannuation Scheme 1st October 1968 1st October 1969 Post Office and Civil Service Sanatorium Society Post Office and Civil Service Sanatorium Society Staff Superannuation Fund and Supplementary Staff Superannuation Fund 1st July 1964 1st July 1965 Royal College of Art Royal College of Art Staff Pension Fund and Life Assurance Scheme 1st April 1966 1st April 1967 Royal Hospital and Home for Incurables Putney Royal Hospital and Home for Incurables Putney Staff Superannuation Fund and Supplementary Staff Superannuation Fund 1st November 1962 1st November 1963 A body employing teachers who are superannuable by virtue of the Teachers (Superannuation) Act (Northern Ireland) 1950 The Superannuation Scheme established by virtue of the Teachers (Superannuation) Act (Northern Ireland) 1950 1st April 1950 1st April 1950 ENTRIES TO BE ADDED TO SCHEDULE 4 Approved body Approved pension scheme Prescribed date for rule 5 Prescribed date for rule 9 (1) (2) (3) (4) British Railways Board British Transport Police Force Superannuation Fund and Retirement Benefit Fund 1st October 1967 1st October 1968 British Scientific Instrument Research Association British Scientific Instrument Research Association Pension and Assurance Scheme 1st April 1961 1st April 1962 University of Cambridge The University of Cambridge Contributory Pension Fund 1st April 1967 1st April 1968 University of London, or any body participating in their approved pension scheme University of London Superannuation Fund and Pension and Life Assurance Scheme 1st October 1957 1st October 1958

The Consular Relations (Privileges and Immunities) (People's Republic of Bulgaria) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ” ): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (People's Republic of Bulgaria) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence, of which the People's Republic of Bulgaria or any person acting on its behalf is the owner or lessee, of a consular officer or other member of any consular post of the People's Republic of Bulgaria, provided that in the case of such other member he is not a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948. 4 Paragraph 1 of Article 49 in Schedule 1 to the Act (exemption from taxation) shall be extended to members of the service staff of any consular post of the People's Republic of Bulgaria who satisfy the conditions set out in Article 6 of this Order. 5 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the People's Republic of Bulgaria who satisfy the conditions set out in Article 6 of this Order and members of their families forming part of their house-holds who satisfy the conditions set out in Article 6(a) and (b) of this Order as if the reference to consular employees included such members of the families of consular employees as form part of their households, and as if the words “in respect of articles imported at the time of first installation” were omitted. 6 The conditions referred to in Articles 4 and 5 of this Order are that the person concerned — a is not a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c (in the case of a member of the consular post) is a permanent official of the People's Republic of Bulgaria. 7 1 Subject to the provisions of paragraphs (2) and (3) of this Article — a Article 29 in Schedule 1 to the Diplomatic Privileges Act 1964 (personal inviolability) shall be extended to members of any consular post of the People's Republic of Bulgaria and to members of the families of consular officers and consular employees of such posts forming part of their households; b paragraphs 1 and 3 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (immunity from jurisdiction) shall be extended to members of any consular post of the People's Republic of Bulgaria and to members of the families of consular officers and consular employees of such posts forming part of their households, except that the immunity from civil jurisdiction of consular officers shall not apply where they exercise the rights relating to the estate of a deceased person accorded under Articles 44 to 48 of the Consular Convention between the United Kingdom and the People's Republic of Bulgaria signed in London on 13th March 1968; c paragraph 2 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (exemption from obligation to give evidence) shall be extended to members of any consular post of the People's Republic of Bulgaria and to members of their families forming part of their households. 2 The provisions of paragraph (1) of this Article shall not apply to any person who is a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948. 3 Any privilege or immunity conferred by the provisions of paragraph (1) of this Article may be waived by the People's Republic of Bulgaria. Waiver must always be express. A waiver shall be deemed to have been expressed by the People's Republic of Bulgaria if it has been expressed by the head, or any person for the time being performing the functions of head, of the diplomatic mission in the United Kingdom of the People's Republic of Bulgaria or, if there is no such mission, of the consular post concerned. Waiver of immunity in respect of civil or administrative proceedings shall not be held to imply waiver of immunity in respect of execution of the judgment for which separate waiver shall be required. 8 Article 22 in Schedule 1 to the Diplomatic Privileges Act 1964 (inviolability and protection of premises) shall be extended to any consular premises of the People's Republic of Bulgaria, and paragraph 1 of Article 30 in that Schedule (inviolability of private residence) shall be extended to the residences of consular officers of the People's Republic of Bulgaria, provided that any such premises or residence may be entered by the authorities of the United Kingdom with the consent of the head of the consular post or the head of the diplomatic mission in the United Kingdom of the People's Republic of Bulgaria or of a person nominated by either of them. 9 Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964 (freedom of communication) shall be extended to the communications of any consular post of the People's Republic of Bulgaria. W. G. Agnew

The Local Government (Compensation) (Amendment) Regulations 1970 The Secretary of State for the Environment, as the Minister determined to be appropriate in relation to the persons to whom these regulations relate, in exercise of his powers under section 60(2) of the Local Government Act 1958 as extended and amended by section 9(2) and (3) of and paragraph 8 of Schedule 2 to the Local Authority Social Services Act 1970 and of all other powers enabling him in that behalf, hereby makes the following regulations: — Citation and commencement 1 1 These regulations may be cited as the Local Government (Compensation) (Amendment) Regulations 1970 and shall come into operation on 1st January 1971. 2 The Local Government (Compensation) Regulations 1963 the Local Government (Compensation) (Amendment) Regulations 1965 the Local Government (Compensation) (Amendment) Regulations 1968 and these regulations may be cited together as the Local Government (Compensation) Regulations 1963 to 1970. Interpretation 2 1 In these regulations — “ enactment ” includes any instrument made under an enactment; “ the principal regulations ” means the Local Government (Compensation) Regulations 1963; “ the 1965 regulations ” means the Local Government (Compensation) (Amendment) Regulations 1965. 2 Unless the context otherwise requires, any reference in these regulations to the provisions of any enactment shall be construed as a reference to those provisions as amended, modified or re-enacted by any subsequent enactment. 3 The Interpretation Act 1889 shall apply for the interpretation of these regulations as it applies for the interpretation of an Act of Parliament. Amendment of the principal regulations 3 1 In regulation 2(1) of the principal regulations (interpretation) as amended — a in the definition of “compensating authority” , after paragraph (b) there shall be inserted the following paragraph — bb in the case of a person who suffers loss of employment or loss or diminution of emoluments which is attributable to the provisions of section 2 or 6 of the Local Authority Social Services Act 1970, the authority by whom the person was employed immediately prior to the loss or diminution in question; ; b in the definition of “material date” , after the words “under such provision” there shall be inserted the words “or in relation to any person who suffers loss of employment or loss or diminution of emoluments which is attributable to any provision of section 2 or 6 of the Local Authority Social Services Act 1970 mentioned in the said column 1,” . 2 In regulation 4 of the principal regulations (grounds of entitlement to compensation) as substituted by regulation 5 of the 1965 regulations, after the words “Police Act 1964” there shall be inserted the words “or of section 2 or 6 of the Local Authority Social Services Act 1970” . 3 At the end of sub-paragraph (b) of regulation 7(1) of the principal regulations (conditions for payment of resettlement compensation) there shall be added the words “or, if the loss is attributable to the provisions of section 2 or 6 of the Local Authority Social Services Act 1970, not later than thirteen weeks after the commencement of the Local Government (Compensation) (Amendment) Regulations 1970, whichever is the later” . 4 At the end of the schedule to the principal regulations (material date) as added by regulation 21 of the 1965 regulations there shall be added, beneath the appropriate headings as repeated herein, the entries set out below: — Provisions to which loss or diminution is attributable The purposes of regulations 3 and 5 of these regulations Any other purposes of these regulations “Section 2 or 6 of the Local Authority Social Services Act 1970, except the provisions therein mentioned in the entry next following The date on which an order is made under section 15 of that Act bringing the provision into force in the area of the compensating authority, or the date on which the loss or diminution occurred, whichever is the earlier. The date on which the provision comes into force in that area, or the date on which the loss or diminution occurred, whichever is the earlier. An order made under section 2(2) or a direction issued under section 2(4) of the Local Authority Social Services Act 1970 The date on which the order is made or the direction issued. The date on which the order or direction comes into force, or the date on which the loss or diminution occurred, whichever is the earlier.” Peter Walker Secretary of State for the Environment 14th December 1970

The Smoke Control Areas (Exempted Fireplaces) (No. 2) Order 1970 The Minister of Housing and Local Government, in exercise of his powers under section 11(4) of the Clean Air Act 1956 and of all other powers enabling him in that behalf, hereby orders as follows: — Citation and commencement 1 This order may be cited as the Smoke Control Areas (Exempted Fire-places) (No. 2) Order 1970 and shall come into operation on 19th November 1970. Interpretation 2 The Interpretation Act 1889 shall apply for the interpretation of this order as it applies for the interpretation of an Act of Parliament. Class of fireplace exempted from section 11 of the Clean Air Act 1956 3 The class of fireplace described in column (1) of the schedule hereto shall, subject to the conditions specified in column (2), be exempted from the provisions of section 11 of the Clean Air Act 1956 (which empowers a local authority to declare the whole or any part of their district to be a smoke control area). Given under the official seal of the Minister of Housing and Local Government on 9th November 1970. Peter Walker Minister of Housing and Local Government SCHEDULE (1) (2) Class of Fireplace Conditions The fireplace known as the Triancomatic T 80 and manufactured by Trianco Limited The fireplace shall be installed, maintained and operated so as to minimise the emission of smoke and in accordance with the manufacturer's instructions. No fuel shall be used other than selected washed coal singles.

Finance Act 1970 W E, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows: — PART I Customs and Excise Alteration of general betting duty and repeal of betting premises licence duty 1 1 The general betting duty in respect of any bet made on or after 27th April 1970 shall — a if it is an on-course bet, be of an amount equal to 5. per cent, of the amount staked, and b if it is not an on-course bet, be of an amount equal to 6. per cent, of the amount staked. 2 Where it is shown to the satisfaction of the Commissioners that a bookmaker has laid off the whole or any part of an on-course bet made with him by making an on-course bet (in this subsection called a " hedging " bet), being a dutiable bet made in the course of the same meeting, and on the same contingency, as the first-mentioned bet, and that both the bookmaker making, and the person accepting, the hedging bet have complied with such conditions as the Commissioners think fit to impose for the protection of the revenue, the first-mentioned bet shall, up to the amount staked by the hedging bet, be exempt from general betting duty, and the Commissioners shall remit or repay duty accordingly. In giving relief under this subsection, in no circumstances may any part of the amount staked by a hedging bet be brought into account more than once. This subsection applies to bets made on or after 27th April 1970. 3 In this section an " on-course bet" means a bet made in the course of a meeting — a with a bookmaker present at the meeting, or b by means of a totalisator situated on premises forming part of the track, where — i the person making the bet (that is to say the person originating the bet and not any agent or intermediary) is present at the meeting, or ii the bet is made by a person carrying on a bookmaking business acting as a principal (and not acting as agent for, or on behalf of, some other person). 4 For the purposes of this section — a " dutiable bet" means a bet to which section 12(1) of the Finance Act 1966 (application of general betting duty) applies, b " meeting" means any occasion on any one day on which events take place on any track, c expressions defined by section 15(6) of the Finance Act 1966 shall have the same meanings in this section. 5 As from 27th April 1970 section 2(4) of the Finance Act 1969 (betting premises licence for off-course betting) shall cease to have effect. 6 On application made to the proper officer in respect of a betting premises licence for a period falling partly after 27th April 1970 the duty paid or payable on the licence shall, subject to subsection (7) below, be repaid or remitted to the following extent — a five-twelfths of the duty on the licence, if the period of validity of the licence began before 1st January 1970, b five-ninths of the duty on the licence, if the period of validity of the licence began in 1970, but before 1st April 1970, c five-sixths of the duty on the licence, if the period of validity of the licence began after 31st March 1970, and any amount so repayable shall be paid to the person who is the holder of the licence on 27th April 1970. 7 If, under arrangements made by the Commissioners, the holder of a betting premises licence was allowed to pay the duty on the licence by twelve monthly instalments payable on the first day of each month, subsection (6) above shall not apply, but all duty first becoming payable under the arrangements after April 1970 shall be remitted. 8 Where subsection (6) or subsection (7) above applies, the amount of any penalty under paragraph 9(a), and the amount of any duty on a licence under paragraph 9(b), of Schedule 8 to the Finance Act 1969 shall be adjusted accordingly. Gaming licence duty 2 1 There shall be charged a duty of excise on a licence (to be known as a gaming licence) authorising the use of premises specified in the licence for the purpose of gaming by way of any game to which this section for the time being applies. 2 A gaming licence shall be a licence for the period from 1st October in any year to 31st March in the following year, or from 1st April in any year to 30th September in that year (all dates inclusive). 3 The amount of the duty under this section on a gaming licence in respect of any premises shall be determined in accordance with the Table in, and the other provisions of. Schedule 1 to this Act. 4 Without prejudice to subsections (5) and (6) of this section, the games to which this section applies are baccarat, punto banco, big six, blackjack, boule, chemin de fer, chuck-a-luck, craps, crown and anchor, faro, faro bank, hazard, poker dice, pontoon, French roulette, American roulette, trente et quarante, vingt-et-un, and wheel of fortune. 5 The Treasury may by order made by statutory instrument add to the games mentioned in subsection (4) of this section any game not for the time being mentioned therein if it appears to the Treasury proper so to do for the protection of the revenue, having regard to the character of the game and the circumstances in which it is played; but a statutory instrument containing an order under this subsection shall be laid before the Commons House of Parliament after being made, and the order shall cease to have effect at the end of twenty-eight days after the day on which it was made (but without prejudice to anything previously done under the order or to the making of a new order) unless at some time before the end of those twenty-eight days the order is approved by resolution of that House ; and, in reckoning for the purposes of this subsection any period of twenty-eight days, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days. 6 Any reference in this section or in any order under subsection (5) thereof to a particular game shall be taken to include a reference to any game (by whatever name called) which is essentially similar to that game; and in proceedings relating to the gaming licence duty under the excise Acts an averment in any process that a particular game is essentially similar to another particular game shall, until the contrary is proved, be sufficient evidence that it is so. 7 Gaming taking place on any premises at a time when no licence is in force as respects those premises under the Gaming Act 1968 shall not require the authority of a gaming licence under this section. 8 Subject to subsection (7) above, all gaming taking place after 30th September 1970 by way of any game to which this section for the time being applies shall require the authority of a gaming licence under this section, and as respects gaming after that date section 13 of the Finance Act 1966 (which is superseded by this section) shall cease to have effect. 9 Part II of Schedule 1 to this Act shall have effect for supplementing the provisions of this section (in that Schedule called " the principal section "). 10 In this section and in the said Schedule — " gaming " has the same meaning as in the Gaming Act 1968, and " premises " includes any place and any means of transport. Gaming machines 3 1 No more than one gaming machine licence shall be in force at any time as respects the gaming machines on any premises, except that there may be one ordinary gaming machine licence as respects the gaming machines chargeable at the lower rate, and one ordinary gaming machine licence as respects the gaming machines chargeable at the higher rate. 2 In accordance with subsection (1) above, in ascertaining whether there has been a contravention of section 5(11) of the Finance Act 1969 (failure to take out appropriate licence) in respect of any premises, two (but not more than two) ordinary gaming machine licences may be taken into account if one relates only to machines chargeable at the lower rate, and the other to machines chargeable at the higher rate, and in other cases only one licence may be taken into account. 3 The proper officer may, in such manner as the Commissioners may direct, and without any additional payment, amend a gaming machine licence by substituting different premises for those in respect of which it is for the time being in force, but — a this subsection shall not be taken as authorising any amendment affecting the number or descriptions of gaming machines authorised by the licence, and b in the case of an ordinary licence, the proper officer must be satisfied that there is no other licence in force as respects the new premises, except where the transfer is of a licence relating only to machines chargeable at the lower rate, or the higher rate, and the licence already in force relates only to machines chargeable at the other rate. 4 Section 5(2) of the Finance Act 1969 shall be amended as follows. For the words from ' a " penny machine "' to the end of the subsection substitute ' a " penny machine " is a gaming machine which, in order to be played once, requires the insertion of — a a single new penny, or b a single new halfpenny, or c a single penny, and which cannot be played in any other way.' Tobacco substitutes 4 1 Notwithstanding anything in Part V of the Customs and Excise Act 1952 (which relates to tobacco and, in particular, imposes prohibitions on the manufacture, use, sale and possession of substances resembling tobacco), the Commissioners may make regulations authorising the manufacture of tobacco substitutes and their use in the production of cigarettes, pipe tobacco, cigars and other products intended for smoking or, though not so intended, customarily made from tobacco (all of which products are in the following provisions of this section referred to as " products for smoking " ). 2 Subject to the provisions of regulations under this section — a the duties of excise on tobacco shall be charged on tobacco substitutes manufactured in the United Kingdom as if the substitutes were unmanufactured tobacco; b the duties of customs on tobacco shall be charged on the importation of tobacco substitutes as if the substitutes were tobacco; and c for the purpose of any enactment relating to drawback on tobacco, tobacco substitutes shall be deemed to be tobacco. 3 Regulations under this section may provide that, subject to such exceptions as may be specified in the regulations, no person shall manufacture tobacco substitutes unless he holds a licence for the purpose expiring on such day in each year as may be so specified; and there shall be charged on any such licence a duty of excise of £10. 4 Without prejudice to the generality of subsection (1) above, regulations under this section may — a apply in relation to tobacco substitutes, subject to such modifications as may be specified in the regulations but otherwise as they apply in relation to tobacco, any provisions contained in Part V of the Customs and Excise Act 1952 ; b regulate the manufacture of tobacco substitutes and prohibit the importation of tobacco substitutes (whether or not forming part of products for smoking) containing any ingredient the use of which in the manufacture of tobacco substitutes is prohibited by the regulations ; c contain provisions for the protection of the revenue, including provisions corresponding to those which, by virtue of section 177 or section 179 of the said Act of 1952, may be contained in regulations under those sections relating to the manufacture and growing of tobacco; d require the deposit of tobacco substitutes in a warehouse in such cases as may be specified in the regulations ; e in order to secure a comparable treatment of tobacco and tobacco substitutes for the purposes of duties of customs and excise, provide in such cases as may be so specified for reductions in the amount of duty which would otherwise be payable on tobacco substitutes by virtue of subsection (2) above ; and f contain provisions for the exemption, remission or repayment of duty in respect of tobacco substitutes in such cases as may be so specified. 5 The Commissioners may by regulations provide that — a in order to secure that tobacco does not Dear a double duty of customs or excise by virtue of any provision made by or under this section, the amount of duty which would otherwise be payable in respect of tobacco shall be reduced in accordance with, and in such cases as may be specified in, the regulations; and b where any tobacco refuse or tobacco stalks is or are delivered to a manufacturer of tobacco substitutes, the amount of any drawback payable shall be reduced in accordance with, and in such cases as may be specified in, the regulations. 6 Any person contravening or failing to comply with any provision of regulations under this section shall be liable to a penalty of £200, and any article in respect of which, or found on premises in respect of which, the offence was committed shall be liable to forfeiture. 7 Subject to subsection (8) below, in this section " tobacco substitutes " means substances (including substances containing or manufactured from tobacco) of a kind which are, or in the opinion of the Commissioners may be, used in substitution wholly or partly for tobacco in the manufacture of products for smoking. 8 Notwithstanding anything in subsection (7) above, the following substances are not " tobacco substitutes" for the purposes of this section, namely — a substances which by virtue of paragraphs (a) to (e) of section 176(1) of the Customs and Excise Act 1952 may be used in manufacturing tobacco ; b any substance which, by virtue of the said section 176(1), is permitted by the Commissioners to be used in manufacturing tobacco and which is used in accordance with such conditions and restrictions applicable to that use as may have been imposed under that section; and c substances which in the opinion of the Commissioners are intended solely for use in the manufacture of products commonly known as herbal smoking mixtures or herbal cigarettes. Miscellaneous amendments of law relating to customs and excise 5 The provisions of Schedule 2 to this Act shall have effect, being provisions — a relating to duties of customs and excise and drawback on tobacco; and b modifying customs procedures in relation to standing deposits and the use of computers ; and in that Schedule " the Act of 1952 " means the Customs and Excise Act 1952. Angostura bitters 6 1 On the importation of the aromatic flavouring essence commonly known, and in this section referred to, as angostura bitters, the Commissioners may, subject to such conditions as they see fit to impose, direct the bitters to be treated for the purposes of section 1 of the Finance Act 1964 (duties of customs and excise on spirits) as not being spirits. 2 Angostura bitters shall be deemed not to be spirits for the purposes of — a Part IV of the Customs and Excise Act 1952, other than section 172 of that Act (ascertainment of strength, etc. of spirits); and b the Licensing (Scotland) Act 1959, the Licensing Act 1964 and any other enactment (whether passed before or after the commencement of this Act) in which " spirits " has the same meaning as in either of those Acts; and accordingly angostura bitters shall be treated as a non-intoxicating drink for the purposes of the enactments specified in paragraph (b) above. Decimal currency: customs and excise 7 1 This subsection has effect as respects the enactments specified in subsection (2) below (which mention amounts of money in the old currency the equivalent of which in the new currency consist of or include inconvenient fractions of a new penny). The Treasury may by order substitute for any amount so mentioned the nearest lesser amount, expressed in the new currency, which appears to them suitable and convenient. 2 The said enactments are — Schedule 5 to the Finance Act 1969 and section 181(1) of the Customs and Excise Act 1952 (tobacco; duty, drawback and allowance). Section 4 of the Finance Act 1951 as amended by section 4 of the Finance Act 1963 (duties on matches). So much of Schedule 3 to the Finance Act 1969 as relates to wine exceeding 42 degrees proof spirit. Table 2 in Schedule 1 to the Finance Act 1964 (imported perfumed spirits). Section 104 of the Customs and Excise Act 1952 (export of British compounded spirits). 3 An order made under this section shall not have effect from a date earlier than the appointed day. 4 If and so far as an order made under this section amends any of the rates of drawback in Table 3 in Schedule 5 to the Finance Act 1969 (tobacco), the rate of drawback as so amended shall apply (from the date when the amendment has effect) to all tobacco on which duty has been paid at the appropriate rate in the said Schedule 5 either as originally enacted, or as amended by an order under this section. 5 In section 273(3) of the Customs and Excise Act 1952 (odd fractions of a penny) for the words " a penny " substitute " a new penny ". This subsection shall come into force on the appointed day, and shall extend to the Isle of Man. 6 An order under this section — a may include such consequential, supplementary or transitional provisions as the Treasury think fit, and b may be revoked or varied by a subsequent order. 7 An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. 8 In this section " the appointed day ", " the new currency " and " the old currency " have the meanings given by section 16(1) of the Decimal Currency Act 1969. Hover vehicles: relief from duty on oils 8 In Schedule 2 to the Finance Act 1966 (application of Customs and Excise Act 1952 to hover vehicles) for paragraph 4(2) substitute — 2 Section 204 of the said Act (relief from duty of oils used as fuel for ships in home waters) shall apply as if references to ships included references to hover vehicles; and in that section " pleasure yacht", " voyage ", " reland " and other expressions shall be construed accordingly. Amendments relating to vehicles excise duty etc. 9 1 In section 6 of the Vehicles (Excise) Act 1962 (in this section referred to as " the 1962 Act") in subsection (1)(g) (which exempts from vehicles excise duty invalid carriages not exceeding six hundredweight unladen) for the word " six " there shall be substituted the word " eight ". 2 In section 12(1) of the 1962 Act (vehicles for which trade licences may be issued) after paragraph (ii) there shall be inserted the words or iii in the case of a motor trader who is a manufacturer of mechanically propelled vehicles, for all vehicles kept and used by him solely for purposes of conducting research and development in the course of his business as such a manufacturer . 3 In section 12(10) of the 1962 Act, in the definition of " recovery vehicle", which was inserted by paragraph 2 of Part II of Schedule 12 to the Finance Act 1969, for the words from " on which " to " designed primarily " there shall be substituted the words " on which there is mounted, or which is drawing, or which is carrying as part of its equipment, apparatus designed for raising a disabled vehicle wholly or partly from the ground or for drawing a disabled vehicle when so raised, and which is not used ". 4 Subject to subsection (5) below, for the purpose of calculating any amount due on or after 15th February 1971 from or to any person under any provision of the 1962 Act, section 12 of the Finance Act 1967 (additional liability for keeping unlicensed vehicle) or the Vehicle and Driving Licences Act 1969, any fraction of a new penny in that amount shall be disregarded ; and accordingly section 9(3) of the 1962 Act and so much of section 8(3) of the said Act of 1969 as relates to disregarding fractions of a penny shall on that day cease to have effect. 5 Subsection (4) above shall not apply for the purpose of calculating any amount due under any provision of section 2(2) or section 12.(5) of the 1962 Act relating to the duty on a vehicle licence or trade licence for a period of less than a year. 6 This section shall come into force on 1st September 1970. Continuation of powers under section 9 of Finance Act 1961 10 The period after which orders of the Treasury made under section 9 of the Finance Act 1961 may not be made or continue in force (which, by section 1(1)(Z>) of the Finance Act 1969, was extended until the end of August 1970) shall extend until the end of August 1971 or such later date as Parliament may hereafter determine. PART II Income Tax and Corporation Tax CHAPTER I General Charge of income tax for 1970-71 11 1 Income tax for the year 1970-71 shall be charged at the standard rate of 41-25 per cent, and, in the case of an individual whose total income exceeds £2,500, at such higher rates in respect of the excess over £2,000 as Parliament may hereafter determine. 2 Accordingly, in section 3(1) of the Taxes Act (effect of Act charging tax at a standard rate and, in the case of an individual whose total income exceeds a stated amount, at a higher rate or rates in respect of any part or parts of his income in excess of that amount) the words " in excess of that amount" shall be omitted. Surtax rates for 1969-70 12 1 Subject to subsection (2) below, income tax for the year 1969-70 shall be charged, in the case of an individual whose total income exceeded £2,500, at a rate, for every £1 of each part specified in the following Table of the excess of that income over £2,000, equal to the standard rate for that year plus the additional rate so specified for that part. TABLE Part of excess Additional rate The first £500 10% The next £500 12.5% The next £1,000 17.5% The next £1,000 22.5% The next £1,000 27.5% The next £2,000 32.5% The next £2,000 37.5% The next £2,000 42.5% The next £3,000 47.5% The remainder 50% 2 An individual whose total income for the year 1969-70 did not exceed £2,681 shall be entitled to have the surtax chargeable by virtue of subsection (1) above reduced to an amount equal to 40 per cent, of the difference between his total income and £2,500. 3 By reason of subsection (1) above, in section 2(1) of the Income Tax Act 1952 (effect, for years preceding 1970-71, of Act charging tax at a standard rate and, in the case of an individual whose total income exceeds a stated amount, at a higher rate or rates in respect of any part or parts of his income in excess of that amount), the words " in excess of that amount" shall be omitted. Charge of corporation tax for financial year 1969 13 Corporation, tax shall be charged for the financial year 1969 at the rate of 45 per cent. Alterations of personal reliefs 14 1 For the year 1970-71 and subsequent years of assessment, Chapter II of Part I of the Taxes Act (personal reliefs) shall have effect subject to the following amendments: — a in section 8 (married and single relief) — i in subsection (1)(a) (married), for the reference to £375 there shall be substituted a reference to £465, ii in subsection (1)(b) (single), for the reference to £255 there shall be substituted a reference to £325, iii in subsection (2) (wife's earned income relief), for the reference to £255 there shall be substituted a reference to £325, and iv in subsection (3) (amount of married relief in year of marriage), for the words "reduced by £10 for each month of the year ending before the date of the marriage " there shall be substituted " reduced, for each month of that year ending before the date of the marriage, by one-twelfth of the amount by which it exceeds the sum specified in paragraph (b) of that subsection ". b section 22 (reduced rate relief) shall cease to have effect, and, in section 5 (introductory), for the reference to sections 6 to 22 there shall be substituted a reference to sections 6 to 21; c in section 7 (relief for persons over 65 with small incomes) — i for the references to £425 and £680 (income limits for exemption) there shall be substituted references to £475 and £740, ii for the reference to £265 (the excess over those limits beyond which relief by reduction of tax is excluded) there shall be substituted a reference to £255, and iii for the reference to nine-twentieths (the fraction governing relief by reduction of tax) there shall be substituted a reference to 50 per cent.; d in section 6(2) (relief for small incomes), for the reference to £710 (the income limit for marginal relief) there shall be substituted a reference to £750, and for the reference to one-half (the fraction governing marginal relief) there shall be substituted a reference to 55 per cent.; e in section 16 (relief for dependent relative), for the reference in subsection (1) to £245 (lower income limit of dependent relative) there shall be substituted a reference to £260, for the references in subsections (1) and (2) to £320 (the normal higher income limit) there shall be substituted references to £335, and for the reference in subsection (2) to £355 (the higher income limit where the claimant is a woman other than a married woman living with her husband) there shall be substituted a reference to £370 ; and f in section 14(1)(a) (additional relief for widows and others in respect of children: relief excluded in the case of a woman who is not a widow unless in full time occupation or totally incapacitated), the words from " except that it does not apply " to " physical or mental infirmity " shall be omitted. 2 The amounts of tax deductible or repayable under section 204 of the Taxes Act (pay as you earn) before 6th July 1970 shall be deemed not to have been affected by the provisions of subsection (1) above other than paragraph (e), but this subsection shall not prevent any necessary correction being made on or after that day by adjusting subsequent deductions or repayments under that section, or, if need be, by an assessment. Increase in initial allowances for industrial buildings 15 1 In relation to capital expenditure incurred, at any time within the period beginning on 6th April 1970 and ending on 5th April 1972, on the construction of a building or structure in such circumstances that a person becomes entitled to an initial allowance within the meaning of section 1 of the Capital Allowances Act 1968, for the words " three-twentieths " in subsection (2) of that section (the rate of allowance) there shall be substituted — a in a case falling within subsection (2) below, the words " two-fifths " ; and b in any other case, the words " three-tenths ". 2 The higher rate of initial allowance specified in subsection (1)(a) above applies if the building or structure concerned is situated in an area which is a development area or an intermediate area — a on the date on which the capital expenditure is incurred ; or b if the contract under which the capital expenditure is incurred was entered into on or after 6th April 1970, on the date on which that contract was entered into; or if the building or structure concerned is situated in Northern Ireland. 3 For the purposes of subsection (2) above — " development area " has the same meaning as in Part I of the Local Employment Act 1960; and " intermediate area " has the same meaning as in the Local Employment Act 1970. 4 Expenditure shall not be treated for the purposes of this section as having been incurred after the date on which it was in fact incurred by reason only of section 1(6) of the Capital Allowances Act 1968 (expenditure incurred before trade began) or section 5(1) of that Act (purchase of unused buildings and structures). Public transport undertakings 16 1 In computing for any accounting period (whether beginning before or after the commencement of this Act) the profits chargeable to corporation tax of a Passenger Transport Executive or of the London Transport Executive, there shall be left out of account — a any amounts paid to Passenger Transport Executives in pursuance of precepts issued under section 13 of the Transport Act 1968 ; b any grants made to the London Transport Executive by the Greater London Council under section 3(1)(a) of the Transport (London) Act 1969. 2 In computing the profit or loss of a Passenger Transport Executive in its trade in the first accounting period ending after 5th April 1970, the Executive shall be treated as having incurred a loss equal to the aggregate of the income tax losses and allowances (as defined in subsection (3) below) of each local authority whose interests in a transport undertaking (in this section referred to in relation to the local authority as " the transferred undertaking ") were transferred to the Executive by virtue of an order under section 17 of the Transport Act 1968; and section 177(1) of the Taxes Act (set-off of losses against trading income in succeeding accounting periods) shall apply accordingly. 3 For the purposes of subsection (2) above the income tax losses and allowances of a local authority means the following losses and allowances attributable to the transferred undertaking namely — a those losses (if any) which were incurred in or before the year 1965-66 in carrying on the undertaking and which, apart from any provision of the Finance Act 1965 (and in particular section 66, which exempted a local authority from income tax and corporation tax) would have been available to the local authority for set-off for tax purposes in the following year of assessment against income arising from the undertaking: and b so much of the allowances which by virtue of section 323 of the Income Tax Act 1952 were in the year 1965-66 available as a deduction in charging the profits or gains of the transferred undertaking for that year as, apart from any such provision as is referred to in paragraph (a) above, would have been available as such a deduction in the following year of assessment. 4 The provisions of Schedule 3 to this Act shall have effect in consequence of the transfer, under Part III of the Transport (London) Act 1969 of the property, rights, liabilities and functions of the London Transport Board to the London Transport Executive and London Country Bus Services Limited (being the subsidiary of the National Bus Company which is " the designated company " for the purposes of that Act). Interest relief: loans for purchase or improvement of land 17 In section 57 of the Taxes Act (loans for purchase or improvement of land) after subsection (3) (restriction of relief on overdraft interest on money applied in improving land) insert — 3A Subsection (3) above shall not apply where the loan is applied in improving land which is — a farm land or market garden land, or b woodlands which are managed on a commercial basis and with a view to the realisation of profits, and in this subsection the definitions of " farm land " and " market garden land " in section 526(5) of this Act shall apply as if references to the United Kingdom included references to the Republic of Ireland , and paragraph 9(8) and (9) of Schedule 4 to this Act shall have effect for the purpose of making a corresponding amendment in section 19 of the Finance Act 1969. Miscellaneous amendments of income tax and corporation tax law 18 Schedule 4 to this Act (which contains amendments of the Taxes Act and of the Capital Allowances Act 1968) shall have effect. CHAPTER II Occupational Pension Schemes Conditions for approval of schemes 19 1 The Board shall approve any retirement benefits scheme for the purposes of this Chapter if the scheme satisfies all of the prescribed conditions, that is to say the conditions set out in subsection (2) below, and the conditions as respects benefits in Part I of Schedule 5 to this Act. 2 The said conditions are — a that the scheme is bona fide established for the sole purpose of providing relevant benefits in respect of service as an employee (as defined in this Chapter), being benefits payable to, or to the widow, children or dependants or personal representatives of, the employee, b that the scheme is recognised by the employer and employees to whom it relates, and that every employee who is, or has a right to be, a member of the scheme has been given written particulars of all essential features of the scheme which concern him, c that there is a person resident in the United Kingdom who will be responsible for the discharge of all duties imposed on the administrator of the scheme under this Chapter, d that the employer is a contributor to the scheme, e that the scheme is established in connection with some trade or undertaking carried on in the United Kingdom by a person resident in the United Kingdom, f that, where the employer is a company, no service of a person, in whatever capacity, rendered by him while he is a controlling director of the company is taken into account for any of the purposes of the scheme, g that in no circumstances, whether during the subsistence of the scheme or later, can any amount be paid by way of repayment of an employee's contributions under the scheme. 3 If in the opinion of the Board the facts concerning any scheme or its administration cease to warrant the continuance of their approval of the scheme, they may at any time by notice in writing to the administrator withdraw their approval on such grounds, and from such date, as may be specified in the notice. 4 Where an alteration has been made in a retirement benefits scheme, the scheme shall, for the purposes of this Chapter, be deemed to have become a new scheme coming into being on the date of the alteration, and accordingly no approval given as respects the scheme before the alteration shall apply after the date of the alteration: Provided that this subsection shall not apply to an alteration approved by the Board. " 5 For the purpose of determining whether a retirement benefits scheme, so far as it relates to a particular class or description of employees, satisfies or continues to satisfy the prescribed conditions that scheme shall be considered in conjunction with any other retirement benefits scheme or schemes relating to employees of that class or description, and, if those conditions are satisfied in the case of both or all of those schemes taken together, they shall be taken to be satisfied in the case of each of them but otherwise those conditions shall be taken to be satisfied in the case of none of them. 6 No approval shall be given as respects any period before 6th April 1970. Discretionary approval 20 1 The Board may, if they think fit, having regard to the facts of a particular case, and subject to such conditions, if any, as they think proper to attach to the approval, approve a retirement benefits scheme for the purposes of this Chapter notwithstanding that it does not satisfy one or more of the prescribed conditions. 2 The Board may in particular approve by virtue of this section a scheme — a which exceeds the limits imposed by the prescribed conditions as respects benefits for less than 40 years' service, or b which exceeds the limits imposed by the prescribed conditions as respects benefits payable on the death of the employee, and in particular which provides a pension for the employee's widow, or c which provides for the return in certain contingencies of employees' contributions, or d which relates to a trade or undertaking carried on only partly in the United Kingdom, and by a person not resident in the United Kingdom. 3 In applying this section to an existing scheme the Board shall exercise their discretion, in such cases as appear to them appropriate, so as — a to preserve benefits earned or rights arising out of service before approval under this Chapter or before the date on which section 23 of this Act comes into force, whichever is the earlier, and b to preserve any rights to death-in-service benefits conferred by rules of the scheme in force on 26th February 1970. Certain approved schemes: exemptions and reliefs 21 1 This section has effect as respects — a any approved scheme which is shown to the satisfaction of the Board to be established under irrevocable trusts, or b any other approved scheme as respects which the Board, having regard to any special circumstances, direct that this section shall apply, and any scheme which is for the time being within paragraph (a) or (b) above is in this Chapter referred to as an " exempt approved scheme ". 2 Exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of income derived from investments or deposits if, or to such extent as the Board are satisfied that, it is income from investments or deposits held for the purposes of the scheme. 3 Any sum paid by an employer by way of contribution under the scheme shall for the purposes of Case I or II of Schedule D, and of the provisions of Chapter I of Part )(II of the Taxes Act relating to expenses of management, be allowed to be deduoted as an expense, or expense of management, incurred in the chargeable period in which the sum is paid: Provided that — a the amount of an employer's contributions which may be so deducted shall not exceed the amount contributed by him under the scheme in respect of employees in a trade or undertaking in respect of the profits of which the employer is assessable to tax (that is to say United Kingdom income tax or corporation tax), b a sum not paid by way of an ordinary annual contribution shall for the purposes of this subsection be treated, as the Board may direct, either as an expense incurred in the chargeable period in which the sum is paid, or as an expense to be spread over such period of years as the Board think proper. 4 Any ordinary annual contribution paid under the scheme by an employee shall, in assessing tax under Schedule E, be allowed to be deducted as an expense incurred in the year of assessment in which the contribution is paid. 5 Relief shall not be given under section 19 or 20 of the Taxes Act (life assurance premiums and other payments) in respect of any payment in respect of which an allowance can be made under subsection (4) above. 6 There shall be exempt from tax chargeable under Case VII of Schedule D any gain accruing to a person from his acquisition and disposal of investments if, or to such extent as the Board are satisfied that, the investments are or were held by him or on his behalf for the purposes of the scheme. 7 For the purposes of capital gains tax a gain shall not be a chargeable gain where it accrues to a person on his disposal of investments if, or to such extent as the Board are satisfied that, those investments were held by him or on his behalf for the purposes of the scheme. 8 Nothing in this section shall be construed as affording relief in respect of any sums to be brought into account under section 314 of the Taxes Act (pension business of insurance companies). 9 This section has effect only as respects income arising or gains accruing or contributions paid at a time when the scheme is an exempt approved scheme. 10 Neither section 208 nor 209 of the Taxes Act (relief for superannuation funds and statutory pension schemes) shall apply as respects an exempt approved scheme, and the said section 208 shall cease to have effect on 6th April 1972 or such later date as the Treasury may by order in a statutory instrument made before 6th April 1972 appoint. 11 Neither subsection (1) nor subsection (2) of section 220 of the Taxes Act (which will be superseded by section 23 of this Act) shall apply to an approved scheme. Certain statutory schemes: exemptions and reliefs 22 1 This section has effect as respects any statutory scheme established under a public general Act. 2 Any contribution paid under the scheme by any officer or employee shall, in assessing tax under Schedule E, be allowed to be deducted as an expense incurred in the chargeable period for which the contribution is paid and relief shall not be given under section 19 or 20 of the Taxes Act in respect of any contribution allowable as a deduction under this subsection. 3 This section has effect subject to section 210 of the Taxes Act (disallowance of contributions for widows' and other pensions). 4 This section shall come into force on such date as the Treasury may by order in a statutory instrument appoint. Taxation in respect of certain schemes 23 1 Subject to the provisions of this Chapter, where, pursuant to a retirement benefits scheme, the employer in any year of assessment pays a sum with a view to the provision of any relevant benefits for any employee of that employer, then (whether or not the accrual of the benefits is dependent on any contingency) — a the sum paid, if not otherwise chargeable to income tax as income of the employee, shall be deemed for all the purposes of the Income Tax Acts to be income of that employee for that year of assessment and assessable to tax under Schedule E, and b where the payment is made under such an insurance or contract as is mentioned in section 19 of the Taxes Act, relief, if not otherwise allowable, shall be given to that employee under the said section 19 in respect of the payment to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him. 2 Subject to the provisions of this Chapter, where — a the circumstances in which any relevant benefits under a retirement benefits scheme are to accrue are not such as will render the benefits assessable to income tax under Schedule E as emoluments of the employee in respect of whom the benefits are paid, and b the provision of those benefits is not, or is not fully, secured by the payment of sums by the employer with a view to the provision of those benefits, then (whether or not the accrual of the benefits is dependent on any contingency) an amount equal to the cost, estimated in accordance with subsection (3) below, of securing the provision by a third person of the benefits or, as the case may be, of the benefits so far as not already secured by the payment of such sums as are mentioned in subsection (1) above, shall be deemed for all purposes of the Income Tax Acts to be income of the employee for the year or years of assessment specified in the said subsection (3) and assessable to income tax under Schedule E. 3 The cost referred to in subsection (2) above shall be estimated either — a as an annual sum payable in each year of assessment in which the scheme in question is in force or the employee is serving, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, or b as a single sum payable in the year of assessment in which falls the date when the employee acquired the right to the relevant benefits, or the date when he acquired the right to any increase in the relevant benefits, as may be more appropriate in the circumstances of the case. 4 Where the employer pays any sum as mentioned in subsection (1) above in relation to more than one employee, the sum so paid shall, for the purpose of that subsection, be apportioned among those employees by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them. 5 Any reference in this section to the provision for an employee of relevant benefits includes a reference to the provision of benefits payable to that employee's wife or widow, children, dependants or personal representatives. 6 This section shall come into force on 6th April 1972 or such later date as the Treasury may appoint by order in a statutory instrument made before 6th April 1972, and shall so come into force both for schemes set up before the date so appointed and schemes set up later. Exceptions from charge to tax under last preceding section 24 1 Neither subsection (1) nor subsection (2) of the last preceding section shall apply where the retirement benefits scheme in question is — a an approved scheme, or b a statutory scheme, or c a scheme set up by a Government outside the United Kingdom for the benefit, or primarily for the benefit, of its employees. 2 Neither subsection (1) nor subsection (2) of the last preceding section shall apply for any year of assessment where, apart from those subsections, the employee is not assessable to tax for that year under Case I or II of Schedule E in respect of the emoluments of his employment. 3 Where, in respect of the provision for an employee of any relevant benefits, a sum has been deemed to be income of his by virtue either of subsection (1) or subsection (2) of the last preceding section, and subsequently the employee proves to the satisfaction of the Board that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason of which no such payment will be made, and makes application for relief under this subsection within six years from the time when that event occurred, the Board shall give relief in respect of tax on that sum by repayment or otherwise as may be appropriate; and if the employee satisfies the Board as aforesaid in relation to some particular part of the benefits but not the whole thereof, the Board may give such relief as may seem to them just and reasonable. Definition of retirement benefits scheme 25 1 In this Chapter " retirement benefits scheme " means, subject to the provisions of this section, a scheme for the provision of benefits consisting of or including relevant benefits, but does not include any national scheme providing such benefits. 2 References in this Chapter to a scheme include references to a deed, agreement, series of agreements, or other arrangements providing for relevant benefits notwithstanding that it or they relates or relate only to — a a small number of employees, or to a single employee, or b the payment of a pension starting immediately on the making of the arrangements. 3 The Board may, if they think fit, treat a retirement benefits scheme relating to employees of two or more different classes or descriptions as being for the purposes of this Chapter two or more separate retirement benefits schemes relating respectively to such one or more of those classes or descriptions of those employees as the Board think fit. 4 For the purposes of this section, and of any other provision of this Chapter — a employees may be regarded as belonging to different classes or descriptions if they are employed by different employers, and b a particular class or description of employee may consist of a single employee, or any number of employees, however small. Interpretation and supplemental 26 1 In this Chapter, except where the context otherwise requires — " administrator " in relation to a retirement benefits scheme means the person or persons resident in the United Kingdom having the management of the scheme; " approved scheme " means a retirement benefits scheme for the time being approved by the Board for the purposes of this Chapter ; " controlling director " means a director of a company, the directors whereof have a controlling interest therein, who is the beneficial owner of, or able either directly or through the medium of other companies or by any other indirect means to control, more than five per cent, of the ordinary share capital of the company; " director " in relation to a company includes — in the case of a company the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body, in the case of a company the affairs whereof are managed by a single director or similar person, that director or person, in the case of a company the affairs whereof are managed by the members themselves, a member of that company, and includes a person who is to be or has been a director; " employee " — in relation to a company, includes any officer of the company, any director of the company and any other person taking part in the management of the affairs of the company, and in relation to any employer, includes a person who is to be or has been an employee, and " employer " and other cognate expressions shall be construed accordingly; " exempt approved scheme " has the meaning given by section 21(1) of this Act; " pension " includes annuity ; " relevant benefits " means any pension, lump sum, gratuity or other like benefit given or to be given on retirement or on death, or in anticipation of retirement, or, in connection with past service, after retirement or death, or to be given on or in anticipation of or in connection with any change in the nature of the service of the employee in question, except that it does not include any benefit which is to be afforded solely by reason of the disablement by accident of a person occurring during his service or of his death by accident so occurring and for no other reason ; " service " means service as an employee of the employer in question and other expressions, including " retirement ", shall be construed accordingly ; " statutory scheme " means a retirement benefits scheme established by or under any enactment — the particulars of which are set out in any enactment, or in regulations made under any enactment, or which has been approved as an appropriate scheme by a Minister or government department (including a Northern Ireland Minister or government department). 2 Any reference in this Chapter to the provision of relevant benefits, or of a pension, for employees of an employer includes a reference to the provision thereof by means of a contract between the administrator or the employer and a third person. 3 Schedule 5 to this Act shall have effect for supplementing this Chapter, which is there referred to as the principal Chapter, and that Schedule shall be construed as one with this Chapter. PART III Miscellaneous Capital gains Mergers: exemption from charge on company ceasing to be a member of a group 27 The following section shall be inserted after section 278 of the Taxes Act (charge to corporation tax on company ceasing to be a member of a group in respect of assets previously acquired by a transfer within the group) — Exemption from charge under s. 278 in the case of certain mergers. 278A 1 Subject to the following provisions of this section, section 278 above shall not apply in a case where — a as part of a merger, a company (in this section referred to as " company A ") ceases to be a member of a group of companies (in this section referred to as " the A group "); and b it is shown that the merger was carried out for bona fide commercial reasons and that the avoidance of liability to tax was not the main or one of the main purposes of the merger. 2 In this section " merger " means an arrangement (which in this section includes a series of arrangements) — a whereby one or more companies (in this section referred to as " the acquiring company " or, as the case may be, " the acquiring companies ") none of which is a member of the A group acquires or acquire, otherwise than with a view to their disposal, one or more interests in the whole or part of the business which, before the arrangement took effect, was carried on by company A; and b whereby one or more members of the A group acquires or acquire, otherwise than with a view to their disposal, one or more interests in the whole or part of the business or each of the businesses which, before the arrangement took effect, was carried on either by the acquiring company or acquiring companies or by a company at least 90 per cent, of the ordinary share capital of which was then beneficially owned by two or more of the acquiring companies; and c in respect of which the conditions in subsection (4) below are fulfilled. 3 For the purposes of subsection (2) above, a member of a group of companies shall be treated as carrying on as one business the activities of that group. 4 The conditions referred to in subsection (2)(c) above are — a that not less than 25 per cent, by value of each of the interests acquired as mentioned in paragraphs (a) and (b) of subsection (2) above consists of a holding of ordinary share capital, and the remainder of the interest, or as the case may be of each of the interests, acquired as mentioned in the said paragraph (b) consists of a holding of share capital (of any description) or debentures or both; and b that the value or, as the case may be, the aggregate value of the interest or interests acquired as mentioned in subsection (2)(a) above is substantially the same as the value or, as the case may be, the aggregate value of the interest or interests acquired as mentioned in subsection (2)(b) above; and c that the consideration for the acquisition of the interest or interests acquired by the acquiring company or acquiring companies as mentioned in subsection (2)(a) above, disregarding any part of that consideration which is small by comparison with the total, either consists of, or is applied in the acquisition of, or consists partly of and as to the balance is applied in the acquisition of, the interest or interests acquired by members of the A group as mentioned in subsection (2)(b) above ; and for the purposes of this subsection the value of an interest shall be determined as at the date of its acquisition. 5 Notwithstanding the provisions of section 272(1)(a) above, references in this section to a company include references to a company resident outside the United Kingdom. Extension of class of securities exempt from tax on capital gains 28 1 For the purpose of section 41 of, and Schedule 18 to, the Finance Act 1969 and of section 270 of the Taxes Act (gilt-edged securities exempt from tax on capital gains: consequential charge on short-term disposals etc. by companies) in the expression " stocks and registered bonds ", in each place where it occurs in those provisions, the word " registered " shall be, and shall be deemed always to have been, omitted. 2 All such adjustments of tax shall be made, whether by way of discharge or repayment or by way of assessment, as may be required in consequence of this section. Mineral royalties Taxation of mineral royalties 29 1 Subject to the following provisions of this section, a person resident or ordinarily resident in the United Kingdom who in any year of assessment or accounting period is entitled to receive mineral royalties under a mineral lease or agreement shall be treated — a for purposes of income tax (including surtax), or as the case may be for purposes of corporation tax on profits exclusive of chargeable gains, as if the total of the mineral royalties receivable by him under that lease or agreement in that year or period and any management expenses available for set-off against those royalties in that year or period were each reduced by one half; and b for purposes of Part III of the Finance Act 1965, or as the case may be for purposes of corporation tax on chargeable gains, as if there accrued to him in that year or period a chargeable gain equal to the relevant fraction of the total of the mineral royalties receivable by him under that lease or agreement in that year or period; and this section shall have effect notwithstanding any provision of section 156(1) of the Taxes Act (rent etc. payable in connection with mines, quarries and similar concerns) making the whole of certain kinds of mineral royalties chargeable to tax under Schedule D, but without prejudice to any provision of that section providing for any such royalties to be subject to deduction of income tax under Part II of the Taxes Act. 2 For the purposes of subsection (1)(a) above, " management expenses available for set-off " against royalties means — a where section 158 of the Taxes Act (expenses of owners of mineral rights) applies in respect of the royalties, any sums brought into account under subsection (1) of that section in determining the amount of the repayment of income tax in respect of those royalties or, as the case may be, deductible from those royalties under subsection (2) of that section in computing the income of a company for purposes of corporation tax ; and b if the royalties are chargeable to tax under Schedule A, any sums deductible under Part III of the Taxes Act as payments made in respect of management of the property concerned, including amounts of betterment levy treated as such payments under paragraph 6 of Schedule 4 to that Act; and if neither paragraph (a) nor paragraph (b) above applies, the reference in subsection (1)(a) above to management expenses available for set-off shall be disregarded. 3 The relevant fraction referred to in subsection (1)(b) above in relation to the mineral royalties receivable under a mineral lease or agreement — a shall be one half if betterment levy was not chargeable in respect of the grant of that lease or agreement and has not subsequently become chargeable on any renewal, extension or variation of the mineral lease or agreement ; b shall be determined in accordance with Part I of Schedule 6 to this Act if, on the last disposition affecting the lease or agreement and giving rise to an assessment to betterment levy, betterment levy was chargeable under Case B within the meaning of Part III of the Land Commission Act 1967; and c in any other case shall be determined in accordance with regulations made by the Board by statutory instrument, and any such regulations shall secure, so far as practicable, that account is taken of any betterment levy chargeable in respect of a disposition affecting the mineral lease or agreement on a basis comparable with that in the said Part I; and notwithstanding anything in the enactments relating to the computation of chargeable gains, the amount of the chargeable gain treated as accruing to any person by virtue of subsection (1)(b) above shall be the whole amount calculated in accordance with that subsection, and accordingly no reduction shall be made on account of expenditure incurred by that person or of any other matter whatsoever. 4 Where subsection (1) above applies in relation to mineral royalties receivable under a mineral lease or agreement by a person not chargeable to corporation tax in respect of those royalties, then in so far as the amount of income tax paid, by deduction or otherwise, by him in respect of those mineral royalties in any year of assessment exceeds the amount of income tax, exclusive of surtax, for which he is liable in respect of those royalties by virtue of subsection (1)(a) above. — a the amount of the excess shall in the first instance be set against the tax for which he is chargeable by virtue of subsection (1)(b) above ; and b on the making of a claim in that behalf, he shall be entitled to repayment of tax in respect of the balance of that excess. 5 The provisions of Part II of Schedule 6 to this Act shall have effect in relation to capital losses which accrue during the currency of a mineral lease or agreement. 6 In this section and in Schedule 6 to this Act, references to mineral royalties refer only to royalties receivable on or after 6th April 1970, and the expression " mineral royalties" means so much of any rents, tolls, royalties and other periodical payments in the nature of rent payable under a mineral lease or agreement as relates to the winning and working of minerals; and the Board may by regulations made by statutory instrument — a provide whether, and to what extent, payments made under a mineral lease or agreement and relating both to the winning and working of minerals and to other matters are to be treated as mineral royalties; and b provide for treating the whole of such payments as mineral royalties in cases where the extent to which they relate to matters other than the winning and working of minerals is small. 7 In this section and in Schedule 6 to this Act — " minerals " means all minerals and substances in or under land which are ordinarily worked for removal by underground or surface working, but excluding water, peat, top-soil and vegetation ; and " mineral lease or agreement " means — a lease, profit a prendre, licence or other agreement conferring a right to win and work minerals in the United Kingdom ; a contract for the sale, or a conveyance, of minerals in or under land in the United Kingdom; and a grant of a right under section 1 of the Mines (Working Facilities and Support) Act 1966, other than an ancillary right within the meaning of that Act. 8 A statutory instrument made in the exercise of any power conferred on the Board by this section shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. 9 In the application of this section to Northern Ireland — a paragraphs (a) to (c) of subsection (3) above shall not apply but the relevant fraction referred to in subsection (1)(b) above shall be one half; b references to mineral royalties include references — i to periodical payments of compensation under section 29 or section 35 of the Mineral Development Act (Northern Ireland) 1969 or under section 4 of the Petroleum (Production) Act (Northern Ireland) 1964; and ii to periodical payments made as mentioned in section 37 of the said Act of 1969 or under section 55(4)(b) of that Act or under section 11 of the said Act of 1964 (payments in respect of minerals to persons entitled to a share of royalties under section 13(3) of the Irish Land Act 1903); and c in the application of this section to any such payments as are referred to in paragraph (b) above, subsection (5) above shall be omitted, and references in any other provision of this section to the mineral lease or agreement under which mineral royalties are payable shall be construed as references to the enactment under which the payments are made. Estate duty Rate of interest on estate duty 30 1 Subject to the provisions of this section, the rate of interest payable under the following enactments namely — a section 18 of the Finance Act 1896 (general provision for interest on death duties); b subsection (3) of section 17 of the Law of Property Act 1925 and subsection (6) of section 73 of the Land Registration Act 1925 (interest on death duties becoming immediately payable on a conveyance or disposition of land which overrides the charge for duty), shall, as regards interest accruing after the passing of this Act, be three per cent., instead of two per cent., per annum. 2 The Treasury may by order from time to time increase or reduce the rate of interest payable under the enactments referred to in subsection (1) of this section; and any such order may correspondingly increase or reduce the rate of interest payable under any other enactments relating to estate duty. 3 The power of the Treasury to make orders under this section shall be exercisable by statutory instrument; and any statutory instrument made by virtue of this section shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. Minor amendments as to discretionary trusts 31 1 For the purposes of head (iii) of the substituted section 2(1)(b) (that is, the paragraph substituted by section 36 of the Finance Act 1969 for paragraph (b) of section 2(1) of the Finance Act 1894) — a the deceased shall be treated as having benefited as a result of the discretion therein referred to if any of the income with respect to which that discretion was exercisable was paid to him or applied for his benefit; and b property shall not be treated as having ceased to be subject to the trust by reason of any payment or application of such income ; and paragraphs (b) to (e) of subsection (3) of section 37 of the Finance Act 1969 shall apply for the purpose of determining whether income was paid or applied as mentioned in paragraph (a) or (b) above as they apply for determining the part of the property to be treated as passing in a case where less than the whole of the income was paid or applied to or for the benefit of the deceased. 2 Any reference in paragraph (b) or (c) of the said subsection (3) to a sum paid to or applied for the benefit of a person shall include a reference to property transferred to him or applied for his benefit or, as the context requires, to the value (at the date of the transfer or application) of such property. 3 In paragraph 9 of Part II of Schedule 17 to the Finance Act 1969 (relief for charities under the substituted section 2(1)(M), after the words " seven years " there shall be inserted the words " except those occurring in the descriptions of the material period for the purposes of paragraphs (aa), (bb) and (cc) of head (iii) ". 4 In paragraph 7 of Part II of Schedule 17 to the Finance Act 1969 (quick succession relief under s. 30 of the Finance Act 1958 in respect of settled property passing under head (iii) or (iv) of the substituted section 2(1)(b)) the words " subsisting at the date of the earlier death " shall be omitted ; and so much of paragraph 3(4) of Schedule 8 to the Finance Act 1958 as excludes relief under the said section 30 by reference to a death after the end of the settlement shall not apply to a case falling within the said paragraph 7. 5 No relief shall be allowed under the said section 30 by virtue of the said paragraph 7 in a case where the property passes both on the earlier and on the later death under head (iii) of the substituted section 2(1)(b) and the relevant period (as defined by subsection (3) of section 37 of the Finance Act 1969) is the same in relation to each of those deaths. 6 This section applies (and except as regards any such earlier death as is referred to in the said paragraph 7 applies only) in relation to deaths occurring after 14th April 1970. Stamp duties Abolition of certain stamp duties, and amendments as to rates and other matters 32 The provisions of Schedule 7 to this Act shall have effect, being — a in the case of those in Part I of that Schedule, provisions abolishing, or consequential on the abolition of, certain stamp duties, b in the case of those in Part II of that Schedule, provisions making general amendments of or in connection with the enactments relating to stamp duties, and c in the case of those in Part III of that Schedule, special provisions required for the purposes of those enactments in connection with the introduction of the new currency provided for by the Decimal Currency Act 1967. Composition by stock exchanges in respect of transfer duty 33 1 The Commissioners may enter into an agreement with, or with persons acting on behalf of, any recognised stock exchange for the composition, in accordance with the provisions of this section, of the stamp duty chargeable under or by reference to the heading " Conveyance or Transfer on Sale " in Schedule 1 to the Stamp Act 1891 on such instruments as may be specified in the agreement, being instruments executed for the purposes of stock exchange transactions as defined in section 4(1) of the Stock Transfer Act 1963. In this subsection " recognised stock exchange " means the Stock Exchange, London, and any other stock exchange declared by an order in force under section 4 of the Stock Transfer Act 1963 to be a recognised stock exchange for the purposes of that Act. 2 An agreement under this section shall provide — a for every instrument to which the agreement relates to bear on its face an indication of the amount of stamp duty chargeable thereon, b for the issue in respect of every such instrument, by or on behalf of the stock exchange, of a certificate (which may relate to more than one such instrument) to the effect that stamp duty to the amount so indicated has been, or will be, accounted for to the Commissioners, c for the delivery to the Commissioners, by or on behalf of the stock exchange, of periodical accounts in respect of instruments to which the agreement relates, giving such particulars with respect thereto as may be specified in the agreement, and d for the payment to the Commissioners, by or on behalf of the stock exchange and on the delivery of any such account, of the aggregate amount of the stamp duty chargeable as mentioned in subsection (1) above on instruments to which the agreement relates during the period to which the account relates ; and any such agreement may contain such other terms and conditions as the Commissioners think proper. 3 For the purposes of any agreement under this section, the form of brokers transfer provided for by section 1(2) of the Stock Transfer Act 1963 may be used in connection with any transaction notwithstanding that the particulars referred to in that provision could be inserted in the stock transfer there referred to. 4 An instrument to which an agreement under this section relates and in respect of which a certificate to the effect mentioned in subsection (2)(b) above has been issued by or on behalf of the stock exchange in question shall be treated for the purposes of the Stamp Act 1891 as stamped with the amount of duty indicated on the face of the instrument. 5 A stock exchange or person making default in delivering any account required by an agreement under this section, or in paying any amount in accordance with such an agreement, shall be liable to a fine not exceeding £50 for any day during which the default continues; and, in addition, every amount payable under such an agreement shall bear interest at the rate of 5 per cent, per annum, recoverable by Her Majesty, from the due date for delivery of the account by reference to which it is payable until the actual date of payment. 6 Except in so far as the context otherwise requires, any reference to a stamp in section 9 or 10 of the Stamp Duties Management Act 1891 (allowances for spoiled stamps) shall include a reference to any indication of an amount of stamp duty on the face of any instrument to which an agreement under this section relates. Other provisions Savings banks interest rates 34 1 The Treasury may by order made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament, increase — a the rate specified in section 5 of the Post Office Savings Bank Act 1954 of the interest payable to depositors in the National Savings Bank in respect of ordinary deposits; b the maximum rate specified in section 15 of the Trustee Savings Banks Act 1969 of the interest payable to depositors by the trustees of a trustee savings bank in respect of ordinary deposits ; c the maximum rate specified in section 414(3)(a) of the Income and Corporation Taxes Act 1970 for the interest payable on deposits in a savings bank maintained under a local Act for the Treasury to certify a bank or department for the purposes of that section; and any order made under this section may be varied or revoked by a subsequent order so made (but not so as to reduce any rate specified in any of the said enactments below the figure at which it stood when this Act was passed). 2 An order under subsection (1)(a) above, so far as it relates to interest for a period before 1st January 1972, may be made so as to apply only as respects deposits in accounts not closed before that date, or so as to make different provision for such deposits, and other deposits. 3 In section 34(2) of the Trustee Savings Bank Act 1969 the words " and not exceeding £3 13s. Od. per cent, per annum " (limit on rate of interest payable by Fund for the Banks for Savings) shall cease to have effect. 4 This section, and the repeal made by this Act in the said section 34(2), shall extend to the Isle of Man and the Channel Islands. Loans to Government of Northern Ireland 35 1 For the purposes of any expenditure which in the opinion of the Treasury is of a capital nature the Treasury may issue out of the National Loans Fund and advance to the Exchequer of Northern Ireland by way of loan any sum or sums not exceeding in the aggregate the limit specified in subsection (2) below. 2 Until an order is made under this subsection the limit referred to in subsection (1) above is £50 million, but the Treasury may, on not more than three occasions, by order made by statutory instrument increase or further increase that limit by such sum, not exceeding £50 million, as may be specified in the order. 3 The Treasury shall not make an order under subsection (2) above unless a draft of the order has been approved by a resolution of the Commons House of Parliament. 4 Loans made under subsection (1) above shall be repaid at such times and by such methods, and interest thereon shall be paid at such rates and at such times, as may from time to time be determined by the Treasury ; and all sums paid in or towards the discharge of the principal of or interest on any such loans shall be paid into the National Loans Fund. 5 After the commencement of this Act no further advances shall be made under section 2 of the Miscellaneous Financial Provisions Act 1950 (which, as amended by section 57 of the Finance Act 1969, provides for loans to the Government of Northern Ireland subject to a limit of £170 million on the total amount outstanding by way of principal). Citation, interpretation, construction, extent and repeals 36 1 This Act may be cited as the Finance Act 1970. 2 In this Act — a except where the context otherwise requires, " the Board " means the Commissioners of Inland Revenue, b " the Taxes Act" means the Income and Corporation Taxes Act 1970, c " the Management Act " means the Taxes Management Act 1970. 3 Part I of this Act (except section 9) shall be construed as one with the Customs and Excise Act 1952. 4 Part II of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts and, so far as it relates to corporation tax, shall be construed as one with the Corporation Tax Acts. 5 Part III of this Act, so far as it relates to stamp duties, shall be construed as one with the Stamp Act 1891. 6 Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended or applied by or under any other enactment, including this Act. 7 Except as otherwise expressly provided such of the provisions of this Act as relate to matters in respect of which the Parliament of Northern Ireland has power to make laws shall not extend to Northern Ireland. 8 The enactments mentioned in Schedule 8 to this Act (which include enactments which are spent or otherwise unnecessary) are hereby repealed to the extent mentioned in the third column of that Schedule, but subject to any provision in relation thereto made at the end of any Part of that Schedule. SCHEDULES SCHEDULE 1 Gaming Licence Duty Section 2. PART I Amount of Duty on Gaming Licence for 6 months TABLE Rateable value charge Charge for each table in excess of two but not exceeding five Charge for each table in excess of five £ £ £ References in this Table to premises of a rateable value of a given amount are references to premises which for rating purposes constitute or are comprised in a hereditament of a rateable value of that amount. For the purposes of this Table premises consisting of or comprised in a vessel shall be treated as premises of a rateable value exceeding £1,000 but not exceeding £2,500. Premises of a rateable value not exceeding £1,000 (or without a rateable value) 750 500 750 Premises of a rateable value exceeding £1,000, but not exceeding £2,500 6,250 1,500 2,000 Premises of a rateable value exceeding £2,500 20,000 4,000 5,000 PART II Supplemental Rateable value 1 1 The Commissioners may by regulations provide for the adjustment (by way of repayment or of a further charge of duty) of the duty charged on a gaming licence in any case where — a there is an alteration of the valuation list affecting the hereditament consisting of or comprising the premises in respect of which the licence is granted, and b that alteration comes into effect as respects the whole of the period of validity of the licence. 2 Where a hereditament ceases to be one without a rateable value, regulations under this paragraph may require the appropriate adjustment by way of any further charge of duty notwithstanding that the alteration of the valuation list assigning a rateable value to the hereditament comes into effect as respects part only of the period of the validity of the licence, and the regulations may require the further charge of duty to be paid as if the alteration had come into effect as respects the whole of the period of validity of the said licence. 3 In this Schedule — " rateable value ", in relation to any hereditament, means, without prejudice to sub-paragraph (1) above, the rateable value shown in the valuation list as for the time being in force, " hereditament ", in relation to Scotland, means lands and heritages, " valuation list ", in relation to Scotland, means valuation roll. Gaming tables 2 1 For the purpose of determining the appropriate licence under Part I of this Schedule, account shall be taken not only of all gaming tables in use when any game to which the principal section applies is played, but also — a of all other gaming tables on the premises, whether or not available for use, or prepared for use, and whether for the game played, or for any other game to which the principal section applies, and b of any other tables or other equipment on the premises which can readily be converted into gaming tables. 2 For the said purposes " table " includes any surface provided or used for playing any game to which the principal section applies, or for hazarding any money or token in connection with any game to which the principal section applies. 3 In arriving at the number of tables on any premises, any table exceeding the prescribed size shall count as two tables, or such greater number of tables as may be prescribed. 4 In this paragraph "prescribed" means prescribed by regulations made by the Commissioners, and — a the regulations prescribing the size of a table may take account not only of its area but also of any other measurements or characteristics, b the regulations may make different provision in relation to different games, or in any other different circumstances. Application for licence 3 1 An application for a gaming licence shall be made to the Commissioners not later than fourteen days before the date on which the licence is to be in force. 2 A gaming licence shall be expressed to take effect on the first day of the period for which it is granted or the first day after the date of the application, whichever is the later. 3 A gaming licence shall expire at the end of 31st March or, as the case may be, 30th September next after the date on which it is expressed to take effect. Transfer of licence 4 1 The proper officer may, in such manner as the Commissioners may direct, and without any additional payment, transfer a gaming licence in respect of any premises to a successor in title to the interest in those premises of the person to whom the licence was granted. 2 Where the holder of a gaming licence in respect of any premises dies, the proper officer may transfer the licence, in such manner as the Commissioners may direct, and without any additional payment, to some other person for the remainder of the period for which the licence was granted. Surrender of licence 5 If while a gaming licence is in force in respect of any premises, and not less than three months before the date when the licence is due to expire, the holder of the licence surrenders the licence to the proper officer and satisfies the proper officer that those premises will not be used on or after the date of surrender of the licence for the purpose of gaming by way of any game to which the principal section for the time being applies, he shall be entitled in respect of the period of validity of the licence unexpired at the date of surrender to repayment of one-half of the duty paid on the licence. Amendment of licence 6 1 This paragraph has effect as respects the amendment of a gaming licence converting it into one in respect of which a greater amount of duty is payable. 2 The holder of the gaming licence may at any time apply to the Commissioners for the licence to be so amended, and the proper officer shall, on payment of the additional duty specified below, amend the licence accordingly. 3 The amount of the additional duty shall be the difference between the amount of duty payable on the licence as amended, and the amount so payable on the licence before amendment. 4 Regulations under this Schedule may make provision with respect to the procedure for amending licences under this paragraph, and any such regulations may include provision — a as to the method of amendment (that is to say, whether it is to be effected by endorsement of the licence, or by the issue of an amended licence, or otherwise), and b as to the time at which a licence is to have effect as amended. Payment of duty by cheque 7 Section 234 of the Customs and Excise Act 1952 (which relates to payment for excise licences by cheque) shall apply to the duty on a gaming licence as if for the reference to a penalty of £50 there were substituted a reference to a penalty of £500. Regulations 8 1 Without prejudice to any other provision of this Schedule, the Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of the duty on gaming licences, or for the protection of the revenue from that duty. 2 Regulations under this paragraph may in particular include provision — a for the furnishing to such persons or displaying in such manner of such information or records as the regulations may require by persons engaging or proposing to engage in any activity by reason of which they are or may be or become liable for duty, and by persons providing facilities for another to engage in such an activity or entering into any transaction with another in the course of any such activity of his ; b for the keeping, preservation and production of accounts, records or other documents by persons engaging in any such activity ; c for the inspection of the accounts, records and other documents of persons engaging or suspected of engaging in any such activity, and of premises or equipment used or suspected of being used by such persons for or in connection with any such activity and of any other premises where any such activity is carried on ; d for requiring the licence to be displayed on the premises, and the production of the licence for inspection by the proper officer; e for requiring gaming tables to be labelled or marked in the prescribed manner. 3 Regulations under this Schedule shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. Offences 9 1 Subject to subsection (7) of the principal section, there is a contravention of subsection (8) of that section if on any occasion, after 30th September 1970, gaming takes place by way of any game to which the principal section for the time being applies unless a provider of the premises on which the gaming takes place is the holder of a gaming licence which is for the time being in force, and which is the appropriate licence having regard to — a the rateable value of the hereditament consisting of or comprising the premises, and b the number of gaming tables. 2 If there is a contravention of the said subsection (8) — a any provider of the premises and any person concerned in the organisation or management of the gaming shall each be liable — i on summary conviction to a penalty of treble the amount of the duty on the appropriate gaming licence, or to imprisonment for a term not exceeding twelve months, or to both, ii on conviction on indictment, to the like penalty, or to imprisonment for a term not exceeding two years, or to both, and b in addition and without prejudice to any liability under paragraph (a) above, unless and until the appropriate gaming licence in respect of those premises is taken out during the period of six months (beginning with 1st October or 1st April) in which the offence was committed, an amount equal to the duty on the appropriate gaming licence, together with interest thereon from the date of the offence, shall become due and recoverable as a debt due to the Crown jointly and severally from all or any of the persons liable under paragraph (a) above. 3 Any gaming tables or other things which are being used, or are available or prepared for use, in connection with gaming in respect of which an offence is committed under this paragraph shall be liable to forfeiture. 4 In this paragraph "provider", in relation to any premises used for gaming, means any person having a right to control the admission of persons to those premises, whether or not he also has a right to control the admission of persons to the gaming. 10 1 If any person — a contravenes or fails to comply with any of the provisions of regulations made under this Schedule, or b obstructs any officer in the exercise of his functions in relation to the duty on gaming licences, or c in connection with the duty on gaming licences, makes any statement which he knows to be false in a material particular or recklessly makes any statement which is false in a material particular, or, with intent to deceive, produces or makes use of any book, account, record, return or other document which is false in a material particular, or d is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion, by him or any other person, of gaming licence duty, he shall be liable to a penalty of £500 or treble the amount of the duty which is unpaid or payment of which is sought to be avoided, as the case may be, whichever is the greater ; and where a person is convicted of an offence under paragraph (c) or (d) above, the court may, in lieu of or in addition to ordering him to pay the said penalty, order him to be imprisoned for a term not exceeding two years. 2 Where a person is convicted under sub-paragraph (1) above in respect of a failure to comply with the provisions of regulations made under this Schedule and the failure continues after his conviction then, unless he has reasonable excuse for the continuance of the failure, he shall be guilty of a further offence under this paragraph and may, on conviction, be punished accordingly. 11 Where an offence under paragraph 9 or paragraph 10 above has been committed by a body corporate, every person who at the time of the commission of the offence was a director, general manager, secretary or other similar officer of the body corporate, or was purporting to act in any such capacity, shall be deemed to be guilty of that offence unless he proves — a in the case of an offence under paragraph 9, that he did not consent to, or connive at, the relevant contravention mentioned in the said paragraph 9(1), or b in the case of an offence under paragraph 10, that the offence was committed without his consent or connivance, and that he exercised all such diligence to prevent the contravention or, as the case may be, the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and in all the circumstances. Inspection of premises 12 1 Any officer may (without payment) enter any premises in respect of which a licence under the Gaming Act 1968 is for the time being in force and inspect those premises and require any person who is concerned in the management of the premises, or who is on the premises and appears to the officer to have any responsibility whatsoever in respect of their management or of the control of the admission of persons thereto — a to produce or secure the production of any gaming licence for the time being in force in respect of the premises, or b to provide information with respect to any gaming which is being, or has been, carried on on the premises, and as to any gaming tables or other equipment on the premises which is or can be used for gaming. 2 If the premises in respect of which the licence under the Gaming Act 1968 is for the time being in force form, for rating purposes, part only of a hereditament, the powers conferred by this paragraph shall be exercisable as respects each part of the hereditament. Modification of agreements 13 1 Where a person who is granted a gaming licence in respect of any premises has before 1st October 1970 entered into an agreement with any other person whereby that other person is entitled to use those premises after that date for the purpose of gaming, and the consideration for that other person under that agreement does not take account of the additional duty payable under this Act, as compared with section 13 of the Finance Act 1966, the first-mentioned person shall be entitled to recover from that other person such amount, if any, not exceeding that additional amount of duty, in such manner as may be agreed between them (or, in default of such agreement, as may be determined by the appropriate court) to be fair in all the circumstances, having regard in particular to the extent, if any, to which while the licence is in force, the premises will be or are likely to be used otherwise than by that person for the purpose of gaming. 2 In this paragraph " the appropriate court " means — a where the premises in question are in England or Wales and the amount of the duty on the licence in question exceeds £5,000, the High Court, b in any other case, the county court or, if the premises in question are situated in Scotland, the sheriff. Beginner's licence under Finance Act 1966 14 On surrender to the proper officer of a gaming licence granted before 1st October 1970 under paragraph 12 of Schedule 3 to the Finance Act 1966 so as to expire on 30th September 1971, the holder of the licence shall be entitled to repayment of three-quarters of the amount of the duty paid on the licence. Application of ancillary provisions in Schedule 3 to Finance Act 1966 15 1 Paragraph 23 of Schedule 3 to the Finance Act 1966 (powers of entry and search) shall apply as if the reference to contravention of section 13 of that Act included a reference to a contravention of subsection (8) of the principal section. 2 Paragraphs 24 and 25 of the said Schedule 3 (recovery of duty) shall apply as if references to paragraphs 8 and 21(1)(b) of that Schedule included references to paragraphs 1 and 9(2)(b) of this Schedule. Consequential amendments of Gaming Act 1968 16 1 In paragraph 48(1) of Schedule 2 to the Gaming Act 1968 (cancellation of licence under that Act on conviction of certain offences), as amended by paragraph 30 of Schedule 11 to the Finance Act 1969 after the words " Finance Act 1969 " insert " or under paragraph 9 or 10 of Schedule 1 to the Finance Act 1970 ". 2 In the following provisions of the Gaming Act 1968 (under which failure to pay gaming licence duty under section 13 of the Finance Act 1966 is a ground for refusal to grant, renew or transfer a licence or renew a registration) after " the Finance Act 1966 " insert " or section 2 of or Schedule 1 to the Finance Act 1970 ". The said provisions are paragraph 20(1)(e) and paragraph 60(c) of Schedule 2. paragraph 9(e) of Schedule 3. paragraph 11(e) of Schedule 4. 3 In Schedule 10 to the Gaming Act 1968, in paragraphs 3 and 4 (right of constable, without fee, to inspect registers) after " constable " insert " or officer of customs and excise ". SCHEDULE 2 Amendments of Law Relating to Customs and Excise Section 5. Amendments relating to tobacco 1 Subject to such conditions as they see fit to impose, the Commissioners may remit or repay duty, or allow drawback, on tobacco in respect of which it is shown to their satisfaction that it is to be or has been used solely for purposes of research or experiment. 2 The duties of excise under section 4 of the Finance Act 1964 on tobacco grown in the United Kingdom shall not be charged on tobacco which is grown by a person for his own consumption and in respect of which such conditions as the Commissioners see fit to impose are complied with. 3 At the beginning of paragraph (a) of section 173(2) of the Act of 1952 (which prohibits the import of sweetened tobacco in an unmanufactured state) there shall be inserted the words " except as permitted by the Commissioners " , and in section 176(1) of that Act (which provides that a tobacco manufacturer shall not in manufacturing tobacco use any sweetening matter or, save as the Commissioners allow and subject to such conditions as they see fit to impose, any other substance except those specified in paragraphs (a) to (e) of that section) the words " any sweetening matter or " shall be transposed to follow the words " see fit to impose ". 4 For paragraph (b) of section 183(1) of the Act of 1952 (which provides for drawback on tobacco stalks or tobacco refuse abandoned to the Commissioners) there shall be substituted the following paragraph: — b tobacco stalks or tobacco refuse disposed of to the satisfaction of the Commissioners. Customs procedures : standing deposits and computers 5 1 Where the Commissioners so direct, section 34(1) of the Act of 1952 (time for payment of duty on imported goods) shall not apply if and so long as the importer or his agent pays to, and keeps deposited with, the Commissioners a sum by way of standing deposit sufficient in their opinion to cover any duty which may become payable in respect of goods entered by that importer or agent, and if the importer or agent complies with such other conditions as the Commissioners may impose. Where, by virtue of this sub-paragraph, goods are delivered for home use before payment of duty, the proviso to section 258(1) of the Act of 1952 (valuation of goods by reference to declared value) shall have effect as if the words "before the goods are delivered for home use " were omitted. 2 Where, in accordance with approval given by the Commissioners, entry of goods is made by any method involving the use of a computer, then in the following provisions of the Act of 1952 — a section 34(2)(a) (application of duties and rates of duty in force at time of entry), b section 258(2)(c) (rate of exchange of foreign currency in force before time of entry), and c paragraph 1(1) of Schedule 6 (value at time of entry), for references to the time of entry there shall be substituted references to the time when particulars contained in the entry are accepted by the computer. 3 In connection with any arrangements approved by the Commissioners for recording particulars of exported goods by computer they may relax the requirements of section 49 of the Act of 1952 by suspending the obligation to deliver the specifications there mentioned on condition that — a the particulars which should otherwise be contained in the specifications, or such of those particulars as the Commissioners may specify, are recorded by computer in accordance with the arrangements, and b the particulars so recorded are subsequently delivered to the proper officer within such time as the Commissioners may specify, and subject to such other conditions as they may impose. 4 If under sub-paragraph (3) above particulars are recorded by computer, and any goods to which the particulars relate have not in fact been exported or shipped as stores, or the particulars are in any other way incorrect or inaccurate, the exporter of the goods and any other person who caused the incorrect or inaccurate particulars to be recorded shall each be liable to a penalty of £5 unless one of them, either himself or by an agent, corrects the particulars within the period mentioned in subsection (1) of the said section 49. SCHEDULE 3 Application of Corporation Tax Acts in Relation to Public Transport Authorities in London Section 16(4). 1 In this Schedule — " the Board " means the London Transport Board ; " the Company " means London Country Bus Services Limited ; " the Executive " means the London Transport Executive ; and " the transferee ", in relation to any part of the trade of the Board transferred under Part III of the Transport (London) Act 1969, means the Company or the Executive, according to the body to which that part is transferred. 2 The parts of the Board's trade transferred under Part III of the Transport (London) Act 1969 to the Executive and the Company respectively shall be treated for the purposes of the Corporation Tax Acts as having been at all times separate trades ; and — a there shall be made any necessary adjustments of accounting periods, and such apportionments as may be just of receipts, expenses, allowances or charges ; and b the following provisions of this Schedule shall apply separately to each of those parts. 3 For the purposes of the Corporation Tax Acts the trade transferred to the transferee shall not be treated as permanently discontinued, nor shall a new trade be treated as set up and commenced. 4 The transferee shall be entitled to relief from corporation tax under subsection (1) of section 177 of the Taxes Act, as for a loss sustained by the transferee in carrying on the transferred trade for any amount which, if the Board had continued to carry on the trade, would have been available to the Board for carrying forward against chargeable profits of succeeding accounting periods, but subject to any claim made by the Board under subsection (2) of that section. 5 1 There shall be made to or on the transferee in accordance with sections 73 and 74 of the Capital Allowances Act 1968 (or in relation to a chargeable period ending on or before 5th April 1968, in accordance with section 56 of the Finance Act 1965) all such allowances and charges as would, if the Board had continued to carry on the trade, have fallen to be made to or on the Board in accordance with those sections, and the amount of any such allowances or charges shall be computed as if the transferee had been carrying on the trade since the Board began to do so and as if everything done to or by the Board had been done to or by the transferee. 2 No sale or transfer which on the transfer of the trade is made by the Board to the transferee of any assets in use for the purposes of the trade shall be treated as giving rise to any such allowance or charge. 6 For the purposes of paragraph 6 of Schedule 14 to the Taxes Act (transitional allowance for annual value of land as a business expense) any occupation of land for the purposes of the trade by the Board shall be treated as having been the occupation of the transferee. 7 The Board shall not be entitled to relief in respect of the trade under section 178 of the Taxes Act (terminal losses) or under section 87 of the Finance Act 1965 (transitional relief on cessation of trade). 8 1 For the purposes of Part III of the Finance Act 1965 (capital gains) any asset transferred on the transfer of the trade shall be deemed to be for a consideration such that no gain or loss accrues to the Board on its transfer ; and for the purposes of Part II of Schedule 6 to that Act (assets held on 6th April 1965) the transferee shall be treated as if the acquisition by the Board or the British Transport Commission of any assets so transferred had been the transferee's acquisition thereof. 2 In section 272(6) of the Taxes Act (Passenger Transport Executives treated as companies for the purposes of provisions of Chapter II of Part )(I of that Act about groups of companies) after the words " in relation to " there shall be inserted the words " the London Transport Executive and " and for the words " that Executive" there shall be substituted the words " each of those Executives ". SCHEDULE 4 Amendments of Income Tax Acts and Corporation Tax Acts Section 18. PART I Accounting for Income Tax Deducted by Companies 1 1 This paragraph has effect as respects income tax for which a company resident in the United Kingdom is liable to account in respect of distributions made by it, or in respect of any payments made by it, other than distributions. 2 The Board may make regulations — a as to the times at which and the manner in which a company is to account for and pay any such income tax, and b subject to section 240(1) of the Taxes Act (limitations on repayment of income tax borne by companies), for discharging, to such extent and in such manner as may be prescribed by the regulations, a company's liability to account for income tax by setting that tax off against income tax borne by the company, or for repaying income tax so borne, and c with respect to the procedure to be adopted for giving effect to the said section 240, and to section 256 of the Taxes Act (group income etc.). 3 Regulations under this paragraph may in particular — a provide for the assessment, charge, collection and recovery of any income tax for which a company is liable to account, and as to the information and evidence to be furnished by a company in or in connection with any return or claim made under or for the purposes of the regulations, b make any provision corresponding to anything in Schedule 9 to the Taxes Act (which is to be superseded by regulations under this paragraph) and, in relation to any income tax for which a company is liable to account, modify any provision of Parts II to VI of the Taxes Management Act 1970, or apply any such provision with or without modifications, c for the purpose of accounting for tax in accordance with the regulations, divide any year of assessment into equal or unequal periods of any length, d treat income tax set against other tax in pursuance of sub-paragraph (2)(b) above as paid or repaid, as the case may be, and preclude the same tax being taken into account both under the regulations and under section 240(5) of the Taxes Act, e make different provision for different descriptions of companies and for different circumstances, and authorise the Board, where in their opinion there are special circumstances justifying it, to make special arrangements as respects income tax for which a company is liable to account, or the repayment of income tax borne by a company, and f include such transitional and other supplemental provisions as appear to the Board to be expedient or necessary. 4 Regulations under this paragraph shall be made by statutory instrument, but the Board shall not make any statutory instrument under this paragraph unless a draft thereof has been laid before, and approved by a resolution of, the Commons House of Parliament. 5 Regulations under this paragraph shall be known as " company tax regulations ". 6 Company tax regulations shall not have effect for any year before the year 1971-72, and Schedule 9 to the Taxes Act shall not have effect for the first year as respects which company tax regulations have effect or any subsequent year. 2 In the following provisions of the Taxes Act and of the Management Act for "Schedule 9 to this Act" or "Schedule 9 to the principal Act" or words to that effect substitute " company tax regulations " except for years of assessment for which the said Schedule 9 has effect, and corresponding amendments shall be made in any other enactment referring to the said Schedule 9. TAXES ACT MANAGEMENT ACT section 53 (4) section 55(1)(e) section 232(2) section 88(2) section 248(4)(a) section 256(4) (twice) section 343(2)(b) section 460(4) section 477(1) 3 1 Section 87 of the Management Act (interest on overdue income tax on company distributions etc.) shall be amended as follows. 2 In subsection (2) — a for " month " (five times) substitute " period of account ". b after " principal Act" insert " or under company tax regulations ". 3 In subsection (4) — a after " principal Act ", in paragraph (a), and after " Schedule 9", in paragraph (b), insert " or with company tax regulations ". b for " month " substitute " period of account ". 4 For subsection (6) substitute — 6 In this section ' period of account' means — a in relation to Schedule 9 to the principal Act, a month of a year of assessment, that is to say a month beginning on the sixth day of a month of a calendar year, b in relation to company tax regulations, any period of account prescribed by the regulations. 4 In section 98 of the Management Act (penalties) at the end of column 2 of the Table add — Company tax regulations . 5 Paragraph 1 of this Schedule shall be inserted in the Taxes Act after section 240 as a section numbered 240A, but substituting " this Act " for "the Taxes Act", and "this section" for "this paragraph ", and making similar substitutions of references to sub-paragraphs so converted into subsections. PART II Other Amendments Treatment as distribution of interest paid by company to non-resident company in same group 6 1 In section 233(2)(d) of the Taxes Act (which specifies securities of a company in respect of which any interest or other distribution out of assets of the company is to be treated as a distribution for the purposes of the Corporation Tax Acts) for sub-paragraph (iv) (which specifies securities issued by the company and held by a company not resident in the United Kingdom, where the former is a 75 per cent, subsidiary of the latter or both are 75 per cent, subsidiaries of a third company) there shall be substituted the following sub-paragraph: — iv securities issued by the company and held by a company not resident in the United Kingdom, where — aa the company which issued the securities is a 75 per cent, subsidiary of the other company; or bb both are 75 per cent, subsidiaries of a third company which is not resident in the United Kingdom ; or cc except where 90 per cent, or more of the share capital of the company which issued the securities is directly owned by a company resident in the United Kingdom, both the company which issued the securities and the company not resident in the United Kingdom are 75 per cent, subsidiaries of a third company which is resident in the United Kingdom or . 2 This paragraph does not apply to any payment becoming due or paid in an accounting period of the company making the payment which ends before 6th April 1970. Capital allowances for contributions to public expenditure 7 In section 85 of the Capital Allowances Act 1968 (which provides for capital allowances for contributions to expenditure by another person, but not where that other person is the Crown or some other authority not within the charge to tax) after subsection (2) there shall be inserted the following subsection: — 2A In relation to any contribution made after 5th April 1970 to expenditure incurred after that date by the Crown, or by any public or local authority in the United Kingdom, subsection (1) above shall have effect as if the words from ' and in respect' to the end of paragraph (d) were omitted ; and in subsection (3), after the words "this subsection shall apply only where " there shall be inserted the words " subsection (2a) above does not apply but ". Purchased life annuity of variable amount 8 1 In section 230 of the Taxes Act after subsection (2) insert — (2a) Where, in the case of any purchased life annuity to which this section applies, the amount of any annuity payment (but not the term of the annuity) depends on any contingency other than the duration of a human life or lives — a the capital element shall be determined by reference — i to the amount or value of the payments made or other consideration given for the grant of the annuity (in this subsection referred to as the ' purchase price' of the annuity), and ii to the expected term of the annuity, as at the date when the first annuity payment began to accrue, expressed in years (and any odd fraction of a year), and determined by reference to the prescribed tables of mortality, and in head (ii) above ' term' means the period from the date when the first annuity payment begins to accrue to the date when the last payment becomes payable, b the capital element in any annuity payment made in respect of a period of twelve months shall be a fraction 1 E of the purchase price, where E is the said expected term, c the capital element in any annuity payment made in respect of a period of less than, or more than, twelve months shall be the amount at (b) above reduced, or as the case may be increased, in the same proportion as the length of that period bears to a period of twelve months, d subsection (2) above shall not apply, but paragraphs (a) and (b) of subsection (3) below shall apply as they apply to that subsection, and in applying subsection (2)(d) above where both the amount and the term of the annuity depend on any contingency other than the duration of a human life or lives, regard shall be had to this subsection (and not to subsection (2)(c) above) as well as to the contingencies affecting the annuity. 2 This paragraph has effect for the year 1970-71 and subsequent years of assessment, whether or not annuity payments under the annuity fell due before the beginning of the year 1970-71. Relief for payments of interest 9 1 In section 60(1) of the Taxes Act (loan to purchase machinery or plant used by a partnership) after " interest paid by him in" insert " the basis period (as defined in section 72 of that Act) for ". 2 In section 62(1) of the Taxes Act (certain pre-1970 loans) for the words " on which the recipient is chargeable to tax under Case III of Schedule D, and" substitute " which is chargeable to tax under Case III of Schedule D, and ". 3 In section 63(2) of the Taxes Act (overdraft interest: money drawn and applied in whole or part for eligible purposes) after " that money " insert " or as the case may be that part of it " , and accordingly in subsection (5) of the said section 63 the words from " and where part only " to the end of the subsection shall cease to have effect. 4 At the end of the said section 63 add — 7 Subsection (6) above applies only where the loan subsists throughout the year of assessment (but it is necessary to ascertain the interest paid in respect of a part only of the year), and where the loan subsists only for a shorter period but it is necessary to ascertain the interest paid in respect of part of that period, the calculation shall be made in a corresponding way . 5 After section 64 of the Taxes Act insert — Schemes for employees and directors to acquire shares. 64A Where under a scheme set up to comply with proviso (b) to section 54(1) of the Companies Act 1948 (financial assistance for company employees and salaried directors acquiring shares), or any corresponding enactment in force in Northern Ireland, trustees receive interest from such employees or directors then, if and so far as the scheme requires an equivalent amount to be paid by way of interest by the trustees to the company, the trustees shall be exempt from tax under Case III of Schedule D on that interest received by them. 6 In section 173(3) of the Taxes Act (carry forward as losses of amounts taxed under section 53) before paragraph (a) insert — aa to any payment to which the said section 53 applies by virtue of section 54(3) of this Act (annual interest) . 7 In section 190 of the Taxes Act (interest on loans to purchase machinery or plant), in subsection (1)(a) after " balancing charge " insert " (or would be so entitled or liable but for some contribution made by the employer) " , and at the end insert — 6 Where the whole of a debt does not fulfil the conditions required by this section, relief shall be given under this section only in respect of the proportion of any payment of interest equal to the proportion of the debt fulfilling those conditions at the time of the application of the money in question . 8 Sections 19, 22 and 24 of, and paragraphs 1 and 7 of Schedule 13 to, the Finance Act 1969 (which correspond to the provisions amended by section 17 of this Act and this paragraph) shall be deemed always to have had effect as if there had been made in them, with the necessary adaptations of wording and in particular with the necessary adaptations of references to other enactments, the amendments which are directed by the said section 17 and the preceding provisions of this paragraph to be made in the corresponding provisions of the Taxes Act. For the year 1969-70 the Income Tax Act 1952 shall have effect, in relation to any debt incurred after 15th April 1969, as if it contained a section corresponding to the section 64A inserted by this paragraph in the Taxes Act. 9 All such assessments, repayments of tax and other adjustments shall be made as are required to give effect to sub-paragraph (8) above, but that sub-paragraph shall not be taken as authorising the giving of any relief more than once. Inland Revenue procedures: returns and assessments 10 In section 113 of the Management Act after subsection (1) insert — (1A) Any notice or direction requiring any return to be made under the Taxes Acts to an inspector or other officer of the Board may be issued or given in the name of that officer, or as the case may be in the name of the Board, by any officer of the Board, and so as to require the return to be made to the first-mentioned officer. (1B) Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act, or any other provision of the Taxes Acts, decided to make an assessment to tax, and have taken all other decisions needed for arriving at the amount of the assessment, they may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment on the person liable for tax. Fractions of a penny 11 Section 2(1) of the Taxes Act (no tax to be charged of a lower denomination than one penny) shall be amended by adding after " one penny " the words " or, as the case may require, one new penny " ; and the like amendment shall be made in section 4 of the Income Tax Act 1952 (corresponding provision for years preceding 1970-71). SCHEDULE 5 Occupational Pension Schemes Sections 19 and 26. PART I Approved Schemes : Conditions as Respects Benefits Employee's benefits 1 The benefits payable to the employee must consist only of benefits payable on or after retirement at a specified age not earlier than 60 or later than 70, or on earlier retirement through incapacity. Overall limit on employee's benefits 2 1 The aggregate value of the relevant benefits payable to an employee on or after retirement, after 40 or more years' service, expressed as an annual amount payable for his life after retirement, must not exceed two-thirds of his final remuneration. 2 The aggregate value of the relevant benefits payable to an employee on or after his retirement, after less than 40 years' service, so expressed, must not exceed the limit in sub-paragraph (1) above reduced by multiplying by the number of years' service and dividing by 40. Limit on employee's lump sum benefits 3 The aggregate value of the relevant benefits payable to an employee on or after retirement, excluding any pension which is not commutable, must not exceed three-eightieths of his final remuneration for each year of service up to a maximum of 40. Death after retirement: widow's pension 4 The annual amount of any pension payable to the widow of an employee who dies after retirement must not exceed one-half of the employee's pension. Death after retirement: other provisions 5 1 Subject to the following provisions of this paragraph, and except in the case of an employee who dies before retirement, benefits payable otherwise than to the employee must consist only of a pension payable to the employee's widow which is not commutable. 2 Where the employee dies after retirement, but so that less than 5 years' pension has become payable to him, sub-paragraph (1) above shall not prevent the making of payments not exceeding in all the value of the pension for the remaining part of the 5 years. 3 An employee may surrender part of his pension to provide a pension for his widow of an amount not exceeding the reduced pension retained by the husband, and the limit in paragraph 4 above shall be applied without regard to any pension so surrendered. Death before retirement 6 The aggregate value of benefits payable where the employee dies before retirement must not exceed twice his final remuneration. Pensions 7 Pensions must not be capable of being assigned or, subject to paragraph 5(3) above, of being surrendered. Meaning of " final remuneration " 8 In this Part of this Schedule " final remuneration " means the highest average annual remuneration of any 3 consecutive years in the last 10 years' service. PART II Charge of pensions under Schedule E 1 1 Subject to sub-paragraph (2) below, all pensions paid under any scheme which is approved or is being considered for approval under the principal Chapter shall be charged to tax under Schedule E, and section 204 of the Taxes Act (pay-as-you-earn) shall apply accordingly. 2 As respects any scheme which is approved or is being considered for approval under the principal Chapter, the Board may direct that, until such date as the Board may specify, pensions under the scheme shall be charged to tax as annual payments under Case III of Schedule D, and tax shall be deductible under Part II of the Taxes Act accordingly. Charge to tax on repayment of employee's contributions 2 1 Where by way of repayment of, or of interest on, contributions made by an employee, any amount is paid — a in accordance with the rules of an exempt approved scheme, or b in accordance with a statutory scheme to which section 22 of this Act applies, the administrator of the scheme shall be charged to income tax under Case VI of Schedule D on that amount, and — i the rate of the tax shall be one half of the standard rate of income tax for the year in which the amount is paid, ii the tax shall be charged on the amount paid or, if the rules permit the administrator to deduct the tax before payment, on the amount before deduction of tax, iii the amount so charged to tax shall not be treated as income for any other purpose of the Tax Acts. 2 This paragraph shall not apply where the employee's employment was carried on outside the United Kingdom. 3 Sub-paragraph (1)(b) above shall not apply to any payment made before the date appointed under section 22 of this Act. Charge to tax: commutation of entire pension in special circumstances 3 1 Where — a an approved scheme, or b a statutory scheme to which section 22 of this Act applies, contains a rule allowing, in special circumstances, a payment in commutation of an employee's entire pension, and any pension is commuted, whether wholly or not, under the rule, tax shall be charged on the amount by which the sum receivable exceeds — i the largest sum which would have been receivable in com mutation of any part of the pension if the rule had conformed with paragraph 3 of Part I of this Schedule, or ii the largest sum which would have been receivable in commutation of any part of the pension under any other rule of the scheme authorising the commutation of part (but not the whole) of the pension, or which would have been so receivable but for the said circumstances, whichever gives the lesser amount chargeable to tax. 2 Where any amount is chargeable to tax under this paragraph, the administrator of the scheme shall be charged to income tax under Case VI of Schedule D on that amount, and — a the rate of the tax shall be one half of the standard rate of income tax for the year in which the amount is paid, b the tax shall be charged on the amount paid or, if the rules permit the administrator to deduct the tax before payment, on the amount before deduction of tax, c the amount so charged to tax shall not be treated as income for any other purpose of the Tax Acts. 3 This paragraph shall not apply where the employee's employment was carried on outside the United Kingdom. 4 In applying paragraphs (i) and (ii) of sub-paragraph (1) above the same considerations shall be taken into account, including the provisions of any other relevant scheme, as would have been taken into account by the Board in applying section 19 of this Act. 5 Sub-paragraph (1)(b) above shall not apply to any payment made before the date appointed under section 22 of this Act. Charge to tax: repayments to employer 4 1 Where any payment is made or becomes due to an employer out of funds which are or have been held for the purposes of an exempt approved scheme then: — a if the scheme relates to a trade, profession or vocation carried on by the employer, the payment shall be treated for the purposes of the Tax Acts as a receipt of that trade, profession or vocation receivable when the payment falls due or on the last day on which the trade, profession or vocation is carried on by the employer, whichever is the earlier, b if the scheme does not relate to such a trade, profession or vocation, the employer shall be charged to tax on the amount of the payment under Case VI of Schedule D. 2 This paragraph shall not apply to a payment which fell due before the scheme became an exempt approved scheme. Charge to tax: unauthorised payments and payments after cessation of tax exemptions 5 1 Where a payment is made to or for the benefit of an employee, otherwise than in payment of a pension, and — a it is made under an approved scheme, but is not expressly authorised by the rules of the scheme, or b it is made wholly or partly out of funds in respect of which relief has been given under section 21 of this Act or under section 208 of the Taxes Act, but is made when the scheme has ceased to be an approved scheme, and is in excess of the amounts authorised by the rules of the scheme before it ceased to be an approved scheme, the employee (whether or not he is the recipient of the payment) shall be chargeable to tax on that amount (or on that amount so far as made out of funds in respect of which relief has been given) under Schedule E for the year of assessment in which the payment is made. 2 So far as any payment is made out of funds in respect of which relief has been given under section 21 of this Act or under section 208 of the Taxes Act, paragraphs 2 and 3 of this Part of this Schedule shall apply as if references to an exempt approved scheme included references to a scheme which has at any time been an exempt approved scheme. Application for approval of a scheme 6 An application for the approval for the purposes of the principal Chapter of any retirement benefits scheme shall be made in writing by the administrator of the scheme to the Board before the end of the first year of assessment for which approval is required, and shall be supported by — a two copies of the instrument or other document constituting the scheme ; and b two copies of the rules of the scheme and, except where the application is being sought on the setting up of the scheme, two copies of the accounts of the scheme for the last year for which such accounts have been made up; and c such other information and particulars (including copies of any actuarial report or advice given to the administrator or employer in connection with the setting up of the scheme) as the Board may consider relevant. Information about payments under approved schemes 7 In the case of every approved scheme, the administrator of the scheme, and every employer who pays contributions under the scheme, shall, within thirty days from the date of a notice from the inspector requiring them so to do — a furnish to the inspector a return containing such particulars of contributions paid under the scheme as the notice may require ; b prepare and deliver to the inspector a return containing particulars of all payments under the scheme, being — i payments by way of return of contributions (including interest on contributions, if any), ii payments by way of commutation of, or in lieu of, pensions, or other lump sum payments, iii other payments made to an employer; c furnish to the inspector a copy of the accounts of the scheme to the last date previous to the notice to which such accounts have been made up together with such other information and particulars (including copies of any actuarial report or advice given to the administrator or employer in connection with the conduct of the scheme in the period to which the accounts relate) as the inspector considers relevant. Information about schemes, other than approved or statutory schemes 8 1 This paragraph has effect as respects a retirement benefits scheme which is neither an approved scheme nor a statutory scheme. 2 It shall be the duty of every employer — a if there subsists in relation to any of his employees any such scheme, to deliver particulars of that scheme to the Board within three months beginning with the date on which the scheme first comes into operation in relation to any of his employees, or the date of the coming into force of this paragraph, whichever is the later, and b when required to do so by notice given by the Board, to furnish within the time limited by the notice such particulars as the Board may require with regard to — i any retirement benefits scheme relating to the employer ; or ii the employees of his to whom any such scheme relates. 3 It shall be the duty of the administrator of any such scheme, when required to do so by notice given by the Board, to furnish within the time limited by the notice such particulars as the Board may require with regard to the scheme. 4 This paragraph shall come into force on the same date as section 23 of this Act. Responsibility of administrator of a scheme 9 1 If the administrator of a retirement benefits scheme defaults or cannot be traced or dies, the employer shall be responsible in his place for the discharge of all duties imposed on the administrator under the principal Chapter, with this Part of this Schedule, and shall be liable for any tax due from him in his capacity as administrator. 2 No liability incurred under the principal Chapter or this Part of this Schedule by the administrator of a scheme, or by an employer, shall be affected by the termination of the scheme or by it ceasing to be an approved scheme, or to be an exempt approved scheme. 3 References in this paragraph to the employer include, where the employer is resident outside the United Kingdom, references to any branch or agent of the employer in the United Kingdom, and in this sub-paragraph " branch or agent" has the meaning given by section 118(1) of the Management Act. Regulations 10 The Board may by statutory instrument, subject to annulment in pursuance of a resolution of the Commons House of Parliament, make regulations generally for the purpose of carrying the principal Chapter and this Schedule into effect. PART III Consequential Amendments Tax treatment of life assurance business 11 1 In section 323(4) of the Taxes Act (definition of pension annuity business) after paragraph (a) insert aa any contract (including a contract of insurance) entered into for the purposes of, and made with the persons having the management of, an exempt approved scheme as defined in Chapter II of Part II of the Finance Act 1970, being a contract so framed that the liabilities undertaken by the insurance company under the contract correspond with liabilities against which the contract is intended to secure the scheme . 2 In relation to an exempt approved scheme the said paragraph (aa) shall apply, so long as the scheme is an exempt approved scheme, whether or not the premiums were paid, or any other part of the business was transacted, before the scheme became an approved scheme, and in the said section 323(4) the words " (at the time when the premium is payable)" shall cease to have effect. 3 Business formerly called " pension annuity business " shall in future be called pension business (because under sub-paragraph (1) above it includes some business unrelated to annuities), and in the following provisions of the Taxes Act (and in any other enactment) for " pension annuity business " substitute " pension business ". Section 312(1)(3)(4) Section 314 (throughout) Section 315(8)(b) Section 318(1) Section 323(4) 4 In section 323(2) of the Taxes Act at the end of the definition of " annuity business " add " ' general annuity business ' means any annuity business which is not pension business, and 'pension business ' shall be construed in accordance with subsections (3) and (4) below. " 5 For section 323(3) substitute 3 Any division to be made between general annuity business, pension business and other life assurance business shall be made on the principle of — a referring to pension business any premiums falling within subsection (4) below, together with the incomings, outgoings and liabilities referable to those premiums, and the policies and contracts under which they are or have been paid, b allocating to general annuity business all other annuity business, and references to " pension fund " and " general annuity fund " shall be construed accordingly, whether or not any such funds are kept separate from the insurance company's life assurance fund. 6 In the Taxes Act — a in section 312(2)(a) after " policy-holders " insert " other than holders of policies referable to pension business ". b in section 312(2)(c) for the words " in connection with the granting of annuities on human life" substitute " from pension business or general annuity business ". c in section 314(1) and (3)(b) for " annuity fund " substitute " life assurance fund and separate annuity fund, if any ". d in section 316(1) and (3) and 320(1) and (2) for " (excluding the annuity fund, if any) " substitute " (excluding the pension fund and general annuity fund, if any) ". e in section 316(3) for " annuity business" (at end of the subsection) substitute " general annuity and pension business ". f in section 328(1)(b) for " annuity business " substitute " pension business and general annuity business ". Other amendments of Taxes Act 12 1 In section 188(1) of the Taxes Act (exemptions and reliefs in respect of tax under section 187), after paragraph (c) insert — cc a benefit provided in pursuance of any retirement benefits scheme where under section 23 of the Finance Act 1970 the employee (as defined for the purposes of that section) was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit ", , and at the end of paragraph (d) add " or in section 24(1) of the Finance Act 1970 ". 2 In section 211(5) of the Taxes Act (Parliamentary pension funds) for the words from " payable by a superannuation " to the end of the subsection substitute " payable by an exempt approved scheme as defined in Chapter II of Part II of the Finance Act 1970, and for the purposes of that Chapter (and the provisions to be construed as one with it) each such Fund shall be treated as an exempt approved scheme. " 3 In section 283(4) of the Taxes Act (definition of close company) after paragraph (b) insert — bb if held on trust for an exempt approved scheme as defined in Chapter II of Part II of the Finance Act 1970, or . 4 In the proviso to section 303 (3) of the Taxes Act (meaning of " associate ") after paragraph (i) insert — iA if the trust relates exclusively to an exempt approved scheme as defined in Chapter II of Part II of the Finance Act 1970, or . 5 In the proviso to section 422(4), and in the proviso to section 423(1) of the Taxes Act (modification of pre-war provisions for tax free payments) at the end add " or by virtue of paragraph 1 of Part II of Schedule 5 to the Finance Act 1970 ". 6 At the end of paragraph 4(c) of Schedule 8 to the Taxes Act (payments on retirement or removal from office : top-slicing relief) add " or in pursuance of any exempt approved scheme as defined in Chapter II of Part II of the Finance Act 1970 ". 7 The repeal of Chapter II of Part I)( of the Taxes Act by this Act shall not affect the following provisions of the Taxes Act (which apply definitions in section 224(1) in the said Chapter II), or any other enactment applying those definitions. Section 186(10)(c). Section 226(9). The proviso to paragraph 4 of Schedule 8. Amendment of Taxes Management Act 1970 13 In section 98 of the Management Act (penalties) in column 1 of the Table insert a reference at the appropriate place to paragraph 7 and sub-paragraph (2)(b) and (3) of paragraph 8 of Part II of this Schedule and in column 2 of the Table to sub-paragraph (2)(a) of the said paragraph 8. Estate duty 14 In paragraph 10(c) of Part II of Schedule 17 to the Finance Act 1969 (estate duty: relief for certain superannuation funds) the reference to the schemes or funds there described shall include a reference to any exempt approved scheme or statutory scheme as defined in Chapter II of Part II of this Act. SCHEDULE 6 Taxation of Capital Element in Mineral Royalties Section 29. PART I Calculation of Capital Element 1 In a case falling within paragraph (b) of subsection (3) of section 29 of this Act, that is to say in a case where betterment levy was chargeable under Case B on the last disposition affecting the mineral lease or agreement concerned and giving rise to an assessment to betterment levy, the relevant fraction referred to in subsection (1)(b) of that section is: — B 2C where — B is the base value realised by that disposition, and C is the amount of the consideration for the disposition. 2 Expressions used in paragraph 1 above have the same meanings in that paragraph as they have for the purposes of assessing betterment levy under Case B within the meaning of Part III of the Land Commission Act 1967. PART II Terminal Loss Relief 3 1 The provisions of this Part of this Schedule apply in a case where, at the time of the occurrence of a relevant event in relation to a mineral lease or agreement, the person who immediately before that event occurred was entitled to receive mineral royalties under the lease or agreement (in this Part of this Schedule referred to as " the taxpayer ") has an interest in the land to which the mineral lease or agreement relates (in this Part of this Schedule referred to, in relation to the lease or agreement, as " the relevant interest"). 2 For the purposes of this Part of this Schedule a relevant event occurs in relation to a mineral lease or agreement — a on the expiry or termination of the mineral lease or agreement ; b if the relevant interest is disposed of, or is treated as having been disposed of by virtue of any provision of Part III of the Finance Act 1965 (capital gains). 4 1 Subject to sub-paragraph (2) below, on the expiry or termination of a mineral lease or agreement the taxpayer shall, if he makes a claim in that behalf, be treated for purposes of capital gains tax, or as the case may be corporation tax on chargeable gains, as if he had disposed of and immediately re-acquired the relevant interest for a consideration equal to its market value, but without prejudice to the operation of section 33 of the Finance Act 1967 (amount of chargeable gain calculated by reference to current use value unless the taxpayer elects to the contrary). 2 A claim may not be made under this paragraph — a if the expiry or termination of the mineral lease or agreement is also a relevant event falling within paragraph 3(2)(b) above; nor b unless, on the notional disposal referred to in sub-paragraph (1) above, an allowable loss would accrue to the taxpayer. 3 In the following provisions of this Part of this Schedule "the terminal loss ", in relation to a relevant event in respect of which a claim is made under this paragraph, means the allowable loss which accrues to the taxpayer by virtue of the notional disposal occurring on that relevant event by virtue of sub-paragraph (1) above. 5 1 On making a claim under paragraph 4 above, the taxpayer shall specify whether he requires the terminal loss to be dealt with in accordance with this paragraph or with paragraph 7 below. 2 Where the taxpayer requires the loss to be dealt with in accordance with this paragraph it shall be treated as an allowable loss accruing to him in the year of assessment or accounting period in which the mineral lease or agreement expires. 6 1 If on the occurrence of a relevant event falling within paragraph 3(2)(b) above, an allowable loss accrues to the taxpayer on the disposal or notional disposal which constitutes that relevant event, the taxpayer may make a claim under this paragraph requiring the loss to be dealt with in accordance with paragraph 1 below and not in any other way. 2 In the following provisions of this part of this Schedule " the terminal loss " in relation to a relevant event in respect of which a claim is made under this paragraph means the allowable loss which accrues to the taxpayer as mentioned in sub-paragraph (1) above. 7 1 Where, as a result of a claim under paragraph 4 or paragraph 6 above, the terminal loss is to be dealt with in accordance with this paragraph, then, subject to sub-paragraph (2) below, it shall be deducted from or set off against the amount on which the taxpayer was chargeable to capital gains tax, or as the case may be corporation tax, for years of assessment or accounting periods preceding the year of assessment or accounting period in which occurred the relevant event giving rise to the terminal loss and falling wholly or partly within the period of fifteen years ending with the date of that event. 2 The amount of the terminal loss which, by virtue of sub-paragraph (1) above, is to be deducted from or set off against the amount on which the taxpayer was chargeable to capital gains tax, or as the case may be corporation tax, for any year of assessment or accounting period shall not exceed the amount of the gain which in that year or period was treated, by virtue of subsection (1)(b) of section 29 of this Act, as accruing to the taxpayer in respect of mineral royalties under the mineral lease or agreement in question ; and subject to this limit any relief given to the taxpayer by virtue of sub-paragraph (1) above shall be given as far as possible for a later rather than an earlier year of assessment or accounting period. 3 If in any case where relief has been given to the taxpayer in accordance with sub-paragraphs (1) and (2) above there remains an unexpended balance of the terminal loss which cannot be applied in accordance with those sub-paragraphs, there shall be treated as accruing to the taxpayer in the year of assessment or accounting period in which the relevant event occurs an allowable loss equal to that unexpended balance. 8 1 No claim under paragraph 4 or paragraph 6 above shall be allowed unless it is made within six years from the date of the relevant event by virtue of which the taxpayer is entitled to make the claim. 2 All such repayments of tax shall be made as may be necessary to give effect to any such claim. 9 This Part of this Schedule shall be construed as one with Part III of the Finance Act 1965. SCHEDULE 7 Stamp Duties Section 32. PART I Abolition of Certain Duties Duties abolished as from 1st August 1970 1 1 This paragraph has effect as from 1st August 1970. 2 The following stamp duties are hereby abolished — a the duty of 6d. specified in Schedule 1 to the Stamp Act 1891 under the heading beginning " Agreement or any Memorandum of an Agreement " (the provisions consequential on this abolition being those contained in sub-paragraph (3) below); b the duty of 6d. specified in that Schedule under the heading " Policy of Insurance other than Life Insurance " inserted by section 30(1) of the Finance Act 1959 (and so that a policy of insurance other than life insurance shall be exempt from all stamp duties); c the duty of £10 or £6 imposed on a certificate of registration for an alkali or other works by section 9(6) of the Alkali, &c. Works Regulation Act 1906 as amended by section 47 of the Finance Act 1922 ; and d the duty of 10s. imposed on the memorandum and on the articles of association of a company by virtue of section 3 and section 9(c) respectively of the Companies Act 1948 (which provide that each of those documents is to be stamped as if it were a deed). 3 In consequence of sub-paragraph (2)(d) above — a in subsections (1) and (2) of section 23 of the Stamp Act 1891 (certain mortgages of stock to be chargeable as agreements), for " shall be deemed to be an agreement, and shall be charged with duty accordingly" substitute " shall be exempt from duty ". b in section 59 of that Act (certain contracts for sale to be chargeable ad valorem as conveyances) — i in subsection (2) (sub-contracts under which the consideration does not exceed that for the original sale to be charged only as deeds or agreements), for " and in any other case with the fixed duty of ten shillings or of sixpence, as the case may require " substitute " but shall not otherwise be chargeable except where appropriate with the fixed duty of 10s. " , and ii in subsection (5) (stamping of conveyances made in conformity with contracts not stamped ad valorem but stamped with the fixed duty of 10s. or 6d.), for the words from the beginning to " the said fixed duty" substitute " Provided that where any such contract or agreement is stamped with the fixed duty of 10s. or would, apart from this section, not be chargeable with any duty " , and c in section 7 of the Finance Act 1907 (hire purchase agreements to be charged only as deeds or agreements), for the words from " shall be charged " to the end substitute " shall only be charged with stamp duty if under seal (or, in Scotland, with a clause of registration), and shall then be so charged as a deed ". Duties abolished as from 1st February 1971 2 1 This paragraph has effect as from 1st February 1971. 2 The following stamp duties are hereby abolished — a the duty of 2d. specified in Schedule 1 to the Stamp Act 1891 under the heading beginning "Bill of Exchange or Promissory Note" inserted by section 33(1) of the Finance Act 1961 ; and b the duty of 2d. specified in that Schedule under the heading beginning " Receipt". 3 No application for relief in respect of the duty referred to in sub-paragraph (2)(a) above may be made under any of sections 9 to 12 of the Stamp Duties Management Act 1891 (spoiled, misused and unwanted stamps); and no repayment shall be made under any agreement entered into under section 39 of the Finance Act 1956 (composition for the said duty by bankers) in respect of any form supplied by a banker to a customer and returned to the banker unused or spoiled on or after the said 1st February. PART II General Amendments 3 This Part of this Schedule, except paragraph 5, has effect as from 1st August 1970. Agreements for purposes of Highway Acts 4 An instrument shall be chargeable with stamp duty under the heading in Schedule 1 to the Stamp Act 1891 beginning "Agreement or Contract made or entered into pursuant to the Highway Acts " only if it is under seal, or, in Scotland, only if it has a clause of registration, and shall then be so chargeable with a duty of Is. Bank notes (composition) 5 1 This paragraph applies to any agreement under section 7 of the Bankers' Composition (Scotland) Act 1853 which is in force at the passing of this Act, and which makes provision for periodic payments, calculated by reference to the value of notes in circulation, in lieu of the duty chargeable under the heading " Bank Note " in Schedule 1 to the Stamp Act 1891. 2 As respects any period beginning after 26th December 1970, the payments due under any agreement to which this paragraph applies shall be calculated as if for any reference in the agreement to a rate of 4s. 2d. per £100 there were substituted a reference to a rate of 4s. per £100. Bearer instruments 6 1 The heading " Bearer Instrument" inserted in Schedule 1 to the Stamp Act 1891 by section 59(1) of the Finance Act 1963 shall be amended as follows. 2 In paragraph (3) (instrument excepted from paragraph (1) or (2) ; duty of 6d. for every £25, or part of £25, of market value), for " 6d." substitute " Is. ". and for " £25 " (in each place) substitute " £50 ". 3 In paragraph (4) (duty of 6d. on substituted instrument), for " 6d. " substitute " Is. ". 4 Where an overseas bearer instrument in respect of a loan expressed in sterling has been stamped ad valorem, or with the denoting stamp referred to in section 60(3) of the Finance Act 1963, or with duty under paragraph (4) of the said heading, duty shall not be charged under that heading by reason only that the instrument is amended on its face pursuant to an agreement for the variation of any of its original terms or conditions. Bond, covenant, etc. 7 1 The heading beginning " Bond, Covenant " in Schedule 1 to the Stamp Act 1891 shall be amended as follows. 2 In paragraph (1) (only or principal security for annuity or other periodic payment; duty of 2s. 6d. for every £5 or part if for an indefinite period), for the reference to 2s. 6d. substitute a reference to 2s. 3 In paragraph (2) (collateral etc. security for annuity or other periodic payment; duty of 6d. for every £5 or part if total amount payable cannot be ascertained), for the reference to 6d. substitute a reference to 1s., and for each reference to £5 substitute a reference to £10. 4 In paragraph (3) (grant or contract for payment of superannuation annuity ; duty of 6d. for every £5 or part), for the reference to 6d. substitute a reference to 1s., and for each reference to £5 substitute a reference to £10. Bonds not otherwise chargeable 8 In the heading " Bond of any kind whatsoever not specifically charged with any duty " in Schedule 1 to the Stamp Act 1891 (under which a bond is chargeable with the same ad valorem duty as one for the amount limited to be recoverable if that amount does not exceed £300, and with a duty of 10s. in any other case), for " £300 " substitute " £400 ". Contract notes 9 1 In section 77(1) of the Finance (1909-10) Act 1910 (duties on contract notes for sale or purchase of stock or marketable securities of £5 or more in value), for all the words after " the following stamp duties " substitute — Where the value of the stock or marketable security — exceeds £100 and does not exceed £500 2s. exceeds £500 and does not exceed £1,500 6s. exceeds £1,500 12s. 2 In consequence of sub-paragraph (1) above, in subsections (1) and (3) of section 78 of the said Act of 1910 (duty to execute contract note as respects stock etc. of £5 or more in value), for " the value of five pounds or upwards " or " a value of five pounds or upwards ", wherever occurring, substitute " a value exceeding £100 ". 3 In subsection (4) of the said section 78 (duty on contract note to be denoted by an appropriated adhesive stamp, and the stamp to be effectively cancelled), after " denoted" insert " either by an impressed stamp or ". and for " and the stamp " substitute " and any such adhesive stamp ". Conveyance or transfer on sale 10 For the Table set out in Part I of Schedule 11 to the Finance Act 1963 (ad valorem duty on conveyance or transfer on sale) as amended by section 27(1) of the Finance Act 1967 substitute the following: — Amount or value of consideration Special rate for certain instruments certified at £7,000 Ordinary rate Not exceeding £5 1s. 1s. Exceeding £5 but not exceeding £100. 1s. for every £10 or part of £10 of the consideration. 2s. for every £10 or part of £10 of the consideration. Exceeding £100 but not exceeding £300. 2s. for every £20 or part of £20 of the consideration. 4s. for every £20 or part of £20 of the consideration. Exceeding £300 5s. for every £50 or part of £50 of the consideration. 10s. for every £50 or part of £50 of the consideration. 11 In section 62(2) of the Finance Act 1963 (rate of duty in respect of a transfer of commonwealth government stock to be one-quarter of that which would otherwise be chargeable, or, if the amount or value of the consideration does not exceed £5, 3d.), for the words from " one-quarter " to the end substitute " Is. for every £20 or part of £20 of the consideration if the amount or value thereof does not exceed £300, and, in any other case, 5s. for every £100 or part of £100 of the consideration ". 12 Section 59(4) of the Stamp Act 1891 (contract for sale not stamped ad valorem but stamped with fixed duty of 10s. or 6d. to be treated as duly stamped for certain purposes) shall cease to have effect. 13 1 Section 114 of the Stamp Act 1891 (composition for stamp duty on transfers of colonial etc. stock) shall cease to have effect, but transfers of any stock in respect of which payments have been made under that section shall continue to be exempt from stamp duty. 2 In section 37(2) of the Finance Act 1939 (composition agreements in respect of colonial etc. stock: rate of payment per £100 of aggregate nominal amount of stock) for "three pence for every one hundred pounds and any fraction of one hundred pounds " substitute " Is. for every £400 and any fraction of £400 " ; and any agreement entered into for the purposes of the said section 37 before the passing of this Act shall, so far as it relates to payments to be made on or after 1st August 1970, have effect as if it provided for the making of those payments at the rate at which duty is chargeable under that section by virtue of this sub-paragraph. Lease or tack 14 In section 75(2) of the Stamp Act 1891 (duty of 6d. on lease or tack if preceded by an agreement duly stamped as an actual lease or tack), for " sixpence " substitute " Is. ". Loan capital duty 15 1 Where duty on a statement of loan capital is charged under section 8 of the Finance Act 1899 at the rate of 10s. for every £100, or part of £100, imposed by section 28(1) of the Finance Act 1967, any repayment in respect of that duty under section 10(1) of the Finance Act 1907 shall be at a rate of 19s. for every £200 of the loan capital shown to the satisfaction of the Commissioners to have been applied for the purpose of the conversion or consolidation of existing loan capital, instead of at the rate of 9s. 6d. for every £100 provided for by section 28(5) of the said Act of 1967. 2 Where — a there is for the purposes of the charge to duty under section 8 of the Finance Act 1899 an issue of loan capital by a body corporate consisting in the assumption by that body corporate of liability under a mortgage or charge subject to which property is conveyed or transferred to it by another body corporate, and b the conveyance or transfer is exempt from duty by virtue of section 42 of the Finance Act 1930 (associated companies), the first mentioned body corporate shall be treated as having applied the loan capital in the conversion of existing loan capital, and section 10 of the Finance Act 1907 shall have effect accordingly. Mortgages etc. 16 1 The heading beginning " Mortgage, Bond, Debenture, Covenant" in Schedule 1 to the Stamp Act 1891 shall be amended in accordance with sub-paragraphs (2) and (3) below. 2 In paragraph (1) of that heading (only, or principal or primary, security), for the words from " Not exceeding £10" to the end substitute — Not exceeding £300 1s. for every £50 or part of £50 of the amount secured. Exceeding £300. 2s. for every £100 or part of £100 of the amount secured . 3 In paragraphs (2), (4) and (5) of that heading (collateral etc. securities, transfers etc. and re-conveyances etc.: duty of 6d. for every £100 or part), for each reference to 6d. substitute a reference to 1s., and for each reference to £100 substitute a reference to £200. 4 The duty chargeable under paragraph (4) of the said heading on the transfer, assignment, disposition or assignation to any person of, or of the money or stock secured by, any collateral, auxiliary, additional or substituted security (including any instrument by way of further assurance) shall not exceed 10s. if a transfer, assignment, disposition or assignation to the same person of (or, as the case may be, of the money or stock secured by) the principal or primary security has been duly stamped with the duty chargeable under that paragraph. 5 Paragraph (5) of the said heading shall also be amended by inserting, after " Renunciation " , the words " in whole or in part" ; and the duty chargeable under that paragraph shall not in any case exceed 10s. Policies of life insurance 17 1 The following shall be substituted for the heading " Policy of Life Insurance " in Schedule 1 to the Stamp Act 1891 — POLICY OF LIFE INSURANCE — Where the amount insured exceeds £50 but does not exceed £1.000. 1s. for every £100 or part of £100 of the amount insured. Where the amount insured exceeds £1,000. 10s. for every £1,000 or part of £1,000 of the amount insured. And see sections 91, 98 and 100 . 2 In subsections (1) and (3) of section 47 of the Finance Act 1966 (maximum duty of 6d. on policy of life insurance made for period not exceeding two years), for " sixpence " substitute " Is. ". 3 A policy of life insurance which is made solely in connection with the re-insurance of a risk to which a policy duly stamped under the heading " Policy of Life Insurance " relates shall be chargeable with duty under that heading only if it is under seal, or, in Scotland, only if it has a clause of registration, and the duty then chargeable shall not exceed 10s. PART III Special Provisions Connected with the New Currency Bank notes (rates) 18 As from 15th February 1971, the heading "Bank Note" in Schedule 1 to the Stamp Act 1891 shall be amended by substituting for the references to 5d., 10d., Is. 3d., Is. 9d., 2s. 0d., 3s. 0d., 5s. 0d. and 8s. 6d. references respectively to 2p., 4p., 6p., 9p., 10p., 15p., 25p. and 43p. Late stamping etc. 19 1 Where immediately before 15th February 1971 any instrument chargeable with stamp duty is either not stamped or overstamped or insufficiently stamped, the amount of duty then chargeable, or properly chargeable, on the instrument, or, in the case of an insufficiently stamped instrument, the amount of additional duty then chargeable thereon, shall thereafter become, for all the purposes of the enactments relating to stamp duties — a the equivalent of that amount in the new currency, reduced where that equivalent is not a multiple of 5p. to the nearest such multiple, or b 5p. if the said equivalent is less than l0p. 2 In sub-paragraph (1) above, " the new currency " means the new currency of the United Kingdom provided for by the Decimal Currency Act 1967. SCHEDULE 8 Repeals Section 36(8). PART I Gaming Licence Duty Chapter Short Title Extent of Repeal The repeals in this Part of this Schedule do not apply as respects any gaming before 1st October 1970. 1966 c. 18 . The Finance Act 1966. Section 13. In section 15, in subsections (4) and (6) as amended by section 5(16) of the Finance Act 1969 the words " and 13 " and in subsection (6) the definitions of " gaming", " hereditament", and all other definitions from that of " premises " onwards. In Schedule 3, Part II, and in paragraph 18(1) the words " or the duty on gaming licences ", in paragraph 19(c) the word " 14 ", paragraph 19(d) and paragraph 21. 1968 c. 65 . The Gaming Act 1968. In Part III of Schedule 11 the amendments of section 13(4) of the Finance Act 1966 and in the amendment of section 15(6) of that Act the words from " the definitions of ' gaming ' " to the end. 1969 c. 32 . The Finance Act 1969. Section 4. In section 5(16) the words " and 13 ". Schedule 10. PART II Other Customs and Excise Repeals Chapter Short Title Extent of Repeal The repeals in the Vehicles (Excise) Act 1962 and the Vehicle and Driving Licences Act 1969 have effect as from 15th February 1971. 10 & 11 Eliz. 2. c. 13 . The Vehicles (Excise) Act 1962. Section 9(3). 1966 c. 18 . The Finance Act 1966. Section 12(2)(b) as respects bets made on or after 27th April 1970. 1968 c. 44 . The Finance Act 1968. Section 4(1) as respects bets made on or after 27th April 1970. 1969 c. 27 . The Vehicle and Driving Licences Act 1969. In section 8(3), the words from " and in making " to " disregarded ". 1969 c. 32 . The Finance Act 1969. Section 1(1)(b). Section 2 and Schedule 8 except as respects any period before 27th April 1970. PART III Occupational Pension Schemes Chapter Short Title Extent of Repeal 1965 c. 11 . The Ministerial Salaries and Members' Pensions Act 1965. Section 13(1)(a). 1970 c. 10 . The Income and Corporation Taxes Act 1970. Section 208 from the date appointed under section 21 of this Act. Section 209 from the corning into force of section 22 of this Act. Chapter 11 of Part IX from the coming into force of section 23 of this Act. Act of the Parliament of Northern Ireland 1965 c. 18 . The Ministerial Salaries and Members' Pensions Act (Northern Ireland) 1965. Section 12(1)(a). PART IV Stamp Duty Repeals having effect from 1st August 1970 Chapter Short Title Extent of Repeal This Part of this Schedule has effect as from 1st August 1970. 54 & 55 Vict. c. 39 . The Stamp Act 1891. Sections 22, 59(4), 99, 114 and 116. In Schedule 1, the heading beginning " Agreement or any Memorandum" (including the word " Exemptions " and all that follows); the heading " Contract"; in the heading " Defeazance", the words "Agreement, and"; in the heading beginning" Mortgage of Stock ", the words " Agreement, and "; and the heading " Policy of Insurance other than Life Insurance ". In Schedule 2, the Second Part. 57 & 58 Vict. c. 30 . The Finance Act 1894. Section 39. 61 & 62 Vict. c. 10 . The Finance Act 1898. Section 5. 6 Edw. 7. c. 14 . The Alkali, &c. Works Regulation Act 1906. Section 9(6). 9 Edw. 7. c. 34 . The Electric Lighting Act 1909. In section 19, the words from " and also " to the end. 10 & 11 Geo. 5. c. 18 . The Finance Act 1920. Section 37(1). 12 & 13 Geo. 5. c. 17 . The Finance Act 1922. Sections 46 and 47. 18 & 19 Geo. 5. c. 17 . The Finance Act 1928. Section 32. 2 & 3 Geo. 6. c. 41 . The Finance Act 1939. Section 37(4). 10 & 11 Geo. 6. c. 35 . The Finance Act 1947. Section 52. 11 & 12 Geo. 6. c. 38 . The Companies Act 1948. In section 3, the words " must bear the same stamp as if it were a deed, and"; and section 9(c) 12 & 13 Geo. 6. c. 47 . The Finance Act 1949. In Part I of Schedule 8, in paragraph 17 the words " under the heading Agreement or any Memorandum of an Agreement or " and the words from " and no other " to the end; and, in paragraph 27, the words from " (a warrant " to the end. 15 & 16 Geo. 6 and 1 Eliz. 2. c. 57 . The Marine and Aviation Insurance (War Risks) Act 1952. In section 7, subsections (2) and (3). 6 & 7 Eliz. 2. c. 56 . The Finance Act 1958. In section 35, the words " and the heading ' Agreement or any Memorandum of an Agreement' " in subsection (1)(a), and the whole of subsection (1)(b). 7 & 8 Eliz. 2. c. 58 . The Finance Act 1959. In section 30, subsections (1) to (3) and (4)(c). 10 & 11 Eliz. 2. c. 44 . The Finance Act 1962. Section 31. 1963 c. 25 . The Finance Act 1963. In section 57(1), the words "114 and", and the words " Finance Act 1939, section 37 ": and section 57(2). 1967 c. 54 . The Finance Act 1967. In section 27(1), the words "and Part I of Schedule 11 to ". 1967 c. 81 . The Companies Act 1967. In section 43(2)(b), the words " bearing the same stamp as if they were contained in a deed ". PART V Stamp Duty Repeals having Effect from 1st February 1971 Chapter Short Title Extent of Repeal 7 Geo. 4. c. 6 . The Bank Notes Act 1826. Section 7. 7 Geo. 4. c. 16 . The Chelsea and Kilmainham Hospitals Act 1826. Section 39. 3 & 4 Vict. c. 110 . The Loan Societies Act 1840. In section 14, the words from " nor any receipt" to "or order ". 27 & 28 Vict. c. 24 . The Naval Agency and Distribution Act 1864. In section 16, the words " bills, orders, receipts and other ". 28 & 29 Vict. c. 73 . The Naval and Marine. Pay and Pensions Act 1865. In section 6, the words " bills, orders, receipts and other ". 35 & 36 Vict. c. 93 . The Pawnbrokers Act 1872. In section 15, the words from " and such a receipt " to the end. 38 & 39 Vict. c. 83 . The Local Loans Act 1875. Section 19. 45 & 46 Vict. c. 61 . The Bills of Exchange Act 1882. In section 20(1), the word " stamped ", and the words " the stamp will cover ". 47 & 48 Vict. c 55 . The Pensions and Yeomanry Pay Act 1884. In section 5, the words " order, receipt and ". 54 & 55 Vict. c 39 . The Stamp Act 1891. In section 23, in subsections (1) and (2), the words " (not being a promissory note or bill of exchange)". Sections 32, 33, 35 to 39, and 101 to 103. PART VI Miscellaneous Repeals Chapter Short Title Extent of Repeal The repeal in Part II of Schedule 17 to the Finance Act 1969 has effect in accordance with section 31(6) of this Act. 57 & 58 Vict. c. 30 . The Finance Act 1894. In section 6(8), the words " with interest at the rate of three per cent, per annum from the date at which the first instalment is due ". 6 & 7 Geo. 6. c. 28 . The Finance Act 1943. Section 27 so far as it relates to interest accruing after the 14 Geo. 6. c. 21 . The Miscellaneous Financial Provisions Act 1950. In section 2, subsections (1) and (5) 15 & 16 Geo. 6 and 1 Eliz. 2. c. 10 . The Income Tax Act 1952. In section 2(1), the words " in excess of that amount ". 1964 c. 9 . The Public Works Loans Act 1964. Sections 7(2) and 9(3). 1967 c. 54 . The Finance Act 1967. Section 44. 1969 c. 32 . The Finance Act 1969. In section 41(2), the word " registered " in both places where it occurs. Section 57. In Schedule 17, in Part II paragraph 7(1), the words " subsisting at the date of the earlier death ". In Schedule 18, in Part I, the word " registered" in the first italic cross-heading. 1969 c. 50 . The Trustee Savings Banks Act 1969. In section 34(2) the words " and not exceeding £313s. 0d. per cent, per annum ". 1970 c. 10 . The Income and Corporation Taxes Act 1970. In section 3(1), the words " in excess of that amount". In section 14(1)(a), the words from " except "to" infirmity ". In section 19(8), the words " (and, in particular, in section 22 below) " Section 22. In section 37, subsection (3)(c) and the preceding " and ". In section 63(5) the words from " and, where part only " to the end of the subsection. Section 240(6) from the beginning of the first year of assessment for which company tax regulations have effect. In section 513, subsection (4). In Schedule 3, in paragraph 6, the words from " and shall apply " to the end. Schedule 9 from the beginning of the first year of assessment for which company tax regulations have effect. PART VII Obsolete or Unnecessary Provisions in Taxes Acts Chapter Short Title Extent of Repeal 1968 c. 3 . The Capital Allowances Act 1968. In section 15(4) (as inserted by paragraph 5(4) of Schedule 15 to the Income and Corporation Taxes Act 1970) the words from " for relief " to the end of the subsection. 1970 c. 9 . The Taxes Management Act 1970. In section 9(3), the words from the beginning to " partnership, but". In section 13(1), the words " in the prescribed form ". In section 118(2), the proviso. 1970 c. 10 . The Income and Corporation Taxes Act 1970. In section 25, the words " sections 5 to 19 and 22 of ". In section 26, the words " sections 5 to 19 and 22 of". In section 163(2) proviso, the words " in relation to disposals of assets after 5th April 1969 ". In subsections (2) and (3) of section 310, the words " to the satisfaction of the Board ". In section 311(1), the words " to the satisfaction of the Board " and " in the opinion of the Board ". In section 380(1), the words from " References in this subsection " to the end of the subsection. In section 515(5), the words from " and the reference " to the end of the subsection. In Schedule 14, paragraph 29. In Schedule 15, paragraph 13.

The Functions of Traffic Wardens Order 1970 In exercise of the power conferred upon me by section 81(3) of the Road Traffic Regulation Act 1967, and of subsections (4A) and (4B) of that section as inserted by section 131(6) of the Transport Act 1968, I hereby make the following Order, a draft of which has been laid before Parliament and has been approved by resolution of each House of Parliament: — 1 1 This Order may be cited as the Functions of Traffic Wardens Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 applies to the interpretation of this Order as it applies to the interpretation of an Act of Parliament. 3 The Functions of Traffic Wardens Order 1960 and the Functions of Traffic Wardens Order 1965 are hereby revoked. 4 This Order shall not extend to Scotland. 2 In this Order — “ the Act of 1960 ” and “ the Act of 1967 ” mean respectively the Road Traffic Act 1960 and the Road Traffic Regulation Act 1967; “ street parking place order ” means an order made under the Act of 1967 relating to a street parking place; “ traffic order ” means an order made under section 1, 5, 6, 9, 11 or 84A of the Act of 1967. 3 1 The functions set out in the Schedule to this Order are hereby prescribed as appropriate for discharge by traffic wardens. 2 For the purposes of the discharge by traffic wardens of such functions, references to a constable or police constable in the following enactments shall include references to a traffic warden — a section 52 of the Metropolitan Police Act 1839 so far as it relates to the giving by the commissioner of directions to constables for preventing obstruction; b section 22 of the local Act of the second and third year of the reign of Queen Victoria, chapter 94, so far as it makes similar provision with respect to the City of London; c sections 14 and 15 of the Act of 1960 (drivers and pedestrians to comply with traffic directions given by police constables); d section 229 of the Act of 1960 (the power of constables to obtain the names and address of pedestrians failing to comply with traffic directions); e section 242 of the Act of 1960 and section 89 of the Act of 1967 (the giving of evidence of an admission by certificate). 3 For the purposes of the discharge by traffic wardens of the functions set out in the Schedule to this Order, references in section 226(1) of the Act of 1960 to a police constable shall, in so far as it applies to the furnishing of names and addresses, include references to a traffic warden if the traffic warden has reasonable cause to believe that there has been committed and offence — a in respect of a vehicle by its being left or parked on a road during the hours of darkness (as defined by the Road Transport Lighting Act 1957 without the lights or reflectors required by law; b in respect of a vehicle by its obstructing a road, or waiting, or being left or parked, or being loaded or unloaded, in a road; c in contravention of section 14 of the Act of 1960; d in contravention of a provision of the Vehicles (Excise) Act 1962; e created by section 42 of the Act of 1967 (offences relating to parking places on highways where charges made). 4 References in section 225(1) and (4) of the Act of 1960 to a constable or police constable shall include references to a traffic warden only where — a the traffic warden is employed to perform functions in connection with the custody of vehicles removed from a road or land in the open air in pursuance of regulations made under section 20 of the Act of 1967 or from a parking place in pursuance of a street parking place order, and b he has reasonable cause to believe that there has been committed an offence in respect of a vehicle by its obstructing a road, or waiting, or being left or parked, or being loaded or unloaded, in a road. R. Maudling One of Her Majesty's Principal Secretaries of State Home Office Whitehall 16th December 1970 SCHEDULE FUNCTIONS OF TRAFFIC WARDENS Article 3 1 1 Traffic wardens may be employed to enforce the law with respect to an offence — a committed in respect of a vehicle by its being left or parked on a road during the hours of darkness (as defined by the Road Transport Lighting Act 1957) without the lights or reflectors required by law; or b committed in respect of a vehicle by its obstructing a road, or waiting, or being left or parked, or being loaded or unloaded, in a road or other public place; or c committed in contravention of a provision of the Vehicles (Excise) Act 1962; d created by section 42 of the Act of 1967 (offences relating to parking places on highways where charges made). 2 For the purposes of the enforcement of the law with respect to such of the offences described in sub-paragraph (1) of this paragraph as are offences to which section 80 of the Act of 1967 (which relates to the fixed penalty procedure) applies, other than an offence committed in respect of a vehicle by its obstructing a road or the offence created by section 16 of the Act of 1960 (which relates to leaving vehicles in dangerous positions), traffic wardens may exercise the functions conferred on constables by the said section 80 in an area to which the said section 80 extends. 2 1 Traffic wardens may, under arrangements made with the Secretary of State or a local authority, be employed to act as parking attendants at street parking places provided or controlled by the Secretary of State or local authority. 2 A traffic warden may exercise functions conferred on a traffic warden by a traffic order or a street parking place order. 3 Without prejudice to the generality of paragraph 1 above, traffic wardens may be employed in connection with obtaining information under section 232 of the Act of 1960 or section 85 of the Act of 1967 (duty to give information as to identity of driver, etc. in certain cases). 4 Traffic wardens may be employed to perform functions in connection with the custody of vehicles removed from a road or land in the open air in pursuance of regulations under section 20 of the Act of 1967 or from a parking place in pursuance of a street parking place order. 5 Where a police authority provides school crossing patrols under section 24 of the Act of 1967, whether as the appropriate authority or by agreement with the appropriate authority, traffic wardens appointed by that police authority may be employed to act as school crossing patrols. 6 1 Subject to the foregoing paragraphs, traffic wardens may be employed in the control and regulation of traffic (including foot passengers) or vehicles whether on a highway or not and to discharge any other functions normally undertaken by the police in connection with the control and regulation of traffic (including foot passengers) or vehicles. 2 Nothing in this paragraph shall permit the functions described in sub-paragraph (1) to be exercised by a traffic warden who is in a moving vehicle.

The British Transport Docks Board (Alteration of Pension Schemes) Order 1970 The Minister of Transport, in exercise of his powers under section 74 of the Transport Act 1962 and of all other enabling powers, hereby makes the following Order: — Commencement, citation and interpretation 1 1 This Order shall come into operation on the 14th September 1970, and may be cited as the British Transport Docks Board (Alteration of Pension Schemes) Order 1970. 2 In this Order, unless the context otherwise requires — “ the Board ” means the British Transport Docks Board; “ funded scheme ” means a pension scheme (not being an insurance scheme) where the pensions are payable out of a fund held by any person for the purposes of the scheme; “ insurance scheme ” means a pension scheme where the pensions are provided by means of contracts or policies made or effected with an insurance company carrying on life assurance business within the meaning of the Insurance Companies Act 1958 (including contracts or policies made or effected with such a company for the purpose of implementing any form of private superannuation fund); “ the Male Wages Grades Scheme ” means the pension scheme established by the British Transport Commission (Male Wages Grades Pensions) Regulations 1954 , as amended , (as that scheme now has effect subject to the provisions of any Order made by the Minister under section 74 of the Transport Act 1962); “ the Minister ” means the Minister of Transport; “ the New Fund ” means the British Transport Docks Board (Salaried Staff) Pension Scheme which is a funded pension scheme established by the Board, with the consent of the Minister, under the terms of an Interim Trust Deed executed by the Board on the 19th August 1970; “ the persons administering ”, in relation to a pension scheme, means the persons responsible for administering the scheme under the terms thereof, and includes the trustees (if any) of the scheme: “ the service ” means whole time employment with the Board or with a subsidiary of the Board; and “ term ”, in relation to a pension scheme to which this Order applies, includes any rule or provision of the scheme, or of any statutory provision relating to the scheme, or of any deed or other instrument made for the purposes of the scheme. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. Application of Order 2 1 This Order shall apply to the New Fund, the Male Wages Grades Scheme and the other pension schemes mentioned in this Order. 2 A pension scheme to which this Order applies shall be construed and have effect as if the relevant provisions of this Order were terms of the scheme, any other term thereof, whether expressed or implied, to the contrary notwithstanding. Application of interavailability provisions to New Fund 3 The provisions of the British Transport Reorganisation (Pensions of Employees) ( No. 1) Order 1964 (so far as applicable) and of Articles 3 and 4 of the British Transport (Pensions of Employees) (No. 1) Order 1969 (which relate to the interavailability of pension schemes in the publicly owned transport industry) shall on and after the 14th September 1970 apply in relation to the New Fund as if that fund were an established scheme as defined in Article 2 of the said (No. 1) Order of 1969. Alterations in the terms of the Male Wages Grades Scheme 4 1 This Article shall apply to the Male Wages Grades Scheme. 2 Any person in the service who is a member of the Male Wages Grades Scheme and who becomes a member of the New Fund on or after the 14th September 1970 shall, on becoming such a member, cease to be a member of the Male Wages Grades Scheme. 3 The terms of the Male Wages Grades Scheme which require persons to become members of Section B of that Scheme shall not apply to — a any person referred to in paragraph (2) of this Article, or b any other person who becomes a member of the New Fund on or after the 14th September 1970. 4 A person who becomes a member of the New Fund on or after the 14th September 1970 shall at all times after becoming a member thereof be ineligible for membership of either Section A or Section B of the Male Wages Grades Scheme. 5 Where a person ceases to be a member of the Male Wages Grades Scheme under the foregoing provisions of this Article, the New Fund shall be credited with a sum equal to the contributions paid by such person to the Male Wages Grades Scheme. 6 Where under the foregoing provisions of this Article a person who has a right of re-admission to the Male Wages Grades Scheme becomes ineligible for membership thereof, that right of re-admission shall terminate. Alterations in the terms of certain schemes for providing pensions and other benefits 5 1 This Article shall apply to the pension schemes listed in Schedule 1 to this Order. 2 A person who becomes a member of the New Fund on or after the 14th September 1970 shall, so long as he is a contributing member of the New Fund, be ineligible for membership of a pension scheme to which this Article applies. 3 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 14th September 1970, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall cease to be a member of that pension scheme, his right to receive benefit from that scheme shall cease, and (except as hereinafter provided) his liability to pay contributions to that scheme (where the scheme is a contributory scheme) shall cease; and b as soon as may be after that date the persons administering that pension scheme shall pay to the New Fund an appropriate transfer value in respect of the accrued pension rights of that member in that scheme. 4 Where under the foregoing provisions of this Article a person who has a right of re-admission to a pension scheme to which this Article applies becomes ineligible for membership thereof, that right of re-admission shall not be exercisable so long as the ineligibility continues. Alterations in the terms of certain insurance schemes 6 1 This Article shall apply to the pension schemes listed in Schedule 2 to this Order. 2 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 14th September 1970, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall (subject to this Order) cease to be liable to pay contributions to that scheme; and b as soon as may be after that date the Board shall make such arrangements as may be appropriate to secure to that member by means of non-assignable and non-commutable insurance policies his accrued pension rights in that scheme. Alterations as respects ex-gratia schemes 7 1 Subject to paragraph (2) of this Article, where a person who has an expectation of benefit from a pension scheme of the Board which originated in a customary practice of a predecessor of the Board becomes a member of the New Fund on or after the 14th September 1970, his expectation of benefit from that scheme shall cease. 2 Paragraph (1) of this Article shall not apply in relation to the supplementary pension scheme for officers and certain other salaried staff of the former London and North Eastern Railway Company who were in the Special Class (or equivalent) at the 31st December 1947. Ascertainment of transfer values 8 1 Where under any of the foregoing provisions of this Order there falls to be paid in relation to a member of a pension scheme to which this Order applies a transfer value in respect of his accrued pension rights in that scheme, then — a if the scheme is a funded scheme, the amount to be paid shall be ascertained by first determining the portion of the funds of that scheme properly attributable to the accrued pension rights of that member in that scheme and then by deducting therefrom such sum as may be necessary to cover the cost actually incurred by the persons administering that scheme in making the apportionment and the payment and also an amount equal to any income tax which may then become payable by virtue of regulations made, or having effect as if made, under section 208 of the Income and Corporation Taxes Act 1970; b if the scheme is not a funded scheme, the amount to be paid shall be ascertained by first determining a sum representing the value of the accrued pension rights of that member in that scheme and then by deducting therefrom such sum as may be necessary to cover the cost actually incurred by the persons administering that scheme in making the determination and the payment. 2 Any payment of a transfer value under any provision of this Order may take the form of a transfer of securities, deposits or other assets, valued as at the date of the transfer, and any question whether a transfer value shall be paid in cash or in the form of such a transfer as aforesaid shall be determined in each case when the transfer value falls to be paid. Consequential provisions 9 1 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies and which is a contributory scheme, or otherwise ceases to be liable to pay contributions to that scheme, such cessation shall be without prejudice to the obligation of that person to pay any outstanding contributions to that scheme in respect of any period before such cessation and at the rate appropriate to that period, or to the right of his employer to deduct such contributions from his emoluments. 2 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies, his rights to benefit from that scheme shall, except as otherwise provided in this Order, terminate with the cessation of his membership of that scheme. Determination of questions 10 Where under the foregoing provisions of this Order any matter or thing is to be determined in relation to a member of a pension scheme to which this Order applies who becomes a member of the New Fund, that matter or thing shall be determined by agreement between the persons administering that pension scheme on the one hand and the persons administering the New Fund on the other hand or, in default of such agreement, by the Minister. Safeguarding of existing rights 11 No person who is a member of, or has a right of re-admission to, a pension scheme to which this Order applies (other than the New Fund) shall be required by a term of his employment in the service to become a member of the New Fund. Sealed with the Official Seal of the Minister of Transport the 28th August 1970. John Peyton Minister of Transport SCHEDULE 1 SCHEMES FOR PROVIDING PENSIONS AND OTHER BENEFITS Aire and Calder Navigation Superannuation Fund. British Railways Superannuation Fund — L.N.E.R. Section G.W.R. Section S.R. Section L.M.S.R. Section. British Transport Docks Board (Wages Grades) Pension Scheme. Grand Union Canal Company Superannuation Fund. Humber Conservancy Board Superannuation Scheme. Humber Pilot's Steam Cutter Co. Ltd. Superannuation Scheme. London Transport (Administrative and Supervisory) Staff Superannuation Fund. National Freight Salaried Staff Pension Fund. Railway Clearing System Superannuation Fund. Southampton Harbour Retirement Benefits Scheme (1960). SCHEDULE 2 INSURANCE SCHEMES Burgess&Company Ltd. Assurance Scheme. T. H. Couch Ltd. Assurance Scheme. Fletchers (Stevedores) Ltd. Assurance Scheme. Grand Union Canal Carrying Company Ltd. Superannuation Scheme.

The Double Taxation Relief (Taxes on Income) (General) Regulations 1970 The Commissioners of Inland Revenue in exercise of the powers conferred upon them by section 351 of the Income Tax Act 1952 and section 64 of the Finance Act 1965 hereby make the following Regulations: — 1 1 These Regulations may be cited as the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 and shall come into operation on 6th April 1970. 2 The Interpretation Act 1889 shall apply to these Regulations as it applies to an Act of Parliament. 3 In these Regulations “ the Board ” means the Commissioners of Inland Revenue ; “ year ” means year of assessment . 4 Except in relation to payments which are income of the year 1969-70 or an earlier year the Double Taxation Relief (Taxes on Income) (General) Regulations 1966 shall cease to have effect from 6th April 1970: Provided that any notice, direction or claim given or made under Regulation 2, 9 or 11 of the said Regulations of 1966 (including any notice, direction or claim having effect as if so given or made) which was in force immediately before the coming into operation of these Regulations shall continue in force as if given or made under the corresponding provision of these Regulations and the following provisions of these Regulations shall apply accordingly. 2 1 The following provisions of these Regulations shall have effect where, under arrangements having effect under section 497 of the Income and Corporation Taxes Act 1970, persons resident in the territory with the Government of which the arrangements are made are entitled to exemption or partial relief from United Kingdom income tax in respect of any income from which deduction of tax is authorised or required by the Income Tax Acts. 2 Any person who pays any such income (referred to in these Regulations as “ the United Kingdom payer ”) to a person in the said territory who is beneficially entitled to the income (such person being referred to in these Regulations as “ the non-resident ”) may be directed by a notice in writing given by or on behalf of the Board that in paying any such income specified in the notice to the non-resident he shall — a not deduct tax, or b not deduct tax at a higher rate than is specified in the notice, or c deduct tax at a rate specified in the notice instead of at the standard rate otherwise appropriate; and where such notice is given, any income to which the notice refers, being income for a year for which the arrangements have effect, which the United Kingdom payer pays after the date of the notice to the non-resident named therein shall, subject to the following provisions of these Regulations, be paid as directed in the notice: Provided that income specified in a notice given under this paragraph shall not include distributions in respect of which income tax is chargeable under Schedule F. 3 Where a notice given under Regulation 2(2) directs the United Kingdom payer to deduct tax at a rate specified in the notice, the provisions of the Income Tax Acts under which he would, but for the notice, have been chargeable with or liable to account for all or part of any tax deducted at the standard rate shall apply as if those Acts required him to deduct tax at the rate so specified. 4 1 Where but for a notice given under Regulation 2(2) the United Kingdom payer would have been entitled to retain any income tax deductible on making any payment, there shall be made to him against the income tax otherwise payable by him for the relevant year an allowance equal to the amount of tax which, but for the notice, he would have been entitled to retain on making the payment but in compliance with the notice has not deducted. 2 “ The relevant year ” means the year the standard rate for which would (but for the notice) have determined the amount of the deduction authorised . 5 The United Kingdom payer shall not, in respect of any payment, be charged with or liable to account for any tax which, but for a notice given under Regulation 2(2), he would have been required by the Income Tax Acts to deduct and account for on making the payment but in compliance with the notice has not deducted. 6 Where in compliance with a notice given under Regulation 2(2) a company makes the payment without deducting tax which, but for the notice, it would have been required to deduct in accordance with section 53 or 54 of the Income and Corporation Taxes Act 1970, the payment shall be treated for the purposes of section 248(4) of that Act (which prohibits certain payments from being treated as charges on income for corporation tax) as if the company had deducted that tax in accordance with the said section 53 or 54 and had accounted for it under Part XI of that Act. 7 Where, but for a notice given under Regulation 2(2), a person would have been chargeable with tax under section 53 of the Income and Corporation Taxes Act 1970 in respect of any such payment as is mentioned in subsection (1) thereof, the provisions of the Income Tax Acts relating to relief for losses shall apply as if the tax which he would have been so chargeable but in accordance with Regulation 5 is not so chargeable had been paid by him under an assessment under the said section 53. 8 Any notice given under Regulation 2(2) may be expressed to become ineffective if certain specified events happen, or, whether so expressed or not, may be cancelled by a notice of cancellation given by or on behalf of the Board, and if to the knowledge of the United Kingdom payer any of those events happens or if such notice of cancellation is given, any payment made to the non-resident by the United Kingdom payer after the happening of that event becomes known to the United Kingdom payer or after the receipt of that notice, as the case may be, shall be subject to deduction of tax in accordance with the Income Tax Acts. 9 If it is discovered after a notice has been given under Regulation 2(2) that the non-resident is not entitled to exemption or partial relief from tax in respect of income referred to in the notice, any tax which, but for the notice, would have been deductible from any payment made to the non-resident by the United Kingdom payer but in compliance with the notice has not been so deducted — a may be assessed on the non-resident under Case VI of Schedule D by an Inspector, or b shall, if a direction to that effect is given by or on behalf of the Board, be deducted by the United Kingdom payer out of so much of the first payment made to the non-resident after the date of the direction as remains after the deduction of any tax deductible therefrom under the Income Tax Acts, and any balance which cannot be deducted out of the first such payment shall be deducted, subject to the same limitation, out of the next such payment. and so on until the whole of the tax (the amount of which shall be specified in the direction) has been deducted. Any tax which the United Kingdom payer is required to deduct under paragraph (b) of this Regulation shall be accounted for as if it was tax deductible under section 53 of the Income and Corporation Taxes Act 1970 in respect of the payment from which it is deducted. 10 A notice may be given under Regulation 2(2) where income is paid to a person authorised to receive that income on behalf of the non-resident, and in such a case the references in these Regulations to payment to the non-resident shall be treated as including references to payment to that person. 11 Regulations 2(2) and 8 shall not apply to payments in respect of coupons for any interest. but any such payments may, under arrangements approved by the Board, be made without deduction of tax or with tax deducted at a rate specified in the arrangements, if the non-resident or any person acting on his behalf makes a claim to the United Kingdom payer to that effect in such form as may be prescribed by the Board, and in the case of any payments so made Regulations 3 to 7 inclusive and Regulation 9 shall, with any necessary modifications, apply as if the claim were a notice given under Regulation 2(2). By order of the Commissioners of Inland Revenue. J. A. Johnstone Secretary 24th March 1970

Riding Establishments Act 1970 Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows: — Provisional licences for riding establishments. 1 1 In any case in which application is made under the principal Act to a local authority for a licence to keep a riding establishment and the local authority are not satisfied that having regard to all the circumstances they would be justified in granting such licence they may grant a provisional licence which shall come into force at the beginning of the day on which it is granted and shall remain in force for three months. 2 A local authority may on application being made to them in that behalf before the expiration of a provisional licence extend the said period of three months for a further period not exceeding three months: Provided that they shall not under this subsection authorise a person to keep a riding establishment by virtue of a provisional licence for more than six months in any period of one year. 3 The following provisions of the principal Act as amended by this Act shall apply and have effect in all respects as if references therein to a licence included references to a provisional licence and as if references therein to licences granted under that Act included references to provisional licences granted under this Act, that is to say, section 1(1), (2), (3), (4), (4A), (8) and (9) and sections 2, 3, 4 and 5: Provided that in the application as aforesaid of subsection (8) of section 1 of the principal Act to the personal representatives of the holder of a provisional licence the said subsection shall be read and have effect as if for the words " one year " in each place where they occur there were substituted the words " three months ". 4 For the purposes of this section the expression " local authority " has the same meaning as in the principal Act. Amendment of section 1 of principal Act. 2 1 Section 1 (Licensing of riding establishments) of the principal Act shall be read and have effect as if — i in place of the words " on payment of a fee of " in subsection (2) thereof there were substituted the words " on payment of a fee not exceeding " , and ii in place of subsection (4) thereof there were substituted the following subsections (namely); — 4 In determining whether to grant a licence for the keeping of a riding establishment by any person at any premises a local authority shall in particular (but without prejudice to their discretion to withhold a licence on any grounds) have regard to — a whether that person appears to them to be suitable and qualified, either by experience in the management of horses or by being the holder of an approved certificate or by employing in the management of the riding establishment a person so qualified, to be the holder of such a licence; and b the need for securing — i that paramount consideration will be given to the condition of horses and that they will be maintained in good health, and in all respects physically fit and that, in the case of a horse kept for the purpose of its being let out on hire for riding or a horse kept for the purpose of its being used in providing instruction in riding, the horse will be suitable for the purpose for which it is kept; ii that the feet of all animals are properly trimmed and that, if shod, their shoes are properly fitted and in good condition; iii that there will be available at all times, accommodation for horses suitable as respects construction, size, number of occupants, lighting, ventilation, drainage and cleanliness and that these requirements be complied with not only in the case of new buildings but also in the case of buildings converted for use as stabling; iv that in the case of horses maintained at grass there will be available for them at all times during which they are so maintained adequate pasture and shelter and water and that supplementary feeds will be provided as and when required; v that horses will be adequately supplied with suitable food, drink and (except in the case of horses maintained at grass, so long as they are so maintained) bedding material, and will be adequately exercised, groomed and rested and visited at suitable intervals; vi that all reasonable precautions will be taken to prevent and control the spread among horses of infectious or contagious diseases and that veterinary first aid equipment and medicines shall be provided and maintained in the premises; vii that appropriate steps will be taken for the protection and extrication of horses in case of fire and, in particular, that the name, address and telephone number of the licence holder or some other responsible person will be kept displayed in a prominent position on the outside of the premises and that instructions as to action to be taken in the event of fire, with particular regard to the extrication of horses, will be kept displayed in a prominent position on the outside of the premises; viii that adequate accommodation will be provided for forage, bedding, stable equipment and saddlery; and shall specify such conditions in the licence, if granted by them, as appear to the local authority necessary or expedient in the particular case for securing all the objects specified in sub-paragraphs (i) to (viii) of paragraph (b) of this subsection. 4A Without prejudice to the provisions of subsection (2) or (4) of this section, every licence granted under this Act after 31st December 1970 shall be subject to the following conditions (whether they are specified in the licence or not), namely — a a horse found on inspection of the premises by an authorised officer to be in need of veterinary attention shall not be returned to work until the holder of the licence has obtained at his own expense and has lodged with the local authority a veterinary certificate that the horse is fit for work; b no horse will be let out on hire for riding or used for providing instruction in riding without supervision by a responsible person of the age of 16 years or over unless (in the case of a horse let out for hire for riding) the holder of the licence is satisfied that the hirer of the horse is competent to ride without supervision; c the carrying on of the business of a riding establishment shall at no time be left in the charge of any person under 16 years of age; d the licence holder shall hold a current insurance policy which insures him against liability for any injury sustained by those who hire a horse from him for riding and those who use a horse in the course of receiving from him, in return for payment, instruction in riding and arising out of the hire or use of a horse as aforesaid and which also insures such persons in respect of any liability which may be incurred by them in respect of injury to any person caused by, or arising out of, the hire or use of a horse as aforesaid; e a register shall be kept by the licence holder of all horses in his possession aged three years and under and usually kept on the premises which shall be available for inspection by an authorised officer at all reasonable times. 2 Subsection (5) of the said section 1 shall be read and have effect as if after the words " proposed to be granted " there were inserted the words " (not being one of the conditions set out in subsection (4A) of this section) ". and subsection (9) of that section shall be read and have effect as if for the words from " subject" to " Act" there were substituted the words " to which a licence under this Act is subject (whether by virtue of subsection (4A) of this section or otherwise) ". Amendment of section 3 of principal Act. 3 Section 3 (Offences) of the principal Act shall be read and have effect as if after subsection (1)(a) thereof there were inserted the following paragraph — aa lets out on hire for riding or uses for the purpose of providing, in return for payment, instruction in riding or for the purpose of demonstrating riding any horse aged three years or under or any mare heavy with foal or any mare within three months after foaling; . Amendment of section 4 of principal Act. 4 Subsection (1) of section 4 (Penalties and disqualifications) of the principal Act shall be read and have effect as if the maximum fine which may be imposed on summary conviction of an offence under that Act as amended by this Act were a fine not exceeding £50: Provided that nothing in this section shall affect the amount of the fine which may be imposed on conviction of an offence committed before the commencement of this Act. Amendment of section 6 of principal Act. 5 Section 6 (Interpretation) of the principal Act shall be read and have effect as if in subsection (4) thereof after the words " that is to say " there were inserted the following definitions (namely) — ' approved certificate ' means — any one of the following certificates issued by the British Horse Society, namely. Assistant Instructor's Certificate, Instructor's Certificate and Fellowship; Fellowship of the Institute of the Horse; or any other certificate for the time being prescribed by order by the Secretary of State; ' authorised officer ' means a person authorised by a local authority in pursuance of section 2 of this Act; . Orders. 6 The principal Act shall be read and have effect as if after section 6 thereof there were inserted the following section — 6A Any order made under this Act shall be made by statutory instrument and may be varied or revoked by a subsequent order made in the like manner. . Interpretation. 7 In this Act the " principal Act " means the Riding Establishments Act 1964. Short title, citation and commencement. 8 1 This Act may be cited as the Riding Establishments Act 1970 and the principal Act and this Act may be cited together as the Riding Establishments Acts 1964 and 1970. 2 This Act shall not extend to Northern Ireland. 3 This Act shall come into operation on 1st January 1971.

The Merchant Shipping (Certificates of Competency as A.B.) Regulations 1970 The Board of Trade in exercise of their powers under section 5 of the Merchant Shipping Act 1948 as having effect by virtue of the Transfer of Functions (Shipping and Construction of Ships) Order 1965 and of all other powers enabling them in that behalf hereby make the following Regulations: — Operation and citation 1 These Regulations shall come into operation on 16th March 1970 and may be cited as the Merchant Shipping (Certificates of Competency as A.B.) Regulations 1970. Interpretation and Revocation 2 1 The Interpretation Act 1889 shall apply to the interpretation of these Regulations as it applies to the interpretation of an Act of Parliament and as if these Regulations and the Regulations hereby revoked were Acts of Parliament. 2 In these Regulations, unless the context otherwise requires — “ the 1948 Act ” means the Merchant Shipping Act 1948; “ the Board ” means the Board of Trade; “ major ship ” means a ship having in the case of a sailing ship a gross tonnage of 40 tons or more and in the case of any other ship a gross tonnage of 100 tons or more; “ minor ship ” means a ship (not being a ship having a gross tonnage of less than 15 tons) having in the case of a sailing ship a gross tonnage of less than 40 tons and in the case of any other ship a gross tonnage of less than 100 tons; “ the principal Act ” means the Merchant Shipping Act 1894; “ the Registrar General ” means the Registrar General of Shipping and Seamen; “ responsible authority ” means in relation to a school or course the person in charge of that school or course as the case may be; and “ satisfactorily ” means to the satisfaction of the responsible authority. 3 The Merchant Shipping (Certificates of Competency as A.B.) Regulations 1959 , as amended , are hereby revoked. Prescribed dates 3 The prescribed dates for the purposes of section 5(1), (5) and (6) of the 1948 Act shall continue to be the dates prescribed by Regulation 2 of the Merchant Shipping (Certificates of Competency as A.B.) Regulations 1952 , namely, the 30th April 1953, the 30th April 1953, and the 1st May 1953, respectively. Conditions for the grant of certificates of competency 4 A certificate of competency shall not be granted to any person unless either — 1 a he has attained the age of 18 years, and b has performed the appropriate qualifying service at sea specified for the purpose of this Regulation in Regulations 8 and 9 of these Regulations, and c has passed an examination in the subjects specified in the syllabus set out in Schedule 1 to these Regulations, and d is the holder of a certificate of efficiency as lifeboatman issued under the rules for life-saving appliances, and e has, otherwise than for the purpose of receiving instruction therein taken turns at the wheel in steering a major ship, not being a fishing boat, for periods totalling not less than 10 hours; or 2 he was on or before the 1st May 1952 serving in the rating of A.B. or in an equivalent or superior deck rating in a ship for which an agreement with the crew was required under Part II of the principal Act. Application for examination 5 Subject to the following Regulation — 1 a person shall not be eligible to take the examination referred to in condition (1)(c) of the preceding Regulation unless he has either — a i attained the age of 18 years, and ii otherwise than for the purpose of receiving instruction therein, taken turns at the wheel in steering a major ship, not being a fishing boat, for periods totalling not less than 10 hours, and iii performed the appropriate qualifying service at sea specified for the purpose of this Regulation in Regulations 8 and 9 of these Regulations; or b served at sea in an engine room rating and satisfactorily completed a conversion course approved by the Board providing training in the duties of a deck rating for persons who have served in an engine room rating. 2 Application to take the examination may be made at any Mercantile Marine Office. 3 Every such application shall be in such form as the Board may sanction and shall, except in cases to which paragraph (6) of this Regulation applies, be accompanied by — a in the case of an applicant complying with the requirements of paragraph (1)(a) of this Regulation — i certificates of discharge, and such other certificates signed by the masters of ships in which the applicant has served, as may be necessary to establish to the satisfaction of the Superintendent that the applicant has performed the necessary qualifying service, and also, in any case in which any reduction in the period of such qualifying service is claimed under the provisions of Regulation 9, the certificate or certificates therein referred to; and ii a certificate or certificates showing that the applicant has complied with the requirements of paragraph (1)(a)(ii) of this Regulation (steering experience); b in the case of an applicant complying with the requirements of paragraph 1(b) of this Regulation, such certificates or other evidence as may be necessary to establish to the satisfaction of the Superintendent that the applicant has served at sea in an engine room rating and has satisfactorily completed the conversion course therein referred to. 4 Every such application duly completed shall be lodged with the Superintendent who shall, if satisfied that the applicant is eligible to take the examination, ensure that the applicant is notified in due course of the arrangements made for his examination, or, if not so satisfied, inform the applicant in writing that his application is refused stating the reasons. 5 On completion of every examination, the examiner shall inform the applicant of the result thereof and shall record the result on his form of application and return the form to the Superintendent. 6 A person who has complied with conditions (1)(a), (b), (d) and (e) of Regulation 4 may when applying to take the examination apply also for the grant, should he pass the examination, of a certificate of competency, in which case — a the application shall be accompanied by the documents described in Regulation 7(2); b paragraphs (4) and (5) of this Regulation shall apply; and c the Superintendent shall, on being notified that the applicant has passed the examination and if he is satisfied that the applicant is entitled to the grant of a certificate of competency, cause such a certificate to be issued to the applicant, or, if not so satisfied, inform the applicant in writing that his application for the certificate is refused stating the reasons. 6 The examination referred to in condition (1)(c) of Regulation 4 may, in the case of a person undergoing a course of pre-sea training at a nautical training school specified in Part 1 of Schedule 2 to these Regulations and marked therein with an asterisk, be taken by that person at that school in stages during that course in accordance with arrangements made by the authority responsible for the school and approved by the Board. Application for certificates of competency 7 1 Without prejudice to the provisions of Regulation 5(6), a person who has complied with the requirements of Regulation 4 of these Regulations may apply at any Mercantile Marine Office for the grant of a certificate of competency. 2 Every such application shall be in such form as the Board may sanction and shall be accompanied — a in the case of an applicant who has complied with the requirements of Regulation 4(1), by — i certificates of discharge, and such other certificates signed by the masters of ships in which the applicant has served, as may be necessary to establish to the satisfaction of the Superintendent that the applicant has performed the necessary qualifying service, and also, in any case in which any reduction in the period of such qualifying service is claimed under provisions of Regulation 9, the certificate or certificates therein referred to; ii a certificate of efficiency as a lifeboatman issued under the rules for life-saving appliances; and iii certificates showing to the satisfaction of the Superintendent that the applicant has complied with conditions (1)(c) and (e) of Regulation 4; b in the case of an applicant who claims to be qualified by virtue of the provisions of Regulation 4(2), by certificates of discharge or a certificate of service issued by the Registrar General sufficient to establish to the satisfaction of the Superintendent that the applicant is so qualified. 3 Every such application duly completed shall be lodged with the Superintendent of the Mercantile Marine Office who shall if satisfied that the applicant is entitled to the grant of a certificate of competency cause such a certificate to be issued to the applicant, or, if not so satisfied, inform the applicant in writing that his application is refused stating the reasons. Qualifying service at sea 8 1 Qualifying service at sea for the purposes of Regulations 4(1) and 5(1)(a) of these Regulations shall be either — a service in a deck rating in a ship other than a ship having a general purpose or integrated crew (referred to in this Regulation as “ service in a deck rating ”) , or b service in a general purpose rating in a ship having a general purpose or integrated crew (referred to in this Regulation as “ service in a general purpose rating ”) , or c service partly in the one and partly in the other of the above mentioned ratings (referred to in this Regulation as “ mixed service ”). 2 Subject to the following provisions of this Regulation and the provisions of Regulation 9, the period of qualifying service shall be as follows: — a for the purposes of Regulation 5(1)(a) — i in the case of service in a deck rating, 12 months; ii in the case of service in a general purpose rating, 18 months; iii in the case of mixed service, a period of between 12 and 18 months such that the component periods of service in a deck rating and in a general purpose rating respectively, expressed as percentages of the periods prescribed in relation thereto in sub-paragraphs (i) and (ii), total 100 per cent; b for the purposes of Regulation 4(1), in the case of each type of service the period specified in relation thereto in sub-paragraph (a) of this paragraph plus a further period of 2 years. 3 In calculating the length of periods of qualifying service for the purpose of paragraph (2) of this Regulation — a a period of service in a minor ship shall count as one half of the period actually so served; b service in a ship having a gross tonnage of less than 15 tons shall be disregarded; c every day by which a period of actual service in a ship exceeds the number of months comprised in that period, and every day of such service comprised in a period of actual service of less than one month, shall be treated as 1/30th of a month of actual service; d the length of every period of actual service in a ship shall be calculated separately from the date of its commencement to the date of its termination. 4 Every period of qualifying service shall include a proportion of service in major ships other than fishing boats, amounting to not less than 25 per cent. Reduction of qualifying service at sea 9 1 Subject to the provisions of paragraph (3) of this Regulation, a person producing a certificate given by the responsible authority showing that he has satisfactorily completed or passed — a a course of pre-sea training at a nautical training school specified in Part I of Schedule 2 to these Regulations, shall be entitled to a reduction — i in the period of qualifying service required under Regulation 8(2)(a) of 4 weeks; ii in the period of qualifying service required under Regulation 8(2)(b), of one month for each period of 4 weeks attendance and training on that course, less any reduction made pursuant to sub-paragraph (i); b both a course described in sub-paragraph (a) and a course of pre-sea training at a training school specified in Part 2 of the said Schedule, shall be entitled to a reduction in the period of qualifying service required under Regulation 8(2)(b) of one month for each period of 4 weeks attendance and training on each of the two courses specified; c as a member of the Sea Cadet Corps the pre-sea training course for Cadet Petty Officers sponsored by that Corps, shall be entitled to a reduction in the period of qualifying service required under Regulation 8(2)(b) of 3 months. 2 A person who has served at sea in an engine room rating and has satisfactorily completed a conversion course approved by the Board providing training in the duties of a deck rating for persons who have served in an engine room rating shall on producing satisfactory evidence of such service and a certificate given by the responsible authority that he has satisfactorily completed the conversion course be entitled to a reduction in the period of qualifying service required under Regulation 8(2)(b) of — a one week for every complete week's attendance and training on the conversion course subject to a maximum of 4 weeks, and b 50 per cent of the total length of his service at sea in an engine room rating subject to a maximum of 6 months. 3 No person shall be entitled by virtue of the provisions of paragraph (1) of this Regulation to a reduction or reductions of qualifying service exceeding a total of 6 months, or by virtue of the provisions of sub-paragraphs (a) or (b) of that paragraph to a reduction or reductions of qualifying service exceeding the maximum reduction specified in relation to the school attended in the third column of Schedule 2. Lost or destroyed certificates 10 1 If a certificate of competency is lost or destroyed, the holder thereof shall forthwith notify the Registrar General who shall if satisfied that it has been so lost or destroyed issue a copy of the certificate of competency (so marked) which shall have the same effect as the certificate of competency originally issued. 2 Any certificate notified as aforesaid as lost or destroyed shall if subsequently recovered be delivered forthwith to the Registrar General. Forgery of certificates 11 The provisions of section 104 of the principal Act (which relates to forgery and other offences relating to certificates of competency of ships' officers granted under that Act) shall apply in relation to certificates of competency granted under these Regulations as they apply in relation to certificates of competency of ships' officers granted under the principal Act. Fees 12 The fees specified in Schedule 3 to these Regulations shall be payable in respect of the matters specified in relation thereto in that Schedule. R.F. Prosser An Under-Secretary of the Board of Trade 12th February 1970 SCHEDULE 1 SYLLABUS FOR EXAMINATION FOR CERTIFICATE OF COMPETENCY AS A.B Nautical knowledge 1 The meaning of common nautical terms. 2 The names and functions of various parts of a ship, for example decks, compartments, ballast tanks, bilges, air pipes, strum boxes. 3 Knowledge of the compass card 0° to 360°. Ability to report the approximate bearing of an object in degrees or points on the bow. 4 Reading, streaming and handing a patent log. 5 Markings on a hand lead line, taking a case of the hand lead and correctly reporting the sounding obtained. 6 Marking of the anchor cable. 7 Understanding helm orders. 8 The use of lifesaving and fire fighting appliances. Practical work Tested as far as possible by practical demonstration. 9 Knots, hitches and bends in common use: — Reef knot Bowline and bowline on the bight Timber hitch Sheet bend, double and single Clovehitch Sheepshank Rolling hitch Round turn and two half hitches Figure of eight Marlinspike hitch Wall and crown To whip a rope's end using plain or palm and needle whipping. To put a seizing on rope and wire. To put a stopper on a rope or wire hawser, and derrick lift. 10 Splicing plaited and multi-strand manila and synthetic fibre rope, eye splice, short splice and back splice. Splicing wire rope, eye splice using a locking tuck. Care in use of rope and wire. 11 Slinging a stage, rigging a bosun's chair and pilot ladder. 12 Rigging a derrick. Driving a winch, general precautions to be taken before and during the operation of a winch whether used for working cargo or for warping. 13 The use and operation of a windlass in anchor work and in warping. Safe handling of moorings with particular reference to synthetic-fibre ropes and self tensioning winches. Precautions to be taken in the stowage of chain cable and securing the anchors for sea. 14 A knowledge of the gear used in cargo work and an understanding of its uses. General maintenance with particular reference to wires, blocks and shackles. 15 The safe handling of hatch covers including mechanical hatch covers; battening down and securing hatches and tank lids. 16 If no lifeboatman's certificate is held, a candidate will be required to satisfy the examiner that: — a he understands the general principles of boat management and can carry out orders relating to lifeboat launching and operation and the handling of a boat under sail; b he is familiar with a lifeboat and its equipment and the starting and running of the engines of a power boat; c he is familiar with the various methods of launching liferafts, the precautions to be taken before and during launching, methods of boarding and survival procedure. SCHEDULE 2 TRAINING SCHOOLS AND ESTABLISHMENTS PART I NAUTICAL TRAINING SCHOOLS Place Name of School Maximum period of reduction of qualifying service Aberdeen Robert Gordon's Institute of Technology 6 months Anglesey H.M.S. “Conway” Merchant Navy Cadet School 6 months Belfast City of Belfast College of Technology 6 months Blyth Wellesley Nautical School 6 months Bristol (Portishead) Incorporated National Nautical School 6 months Buckie Buckie High School 3 months Cardiff National Sea Training School 3 months Cardiff Reardon Smith Nautical College 6 months Dover Prince of Wales Sea Training School 6 months Elgin Gordonstoun School (Nautical Department) 6 months Fleetwood Nautical College (Cadet Course) (Junior Course) 6 months 3 months * Gravesend National Sea Training School 3 months Greenock Watt Memorial College 6 months Hull Kingston-upon-Hull High School for Nautical Training 6 months Hull Kingston-upon-Hull Nautical College 6 months Hull Trinity House Navigation Schools 6 months Leith Leith Nautical College 6 months Leith Leith Nautical College (T.S. Dolphin) 3 months Liverpool Riversdale Technical College 6 months Liverpool The Indefatigable and National Sea Training School for Boys 6 months London Merchant Navy College 6 months London London Nautical School 6 months Pangbourne The Nautical College 6 months Plymouth Plymouth College of Technology 6 months Southampton School of Navigation, University of Southampton, Warsash 6 months South Shields South Shields Marine & Technical College 6 months South Shields National Sea Training School 3 months Stornoway Lews Castle College (Cadet Course) (Junior Course) 6 months 3 months Yarmouth (I.O.W.) St. Swithins Nautical School 6 months PART 2 TRAINING SCHOOLS Barrow-in-Furness Holker County Secondary School 6 months Dovercourt Sir Anthony Dean, County Secondary School 6 months Falmouth Falmouth Technical College 6 months Grimsby Grimsby College of Further Education 6 months Lowestoft Technical College 6 months Morpeth Amble County Secondary School 6 months Newcastle-upon-Tyne Blakelaw School 6 months Sunderland Hylton Red House Comprehensive School 6 months Whitehaven Kells Secondary School 6 months SCHEDULE 3 FEES £ s. d. 1. For sitting the examination specified in Regulation 4(1)(c), except in cases to which paragraph 3 of this Schedule applies 9 0 2. For the grant of a certificate of competency, except in cases to which paragraph 3 of this Schedule applies 9 0 3. For sitting the said examination and for the grant of a certificate of competency in the case of a person making application therefor under Regulation 5(6) and passing the examination 9 0 4. For a copy of a certificate of competency issued pursuant to Regulation 10, except where the loss or destruction of the original certificate was occasioned by the wreck or loss of a ship or by a fire on board ship, in which case no fee shall be payable 5 6

The Consular Relations (Privileges and Immunities) (Socialist Federal Republic of Yugoslavia) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Socialist Federal Republic of Yugoslavia) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer or a consular employee of the Socialist Federal Republic of Yugoslavia of which the Socialist Federal Republic of Yugoslavia or any person acting on its behalf is the owner or lessee. 4 A consular bag exchanged between a consular officer of the Socialist Federal Republic of Yugoslavia in the United Kingdom and the Government, a diplomatic mission or another consular post of the Socialist Federal Republic of Yugoslavia, shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964. W.G. Agnew

Matrimonial Proceedings and Property Act 1970 PART I Provisions with Respect to Ancillary and Other Relief in Matrimonial Causes and to Certain Other Matrimonial Proceedings Maintenance pending suit in cases of divorce, etc. Maintenance pending suit in cases of divorce, etc. 1 On a petition for divorce, nullity of marriage or judicial separation, the court may order either party to the marriage to make to the other such periodical payments for his or her maintenance and for such term, being a term beginning not earlier than the date of the presentation of the petition and ending with the date of the determination of the suit, as the court thinks reasonable. Powers of court in cases of divorce, etc., to make orders with respect to financial provision for parties to the marriage and children of the family Financial provision for party to a marriage in cases of divorce, etc. 2 1 On granting a decree of divorce, a decree of nullity of marriage or a decree of judicial separation or at any time thereafter (whether, in the case of a decree of divorce or of nullity of marriage, before or after the decree is made absolute), the court may, subject to the provisions of section 24(1) of this Act, make any one or more of the following orders, that is to say — a an order that either party to the marriage shall make to the other such periodical payments and for such term as may be specified in the order; b an order that either party to the marriage shall secure to the other to the satisfaction of the court, such periodical payments and for such term as may be so specified; c an order that either party to the marriage shall pay to the other such lump sum or sums as may be so specified. 2 Without prejudice to the generality of subsection (1)(c) above, an order under this section that a party to a marriage shall pay a lump sum to the other party — a may be made for the purpose of enabling that other party to meet any liabilities or expenses reasonably incurred by him or her in maintaining himself or herself or any child of the family before making an application for an order under this section; b may provide for the payment of that sum by instalments of such amount as may be specified in the order and may require the payment of the instalments to be secured to the satisfaction of the court. Financial provision for child of the family in cases of divorce, etc. 3 1 Subject to the provisions of section 8 of this Act, in proceedings for divorce, nullity of marriage or judicial separation, the court may make any one or more of the orders mentioned in subsection (2) below — a before or on granting the decree of divorce, of nullity of marriage or of judicial separation, as the case may be, or at any time thereafter ; b where any such proceedings are dismissed after the beginning of the trial, either forthwith or within a reasonable period after the dismissal. 2 The orders referred to in subsection (1) above are — a an order that a party to the marriage shall make to such person as may be specified in the order for the benefit of a child of the family, or to such a child, such periodical payments and for such term as may be so specified; b an order that a party to the marriage shall secure to such person as may be so specified for the benefit of such a child, or to such a child, to the satisfaction of the court, such periodical payments and for such term as may be so specified ; c an order that a party to the marriage shall pay to such person as may be so specified for the benefit of such a child, or to such a child, such lump sum as may be so specified. 3 Without prejudice to the generality of subsection (2)(c) above, an order under this section for the payment of a lump sum to any person for the benefit of a child of the family, or to such a child, may be made for the purpose of enabling any liabilities or expenses reasonably incurred by or for the benefit of that child before the making of an application for an order under this section to be met. 4 An order under this section for the payment of a lump sum may provide for the payment of that sum by instalments of such amount as may be specified in the order and may require the payment of the instalments to be secured to the satisfaction of the court. 5 While the court has power to make an order in any proceedings by virtue of subsection (1)(a) above, it may exercise that power from time to time; and where the court makes an order by virtue of subsection (1)(b) above in relation to a child it may from time to time make a further order under this section in relation to him. Orders for transfer and settlement of property and for variation of settlements in cases of divorce, etc. 4 On granting a decree of divorce, a decree of nullity of marriage or a decree of judicial separation, or at any time thereafter (whether, in the case of a decree of divorce or of nullity of marriage, before or after the decree is made absolute), the court may, subject to the provisions of sections 8 and 24(1) of this Act, make any one or more of the following orders, that is to say — a an order that a party to the marriage shall transfer to the other party, to any child of the family or to such person as may be specified in the order for the benefit of such a child such property as may be so specified, being property to which the first-mentioned party is entitled, either in possession or reversion ; b an order that a settlement of such property as may be so specified, being property to which a party to the marriage is so entitled, be made to the satisfaction of the court for the benefit of the other party to the marriage and of the children of the family or either or any of them; c an order varying for the benefit of the parties to the marriage and of the children of the family or either or any of them any ante-nuptial or post-nuptial settlement (including such a settlement made by will or codicil) made on the parties to the marriage; d an order extinguishing or reducing the interest of either of the parties to the marriage under any such settlement ; and the court may make an order under paragraph (c) above notwithstanding that there are no children of the family. Matters to which court is to have regard in deciding what orders to make under ss. 2, 3 and 4 5 1 It shall be the duty of the court in deciding whether to exercise its powers under section 2 or 4 of this Act in relation to a party to the marriage and, if so, in what manner, to have regard to all the circumstances of the case including the following matters, that is to say — a the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future; b the financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future ; c the standard of living enjoyed by the family before the breakdown of the marriage ; d the age of each party to the marriage and the duration of the marriage; e any physical or mental disability of either of the parties to the marriage; f the contributions made by each of the parties to the welfare of the family, including any contribution made by looking after the home or caring for the family; g in the case of proceedings for divorce or nullity of marriage, the value to either of the parties to the marriage of any benefit (for example, a pension) which, by reason of the dissolution or annulment of the marriage, that party will lose the chance of acquiring ; and so to exercise those powers as to place the parties, so far as it is practicable and, having regard to their conduct, just to do so, in the financial position in which they would have been if the marriage had not broken down and each had properly discharged his or her financial obligations and responsibilities towards the other. 2 Without prejudice to subsection (3) below, it shall be the duty of the court in deciding whether to exercise its powers under section 3 or 4 of this Act in relation to a child of the family and, if so, in what manner, to have regard to all the circumstances of the case including the following matters, that is to say — a the financial needs of the child ; b the income, earning capacity (if any), property and other financial resources of the child; c any physical or mental disability of the child ; d the standard of living enjoyed by the family before the breakdown of the marriage ; e the manner in which he was being and in which the parties to the marriage expected him to be educated or trained; and so to exercise those powers as to place the child, so far as it is practicable and, having regard to the considerations mentioned in relation to the parties to the marriage in paragraphs (a) and (b) of subsection (1) above, just to do so, in the financial position in which the child would have been if the marriage had not broken down and each of those parties had properly discharged his or her financial obligations and responsibilities towards him. 3 It shall be the duty of the court in deciding whether to exercise its powers under the said section 3 or 4 against a party to a marriage in favour of a child of the family who is not the child of that party and, if so, in what manner, to have regard (among the circumstances of the case) — a to whether that party had assumed any responsibility for the child's maintenance and, if so, to the extent to which, and the basis upon which, that party assumed such responsibility and to the length of time for which that party discharged such responsibility ; b to whether in assuming and discharging such responsibility that party did so knowing that the child was not his or her own ; c to the liability of any other person to maintain the child. Additional powers of court to make orders requiring party to marriage to make payments to other party, etc. Neglect by party to marriage to maintain other party or child of the family 6 1 Either party to a marriage may apply to the court for an order under this section on the ground that the other party to the marriage (in this section referred to as the respondent)- a being the husband, has wilfully neglected — i to provide reasonable maintenance for the applicant, or ii to provide, or to make a proper contribution towards, reasonable maintenance for any child of the family to whom this section applies; b being the wife, has wilfully neglected to provide, or to make a proper contribution towards, reasonable maintenance — i for the applicant in a case where, by reason of the impairment of the applicant's earning capacity through age, illness or disability of mind or body, and having regard to any resources of the applicant and the respondent respectively which are, or should properly be made, available for the purpose, it is reasonable in all the circumstances to expect the respondent so to provide or contribute, or ii for any child of the family to whom this section applies. 2 The court shall not entertain an application under this section unless it would have jurisdiction to entertain proceedings by the applicant for judicial separation. 3 This section applies to any child of the family for whose maintenance it is reasonable in all the circumstances to expect the respondent to provide or towards whose maintenance it is reasonable in all the circumstances to expect the respondent to make a proper contribution. 4 Where the child of the family to whom the application under this section relates is not the child of the respondent, then, in deciding — a whether the respondent has been guilty of wilful neglect to provide, or to make a proper contribution towards, reasonable maintenance for the child, and b what order, if any, to make under this section in favour or for the benefit of the child, the court shall have regard to the matters mentioned in section 5(3) of this Act. 5 Where on an application under this section it appears to the court that the applicant or any child of the family to whom the application relates is in immediate need of financial assistance, but it is not yet possible to determine what order, if any, should be made on the application, the court may order the respondent to make to the applicant until the determination of the application such periodical payments as the court thinks reasonable. 6 Where on an application under this section the applicant satisfies the court of any ground mentioned in subsection (1) above, then, subject to the provisions of section 8 of this Act, the court may make such one or more of the following orders as it thinks just, that is to say — a an order that the respondent shall make to the applicant such periodical payments and for such term as may be specified in the order ; b an order that the respondent shall secure to the applicant, to the satisfaction of the court, such periodical payments and for such term as may be so specified ; c an order that the respondent shall pay to the applicant such lump sum as may be so specified; d an order that the respondent shall make to such person as may be specified in the order for the benefit of the child to whom the application relates, or to that child, such periodical payments and for such term as may be so specified; e an order that the respondent shall secure to such person as may be so specified for the benefit of that child, or to that child, to the satisfaction of the court, such periodical payments and for such term as may be so specified ; f an order that the respondent shall pay to such person as may be so specified for the benefit of that child, or to that child, such lump sum as may be so specified. 7 Without prejudice to the generality of subsection (6)(c) and (f) above, an order under this section that the respondent shall pay a lump sum — a may be made for the purpose of enabling any liabilities or expenses reasonably incurred in maintaining the applicant or any child of the family to whom the application relates before the making of the application to be met; b may provide for the payment of that sum by instalments of such amount as may be specified in the order and may require the payment of the instalments to be secured to the satisfaction of the court. Further provisions relating to orders under sections 2, 3, 4 and 6 Duration of certain orders made in favour of party to marriage and effect of remarriage 7 1 The term to be specified in any order made by virtue of section 2(1)(a) or (b) of this Act or section 6(6)(a) or (b) thereof shall be such term, being a term beginning not earlier than the date of the making of an application for the order in question and lasting not longer than the maximum term, as the court thinks fit. 2 In subsection (1) above " the maximum term " means — a in the case of an order made by virtue of the said section 2(1)(a) in proceedings for divorce or nullity of marriage, the joint lives of the parties to the marriage or a term ending with the date of the remarriage of the party in whose favour the order is made, whichever is the shorter; b in the case of an order made by virtue of the said section 2(1)(b) in any such proceedings, the life of that party or a term ending with the date of the remarriage of that party, whichever is the shorter; c in the case of an order made by virtue of the said section 2(1)(a) in proceedings for judicial separation or made by virtue of the said section 6(6)(a), the joint lives of the parties to the marriage ; d in the case of an order made by virtue of the said section 2(1)(b) in proceedings for judicial separation or made by virtue of the said section 6 (6)(b), the life of the party in whose favour the order is made. 3 Where an order is made by virtue of the said section 2(1)(a) or (b) in proceedings for judicial separation or by virtue of the said section 6 (6)(a) or (b) and the marriage of the parties affected by the order is subsequently dissolved or annulled but the order continues in force, the order shall, notwithstanding anything in it, cease to have effect on the remarriage of the party in whose favour it was made, except in relation to any arrears due under it on the date of such remarriage. 4 If after the grant of a decree dissolving or annulling a marriage either party to that marriage remarries, that party shall not be entitled to apply for an order under section 2 or 4 of this Act against the person to whom he or she was married immediately before the grant of that decree unless the remarriage is with that person and that marriage is also dissolved or annulled or a decree of judicial separation is made on a petition presented by either party to that marriage. Provisions as to powers of court to make orders in favour of children and duration of such orders 8 1 Subject to subsection (3) below — a no order under section 3, 4(a) or 6 of this Act shall be made in favour of a child who has attained the age of eighteen; and b the term for which by virtue of an order under the said section 3 or 6 any payments are to be made or secured to or for the benefit of a child may begin with the date of the making of an application for the order in question or any later date but shall not extend beyond the date when the child will attain the age of eighteen. 2 The term for which by virtue of an order under the said section 3 or 6 any payments are to be made or secured to or for the benefit of a child shall not in the first instance extend beyond the date of the birthday of the child next following his attaining the upper limit of the compulsory school age unless the court which makes the order thinks it right in the circumstances of the case to specify a later date therein. For the purposes of this subsection the upper limit of the compulsory school age means the age that is for the time being that limit by virtue of section 35 of the Education Act 1944 together with any Order in Council made under that section. 3 The court may make such an order as is mentioned in subsection (1)(a) above in favour of a child who has attained the age of eighteen, and may include in an order made under the said section 3 or 6 in relation to a child who has not attained that age a provision extending beyond the date when the child will attain that age the term for which by virtue of the order any payments are to be made or secured to or for the benefit of that child, if it appears to the court that — a that child is, or will be, or if such an order or provision were made would be, receiving instruction at an educational establishment or undergoing training for a trade, profession or vocation, whether or not he is also, or will also be, in gainful employment; or b there are special circumstances which justify the making of the order or provision. 4 Any order made by virtue of section 3(2)(a) of this Act or section 6(6)(d) thereof shall, notwithstanding anything in the order, cease to have effect on the death of the person liable to make payments under the order, except in relation to any arrears due under the order on the date of such death. Provisions as to variation, discharge and enforcement of certain orders Variation, discharge, etc., of orders for financial provision 9 1 Where the court has made an order to which this section applies, then, subject to the provisions of this section, the court shall have power to vary or discharge the order or to suspend any provision thereof temporarily and to revive the operation of any provision so suspended. 2 This section applies to the following orders, that is to say — a any order under section 1 of this Act; b any order made by virtue of section 2(1)(a) or (b) or 2(2)(b) of this Act; c any order made by virtue of section 3(2)(a) or (b) or 3(4) of this Act; d any order made by virtue of section 4(b), (c) or (d) of this Act on or after granting a decree of judicial separation; and e any order made by virtue of section 6(5), 6(6)(a), (b), (d) or (e) or 6(7)(b) of this Act. 3 The powers exercisable by the court under this section in relation to an order shall be exercisable also in relation to any instrument executed in pursuance of the order. 4 The court shall not exercise the powers conferred by this section in relation to any order made by virtue of the said section 4(b), (c) or (d) on or after granting a decree of judicial separation except on an application made in proceedings — a for the rescission of that decree, or b for the dissolution of the marriage of the parties to the proceedings in which that decree was made. 5 No such order as is mentioned in section 4 of this Act shall be made on an application for the variation of an order made by virtue of the said section 2(1) (a) or (b) or the said section 3(2)(a) or (b), and no order for the payment of a lump sum shall be made on an application for the variation of an order made by virtue of the said section 2(1)(a) or (b) or of the said section 6(6)(a) or (b). 6 Where the person liable to make payments under an order made by virtue of the said section 2(1) (b), the said section 3(2)(b) or the said section 6 (6)(b) or (e) has died, an application under this section relating to that order may be made by the person entitled to payments under the order or by the personal representatives of the deceased person, but no such application shall, except with the permission of the court, be made after the end of the period of six months from the date on which representation in regard to the estate of that person is first taken out. 7 In exercising the powers conferred by this section the court shall have regard to all the circumstances of the case, including any change in any of the matters to which the court was required to have regard when making the order to which the application relates and, where the party against whom that order was made has died, the changed circumstances resulting from his or her death. 8 The personal representatives of a deceased person against whom any such order as is referred to in subsection (6) above was made shall not be liable for having distributed any part of the estate of the deceased after the expiration of the period of six months referred to in that subsection on the ground that they ought to have taken into account the possibility that the court might permit an application under this section to be made after that period by the person entitled to payments under the order; but this subsection shall not prejudice any power to recover any part of the estate so distributed arising by virtue of the making of an order in pursuance of this section. 9 In considering for the purposes of subsection (6) above the question when representation was first taken out, a grant limited to settled land or to trust property shall be left out of account and a grant limited to real estate or to personal estate shall be left out of account unless a grant limited to the remainder of the estate has previously been made or is made at the same time. Payment of certain arrears unenforceable without the leave of the court 10 1 A person shall not be entitled to enforce through the High Court or any county court the payment of any arrears due under an order made by virtue of section 1, 2(1), 3(2), 6(5) or 6(6) of this Act without the leave of that court if those arrears became due more than twelve months before proceedings to enforce the payment of them are begun. 2 The court hearing an application for the grant of leave under this section may refuse leave, or may grant leave subject to such restrictions and conditions (including conditions as to the allowing of time for payment or the making of payment by instalments) as that court thinks proper, or may remit the payment of such arrears or of any part thereof. 3 An application for the grant of leave under this section shall be made in such manner as may be prescribed by rules of court. Power of court to order sums paid under certain orders to be repaid in certain cases 11 1 Where on an application made under this section in relation to an order to which this section applies it appears to the court that by reason of — a a change in the circumstances of the person entitled to, or liable to make, payments under the order since the order was made, or b the changed circumstances resulting from the death of the person so liable, the amount received by the person entitled to payments under the order in respect of a period after those circumstances changed or after the death of the person liable to make payments under the order, as the case may be, exceeds the amount which the person so liable or his or her personal representatives should have been required to pay, the court may order the respondent to the application to pay to the applicant such sum, not exceeding the amount of the excess, as the court thinks just. This section applies to an order made by virtue of section 1, 2(1)(a) or (b), 3(2)(a) or (b), 6(5) or 6(6)(a). (b), (d) or (e) of this Act. 2 An application under this section may be made by the person liable to make payments under an order to which this section applies or his or her personal representatives and may be made against the person entitled to payments under the order or her or his personal representatives. 3 An application under this section may be made in proceedings in the High Court or a county court for — a the variation or discharge of the order to which this section applies, or b leave to enforce, or the enforcement of, the payment of arrears under that order ; but except as aforesaid such an application shall be made to a county court, and accordingly references in this section to the court are references to the High Court or a county court, as the circumstances require. 4 An order under this section for the payment of any sum may provide for the payment of that sum by instalments of such amount as may be specified in the order. Application of Maintenance Orders Acts to orders under ss. 1, 2, 3 and 6 12 1 Any order made by virtue of section 1, 2, 3 or 6 of this Act or any corresponding enactment of the Parliament of Northern Ireland shall be included among the orders to which section 16 of the Maintenance Orders Act 1950 applies (which section specifies the orders enforceable under Part II of that Act); and any order made by virtue of the said section 1, 2, 3 or 6 shall be a maintenance order within the meaning of the Maintenance Orders Act 1958. 2 This section, so far as it affects Part II of the Maintenance Orders Act 1950, shall extend to Scotland and Northern Ireland. Maintenance agreements Validity of maintenance agreements 13 1 If a maintenance agreement includes a provision purporting to restrict any right to apply to a court for an order containing financial arrangements, then — a that provision shall be void ; but b any other financial arrangements contained in the agreement shall not thereby be rendered void or unenforceable and shall, unless they are void or unenforceable for any other reason (and subject to sections 14 and 15 of this Act), be binding on the parties to the agreement. 2 In this and the next following section — " maintenance agreement " means any agreement in writing made, whether before or after the commencement of this Act, between the parties to a marriage, being — an agreement containing financial arrangements, whether made during the continuance or after the dissolution or annulment of the marriage; or a separation agreement which contains no financial arrangements in a case where no other agreement in writing between the same parties contains such arrangements; " financial arrangements " means provisions governing the rights and liabilities towards one another when living separately of the parties to a marriage (including a marriage which has been dissolved or annulled) in respect of the making or securing of payments or the disposition or use of any property, including such rights and liabilities with respect to the maintenance or education of any child, whether or not a child of the family. Alteration of agreements by court during lives of parties 14 1 Where a maintenance agreement is for the time being subsisting and each of the parties to the agreement is for the time being either domiciled or resident in England and Wales, then, subject to subsection (3) below, either party may apply to the court or to a magistrates' court for an order under this section. 2 If the court to which the application is made is satisfied either — a that by reason of a change in the circumstances in the light of which any financial arrangements contained in the agreement were made or, as the case may be, financial arrangements were omitted from it (including a change foreseen by the parties when making the agreement), the agreement should be altered so as to make different, or, as the case may be, so as to contain, financial arrangements, or b that the agreement does not contain proper financial arrangements with respect to any child of the family, then, subject to subsections (3), (4) and (5) below, that court may by order make such alterations in the agreement — i by varying or revoking any financial arrangements contained in it, or ii by inserting in it financial arrangements for the benefit of one of the parties to the agreement or of a child of the family, as may appear to that court to be just having regard to all the circumstances, including, if relevant, the matters mentioned in section 5(3) of this Act; and the agreement shall have effect thereafter as if any alteration made by the order had been made by agreement between the parties and for valuable consideration. 3 A magistrates' court shall not entertain an application under subsection (1) above unless both the parties to the agreement are resident in England and Wales and at least one of the parties is resident in the petty sessions area (within the meaning of the Magistrates' Courts Act 1952) for which the court acts, and shall not have power to make any order on such an application except — a in a case where the agreement includes no provision for periodical payments by either of the parties, an order inserting provision for the making by one of the parties of periodical payments for the maintenance of the other party or for the maintenance of any child of the family; b in a case where the agreement includes provision for the making by one of the parties of periodical payments, an order increasing or reducing the rate of, or terminating, any of those payments. 4 Where a court decides to alter, by order under (this section, an agreement by inserting provision for the making or securing by one of the parties to the agreement of periodical payments for the maintenance of the other party or by increasing the rate of the periodical payments which the agreement provides shall be made by one of the parties for the maintenance of the other, the term for which the payments or, as the case may be, so much of the payments as is attributable to the increase are or is to be made under the agreement as altered by the order shall be such term as the court may specify, but that term shall not exceed — a where the payments will not be secured, the joint lives of the parties to the agreement or a term ending with the remarriage of the party to whom the payments are to be made, whichever is the shorter; b where the payments will be secured, the life of that party or a term ending with the remarriage of that party, whichever is the shorter. 5 Where a court decides to alter, by order under this section, an agreement by inserting provision for the making or securing by one of the parties to the agreement of periodical payments for the maintenance of a child of the family or by increasing the rate of the periodical payments which the agreement provides shall be made or secured by one of the parties for the maintenance of such a child, then, in deciding the term for which under the agreement as altered by the order the payments or, as the case may be, so much of the payments as is attributable to the increase are or is to be made or secured for the benefit of the child, the court shall apply the provisions of section 8(1), (2) and (3) of this Act as if the order to which this subsection relates were an order under section 3 of this Act. 6 For the avoidance of doubt it is hereby declared that nothing in this or the last foregoing section affects any power of a court before which any proceedings between the parties to a maintenance agreement are brought under any other enactment (including a provision of this Act) to make an order containing financial arrangements or any right of either party to apply for such an order in such proceedings. Alteration of agreements by court after death of one party 15 1 Where a maintenance agreement within the meaning of section 13 of this Act provides for the continuation of payments under the agreement after the death of one of the parties and that party dies domiciled in England and Wales, the surviving party or the personal representatives of the deceased party may, subject to subsections (2) and (3) below, apply to the High Court or a county court for an order under section 14 of this Act. 2 An application under this section shall not, except with the permission of the High Court or a county court, be made after the end of the period of six months from the date on which representation in regard to the estate of the deceased is first taken out. 3 A county court shall not entertain an application under this section, or an application for permission to make an application under this section, unless it would have jurisdiction by virtue of section 7 of the Family Provision Act 1966 (which confers jurisdiction on county courts in proceedings under the Inheritance (Family Provision) Act 1938 or section 26 of the Matrimonial Causes Act 1965 if the value of the deceased's net estate does not exceed £5,000 or such larger sum as may be fixed by order of the Lord Chancellor) to hear and determine proceedings for an order under the said section 26 (application for maintenance out of deceased's estate by former spouse) in relation to the deceased's estate. 4 If a maintenance agreement is altered by a court on an application made in pursuance of subsection (1) above, the like consequences shall ensue as if the alteration had been made immediately before the death by agreement between the parties and for valuable consideration. 5 The provisions of this section shall not render the personal representatives of the deceased liable for having distributed any part of the estate of the deceased after the expiration of the said period of six months on the ground that they ought to have taken into account the possibility that a court might permit an application by virtue of this section to be made by the surviving party after that period; but this subsection shall not prejudice any power to recover any part of the estate so distributed arising by virtue of the making of an order in pursuance of this section. 5 Section 9(9) of this Act shall apply for the purposes of subsection (2) of this section as it applies for the purposes of subsection (6) of the said section 9. 6 Subsection (3) of section 7 of the Family Provision Act 1966 (transfer to county court of proceedings commenced in the High Court) and paragraphs (a) and (b) of subsection (5) thereof (provisions relating to proceedings commenced in county court before coming into force of order of the Lord Chancellor under that section) shall apply in relation to proceedings consisting of any such application as is referred to in subsection (3) above as they apply in relation to any such proceedings as are referred to in subsection (1) of the said section 7. A voidance of transactions intended to defeat certain claims Avoidance of transactions intended to defeat certain claims 16 1 Where proceedings for relief under any of the relevant provisions of this Act (hereafter in this section referred to as " financial provision ") are brought by a person (hereafter in this section referred to as " the applicant ") against any other person (hereafter in this section referred to as " the other party "), the court may, on an application by the applicant — a if it is satisfied that the other party is, with the intention of defeating the claim for financial provision, about to make any disposition or to transfer out of the jurisdiction or otherwise deal with any property, make such order as it thinks fit for restraining the other party from so doing or otherwise for protecting the claim; b if it is satisfied that the other party has, with the intention aforesaid, made a disposition to which this paragraph applies and that if the disposition were set aside financial provision or different financial provision would be granted to the applicant, make an order setting aside the disposition and give such consequential directions as it thinks fit for giving effect to the order (including directions requiring the making of any payment or the disposal of any property); c if it is satisfied, in a case where an order under the relevant provisions of this Act has been obtained by the applicant against the other party, that the other party has, with the intention aforesaid, made a disposition to which this paragraph applies, make such an order and give such directions as are mentioned in paragraph (b) above; and an application for the purposes of paragraph (b) above shall be made in the proceedings for the financial provision in question. 2 Paragraphs (b) and (c) of subsection (1) above apply respectively to any disposition made by the other party (whether before or after the commencement of the proceedings for financial provision), not being a disposition made for valuable consideration (other than marriage) to a person who, at the time of the disposition, acted in relation to it in good faith and without notice of any such intention as aforesaid on the part of the other party. 3 Where an application is made under this section with respect to a disposition which took place less than three years before the date of the application or to a disposition or other dealing with property which is about to take place and the court is satisfied — a in a case falling within subsection (1)(a) or (b) above, that the disposition or other dealing would (apart from this section) have the consequence, or b in a case falling within subsection (1)(c) above, that the disposition has had the consequence, of defeating the applicant's claim for financial provision, it shall be presumed, unless the contrary is shown, that the other party disposed of the property with the intention aforesaid or, as the case may be, is, with that intention, about to dispose of or deal with the property. 4 In this section — " disposition " does not include any provision contained in a will or codicil but, with that exception, includes any conveyance, assurance or gift of property of any description, whether made by an instrument or otherwise ; " the relevant provisions of this Act " means any of the provisions of the following enactments, that is to say, sections 1, 2, 3, 4, 6, 9 (except subsection (6)) and 14 of this Act; and any reference to defeating an applicant's claim for financial provision is a reference to preventing financial provision from being granted to the applicant, or to the applicant for the benefit of a child of the family, or reducing the amount of any financial provision which might be so granted, or frustrating or impeding the enforcement of any order which might be or has been made at the instance of the applicant under the relevant provisions of this Act. 5 The provisions of this section shall not apply to a disposition made more than three years before the commencement of this Act. Protection, custody, etc., of children Restrictions on decrees for dissolution, annulment or separation affecting children 17 1 The court shall not make absolute a decree of divorce or of nullity of marriage, or make a decree of judicial separation, unless the court, by order, has declared that it is satisfied — a that for the purposes of this section there are no children of the family to whom this section applies; or b that the only children who are or may be children of the family to whom this section applies are the children named in the order and that — i arrangements for the welfare of every child so named have been made and are satisfactory or are the best that can be devised in the circumstances; or ii it is impracticable for the party or parties appearing before the court to make any such arrangements; or c that there are circumstances making it desirable that the decree should be made absolute or should be made, as the case may be, without delay notwithstanding that there are or may be children of the family to whom this section applies and that the court is unable to make a declaration in accordance with paragraph (b) above. 2 The court shall not make an order declaring that it is satisfied as mentioned in subsection (1)(c) above unless it has obtained a satisfactory undertaking from either or both of the parties to bring the question of the arrangements for the children named in the order before the court within a specified time. 3 If the court makes absolute a decree nisi of divorce or of nullity of marriage, or makes a decree of judicial separation, without having made an order under subsection (1) above the decree shall be void but, if such an order was made, no person shall be entitled to challenge the validity of the decree on the ground that the conditions prescribed by subsections (1) and (2) above were not fulfilled. 4 If the court refuses to make an order under subsection (1) above in any proceedings for divorce, nullity of marriage or judicial separation, it shall, on an application by either party to the proceedings, make an order declaring that it is not satisfied as mentioned in that subsection. 5 This section applies to the following children of the family, that is to say — a any minor child of the family who at the date of the order under subsection (1) above is — i under the age of sixteen, or ii receiving instruction at an educational establishment or undergoing training for a trade, profession or vocation, whether or not he is also in gainful employment; and b any other child of the family to whom the court by an order under that subsection directs that this section shall apply; and the court may give such a direction if it is of opinion that there are special circumstances which make it desirable in the interest of the child that this section should apply to it. 6 In this section " welfare ", in relation to a child, includes the custody and education of the child and financial provision for him. Orders for custody and education of children affected by matrimonial suits 18 1 The court may make such order as it thinks fit for the custody and education of any child of the family who is under the age of eighteen — a in any proceedings for divorce, nullity of marriage or judicial separation, before, by or after the final decree ; b where such proceedings are dismissed after the beginning of the trial, either forthwith or within a reasonable period after the dismissal; and in any case in which the court has power by virtue of this subsection to make an order in respect of a child it may instead, if it thinks fit, direct that proper proceedings be taken for making the child a ward of court. 2 Where an order in respect of a child is made under this section, the order shall not affect the rights over or with respect to the child of any person, other than a party to the marriage in question, unless the child is the child of one or both of the parties to that marriage and that person was a party to the proceedings on the application for an order under this section. 3 Where the court makes or makes absolute a decree of divorce or makes a decree of judicial separation, it may include in the decree a declaration that either party to the marriage in question is unfit to have the custody of the children of the family. 4 Where a decree of divorce or of judicial separation contains such a declaration as is mentioned in subsection (3) above, then, if the party to whom the declaration relates is a parent of any child of the family, that party shall not, on the death of the other parent, be entitled as of right to the custody or the guardianship of that child. 5 While the court has power to make an order in any proceedings by virtue of paragraph (a) of subsection (1) above, it may exercise that power from time to time; and where the court makes an order by virtue of paragraph (b) of that subsection with respect to a child it may from time to time until that child attains the age of eighteen make a further order with respect to his custody and education. 6 The court shall have power to discharge or vary an order made under this section or to suspend any provision thereof temporarily and to revive the operation of any provision so suspended. Orders for custody of children in cases of neglect to maintain 19 1 Where the court makes an order under section 6 of this Act, the court shall also have power from time to time to make such orders as it thinks fit with respect to the custody of any child of the family who is for the time being under the age of eighteen; but the power conferred by this section and any order made in exercise of that power shall have effect only as respects any period when an order is in force under that section and the child is under that age. 2 Section 18(2) and (6) of this Act shall apply in relation to an order made under this section as they apply in relation to an order made under that section. Abolition of right to claim restitution of conjugal rights Abolition of right to claim restitution of conjugal rights 20 No person shall after the commencement of this Act be entitled to petition the High Court or any county court for restitution of conjugal rights. Remarriage of party entitled to payments under certain orders, etc. Order for maintenance of party to marriage under Matrimonial Causes Act 1965 to cease to have effect on remarriage of that party 21 1 An order made, or deemed to have been made, under section 16(1 Ma) or (b) of the Matrimonial Causes Act 1965 shall, notwithstanding anything in the order, cease to have effect on the remarriage after the commencement of this Act of the person in whose favour the order was made, except in relation to any arrears due under it on the date of such remarriage. 2 An order for the payment of alimony made, or deemed to have been made, under section 20 of the said Act of 1965, and an order made, or deemed to have been made, under section 21 or 22 of that Act, shall, if the marriage of the parties to the proceedings in which the order was made was or is subsequently dissolved or annulled but the order continues in force, cease to have effect on the remarriage after the said commencement of the party in whose favour the order was made, except in relation to any arrears due under it on the date of such remarriage. Orders for repayment in certain cases of sums paid after cessation of order by reason of remarriage 22 1 Where — a an order to which this section applies has ceased to have effect by reason of the remarriage of the person entitled to payments under the order, and b the person liable to make payments under the order or his or her personal representatives made payments in accordance with it in respect of a period after the date of such remarriage in the mistaken belief that the order was still subsisting, no proceedings in respect of a cause of action arising out of the circumstances mentioned in paragraphs (a) and (b) above shall be maintainable by the person so liable or his or her personal representatives against the person so entitled or her or his personal representatives; but on an application made under this section the court may exercise the powers conferred on it by subsection (2) below. This section applies to an order made by virtue of section 2(1)(a) or (b) or 6(6)(a) or (b) of this Act and to any such order as is referred to in subsection (1) or (2) of section 21 thereof. 2 The court may order the respondent to an application made under this section to pay to the applicant a sum equal to the amount of the payments made in respect of the period mentioned in subsection (1)(b) above or, if it appears to the court that it would be unjust to make that order, it may either order the respondent to pay to the applicant such lesser sum as it thinks fit or dismiss the application. 3 Subsections (2) to (4) of section 11 of this Act shall apply to an application made under this section and to an order made on such an application as they apply to an application made under that section and to an order made on the last mentioned application, and the references to the court in this section shall be construed in accordance with subsection (3) of that section as applied by this subsection. 4 The clerk of a magistrates' court to whom any payments under an order to which this section applies are required to be made, and the collecting officer under an attachment of earnings order made to secure payments under the first mentioned order, shall not be liable — a in the case of that clerk, for any act done by him in pursuance of the first mentioned order after the date on which that order ceased to have effect by reason of the remarriage of the person entitled to payments under it, and b in the case of the collecting officer, for any act done by him after that date in accordance with any enactment or rule of court specifying how payments made to him in compliance with the attachment of earnings order are to be dealt with, if, but only if, the act was one which he would have been under a duty to do had the first mentioned order not ceased to have effect as aforesaid and the act was done before notice in writing of the fact that the person so entitled had remarried was given to him by or on behalf of that person, the person liable to make payments under the first mentioned order or the personal representatives of either of those persons. 5 In this section " collecting officer", in relation to an attachment of earnings order, means the officer of the High Court, the registrar of a county court or the clerk of a magistrates' court to whom a person makes payments in compliance with the order. Miscellaneous and supplemental Settlement, etc., made in compliance with order under s. 4 may be avoided on bankruptcy of settlor 23 The fact that a settlement or transfer of property had to be made in order to comply with an order of the court under section 4 of this Act shall not prevent that settlement or transfer from being a settlement of property to which section 42(1) of the Bankruptcy Act 1914 (avoidance of certain settlements) applies. Commencement of proceedings for financial provision orders, etc. 24 1 Where a petition for divorce, nullity of marriage or judicial separation has been presented, then, subject to subsection (2) below, proceedings under section 1, 2, 3 or 4 of this Act may be begun, subject to and in accordance with rules of court, at any time after the presentation of the petition; but — a no order under section 2 or 4 of this Act shall be made unless a decree nisi of divorce or of nullity of marriage or a decree of judicial separation, as the case may be, has been granted ; b without prejudice to the power to give a direction under section 25 of this Act, no such order made on or after granting a decree nisi of divorce or of nullity of marriage, and no settlement made in pursuance of such an order, shall take effect unless the decree has been made absolute. 2 Rules of court may provide, in such cases as may be prescribed by the rules — a that applications for ancillary relief shall be made in the petition or answer ; and b that applications for ancillary relief which are not so made, or are not made until after the expiration of such period following the presentation of the petition or filing of the answer as may be so prescribed, shall be made only with the leave of the court. In this subsection " ancillary relief " means relief under any of the following provisions of this Act, that is to say, sections 1, 2, 3 and 4. Direction for instrument to be settled by conveyancing counsel 25 Where the court decides to make an order under this Part of this Act requiring any payments to be secured or an order under section 4 of this Act — a it may direct that the matter be referred to one of the conveyancing counsel of the court for him to settle a proper instrument to be executed by all necessary parties; and b in the case of an order under section 2, 3 or 4 of this Act, it may, if it thinks fit, defer the grant of the decree in question until the instrument has been duly executed. Payments, etc., under order made in favour of person suffering from mental disorder 26 Where the court makes an order under this Part of this Act requiring payments (including a lump sum payment) to be made, or property to be transferred, to a party to a marriage and the court is satisfied that the person in whose favour the order is made is incapable, by reason of mental disorder within the meaning of the Mental Health Act 1959, of managing and administering his or her property and affairs, then, subject to any order, direction or authority made or given in relation to that person under Part VIII of the said Act of 1959, the court may order the payments to be made, or, as the case may be, the property to be transferred, to such persons having charge of that person as the court may direct. Interpretation 27 1 In this Part of this Act — " adopted " means adopted in pursuance of — an adoption order made under the Adoption Act 1958, any previous enactment relating to the adoption of children, the Adoption Act 1968 or any corresponding enactment of the Parliament of Northern Ireland; or an adoption order made in the Isle of Man or any of the Channel Islands; or subject to sections 5 and 6 of the Adoption Act 1968, an overseas adoption within the meaning of section 4 of that Act; " child ", in relation to one or both of the parties to a marriage, includes an illegitimate or adopted child of that party or, as the case may be, of both parties; " child of the family ", in relation to the parties to a marriage, means — a child of both of those parties ; and any other child, not being a child who has been boarded-out with those parties by a local authority or voluntary organisation, who has been treated by both of those parties as a child of their family; " the court " (except where the context otherwise requires) means the High Court or, where a county court has jurisdiction by virtue of the Matrimonial Causes Act 1967, a county court; " custody ", in relation to a child, includes access to the child; " education " includes training. 2 For the avoidance of doubt it is hereby declared that references in this Part of this Act to remarriage include references to a marriage which is by law void or voidable. 3 Any reference in this Part of this Act to any enactment is a reference to that enactment as amended by or under any subsequent enactment, including this Act. Transitional provisions, savings, etc. Transitional provisions and savings 28 Schedule 1 to this Act shall have effect for the purpose of the transition to the provisions of this Part of this Act from the law in force before the commencement of this Act and with respect to the application of certain provisions of this Part of this Act to orders made, or deemed to have been made, under the Matrimonial Causes Act 1965. Validation of certain void or voidable decrees 29 Any decree of divorce, nullity of marriage or judicial separation which, apart from this section, would be void or voidable on the ground only that the provisions of section 33 of the Matrimonial Causes Act 1965 (which restricts the making of decrees of dissolution or separation where children are affected) or of section 2 of the Matrimonial Proceedings (Children) Act 1958 (corresponding provision replaced by the said section 33) had not been complied with when the decree was made absolute or granted, as the case may be, shall be deemed always to have been valid unless — a before the commencement of this Act the court declared the decree to be void ; or b in proceedings for the annulment of the decree pending at the said commencement the court declares the decree to be void. PART II Miscellaneous Provisions Provisions relating to orders made by magistrates' courts in matrimonial proceedings Order for maintenance of party to marriage made by magistrates' court to cease to have effect on remarriage of that party 30 1 At the end of section 7 of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 there shall be added the following subsections — 4 Where after the making by a magistrates' court of a matrimonial order consisting of or including a provision such as is mentioned in paragraph (b) or (c) of section 2(1) of this Act the marriage of the parties to the proceedings in which that order was made is dissolved or annulled but the order continues in force, then, subject to subsection (5) of this section, that order or, as the case may be, that provision thereof shall cease to have effect on the remarriage of the party in whose favour it was made, except in relation to any arrears due under it on the date of such remarriage and shall not be capable of being revived. 5 Subsection (4) of this section shall not apply where the party in whose favour such an order as is therein mentioned was made remarried before the commencement of the Matrimonial Proceedings and Property Act 1970. 6 For the avoidance of doubt it is hereby declared that references in this section to remarriage include references to a marriage which is by law void or voidable. 2 Subsections (4), (5) and (6) of section 7 of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 shall apply in relation to an order consisting of or including a provision such as is mentioned in section 2(1)(b) or (c) of that Act made by a magistrates' court and confirmed in accordance with section 3 of the Maintenance Orders (Facilities for Enforcement) Act 1920 (which enables a magistrates' court to make a maintenance order against a person resident in a part of Her Majesty's dominions outside the United Kingdom but provides that the order shall have no effect unless and until confirmed by a competent court in that part) as they apply in relation to such an order as is referred to in the said subsection (4), but with the modification that for the reference to the making of such an order as is referred to in that subsection there shall be substituted a reference to the confirmation in accordance with the said section 3 of the order referred to in this subsection. Sums paid after cessation of order of magistrates' court by reason of remarriage may be ordered to be repaid in certain cases 31 After section 13 of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 there shall be inserted the following section — Orders for repayment in certain cases of sum paid after cessation of order by reason of remarriage. 13A 1 Where — a an order to which this section applies or a provision thereof has ceased to have effect by reason of the remarriage of the person entitled to payments under the order, and b the person liable to make payments under the order made payments in accordance with it in respect of a period after the date of such remarriage in the mistaken belief that the order or provision was still subsisting, no proceedings in respect of a cause of action arising out of the circumstances mentioned in paragraphs (a) and (b) above shall be maintainable by the person so liable or his or her personal representatives against the person so entitled or her or his personal representatives, but on an application made under this section the court may exercise the powers conferred on it by the following subsection. This section applies to an order in relation to which subsection (4) of section 7 of this Act, as amended by the Matrimonial Proceedings and Property Act 1970, applies. 2 The court may order the respondent to an application made under this section to pay to the applicant a sum equal to the amount of the payments made in respect of the period mentioned in subsection (1)(b) of this section or, if it appears to the court that it would be unjust to make that order, it may either order the respondent to pay to the applicant such lesser sum as it thinks fit or dismiss the application. 3 An application under this section may be made by the person liable to make payments under an order to which this section applies or his or her personal representatives and may be made against the person entitled to payments under the order or her or his personal representatives. 4 An application under this section may be made in proceedings in the High Court or a county court for leave to enforce, or the enforcement of, the payment of arrears under an order to which this section applies, but except as aforesaid such an application shall be made to a county court, and accordingly references in this section to the court are references to the High Court or a county court, as the circumstances require. 5 An order under this section for the payment of any sum may provide for the payment of that sum by instalments of such amount as may be specified in the order. 6 The jurisdiction conferred on a county court by this section shall be exercisable by a county court notwithstanding that by reason of the amount claimed in an application under this section the jurisdiction would not but for this subsection be exercisable by a county court. 7 Section 13(1) and (2) of this Act shall not apply to an order under this section. 8 The clerk of a magistrates' court to whom any payments under an order to which this section applies are required to be made, and the collecting officer under an attachment of earnings order made to secure payments under the first mentioned order, shall not be liable — a in the case of that clerk, for any act done by him in pursuance of the first mentioned order after the date on which that order or a provision thereof ceased to have effect by reason of the remarriage of the person entitled to payments under it, and b in the case of the collecting officer, for any act done by him after that date in accordance with any enactment or rule of court specifying how payments made to him in compliance with the attachment of earnings order are to be dealt with, if, but only if, the act was one which he would have been under a duty to do had the first mentioned order or a provision thereof not ceased to have effect as aforesaid and the act was done before notice in writing of the fact that the person so entitled had remarried was given to him by or on behalf of that person, the person liable to make payments under the first mentioned order or the personal representatives of either of those persons. 9 In this section " collecting officer ", in relation to an attachment of earnings order, means the officer of the High Court, the registrar of a county court or the clerk of a magistrates' court to whom a person makes payments in compliance with the order. Restriction on enforcement in High Court or county court of certain orders of magistrates' courts 32 At the end of section 13 of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 there shall be added the following subsections: — 5 A person shall not be entitled to enforce through the High Court or any county court the payment of any arrears due under an order made by virtue of this Act without the leave of that court if those arrears became due more than twelve months before proceedings to enforce the payment of them are begun. 6 The court hearing an application for the grant of leave under subsection (5) of this section may refuse leave, or may grant leave subject to such restrictions and conditions (including conditions as to the allowing of time for payment or the making of payment by instalments) as that court thinks proper, or may remit the payment of such arrears or any part thereof. 7 An application for the grant of leave under the said subsection (5) shall be made in such manner as may be prescribed by rules of court . Minor corrections of Matrimonial Proceedings (Magistrates' Courts) Act 1960, s. 7(3) 33 Section 7(3) of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 (which provides that where after the making by a magistrates' court of a matrimonial or interim order proceedings between, and relating to the marriage of, the parties to the proceedings in which the order was made have been begun in the High Court, the High Court may direct that the order shall cease to have effect on a date specified by that court) shall be amended as follows: — a after the words " the High Court ", where first occurring, there shall be inserted the words " or a county court "; b for the words " the High Court", where next occurring, there shall be substituted the words " the court in which the proceedings or any application made therein are or is pending "; and c for the words " the High Court may specify" there shall be substituted the words " may be specified in the direction ". Provisions relating to certain proceedings in county courts Jurisdiction of, and appeal on question of fact from, county court 34 1 The jurisdiction conferred on a county court by section 11 or section 22 of this Act or paragraph 5 of Schedule 1 thereto shall be exercisable by a county court notwithstanding that by reason of the amount claimed in an application made under either of those sections or the said paragraph 5, as the case may be, the jurisdiction would not but for this subsection be exercisable by a county court. 2 At the end of subsection (2) of section 109 of the County Courts Act 1959 (appeals on questions of fact) there shall be inserted the following paragraph: — g any proceedings on an application for an order under section 13A of the Matrimonial Proceedings (Magistrates' Courts) Act 1960, section 11 of the Matrimonial Proceedings and Property Act 1970, section 15 of that Act, section 22 thereof or paragraph 5 of Schedule 1 thereto. Amendments of the Matrimonial Causes Act 1965 Amendment of reference to child in 1965 c. 72 , s. 2 35 In section 2(2) of the Matrimonial Causes Act 1965 (which provides that in determining an application to allow the presentation of a petition for divorce within three years from the date of the marriage the judge shall have regard to the interests of any relevant child) for the words " relevant child " there shall be substituted the words " child of the family within the meaning of Part I of the Matrimonial Proceedings and Property Act 1970 ". Construction of references to remarriage in 1965 c. 72 , s. 26 36 Section 26 of the Matrimonial Causes Act 1965 (which authorises the making of orders for maintenance out of a deceased's estate for a former spouse who has not remarried and provides that maintenance by way of periodical payments out of the estate shall terminate not later than his or her death or remarriage) shall have effect, and be deemed always to have had effect, as if after subsection (5) there were inserted the following subsection: — 5A For the avoidance of doubt it is hereby declared that references in this section to remarriage include references to a marriage which is by law void or voidable. Provisions relating to property of married persons Contributions by spouse in money or money's worth to the improvement of property 37 It is hereby declared that where a husband or wife contributes in money or money's worth to the improvement of real or personal property in which or in the proceeds of sale of which either or both of them has or have a beneficial interest, the husband or wife so contributing shall, if the contribution is of a substantial nature and subject to any agreement between them to the contrary express or implied, be treated as having then acquired by virtue of his or her contribution a share or an enlarged share, as the case may be, in that beneficial interest of such an extent as may have been then agreed or, in default of such agreement, as may seem in all the circumstances just to any court before which the question of the existence or extent of the beneficial interest of the husband or wife arises (whether in proceedings between them or in any other proceedings). Rights of occupation under Matrimonial Homes Act 1967 of spouse with equitable interest in home, etc. 38 There shall be inserted in section 1 of the Matrimonial Homes Act 1967 (which protects against eviction from the home the spouse not entitled by virtue of any estate or interest, etc., to occupy it) a new subsection — 9 It is hereby declared that a spouse who has an equitable interest in a dwelling house or in the proceeds of sale thereof, not being a spouse in whom is vested (whether solely or as a joint tenant) a legal estate in fee simple or a legal term of years absolute in the dwelling house, is to be treated for the purpose only of determining whether he or she has rights of occupation under this section as not being entitled to occupy the dwelling house by virtue of that interest . Extension of s. 17 of Married Women's Property Act 1882 39 An application may be made to the High Court or a county court under section 17 of the Married Women's Property Act 1882 (powers of the court in disputes between husband and wife about property) (including that section as extended by section 7 of the Matrimonial Causes (Property and Maintenance) Act 1958) by either of the parties to a marriage notwithstanding that their marriage has been dissolved or annulled so long as the application is made within the period of three years beginning with the date on which the marriage was dissolved or annulled; and references in the said section 17 and the said section 7 to a husband or a wife shall be construed accordingly. Judicially separated spouses not entitled to claim in intestacy of each other 40 1 If while a decree of judicial separation is in force and the separation is continuing either of the parties whose marriage is the subject of the decree dies after the commencement of this Act intestate as respects all or any of his or her real or personal property, the property of that party as respects which he or she died intestate shall devolve as if the other party to the marriage had then been dead. 2 Notwithstanding anything in section 2(1) (a) of the Matrimonial Proceedings (Magistrates' Courts) Act 1960, a provision in force in an order made, or having effect as if made, under that section that a party to a marriage be no longer bound to cohabit with the other party to the marriage shall not have effect as a decree of judicial separation for the purposes of this section. 3 Section 20(3) of the Matrimonial Causes Act 1965 (which provides that in a case of judicial separation certain property of the wife shall, if she dies intestate, devolve as if her husband had then been dead) shall cease to have effect except in relation to a case where the death occurred before the commencement of this Act. Abolition of wife's agency of necessity Abolition of wife's agency of necessity 41 1 Any rule of law or equity conferring on a wife authority, as agent of necessity of her husband, to pledge his credit or to borrow money on his credit is hereby abrogated. 2 Section 20(4) of the Matrimonial Causes Act 1965 (which provides that if in a case of judicial separation alimony has been ordered but has not been paid by the husband he shall be liable for necessaries supplied for the use of the wife) shall cease to have effect. PART III Supplementary Minor and consequential amendments and repeals 42 1 The enactments specified in Schedule 2 to this Act shall have effect subject to the amendments specified in that Schedule. 2 Subject to the provisions of Schedule 1 to this Act, the enactments specified in Schedule 3 to this Act are hereby repealed to the extent specified in the third column of that Schedule. Citation, commencement and extent 43 1 This Act may be cited as the Matrimonial Proceedings and Property Act 1970. 2 The following provisions of this Act, that is to say, this section, sections 33, 36 to 41 and 42(2), so far as it repeals section 20(3) and (4) of the Matrimonial Causes Act 1965, shall come into force on 1st August 1970 and the other provisions of this Act shall come into force on 1st January 1971. 3 Any reference in any provision of this Act, or in any enactment amended by a provision of this Act, to the commencement of this Act shall be construed as a reference to the date on which that provision comes into force. 4 Subject to the provisions of section 12(2) of this Act, this Act does not extend to Scotland or Northern Ireland. SCHEDULES SCHEDULE 1 Transitional Provisions and Savings Section 28. General provisions 1 Without prejudice to the provisions of section 38 of the Interpretation Act 1889 (which relates to the effect of repeals), nothing in any repeal made by this Act shall affect any application made, proceeding begun, order made or deemed to have been made, or direction given or deemed to have been given, under any enactment repealed by this Act, and subject to the provisions of this Act — a every such application or proceeding which is pending at the commencement of this Act shall have effect as if made or begun under the corresponding provision of this Act; and b every such order or direction shall, if in force at the commencement of this Act, continue in force. Provisions relating to proceedings for restitution of conjugal rights 2 1 Sections 13, 15, 21, 30(1), 31, 34(1), (4) and (5) and 46(2) of the Matrimonial Causes Act 1965 (hereinafter referred to as "the Act of 1965 ") shall continue to apply in relation to proceedings for restitution of conjugal rights begun before the commencement of this Act and in relation to decrees and orders made in such proceedings so begun. 2 In subsection (2) of the said section 21, as applied by sub-paragraph (1) above, the reference to such a direction as is mentioned in section 16(2)(a) of the Act of 1965 shall be construed as a reference to such a direction as is mentioned in section 25(a) of this Act. 3 Notwithstanding the repeal by this Act of section 29 of the Act of 1965, rules of court made by virtue of that section, in so far as they apply to applications for relief under subsection (1) or (2) of the said section 21 or for relief under subsection (1)(c) of the said section 34, shall continue to have effect. Variation, etc. of certain orders made, etc. under the Act of 1965 3 1 Subject to the provisions of this paragraph, section 9 of this Act shall apply to an order (other than an order for the payment of a lump sum) made or deemed to have been made under any of the following provisions of the Act of 1965, that is to say — a section 15, except in its application to proceedings for restitution of conjugal rights, b section 16(1), that subsection as applied by section 16(3) and by section 19, c section 20(1) and section 17(2) as applied by section 20(2), d section 22, e section 34(1)(a) or (b), in so far as it relates to the maintenance of a child, and section 34(3), as it applies to the orders mentioned in subsection (2) of the said section 9. 2 Subject to the provisions of this paragraph, the court hearing an application for the variation of an order made or deemed to have been made under any of the provisions of the Act of 1965 mentioned in sub-paragraph (1) above shall have power to vary that order in any way in which it would have power to vary it had the order been made under the corresponding provision of Part I of this Act. 3 The said section 9, as applied by sub-paragraph (1) above, shall have effect as if for subsections (4), (5) and (6) thereof there were substituted the following subsections — 4 The court shall not exercise the powers conferred by this section in relation to an order made or deemed to have been made under section 17(2) of the Act of 1965, as applied by section 20(2) thereof, in proceedings for judicial separation except on an application made in proceedings — a for the rescission of the decree of judicial separation, or b for the dissolution of the marriage of the parties to the proceedings in which that decree was made. 5 The court hearing an application for the variation of any order made or deemed to have been made under section 16(1), 20(1), 22, 34(1)(a) or (b) or 34(3) of the Act of 1965 or under the said section 16(1) as applied by section 16(3) of that Act or by section 19 thereof shall not have power to vary that order by making an order for the payment of a lump sum or any such order as is mentioned in section 4 of this Act. 6 Where the person liable to make payments under a secured periodical payments order made or deemed to have been made under the said section 16(1), 22 or 34(3) or under the said section 16(1), as applied by the said section 16(3) or by the said section 19, has died, an application under this section relating to that order may be made by the person entitled to payments under the order or by the personal representatives of the deceased person, but no such application shall, except with the permission of the court, be made after the end of the period of six months from the date on which representation in regard to the estate of that person is first taken out. In this subsection ' secured periodical payments order' means an order requiring a person to secure an annual sum or periodical payments to some other person. 4 In relation to an order made before 16th December 1949 which, by virtue of paragraph 1 of Schedule 1 to the Act of 1965, is deemed to have been made under section 16(1)(a) of that Act or the said paragraph (a) as applied by section 19 of that Act, the powers conferred by this paragraph shall not be exercised unless the court is satisfied that the case is one of exceptional hardship which cannot be met by discharge, variation or suspension of any order made, or deemed as aforesaid to have been made, under section 16(1)(b) of that Act or that paragraph, as so applied, as the case may be. 5 Section 9(1) and (3) of this Act shall apply to an order made or deemed to have been made under section 15 of the Act of 1965 in its application to proceedings for restitution of conjugal rights, under section 21 of that Act or under section 34(1)(c) thereof as they apply to the orders mentioned in subsection (2) of the said section 9, and in exercising the powers conferred by virtue of this paragraph the court shall have regard to all the circumstances of the case, including any change in any of the matters to which the court was required to have regard when making the order to which the application relates. 4 Section 10 of this Act shall apply in relation to the enforcement of the payment of arrears due under an order made, or deemed to have been made, under any of the following provisions of the Act of 1965, that is to say, sections 15, 16, 20, 21, 22 and 34 and section 16, as applied by section 19, where proceedings to enforce through the High Court or any county court the payment of such arrears are begun after the commencement of this Act as it applies in relation to the enforcement of the payment of arrears due under any such order as is mentioned in that section. 5 An application may be made under this paragraph in relation to an order to which this paragraph applies in the like circumstances as those in which an application may be made under section 11 of this Act, and the provisions of that section shall apply to such an application and to an order made on such an application as they apply to an application made under that section and to an order made on the last mentioned application. This paragraph applies to an order made, or deemed to have been made, under any of the following provisions of the Act of 1965, that is to say, sections 15, 16(1)(a) and (b), 20(1), 21 and 22, section 16(1)(a) and (b) as applied by section 16(3) and by section 19, section 34(1), in so far as it applies to maintenance, and section 34(3). 6 Section 18(6) of this Act shall apply in relation to an order for the custody or education of a child made or deemed to have been made under section 34 of the Act of 1965, and in relation to an order for the custody of a child made or deemed to have been made under section 35 of that Act, as it applies in relation to an order made under the said section 18. Provisions with respect to certain maintenance agreements 7 Where the party chargeable under a maintenance agreement within the meaning of section 13 of this Act died before 17th August 1957, then — a subsection (1) of that section shall not apply to the agreement unless there remained undistributed at that date assets of that party's estate (apart from any property in which he had only a life interest) representing not less than four-fifths of the value of that estate for probate after providing for the discharge of the funeral, testamentary and administrative expenses, debts and liabilities payable thereout (other than any liability arising by virtue of that subsection); and b nothing in that subsection shall render liable to recovery, or impose any liability upon the personal representatives of that party in respect of, any part of that party's estate which had been distributed before that date. 8 No right or liability shall attach by virtue of section 13(1) of this Act in respect of any sum payable under a maintenance agreement within the meaning of that section in respect of a period before 17th August 1957. Avoidance of transactions intended to defeat claims for relief under the Act of 1965 9 1 Section 16 of this Act shall apply in relation to proceedings for relief under any of the following provisions of the Act of 1965, that is to say, sections 16, 17(2), 20(1), 22, 24, 31, 34(1)(a) or (b), 34(3) and 35, section 16(1) as applied by section 19 and section 17(2) as applied by section 20(2), where the proceedings are pending at the commencement of this Act, and in relation to proceedings for relief under section 21 or 34(1)(c) of the Act of 1965, as it applies in relation to proceedings for relief under any of the provisions of this Act specified in section 16(4) of this Act. 2 Without prejudice to sub-paragraph (1) above, the said section 16 shall apply in a case where an order has been obtained under any of the provisions of the Act of 1965 mentioned in sub-paragraph (1) above as it applies in a case where an order has been obtained under any of the provisions of this Act specified in the said section 16(4). Protection, custody, etc., of children 10 Section 33 of the Act of 1965 shall continue to apply, and section 17 of this Act shall not apply, in relation to any proceedings for divorce or nullity of marriage in which a decree nisi has been granted but not made absolute before the commencement of this Act. 11 Where in any such proceedings the court has made an order by virtue of section 34(1) of the Act of 1965 in relation to a child, the court shall have the like power to make a further order from time to time in relation to that child under section 3 or 18 of this Act as it has where it makes an order in relation to a child under subsection (1) of the said section 3 or 18, but nothing in the foregoing provision shall be taken as affecting the power of the court in any such proceedings to make an order under either of those sections in relation to any other child, being a child of the family. 12 Where the court has made an order under section 22 of the Act of 1965 the court shall have the like power to make orders under section 19 of this Act with respect to the custody of any child of the family as it has where it makes an order under section 6 of this Act. SCHEDULE 2 Minor and Consequential Amendments Section 42. 1 1 In section 26(4) of the Matrimonial Causes Act 1965 (matters to which court is to have regard on application for maintenance from estate of deceased spouse), after sub-paragraph (ii) there shall be inserted the following sub-paragraph — iii where the survivor is a former wife or a former husband of the deceased, for an order under section 2 or 4 of the Matrimonial Proceedings and Property Act 1970 . 2 In subsection (1) of section 36 of the said Act of 1965 (power to commit children to care of local authority), and in subsection (1) of section 37 of that Act (power to provide for supervision of children), after the words " this Act" there shall be inserted the words " or of the Matrimonial Proceedings and Property Act 1970 ". 3 In subsection (5) of the said section 37 after the words " this Act" there shall be inserted the words " or under the Matrimonial Proceedings and Property Act 1970 ". 2 1 Section 2 of the Matrimonial Causes Act 1967 (jurisdiction of divorce county court to exercise powers exercisable under certain provisions of the Matrimonial Causes Act 1965 relating to ancillary relief and the protection of children) shall be amended as follows — a in subsection (1), after the words " Matrimonial Causes Act 1965 " there shall be inserted the words " or Part I of the Matrimonial Proceedings and Property Act 1970 " and for the words from " section 22" onwards there shall be substituted the words " section 6 or section 14 of the said Act of 1970 "; and b for subsection (3) there shall be substituted the following subsection: — 3 A divorce county court shall not by virtue of this section have jurisdiction to exercise any power under — a section 26 or 27 of the Matrimonial Causes Act 1965 ; or b section 10, 11, 15 or 22 of the Matrimonial Proceedings and Property Act 1970 or paragraph 5 of Schedule 1 thereto ; but without prejudice to the exercise by virtue of section 7 of the Family Provision Act 1966 of any power exercisable by a county court under the said section 26 or 27 or to the exercise by virtue of any such provision of the said Act of 1970 as is mentioned in paragraph (b) of this subsection of any power exercisable by a county court under that provision ; and c in subsection (4), for the words from " section 24 " onwards there shall be substituted the words " section 14 of the Matrimonial Proceedings and Property Act 1970 ". 2 In section 7(1) of the said Act of 1967 (which specifies the authority having power to make rules of court for the purposes of certain enactments) the word " or" at the end of paragraph (b) shall be omitted and after paragraph (c) there shall be inserted the words or d without prejudice to the generality of paragraph (c) of this subsection, Part I of the Matrimonial Proceedings and Property Act 1970, and Schedule 1 thereto, except proceedings in the county court under section 10, 11, 15 or 22 or paragraph 5 of Schedule 1 . 3 At the end of paragraph (b) of subsection (1) of section 2 of the Domestic and Appellate Proceedings (Restriction of Publicity) Act 1968 (restriction of publicity for certain proceedings) there shall be inserted the word " and " and the following paragraph shall be added at the end of that subsection — c proceedings under section 6 of the Matrimonial Proceedings and Property Act 1970 (which relates to proceedings by a wife against her husband, or by a husband against his wife, for financial provision) and any proceedings for the discharge or variation of an order made under that section or for the temporary suspension of any provision of any such order or the revival of the operation of any provision so suspended . 4 In section 8(3) of the Divorce Reform Act 1969 (grant of decree of judicial separation) for the words " section 33 of the Matrimonial Causes Act 1965 " there shall be substituted the words " section 17 of the Matrimonial Proceedings and Property Act 1970 ". 5 At the end of Schedule 8 to the Administration of Justice Act 1970 (maintenance orders to which Part II of that Act applies) there shall be inserted the following paragraph: — 10 An order for periodical or other payments made under Part I of the Matrimonial Proceedings and Property Act 1970. SCHEDULE 3 Repeals Section 42. Chapter Short Title Extent of Repeal 1965 c. 72 . The Matrimonial Causes Act 1965. Section 13. Sections 15 to 19. In section 20, subsections (1) and (2), subsection (3) except in relation to a case where the death occurred before the commencement of this Act and subsection (4). Sections 21 to 25 except section 25(4) and (5) as applied by section 28(2) of that Act. Sections 29 to 35. Section 46(2) except so far as it applies for the interpretation of section 41(3) of that Act. In Schedule 1, paragraphs 5, 6, 7, 9. 10 and 11. 1966 c. 35 . The Family Provision Act 1966. In section 5(3), the words " section 25(1) and in ". 1968 c. 36 . The Maintenance Orders Act 1968. In the Schedule, the entry relating to the Matrimonial Causes Act 1965. 1969 c. 46 . The Family Law Reform Act 1969. Section 5(3). 1969 c. 55 . The Divorce Reform Act 1969. In Schedule 1, paragraphs 4, 5, 6, 7, 9 and 10.

The Medicines (British Pharmacopoeia Commission) Order 1970 The Secretaries of State respectively concerned with health in England, in Wales and in Scotland and the Minister of Health and Social Services for Northern Ireland, acting jointly, in exercise of their powers under section 4 of the Medicines Act 1968, as having effect subject to the provisions of article 2(2) of and Schedule 1 to the Transfer of Functions (Wales) Order 1969 , and of all other powers enabling them in that behalf, having regard to the recommendations made by the Medicines Commission and after consulting such organisations as they consider appropriate including those which appear to them to be representative of interests likely to be substantially affected by the following order, hereby order as follows: — Citation and commencement 1 This order may be cited as the Medicines (British Pharmacopœia Commission) Order 1970 and shall come into operation on 7th September 1970. Interpretation 2 1 In this order “ the Act ” means the Medicines Act 1968. 2 The Interpretation Act 1889 applies to the interpretation of this order as it applies to the interpretation of an Act of Parliament. Establishment of British Pharmacopœia Commission 3 There shall be established a committee to be called the British Pharmacopœia Commission for the following purposes: — a the preparation under section 99(1) of the Act of any new edition of the British Pharmacopœia; b the preparation under section 99(1) of the Act, as given effect by section 102(1) thereof, of any amendments of the edition of the British Pharmacopœia published in 1968 or any new edition of it; and c the preparation under section 100 of the Act (which provides for the preparation and publication of lists of names to be used as headings to monographs in the British Pharmacopœia) of any list of names and the preparation under that section as given effect by section 102(2) of the Act of any amendments of any published list. Keith Joseph Secretary of State for Social Services 19th August 1970 Given under my hand on 7th August 1970. Peter Thomas Secretary of State for Wales Given under the seal of the Secretary of State for Scotland on 11th August 1970. Gordon Campbell Secretary of State for Scotland Given under my hand on 14th August 1970. W.K. Fitzsimmons Minister of Health and Social Services for Northern Ireland

The Vehicle and Driving Licences Records (Evidence) Regulations 1970 The Secretary of State for the Environment, in exercise of his powers under section 27(3) of the Vehicle and Driving Licences Act 1969 and of all other enabling powers, hereby makes the following Regulations: — Commencement and citation 1 These Regulations shall come into operation on the 1st February 1971 and may be cited as the Vehicle and Driving Licences Records (Evidence) Regulations 1970. Interpretation 2 1 In these Regulations, except where the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them: — “ the Act ” means the Vehicle and Driving Licences Act 1969; “ the 1962 Act ” means the Vehicles (Excise) Act 1962; “ certificate of competence to drive ” means a certificate issued in pursuance of Regulation 20(1) of the Motor Vehicles (Driving Licences) Regulations 1970 ; “ certificate of temporary exemption ” means a certificate of temporary exemption issued by virtue of section 14(8)(c) of the Road Safety Act 1967, as amended by section 148(3) of the Transport Act 1968; “ driving licence ” means a licence under Part II of the Road Traffic Act 1960 to drive a motor vehicle; “ Ministry plate ” and “ Ministry test date disc ” have the same meanings respectively as they have in the Motor Vehicles (Construction and Use) Regulations 1969 , as amended ; “ plating certificate ” and “ goods vehicle test certificate ” have the same meanings respectively as they have in section 9(1) of the Road Safety Act 1967 and “ notification of the refusal of a goods vehicle test certificate ” means a written notification given under section 9(1)(c) of that Act; “ registration book ” means a registration book issued by a council under the Road Vehicles (Registration and Licensing) Regulations 1964 ; “ registration mark ” means a mark assigned to a mechanically propelled vehicle under section 13 of the 1962 Act; “ trade licence ” has the meaning assigned to it under section 12 of the 1962 Act; “ vehicle licence ” means a licence for a mechanically propelled vehicle under the 1962 Act; 2 Any reference in these Regulations to any enactment shall be construed as a reference to that enactment as amended by any subsequent enactment. 3 The Interpretation Act 1889 shall apply for the interpretation of these Regulations as it applies for the interpretation of an Act of Parliament. Matters prescribed for s. 27(3) of the Act 3 The following matters are prescribed for the purposes of section 27(3) of the Act — 1 in connection with the licensing of drivers under Part II of the Road Traffic Act 1960 — a a document being, forming part of, or submitted in connection with, an application for a driving licence; b a driving licence; c a certificate of competence to drive; d the conviction of an offence specified in Part I or Part II of the Schedule 1 to the Road Traffic Act 1962 or of an offence treated as so specified by virtue of section 5 of the Road Safety Act 1967 of any person or any order made by the Court as a result of any such conviction; 2 in connection with the licensing and registration of mechanically propelled vehicles under the 1962 Act — a a document being, forming part of, or submitted in connection with, an application for — i a vehicle licence; ii a trade licence; iii a repayment of duty under section 9 of the 1962 Act or the recovery of underpayments or overpayments of duty under section 11 of that Act; b a vehicle licence, trade licence, registration book or registration mark; c a document containing a declaration and particulars such as are prescribed under the 1962 Act in relation to vehicles exempted from duty under that Act; d the conviction of an offence under the 1962 Act of any person; 3 in connection with the examination of a goods vehicle under regulations under section 9 of the Road Safety Act 1967 — a an application for an examination of a vehicle under the said regulations; b a notifiable alteration made to a vehicle and required by the said regulations to be notified to the Secretary of State; c a plating certificate, goods vehicle test certificate, notification of the refusal of a goods vehicle test certificate, Ministry plate, Ministry test date disc or certificate of temporary exemption. Signed by authority of the Secretary of State. John Peyton Minister for Transport Industries Department of the Environment 21st December 1970

The Patents (Amendment) Rules 1970 The Board of Trade, in pursuance of the powers conferred upon them by section 94 of the Patents Act 1949, and of all other powers enabling them in that behalf, and after consultation with the Council on Tribunals, hereby make the following Rules: — 1 These Rules may be cited as the Patents (Amendment) Rules 1970 and shall come into operation on 4th July 1970. 2 The Interpretation Act 1889 shall apply to the interpretation of these Rules as it applies to the interpretation of an Act of Parliament and as if these Rules and the Rules hereby revoked were Acts of Parliament. 3 The Patents Rules 1968 , as amended , shall have effect as if — a for Rule 5(1) there were substituted the following: — 5 1 All documents and copies of documents, except drawings, filed at the Office shall, unless the Comptroller otherwise directs, be written, typewritten, lithographed or printed in the English language — a upon strong white paper of a size 330 mm by 200 to 210 mm (13 inches by 8 inches to 8¼ inches) or of A4 size (297 mm by 210 mm: 11¾ inches by 8¼ inches); b in legible characters with a dark indelible ink; c with the lines widely spaced; d except in the case of statutory declarations and affidavits, on one side only; e leaving a margin of at least 25 mm (1 inch) on the left-hand part thereof; and f in the case of each of the forms set out in Schedule 2 hereto, leaving a space of about 80 mm (3 inches) blank at the top of the form. b for Rule 19 there were substituted the following: — 19 1 Subject to the provisions of this Rule drawings shall be on sheets of a size 330 mm by 200 to 210 mm (13 inches by 8 to 8¼ inches) or of A4 size (297 mm by 210 mm: 11¾ inches by 8¼ inches) and a clear margin of 13 mm (½ an inch) shall be left at the edges of each sheet. 2 If a figure or figures cannot be shown satisfactorily on one sheet of either of these dimensions it or they may be continued on subsequent sheets of the same dimensions. 3 If it can be shown to the satisfaction of the Comptroller that a large figure cannot be shown satisfactorily, even on a reduced scale, on a sheet or sheets of the above mentioned dimensions, a sheet or sheets each of a size 330 mm by 400 to 420 mm (13 inches by 16 to 16½ inches) may be used and a clear margin of 13 mm (½ an inch) shall be left at the edges of each sheet. 4 In a case falling within sub-rule (3) of this Rule one or more of the smaller sheets shall additionally be used only when it is not possible to show all the figures comprising the drawings on the sheet or sheets used by virtue of that sub-rule. 5 No more sheets shall be employed than are necessary. 6 The figures shall be numbered consecutively without regard to the number of sheets, and shall as far as possible be arranged in numerical order, separated by a sufficient space to keep them distinct. 7 Where figures on a number of sheets form in effect a single complete figure, they shall be so arranged that the complete figure can be assembled without concealing any part of another figure. c in Rule 20(h) after the word “inch” there were inserted the words “(3.2 mm)” ; d for Rule 146 there were substituted the following: — 146 1 In addition to the documents open to public inspection by virtue of section 13(2) and Rule 38(1), and subject to the provisions of this Rule, every Patents Form filed in pursuance of an application for a patent or in relation to a patent shall be open to public inspection after the date of publication of the complete specification and every document filed with or sent to the Office after the said date for the purposes of any proceedings relating to a patent or an application for a patent shall be open to public inspection after the expiry of the period of 14 days from its being filed or sent. 2 Sub-rule (1) of this Rule shall not apply to — a Patents Forms Nos. 1, 1 Con., 2, 3, 8, 37, 66 and 67; b any document sent to the Office, at its request or otherwise, for inspection and subsequent return to the sender. 3 a Where a document other than a Patents Form is filed or sent after the date of the publication of the complete specification and the person filing or sending it or any other party to the proceedings to which the document relates so requests, giving his reasons, within 14 days of the filing or sending of the document, the Comptroller may direct it to be treated as confidential; and the document shall not be open to public inspection while the matter is being determined by the Comptroller. b Where such a direction has been given and not withdrawn, nothing in this Rule shall be taken to authorise or require any person to be allowed to inspect the document to which the direction relates except by leave of the Comptroller. c The Comptroller shall not withdraw any direction given under this sub-rule nor shall he give leave for any person to inspect any document to which a direction which has not been withdrawn relates without prior consultation with the person at whose request the direction was given, unless the Comptroller is satisfied that such prior consultation is not reasonably practicable. d Where such a direction is given or withdrawn a record of the fact shall be filed with the document to which it relates. e Where the time prescribed in paragraph (a) of this sub-rule is extended under Rule 154, the relevant document shall not be, or if the time is extended after the time has expired shall cease to be, open to public inspection until the expiry of the extended time, and if a request for a direction is made the document shall not be open to public inspection while the matter is being determined by the Comptroller. 4 Nothing in this Rule shall be construed as imposing upon the Comptroller the duty of making available for public inspection any documents filed with or sent to the office before 1st November 1968. 4 The Patents (Amendment) Rules 1968 are hereby revoked. Anthony Grant Parliamentary Secretary to the Board of Trade 26th June 1970

The Foreign Marriage Order 1970 At the Court at Buckingham Palace, the 19th day of October 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 18 and 21 of the Foreign Marriage Act 1892, as amended by sections 4(2) and 6 of the Foreign Marriage Act 1947, or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: 1 This Order may be cited as the Foreign Marriage Order 1970. It shall come into operation on 1st January 1971. 2 1 Unless otherwise provided in this Order, expressions used in this Order shall have the same meaning as in the Foreign Marriage Act 1892. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 1 Before a marriage is solemnised in a foreign country under the Foreign Marriage Acts 1892 to 1947 , the marriage officer must be satisfied: a that at least one of the parties is a British subject; and b that the authorities of that country will not object to the solemnisation of the marriage; and c that insufficient facilities exist for the marriage of the parties under the law of that country; and d that the parties will be regarded as validly married by the law of the country to which each party belongs. 2 If a marriage officer, by reason of anything in this Article, refuses to solemnise or allow to be solemnised in his presence the marriage of any person requiring such marriage to be solemnised, that person shall have the same right to appeal to the Secretary of State as is given by section 5 of the Foreign Marriage Act 1892. 4 1 In special cases, where the Secretary of State is satisfied that for some good cause the requirements of the Foreign Marriage Act 1892 as to residence and notice for a marriage intended to be solemnised under the Act cannot be complied with, and he is satisfied that the intended marriage is not clandestine and that adequate public notice of the intended marriage has been given in the place or places where each of the parties resided not less than fifteen days next preceding the giving of such notice, he may authorise the marriage officer to dispense with those requirements. 2 In cases falling under paragraph (1) of this Article, the oath under section 7 of the Foreign Marriage Act 1892 shall omit the matter specified in subsection (b) of that section. 5 For the purpose of marriages to be solemnised by or before a consular officer who is a marriage officer, every place within the curtilage or precincts of the building which is for the time being used for the purpose of his office shall be part of the official house of such marriage officer, and every place to which the public have ordinary access in such official house shall be deemed to be part of the office of such marriage officer. 6 When a certified copy of an entry in a marriage register kept under section 9 of the Foreign Marriage Act 1892, relating to a party shown to be from Scotland or Northern Ireland is received by the Registrar General, he shall send a copy of that entry to the Registrar General for Scotland or Northern Ireland, as the case may require. 7 1 Where a marriage between parties, of whom one at least is a British subject, has been duly solemnised or has taken place in a foreign country in accordance with the local law of the country, either party to the marriage, being a British subject, may produce to the consul of Her Majesty's Government in the United Kingdom for the district in which the marriage has been solemnised or has taken place (or in the absence of such officer to the appropriate consul of any other Government who, by arrangement with Her Majesty's Government in the United Kingdom, have undertaken consular representation in that district on behalf of Her Majesty's Government in the United Kingdom) a certified copy of the entry in the marriage register duly authenticated by the appropriate authority in that country or a marriage certificate issued by the appropriate authority of the country, accompanied by a translation into English, and may request him to accept the certificate as a certificate of marriage issued in accordance with the local law and to certify the translation; and the consul, on payment of the appropriate fee, shall, if he is satisfied that the certificate has been duly issued by the appropriate authority and that the translation is a true one, transmit the said certificate and translation, together with his own certificate regarding the accuracy of the translation, to the Registrar General or, in the case of any certificate relating to a party shown to be from Scotland or Northern Ireland, to the Registrar General for Scotland or Northern Ireland as the case may require. 2 Any person shall be entitled to have from the appropriate Registrar General a certified copy of any document received by that Registrar General as aforesaid, on payment of fees in respect of the provision of the copy and any necessary search for the document. The fees shall be the fees which are for the time being charged by the appropriate Registrar General for the provision of a certified copy of, and any necessary search for, an entry in the records in his custody of marriages performed in England and Wales, Scotland or Northern Ireland, as the case may be. 3 Any copy of any foreign marriage certificate issued by the appropriate Registrar General under the provisions of paragraph (2) of this Article shall, without further proof, be received in evidence to the like extent as if it were a certificate duly issued by the authorities of the foreign country in which the marriage was celebrated. 8 The forms in the Schedule to this Order shall be used in all cases to which they are applicable. 9 1 The Foreign Marriage Order 1964 and the Foreign Marriage (Amendment) Order 1967 are hereby revoked. 2 Section 38 of the Interpretation Act 1889 shall apply in relation to the said Orders as if the present Order were an Act of Parliament and as if the said Orders were enactments repealed by an Act of Parliament. W.G. Agnew SCHEDULE FORMS No. 1 NOTICE OF MARRIAGE

The Consular Relations Act 1968 (Commencement) Order 1970 At the Court at Buckingham Palace, the 11th day of November 1970 Present, The Queen's Most Excellent Majesty in Council Whereas by section 16(3) of the Consular Relations Act 1968 it is provided that the said Act, except sections 7 to 11, shall come into force on such day as Her Majesty may by Order in Council appoint: Now, therefore, Her Majesty, by virtue and in exercise of the power conferred on Her by the said section 16(3) or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations Act 1968 (Commencement) Order 1970. 2 The Consular Relations Act 1968, except sections 7 to 11, shall come into force on 1st January 1971. W.G. Agnew

The Consular Relations (Merchant Shipping) (Republic of Austria) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4, 5, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (Republic of Austria) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Articles 3 and 4 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 5 of this Order a ship shall be treated as belonging to the Republic of Austria if it is registered in the Austrian register of sea-going vessels or otherwise entitled to fly the Austrian flag. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the Republic of Austria shall not be entertained by any court in the United Kingdom unless a consular officer of the Republic of Austria has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 Where an offence is alleged to have been committed on board any ship belonging to the Republic of Austria by the master or a member of the crew, proceedings for the offence instituted otherwise than at the request or with the consent of a consular officer of the Republic of Austria shall not be entertained by any court in the United Kingdom, unless — a the offence is alleged to have been committed — i by or against a person who is a citizen of the United Kingdom and Colonies, a citizen of Southern Rhodesia, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948; or ii against a person other than the master or a member of the crew; or b the offence is one involving the tranquillity or safety of a port, or the law relating to safety of life at sea, public health, oil pollution, wireless telegraphy, immigration or customs; or c the offence is one punishable (on a first conviction) with imprisonment for a term that may extend to five years or with a more severe sentence. 5 The Republic of Austria is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The British Transport (Compensation to Employees) Regulations 1970 The Minister of Transport in exercise of his powers under section 135(1) of the Transport Act 1968, and that Minister and the Secretary of State acting jointly where the said section 135(1) is to be construed in accordance with the provisions of section 135(7) of that Act, in exercise of their joint powers under the said section 135(1) and of all other enabling powers, hereby make the following regulations a draft of which has been laid before Parliament and has been approved by resolution of each House of Parliament in accordance with section 135(5) of the said Act: — PART I PRELIMINARY Citation and commencement 1 1 These regulations may be cited as the British Transport (Compensation to Employees) Regulations 1970. 2 These regulations shall come into operation 14 days after a draft thereof has been approved by a resolution of each House of Parliament and shall have effect from the 18th November 1968. Interpretation 2 1 In these regulations, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say: — “ accrued pension ”, in relation to a pensionable officer who has suffered loss or diminution of pension rights, means — if his last relevant pension scheme provided benefits in which he had a right to participate, the pension to which he would have become entitled in respect of his pensionable service according to the method of calculation, modified where necessary for the purpose of giving effect to these regulations, prescribed by that scheme if, at the date on which he suffered the said loss or diminution, he had attained normal retiring age and complied with any requirement of that scheme as to a minimum period of qualifying service or contribution and completed any additional contributory payments or payments in respect of added years which he was in the course of making; and in any other case, such portion of the pension (if any) of which he had reasonable expectations as the compensating authority consider equitable, having regard to his age, the length of his employment at the date of loss or diminution and all the other circumstances of the case ; “ accrued retiring allowance ” , in relation to a pensionable officer who has suffered loss or diminution of pension rights, means — if his last relevant pension scheme provided benefits in which he had a right to participate, any lump sum payment to which he would have become entitled in respect of his pensionable service according to the method of calculation, modified where necessary for the purpose of giving effect to these regulations, prescribed by that scheme if, at the date on which he suffered the said loss or diminution, he had attained normal retiring age and complied with any requirement of that scheme as to a minimum period of qualifying service or contribution and completed any additional contributory payments or payments in respect of added years which he was in the course of making; and in any other case, such portion of the lump sum payment (if any) of which he had reasonable expectations as the compensating authority consider equitable, having regard to his age, the length of his employment at the date of loss or diminution and all the other circumstances of the case ; “ accrued incapacity pension ” and “ accrued incapacity retiring allowance ” have the same respective meanings as “accrued pension” and “accrued retiring allowance” except that the reference to a person's attaining normal retiring age shall be construed as a reference to his becoming incapable of discharging efficiently the duties of his employment by reason of permanent ill-health or infirmity of mind or body ; “ the Act ” means the Transport Act 1968 ; “ added years ” means years purchased under the provisions of the last relevant pension scheme for the purpose of being reckoned as pensionable service and includes any additional years of service which, having been granted under any enactment or scheme, have subsequently become and are so reckonable under or by virtue of rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948, or any other enactment ; “ additional contributory payments ” means — any additional contributory payments made under a pension scheme as a condition of reckoning any period of employment as service or as a period of contribution for the purposes of the scheme, or, where the scheme provides for the reckoning of non-contributing service, as contributing service for the purposes of the scheme; or any payments made for the purpose of increasing the length at which any period of service or of contribution would be reckonable for the purpose of calculating a benefit under a pension scheme; or any payments similar to any of those mentioned in the foregoing sub-paragraphs made in pursuance of rules under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948; “ attributable loss ”, in relation to a person who suffers loss of employment, or loss or diminution of emoluments or pension rights, or worsening of his position, means any such loss, diminution or worsening as aforesaid which is properly attributable to the happening of the relevant event ; “ the Boards ” has the same meaning as in section 159(1) of the Act , and “ a Board ” means any of the Boards ; “ the Bus Company ” means the National Bus Company established under section 24 of the Act ; “ the Commission ” means the British Transport Commission ; “ compensating authority ” has the meaning assigned to that expression in regulation 4 ; “ compensation question ” means a question arising in relation to these regulations — as to a person's entitlement to compensation for loss of employment, or for loss or diminution of emoluments or pension rights, or worsening of his position, or as to the manner of a person's employment or the comparability of his duties; ; “ emoluments ” means any of the following payments or other benefits made to or enjoyed by an officer in respect of services rendered by him as such: — all salary, wages, fees and other payments of a similar nature for his own use, all bonuses, allowances, commission, gratuities and special duty and over-time pay, which are of a recurring nature, whether seasonal or otherwise and whether obtaining by law or customary practice, the money value of all travel privileges, free accommodation, and other allowances in kind, privileges or benefits, whether obtaining by law or customary practice, but does not include payments for travelling, subsistence, accommodation, engagement of assistance or other expenses in the course of employment or over-time or other payments of a temporary nature ; and “ net emoluments ”, in relation to any employment, means the annual rate (modified where necessary in accordance with regulation 40) of the emoluments of that employment less such part of those emoluments as the officer was liable to contribute under a pension scheme, and in relation to any employment which has been lost, the emoluments of which have been diminished or in which the officer has suffered loss or diminution of pension rights or a worsening of his position, the expression means the annual rate of emoluments aforesaid immediately before the loss, diminution or worsening, as the case may be: Provided that where fees or other variable payments were paid to an officer as part of his emoluments during any period immediately preceding the loss, diminution or worsening the amount in respect of fees or other variable payments to be included in the annual rate of emoluments shall be the annual average of the fees or other payments paid to him during the period of 5 years immediately preceding the loss, diminution or worsening or such other period as the compensating authority may think reasonable in the circumstances; “ enactment ” means any Act or instrument made under an Act ; “ Executive ” means a Passenger Transport Executive for the establishment of which provision has been made by an order under section 9(1) of the Act ; “ existing operator ” means an existing operator within the meaning of Schedule 6 to the Act ; “ the Freight Corporation ” means the National Freight Corporation established under section 1 of the Act ; “ full-time basis ”, in relation to the employment of a person on such a basis, means a basis on which that person is required to devote on the average not less than 30 hours per week to that employment during which he is not at liberty to undertake other work in consideration of a fee or remuneration ; “ the Holding Company ” means the Transport Holding Company ; “ long-term compensation ” means compensation payable in accordance with the provisions of Part IV of these regulations for loss of employment or loss or diminution of emoluments or worsening of a person's position ; “ first material date ” , in relation to any person who suffers attributable loss, means the appropriate date specified in column (2) of Schedule 1 to these regulations opposite to the relevant event which is specified in column (1) of that Schedule and to the happening of which that loss is properly attributable ; “ second material date ” , in relation to any person who suffers attributable loss, means the date on which he suffers that loss or on which the relevant event happens, whichever date is the earlier ; “ minimum pensionable age ” means , in relation to a pensionable officer, the earliest age at which, under his last relevant pension scheme, he could have become entitled to a pension, other than a pension payable in consequence of his redundancy or his incapacity to discharge efficiently the duties of his employment by reason of permanent ill-health or infirmity of mind or body ; “ the Minister ” means the Minister of Transport, and, in relation to a transfer such as is mentioned in section 135(1)(a) of the Act to or from the Scottish Group or a subsidiary of theirs, means the Minister and the Secretary of State acting jointly ; “ nationalised transport body ” means any of the following: — a Board; the Holding Company; the Freight Corporation; the Bus Company; the Scottish Group; “ national service ” means service which is relevant service within the meaning of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951, and includes service immediately following such service as aforesaid, being service in any of Her Majesty's naval, military or air forces pursuant to a voluntary engagement entered into with the consent of the person or body under whom an officer held his last relevant employment ; “ normal retiring age ” means , in the case of a pensionable officer to whom an age of compulsory retirement applied by virtue of his last relevant pension scheme or of the conditions of the employment in which he suffered the attributable loss, that age, and in any other case, the age of 65 years if the officer is a male, or 60 years if the officer is a female ; “ officer ” in relation to the Commission or a nationalised transport body does not include a member of the Commission or of such a body, but subject as aforesaid, includes the holder of any employment whether by virtue of an agreement for the rendering by him of personal services, by appointment, or otherwise ; and the expression “ office ” shall be construed accordingly ; “ pensionable emoluments ” , in relation to a person who has or had pension rights, means those emoluments which are required in accordance with the provisions of the pension scheme relating to those rights to be taken into account for the purpose of calculating the pension payable to or in respect of him under that scheme ; “ pensionable officer ” , in relation to a person who has suffered attributable loss, means an officer who immediately before such loss had pension rights under a pension scheme ; “ pension scheme ”, in relation to a pensionable officer, means any form of arrangement associated with his employment for the payment of pensions, whether subsisting by virtue of Act of Parliament, trust, contract or otherwise ; and “ last relevant pension scheme ”, in relation to a pensionable officer means a pension scheme under which that officer had or has pension rights which were the subject of a loss or diminution properly attributable to the happening of the relevant event ; “ the Railways Board ” means the British Railways Board ; “ reckonable service ” , in relation to a person, means any period of employment on a full-time basis in any relevant employment and includes any period of war service or national service undertaken on his ceasing to hold any such employment but does not include employment of which account has been taken, or is required to be taken, in calculating the amount of any pension to which he has become entitled ; “ relevant employment ” , in relation to a person who suffers attributable loss, means — employment under the Crown, or employment in the service of the Commission, a nationalised transport body, an Executive or a subsidiary of any of the foregoing bodies, or employment in the service of a person whose business consists of, or includes, the provision of bus services, being employment in connection with such provision, or employment such as is mentioned in regulation 3(4)(b) or (c) of the British Transport Reorganisation (Compensation to Employees) Regulations 1962 , or employment preceding any of the foregoing employments, being employment which is reckonable for the purposes of his last relevant pension scheme, but, except as provided in regulations 7(1)(c), 13(1)(c) and 19(2)(c), does not include service in the armed forces of the Crown ; “ relevant event ”, in relation to a person who suffers attributable loss, means whichever of the events specified in column (1) of Schedule 1 to these regulations is the event to the happening of which that loss is properly attributable ; “ resettlement compensation ” means compensation payable in accordance with Part III of these regulations for loss of employment ; “ retirement compensation ” means compensation payable in accordance with the provisions of regulation 21, 22, 23 or 24 ; “ the Scottish Group ” means the Scottish Transport Group established under section 24 of the Act ; “ subsidiary ”, in relation to the Commission or a nationalised transport body, has the same meaning as in the Transport Act 1962, and in this connection no account shall be taken of the provisions of section 51(5) of the Act ; “ tribunal ” means a tribunal established under section 12 of the Industrial Training Act 1964 ; “ war service ” means war service within the meaning of the Local Government Staffs (War Service) Act 1939, the Teachers Superannuation (War Service) Act 1939 (or, in Scotland, the Education (Scotland) (War Service Superannuation) Act 1939), the Police and Firemen (War Service) Act 1939 or employment for war purposes within the meaning of the Superannuation Schemes (War Service) Act 1940 and includes any period of service in the First World War in the armed forces of the Crown or in the forces of the Allied or Associated Powers if such service immediately followed a period of relevant employment and was undertaken either compulsorily or with the permission of the employer in that employment . 2 a Where under any provision of these regulations an annual value is to be assigned to a capital sum or a capital value to an annual amount, the annual or capital value shall be ascertained in accordance with the tables set out in Schedule 2 to these regulations in so far as they provide for the particular case. b For the purpose of determining the application of the said tables the headings and the note to each table shall be treated as a part of the table. c Where the said tables do not provide for a case in which an annual value is to be assigned to a capital sum or a capital value to an annual amount, the annual or capital value shall be such as may be agreed between the compensating authority and the person to whom the capital sum or annual amount is payable. 3 Unless the context otherwise requires, references in these regulations to the provisions of any enactment shall be construed as references to those provisions as amended, re-enacted or modified by or under any subsequent enactment. 4 References in these regulations to a numbered regulation shall, unless the reference is to a regulation of specified regulations, be construed as references to the regulation bearing that number in these regulations. 5 References in any of these regulations to a numbered paragraph shall, unless the reference is to a paragraph of a specified regulation, be construed as references to the paragraph bearing that number in the first mentioned regulation. 6 The Interpretation Act 1889 shall apply for the interpretation of these regulations as it applies for the interpretation of an Act of Parliament. PART II ENTITLEMENT TO COMPENSATION Persons to whom the regulations apply 3 These regulations shall apply to any person who suffers attributable loss and who — a was employed immediately before the first material date on a full-time basis, as an officer of a nationalised transport body or a subsidiary of such a body or as an officer of an existing operator, or b would have been so employed at that time but for any national service on which he was then engaged. Grounds of entitlement to compensation-Compensating authorities 4 1 Subject to the provisions of these regulations, any person to whom these regulations apply shall be entitled to have his case considered for the payment of compensation under these regulations, and such compensation shall be determined in accordance with these regulations. 2 Compensation for attributable loss suffered by a person to whom these regulations apply shall be payable by the appropriate authority specified in column (3) of Schedule 1 to these regulations opposite to the relevant event which is specified in column (1) of that Schedule and to the happening of which that loss is properly attributable, and the said authority is referred to in these regulations, in relation to the person suffering that loss, as “the compensating authority”. 3 Where the same loss of employment or loss or diminution of emoluments or pension rights or worsening of position is properly attributable to the happening of more than one relevant event: — a not more than one claim shall be made or satisfied under these regulations in respect of that loss, diminution or worsening, as the case may be, and b for the purpose of ascertaining the first material date, the second material date and the compensating authority in relation to the person who suffers that loss, diminution or worsening, regard shall be had only to the last of those relevant events to happen. National service 5 1 Where any person to whom these regulations apply would have been employed immediately before the first material date as an officer of a nationalised transport body or of a subsidiary of such a body, or as an officer of an existing operator, but for any national service on which he was then engaged, then if before the expiry of two months after ceasing to be so engaged, or, if prevented by sickness or other reasonable cause, as soon as practicable thereafter, he gives notice to the compensating authority that he is available for employment, that person shall be entitled — a in a case where, in consequence of an event specified in any of paragraphs (a) to (d) of section 135(1) of the Act, he is not given or offered re-employment in his former office or in any reasonably comparable office (whether in the same or in a different service), to have his case considered for payment of compensation for loss of employment, and (if appropriate) for loss or diminution of pension rights, and b in a case where, in consequence of any such event, he is so re-employed with diminished emoluments, or with loss or diminution of pension rights or worsening of his position as compared with the emoluments, pension rights or position which he would have enjoyed had he continued in his former employment, to have his case considered for payment of compensation for diminution of emoluments, or for loss or diminution of pension rights, or for worsening of his position (as the case may warrant). 2 The loss of employment which is the cause of a claim for compensation under paragraph (1)(a) shall be treated as having occurred on the earlier of the two following dates, that is to say, the date of the refusal of re-employment or a date one month after the date on which the person gave notice that he was available for employment, and the person shall be deemed to have been entitled to the emoluments which he would have enjoyed at such earlier date had he continued in his former employment. PART III RESETTLEMENT COMPENSATION Resettlement compensation for loss of employment 6 The compensating authority shall, subject to the provisions of these regulations, pay resettlement compensation to any person to whom these regulations apply and who satisfies the conditions set out in regulation 7. Conditions for payment of resettlement compensation 7 1 Without prejudice to any other requirement of these regulations, the conditions for the payment of resettlement compensation to any person are that — a he has, before, on, or not later than 10 years after the date of the relevant event, suffered loss of employment which is properly attributable to the happening of the relevant event; b he has not at the date of the loss attained normal retiring age; c he has, for a period beginning 3 years immediately before the second material date and ending on the date of the loss, been continuously engaged (disregarding breaks not exceeding in the aggregate 6 months) on a full-time basis in relevant employment; and for this purpose the expression “ relevant employment ” includes any period of national service immediately following such employment ; d he has made a claim for such compensation in accordance with the provisions of Part VII of these regulations not later than — i the end of the period in respect of which resettlement compensation can be payable in his case under the provisions of regulation 9, or ii 13 weeks after the coming into operation of these regulations, whichever is the later; e the loss of employment which is the cause of his claim has occurred for some reason other than misconduct or incapacity to perform such duties as, immediately before the loss, he was performing or might reasonably have been required to perform; and f he has not, subject to paragraph (3), been offered any reasonably comparable employment under the Crown or in the service of a nationalised transport body, an Executive or a subsidiary of either of those bodies. 2 In ascertaining for the purpose of this regulation whether a person has been offered employment which is reasonably comparable with the employment which he has lost, the following facts shall be disregarded — a the fact that the employment so offered is employment by a body such as is mentioned in paragraph (1)(f) other than the person or body in whose employment he suffered the attributable loss; b the fact that the duties of the employment so offered are duties in connection with activities which did not form part of the activities of that section of the undertaking of the nationalised transport body, subsidiary thereof or existing operator in which he was employed; c the fact that the duties of the employment so offered involve a transfer of his employment from one place to another in Great Britain. 3 No account shall be taken for the purposes of this regulation of an offer of employment where the compensating authority are satisfied — a that acceptance would have involved undue hardship to the person, or b that he was prevented from accepting the offer by reason of ill-health or other circumstances beyond his control. Amount of resettlement compensation 8 1 The amount of resettlement compensation which may be paid to a person shall, for each week for which such compensation is payable, be a sum ascertained by taking two thirds of the weekly rate of the net emoluments which that person has lost and deducting therefrom, in addition to the items mentioned in regulation 32(3) and (4), such of the following items as may be applicable — a unemployment, sickness or injury benefit under any Act relating to National Insurance claimable by him in respect of such week (excluding any amount claimable by him in respect of a dependant); and b two thirds of the net emoluments received by him in respect of such week from work or employment undertaken as a result of the loss of employment. 2 For the purposes of this regulation the weekly rate of a person's net emoluments shall be deemed to be seven three hundred and sixty-fifths of those emoluments. Period for payment of resettlement compensation 9 Subject to the provisions of these regulations, resettlement compensation shall be payable to a person only in respect of the period of 13 weeks next succeeding the week in which he lost the employment in connection with which his claim has been made or, in the case of a person who has then attained the age of 45 years, the said 13 weeks and one additional week for every year of his age between the date of his attaining the age of 45 years and the date of the loss of employment, subject to a maximum addition of 13 such weeks. Additional provisions relating to resettlement compensation 10 1 Resettlement compensation shall be payable to a person at intervals equivalent to those at which the emoluments of his employment were previously paid or at such other intervals as may be agreed between the person and the compensating authority. 2 Resettlement compensation shall be terminated by the compensating authority — a if without reasonable cause the recipient fails to comply with any of the provisions of regulation 11, or b if on being requested to do so, he fails to satisfy the compensating authority that, so far as he is able, he is seeking suitable employment. Claimant for resettlement compensation to furnish particulars of employment 11 Every person claiming or in receipt of resettlement compensation shall (after as well as before the compensation begins to be paid) — a forthwith supply the compensating authority in writing with particulars of any employment which he obtains or of any change in his earnings from any such employment, and b if the compensating authority so require, so long as he is out of employment and is not receiving sickness or injury benefit, register with the Department of Employment and Productivity. PART IV LONG-TERM COMPENSATION FOR LOSS OF EMPLOYMENT OR LOSS OR DIMINUTION OF EMOLUMENTS OR WORSENING OF POSITION Long-term compensation 12 The compensating authority shall, subject to the provisions of these regulations, pay long-term compensation to any person to whom these regulations apply and who satisfies the conditions set out in regulation 13 and this Part of these regulations shall apply to that person. Conditions for payment of long-term compensation 13 1 Without prejudice to any other requirement of these regulations, the conditions for the payment of long-term compensation to any person are that — a he has, before, on, or not later than 10 years after the date of the relevant event, suffered loss of employment or loss or diminution of emoluments or worsening of his position, being loss, diminution or worsening (as the case may be) which is properly attributable to the happening of the relevant event; b he has not, save as is provided in regulation 17, at the date of such loss, diminution or worsening attained normal retiring age; c he has, for a period beginning 8 years immediately before the second material date and ending on the date of the attributable loss, been continuously engaged (without a break of more than 12 months at any one time) on a full-time basis in relevant employment; and for this purpose the expression “ relevant employment ” includes any period of national service immediately following such employment ; d he has made a claim for such compensation in accordance with the provisions of Part VII of these regulations not later than — i 2 years after the date on which the loss, diminution or worsening which is the cause of his claim was suffered, or ii 2 years after the coming into operation of these regulations, or iii in a case where the claimant could not reasonably have known of the existence of the cause of his claim for compensation at the time when it in fact occurred, 2 years after the first date on which he could reasonably have known of its existence, whichever is the latest; and e if the cause of the claim for compensation is loss of employment — i the loss has occurred for some reason other than misconduct or incapacity to perform such duties as, immediately before the loss, he was performing or might reasonably have been required to perform; and ii he has not been offered any reasonably comparable employment under the Crown or in the service of a nationalised transport body, an Executive or a subsidiary of either of those bodies. 2 If the cause of the claim for compensation is loss of employment paragraphs (2) and (3) of regulation 7 (which relate to offers of employment) shall apply for the purposes of this regulation as they apply for the purposes of regulation 7. 3 Claims for long-term compensation for loss of employment shall in all respects be treated as claims for such compensation for the loss of emoluments occasioned thereby and the provisions of these regulations shall apply to all such claims accordingly. 4 Any person to whom this Part of these regulations applies and who, by reason of his position as an officer being worsened, has suffered any loss or injury attributable to the happening of the relevant event, not being a pecuniary loss in respect of which he is entitled to any other compensation or payments under Part IV or V of these regulations, shall, subject to the provisions of these regulations, be entitled to receive in respect of that loss or injury, long-term compensation for the worsening of his position calculated in the following manner, that is to say — a the pecuniary value of the loss or injury shall be expressed in terms of his net emoluments immediately before his position was worsened, b such person shall be treated for the purposes of these regulations as a person who has suffered a diminution of emoluments the amount of which is equal to the pecuniary value so expressed, and c where that person has been awarded any other long-term compensation, as well as compensation for the worsening of his position, the sums payable in respect of that other compensation shall, for the purposes of adjusting, suspending or withholding any long-term compensation under regulation 31 or 32 or both, be aggregated with any sums payable in respect of the compensation for worsening of his position and the payments of the sums so aggregated shall be regarded for those purposes as combined payments under the award of that other long-term compensation and not as separate payments under each of the awards of long-term compensation. Factors to be considered in determining payment of long-term compensation 14 1 For the purpose of determining the amount (subject to the limits set out in these regulations) of long-term compensation (if any) payable under these regulations to any person for loss or diminution of emoluments, the compensating authority shall have regard to such of the following factors as may be relevant, that is to say — a the conditions upon which the person held the employment which he has lost, or the emoluments of which have been lost or diminished, including in particular its security of tenure, whether by law or practice; b the emoluments and other conditions, including security of tenure, whether by law or practice, of any work or employment undertaken by the person as a result of the loss of employment; c the extent to which he has sought suitable employment and the emoluments which he might have acquired by accepting other suitable employment offered to him; d all the other circumstances of his case: Provided that if the claimant entered the employment which he has lost or in which he has suffered the diminution of emoluments, after the first material date, no account shall be taken of that fact for the purpose of this regulation. 2 In ascertaining for the purposes of paragraph (1)(c) whether a person has been offered suitable employment in a case where the cause of the claim for compensation is loss of employment, regulation 7(3) shall apply as it applies for the purpose of ascertaining whether employment is reasonably comparable with employment which has been lost. Amount of long-term compensation payable for loss of emoluments 15 1 Long-term compensation for loss of emoluments shall, subject to the provisions of these regulations, be payable until the normal retiring age or death of a person to whom it is payable, whichever first occurs, and shall not exceed a maximum annual sum calculated in accordance with the provisions of paragraphs (2) to (4). 2 The said maximum annual sum shall, subject as hereinafter provided, be the aggregate of the following sums, namely — a for every year of the person's reckonable service, one sixtieth of the net emoluments which he has lost; and b in the case of a person who has attained the age of 40 years at the date of the loss, a sum calculated in accordance with the provisions of paragraph (3) appropriate to his age at that date; but the said maximum annual sum shall in no case exceed two thirds of the net emoluments which the person has lost. 3 The sum referred to in paragraph (2)(b) shall be — a in the case of a person who has attained the age of 40 years but has not attained the age of 50 years at the date of the loss, the following fraction of the net emoluments which he has lost — i where his reckonable service is less than 10 years, one sixtieth for each year of such service after attaining the age of 40 years; or ii where his reckonable service amounts to 10 years but is less than 15 years, one sixtieth for each year of such service after attaining the age of 40 years and one additional sixtieth; or iii where his reckonable service amounts to 15 years but is less than 20 years, one sixtieth for each year of such service after attaining the age of 40 years and two additional sixtieths; or iv where his reckonable service amounts to 20 years or more, one sixtieth for each year of such service after attaining the age of 40 years and three additional sixtieths; but the sum so calculated shall not in any case exceed one sixth of the said net emoluments; b in the case of a person who has attained the age of 50 years but has not attained the age of 60 years at the date of the loss, one sixtieth of the said net emoluments for each year of his reckonable service after attaining the age of 40 years, up to a maximum of 15 years; and c in the case of a person who has attained the age of 60 years at the date of the loss, one sixtieth of the said net emoluments for each year of his reckonable service after attaining the age of 45 years. 4 Where a person has become entitled (whether immediately or prospectively on attaining some greater age) to a pension by way of annual amounts under his last relevant pension scheme, the maximum annual sum referred to in paragraph (1) shall be the maximum sum calculated under paragraphs (2) and (3) as if he had not become so entitled. 5 Where long-term compensation is payable in respect of any period and resettlement compensation has also been paid in respect of that period, the long-term compensation for that period shall be limited to the amount (if any) by which it exceeds the resettlement compensation paid as aforesaid. 6 Long-term compensation shall be payable to a person at intervals equivalent to those at which the emoluments of his employment were previously paid or at such other intervals as may be agreed between the person and the compensating authority. Long-term compensation for diminution of emoluments 16 Long-term compensation for diminution of emoluments in respect of any employment shall, subject to the provisions of these regulations, be awarded and paid in accordance with the following provisions: — a the compensation shall consist of an annual sum which shall be payable to a person at intervals equivalent to those at which the emoluments of his employment are or were previously paid or at such other intervals as may be agreed between the person and the compensating authority, and shall, subject to the provisions of these regulations, be payable until normal retiring age or death, whichever first occurs; and b the said annual sum shall not exceed the maximum annual sum which could have been awarded under regulation 15 if the person had suffered loss of employment and the loss of emoluments occasioned thereby had been equivalent to the amount of the diminution: Provided that no compensation shall be payable if the emoluments have been diminished by less than 2½ per cent. Compensation payable to non-pensionable officer on reaching normal retiring age 17 1 Where a person to whom this Part of these regulations applies and who is not a pensionable officer is receiving long-term compensation for loss or diminution of emoluments or worsening of his position and attains normal retiring age, the compensating authority may, if satisfied that the person would have continued to work as an officer for a substantial period beyond normal retiring age, continue to pay compensation to him for the remainder of his life at half its former rate. 2 Where a person to whom this Part of these regulations applies and who is not a pensionable officer suffers loss or diminution of emoluments, or worsening of his position, on or after attaining normal retiring age, the compensating authority may, if satisfied that the person had he not so suffered would have continued in the normal course of events to work for a substantial period as an officer, pay compensation to him for the remainder of his life at a rate not exceeding one half of that to which he would have been entitled under regulation 15 had he not attained normal retiring age at the date on which he suffered the loss, diminution or worsening, as the case may be. Date from which long-term compensation is to be payable 18 1 Long-term compensation shall be payable with effect from the date of the claim or from any earlier date permitted by the succeeding provisions of this regulation. 2 Where a claim for long-term compensation is duly made within 13 weeks of the occurrence of the loss or diminution which is the cause of the claim, or within 13 weeks of the coming into operation of these regulations whichever is the later, the award shall be made retrospective to the date on which the loss or diminution occurred. 3 Where a claim for long-term compensation is made after the expiry of the period mentioned in paragraph (2), the award may, at the discretion of the compensating authority, be made retrospective to a date not earlier than 13 weeks prior to the date on which the claim was made: Provided that if the compensating authority are satisfied that the failure to make the claim within the period mentioned in paragraph (2) was due to ill-health or other circumstances beyond the claimant's control, the award may be made retrospective to a date not earlier than that on which the loss or diminution occurred. PART V RETIREMENT COMPENSATION AND PAYMENTS ON DEATH Entitlement to retirement compensation and other payments 19 1 The compensating authority shall, subject to the provisions of these regulations, pay retirement compensation to any person to whom this Part of these regulations applies, and shall make the other payments for which provision is made in regulations 27 to 29. 2 This Part of these regulations applies to a pensionable officer who, before, on, or not later than 10 years after the date of the relevant event, has suffered loss or diminution of pension rights which is properly attributable to the happening of the relevant event and who — a is a person to whom these regulations apply; b has not at the date on which the loss or diminution was suffered reached normal retiring age; c has been continuously engaged (without a break of more than 12 months at any one time) on a full-time basis in relevant employment during the period beginning 8 years immediately before the second material date and ending on the date of the loss or diminution; and for this purpose the expression “ relevant employment ” includes any period of national service immediately following such employment . 3 a Any claim for retirement compensation or other compensation under this Part of these regulations shall be made in accordance with the provisions of Part VII of these regulations not later than — i 2 years after the date on which the loss or diminution of pension rights which is the cause of the claim was suffered, on ii 2 years after the coming into operation of these regulations, or iii in a case where the claimant could not reasonably have known of the existence of the cause of his claim for compensation at the time when it in fact occurred, 2 years after the first date on which he could reasonably have known of its existence. whichever is the latest, and b no such compensation as aforesaid shall be payable to or in respect of any claimant before he has reached normal retiring age unless either he has elected to take retirement compensation earlier in accordance with the following provisions of this Part of these regulations or the compensation is compensation payable under regulation 27 or 28. 4 Retirement compensation and any other such payments as are mentioned in paragraph (1) shall not, however, be paid or made — a to or in respect of a person who has suffered loss or diminution of pension rights which has been occasioned by loss of employment in consequence of a relevant event, if his employment could have been terminated by reason of misconduct or incapacity to perform such duties as, immediately before that loss of employment, he was performing or might reasonably have been required to perform; or b to or in respect of a person who has been offered reasonably comparable employment under the Crown or in the service of a nationalised transport body, an Executive or a subsidiary of either of those bodies and who would not have suffered a loss or diminution of pension rights had he accepted that employment; or c to or in respect of a person who has suffered a diminution of pension rights which has been occasioned by a diminution in his pensionable emoluments of less than 2½ per cent. 5 If the claim results from loss of employment, paragraphs (2) and (3) of regulation 7 (which relate to offers of employment) shall apply for the purposes of this regulation as they apply for the purposes of regulation 7. 6 References in this Part of these regulations to the date of loss or diminution of pension rights or to the date on which a loss or diminution of pension rights was suffered shall, subject to regulation 5, be interpreted as references to the date on which the loss of employment or emoluments took place or the diminution of emoluments began or the change in the terms of service occurred which occasioned the loss or diminution of pension rights. Factors governing payment of retirement compensation 20 1 Where retirement compensation is payable under any one of regulations 21, 22, 23 and 24, such compensation shall not be payable under any other of those regulations. 2 For the purpose of determining the amount of any retirement compensation which may, subject to the limits set out in these regulations, be payable thereunder, regard shall be had to the extent of the loss or the diminution of pension rights suffered and also to such of the factors set out in regulation 14(1) as may be relevant, and in addition the following further factors shall be taken into consideration — a the terms of any pension scheme associated with any new employment undertaken; and b the extent to which the person in question has sought pensionable employment, and the terms of any pension scheme which would have applied if he had accepted other suitable employment offered to him. 3 If a person has attained the age of 40 years at the date on which he suffered loss or diminution of pension rights, the compensating authority, in calculating the amount of the retirement compensation payable to him, shall credit him with additional years of service or an additional period of contribution on the following basis, namely — a 2 years, whether or not he has completed any years of service after attaining the age of 40 years, and b 2 years for each of the first 4 completed years of his reckonable service between the date when he attained the age of 40 years and the date of the loss or diminution, and c one year for each such year of service after the fourth; but the additional years of service or period of contribution so credited shall not exceed the shortest of the following periods, namely — i such number of years as, when added to his pensionable service, would amount to the maximum period of such service which would have been reckonable by him had he continued in his employment until attaining normal retiring age, or ii the number of years of his reckonable service, or iii 15 years; and in calculating the amount of any retirement compensation payable to him any period so added shall be aggregated with any years of service or period of contribution entailing reduction of the relevant pension or retiring allowance because of a retirement pension payable under section 30 of the National Insurance Act 1965. 4 When retirement compensation is awarded, or when an award is reviewed under regulation 34, the additional compensation payable in consequence of any years of service or period of contribution credited to a person under paragraph (3) may be reduced or withheld to such extent as the compensating authority may think reasonable having regard to the pension scheme (if any) associated with any further employment obtained by him. 5 If under his last relevant pension scheme the amount of any benefit to which a person might have become entitled could have been increased at the discretion of the body, trustees or other persons administering the pension scheme or of any other body or person, the compensating authority may increase, to an extent not exceeding that to which his accrued pension, accrued retiring allowance, accrued incapacity pension or accrued incapacity retiring allowance might have been increased or supplemented, the corresponding component of any retirement compensation payable to him; and in this connection the compensating authority shall have regard to the terms of any relevant resolutions of such body, trustees or other persons with regard to the increase of benefits and to the provisions of any enactment protecting the interests of that person. 6 If under his last relevant pension scheme a person would have been entitled to surrender a proportion of any pension which might have become payable to him in favour of his spouse or any dependant, then, if he so desires and informs the compensating authority by notice in writing accordingly within one month after becoming entitled to retirement compensation under these regulations, he may surrender a proportion of so much of the said compensation as is payable by way of an annual sum on the like terms and conditions and in consideration of the like payments by the compensating authority as if the said annual sum were a pension to which he had become entitled under the said pension scheme. 7 In calculating for the purposes of regulation 21, 22, 23 or 24 the amount of the annual sum which is equal to a person's accrued pension, no account shall be taken of any reduction falling to be made in that pension by reason of the provisions of any Act relating to National Insurance until the person reaches the age at which under his last relevant pension scheme the pension would have been so reduced. 8 In paragraph (3) the expression “ reckonable service ” includes any period of employment of which account has been taken or is required to be taken in calculating the amount of any pension to which a person has become entitled under the last relevant pension scheme . Retirement compensation for loss of a pension payable to pensionable officer on attainment of normal retiring age 21 Subject to the provisions of these regulations, when a person to whom this Part of these regulations applies reaches normal retiring age, the retirement compensation payable to him for loss of pension rights shall be — a an annual sum equal to the amount of his accrued pension, and b a lump sum equal to the amount of his accrued retiring allowance (if any). Retirement compensation payable to pensionable officer on his becoming incapacitated or reaching minimum pensionable age 22 1 Where a person to whom this Part of these regulations applies and who has suffered loss of his pension rights before attaining what would have been his normal retiring age — a becomes incapacitated in circumstances in which, if he had not suffered such loss as aforesaid, he would have become entitled to a pension under his last relevant pension scheme, or b attains the age which, if he had not suffered the said loss, would have been his minimum pensionable age, he shall be entitled on the happening of either of those events to claim, in lieu of any compensation to which he would otherwise be entitled under these regulations — i in a case where sub-paragraph (a) of this paragraph applies, an annual sum equal to the amount of his accrued incapacity pension and a lump sum equal to the amount of his accrued incapacity retiring allowance (if any), and ii in a case where sub-paragraph (b) of this paragraph applies, an annual sum equal to the amount of his accrued pension and a lump sum equal to the amount of his accrued retiring allowance (if any), subject however to the conditions specified in paragraph (5). 2 On receipt of a claim under paragraph (1) the compensating authority shall consider whether the claimant is a person to whom that paragraph applies, and within 13 weeks after the date of the receipt of the claim — a if they are satisfied that he is not such a person, they shall notify him in writing accordingly; or b if they are satisfied that he is such a person, they shall assess the amount of compensation payable to him and notify him in writing accordingly; and any such notification shall, for the purposes of these regulations, be deemed to be a notification by the authority of a decision on a claim for compensation. 3 A compensating authority may require any person who makes a claim under paragraph (1)(a) to submit himself to a medical examination by a registered medical practitioner selected by that authority, and if they do so, they shall also afford the person an opportunity of submitting a report from his own medical adviser as a result of an examination by him, and the authority shall take that report into consideration together with the report of the medical practitioner selected by them. 4 If a person wishes to receive compensation under this regulation, he shall so inform the compensating authority in writing within one month from the receipt of a notification under paragraph (2) or, where the claim has been the subject of an appeal, from the decision of the tribunal thereon; and the compensation shall be payable as from the date on which the compensating authority received the claim. 5 The calculation of compensation under this regulation shall be subject to the following conditions — a where the compensating authority, by virtue of regulation 20, have credited the person with additional years of service or an additional period of contribution, no account shall be taken of any additional years or period beyond the number of years which he could have served, had he not lost his employment (in a case where the loss of pension rights was the result of a loss of employment), before the date on which the claim was received by the compensating authority; and b if, by reason of any provision of the last relevant pension scheme for a minimum pension or benefit, the amount of any such pension or retiring allowance is in excess of that attributable to the person's actual service, no account shall be taken of any such additional years or period except to the extent (if any) by which they exceed the number of years represented by the difference between his actual service and the period by reference to which the minimum pension or benefit has been calculated; and c if the number of years by reference to which an accrued incapacity pension or accrued incapacity retiring allowance is to be calculated is less than any minimum number of years of qualifying service prescribed by the relevant pension scheme, the amount of such pension or retiring allowance shall, notwithstanding any minimum pension or benefit prescribed by the pension scheme, not exceed such proportion of such minimum pension or benefit as the number of years of pensionable service bears to the minimum number of years of qualifying service. Option to take retirement compensation prematurely 23 1 If a person to whom this Part of these regulations applies has suffered a loss of pension rights and loss of employment after attaining the age of 50 years both losses being attributable to the happening of the relevant event and so requests the compensating authority by notice in writing, he shall be entitled, as from the date on which the compensating authority receives such notice, to an annual sum equal to the amount of his accrued pension and a lump sum equal to the amount of his accrued retiring allowance (if any), and in that event he shall not be entitled to receive any further payment of long-term compensation after the date on which compensation under this regulation becomes payable: Provided that — i in calculating the amount of the compensation payable to a person who has given such notice as aforesaid no account shall be taken of any additional years of service or period of contribution credited to him under regulation 20; and ii where the person has claimed long-term compensation the said notice shall be given not later than 2 years after a decision on the claim has been notified or, where the decision has been reviewed under regulation 34(3), not later than 2 years after the review, or if there has been more than one such review, after the latest. 2 Regulation 22(2) and (4) shall apply in relation to a notice given under the last foregoing paragraph as it applies to a claim made under paragraph (1) of that regulation. 3 Where an annual sum is payable under this regulation in respect of any period and resettlement compensation is also payable in respect of that period, the said annual sum shall be limited to the amount (if any) by which it exceeds the resettlement compensation payable as aforesaid. 4 If a person to whom this Part of these regulations applies has suffered a diminution of pension rights otherwise than by reason of a diminution of his pensionable emoluments and has also suffered a loss of employment after attaining the age of 50 years, such diminution and loss being both attributable to the happening of the relevant event, the provisions of this regulation shall apply and have effect in relation to him in like manner as if he were such a person as is mentioned in paragraph (1) except that the lump sum (if any) referred to in that paragraph shall be reduced by the amount of any pension paid or payable by way of a lump sum under his last relevant pension scheme and except that the annual sum so referred to shall be such annual sum as is therein provided but reduced, on and after the date on which he is first entitled under the said scheme to be paid any instalment of his pension by way of annual amounts, by the amount of each such instalment and paragraph (2) of regulation 24 shall have the like effect in the application of this paragraph as it does in the application of paragraph (1)(b) of that regulation. Retirement compensation for diminution of pension rights 24 1 Regulations 21 and 22 shall apply and have effect in relation to a person to whom this Part of these regulations applies and who has suffered a diminution of pension rights as if — a where that person has suffered such diminution by reason of a diminution of his pensionable emoluments, the annual sum and the lump sum (if any) payable to him as retirement compensation under those regulations were equal to such an annual sum and such a lump sum (if any) as respectively bear the same ratio to the sums which would be payable under those regulations, had he suffered a loss (instead of a diminution) of pension rights, as the ratio which the amount of the diminution of his pensionable emoluments bears to those emoluments before their diminution, and b where that person has suffered diminution of pension rights for any other reason, the annual sum and the lump sum (if any) payable to him as retirement compensation under those regulations were equal to the annual sum and lump sum (if any) which would be payable under those regulations, had he suffered a loss (instead of a diminution) of pension rights, respectively reduced by the amount of any sums payable under his last relevant pension scheme in each year after retirement compensation becomes payable and by the amount of any lump sum paid or payable under that scheme. 2 In the application of paragraph (1)(b) to an officer to or in respect of whom the provisions of any order made under section 74 of the Transport Act 1962 as read with section 136 of the Act have effect so as to secure the payment or payments comprised in his accrued pension rights, the references in that paragraph to his last relevant pension scheme shall include a reference to any arrangements made under that scheme pursuant to such an order and to any arrangements made under that order for the purpose of discharging any liability of a body to make payments prescribed thereby. Pension contributions 25 1 A person entitled to retirement compensation under these regulations for loss of pension rights shall pay to the compensating authority an amount equal to any sum which was paid to him by way of return of pension contributions, including any interest, after ceasing to be employed, and the compensating authority may at his request repay that amount to him at any time before he becomes entitled as aforesaid, but if that amount is not paid to the compensating authority, or is repaid by them to the person, the compensation shall be reduced by an annual amount the capital value of which is equal to the amount of the said contributions. 2 For the purposes of this regulation the expression “ pension contributions ” shall include payments made to the pension fund by the person in respect of added years and any additional contributory payments so made by him . Retirement compensation of a person who obtains further pensionable employment 26 Where a person to whom this Part of these regulations applies, after suffering loss or diminution of pension rights, enters new employment in which he is subject to any pension scheme and thereafter becomes entitled to reckon for the purposes of that scheme any service or period of contribution which falls to be taken into account for the purpose of assessing the amount of any retirement compensation payable to him, his entitlement to retirement compensation shall be reviewed and no retirement compensation shall be payable in respect of such service or period unless the annual rate of the pensionable emoluments to which he was entitled immediately before such loss or diminution exceeds the annual rate on entry of the pensionable emoluments of the new employment by more than 2½ per cent. of such first-mentioned emoluments, and any retirement compensation so payable to him shall, in so far as it is calculated by reference to remuneration, be calculated by reference to the difference between the said annual rates: Provided that this regulation shall not operate to increase the amount of any retirement compensation payable in respect of loss or diminution of pension rights beyond the amount which would have been payable if the person had attained normal retiring age immediately before he suffered the loss or diminution of pension rights. Compensation payable to widow or dependants of a claimant 27 1 Payments in accordance with this regulation and regulations 28 and 29 shall be made to or for the benefit of the widow, child or other dependant or to the personal representatives of a person to whom this Part of these regulations applies. 2 If the widow, child or other dependant of that person might, but for the loss or diminution of his pension rights have become entitled to a pension or, as the case may be, to a larger pension under his last relevant pension scheme, the widow, child or other dependant concerned shall be entitled to receive an annual sum equal to the prescribed proportion of any retirement compensation by way of annual amounts payable to the person under regulation 21, 22, 23 or 24 immediately before his death or, if he dies before becoming entitled to receive compensation under any of those regulations, the prescribed proportion of the compensation by way of annual amounts which he would have received under regulation 22 or, as the case may be, under that regulation as applies by regulation 24, had he become entitled thereto immediately before his death: Provided that — i where any retirement compensation has been surrendered under regulation 20(6) or compounded under regulation 35, any sum payable under this regulation shall be calculated as if such surrender or compounding had not taken place; ii where the pension scheme provides for payment of the pension to any person on behalf of a child or other dependant, any annual sum payable as aforesaid to a child or other dependant shall be paid to that person on behalf of the child or dependant in the like manner and for the like period as is provided in the pension scheme; iii in calculating the sum payable as aforesaid, it shall be assumed that the retirement compensation payable, or which would have been payable, to a person under regulation 21, 22, 23 or 24 had been such sum as would have been payable if the accrued pension or accrued incapacity pension had not been reduced by reason of the provisions of any Act relating to National Insurance; iv where by virtue of a provision of the pension scheme, the annual pension which would have been paid to the widow, child or other dependant but for the loss or diminution of pension rights would not have exceeded, or would not have been less than, or would have been a specified amount, or an amount ascertainable when calculated in like manner as is provided in paragraph (5)(b), the aggregate of the annual sum payable under this regulation and any annual pension payable under the pension scheme to the widow, child or other dependant shall correspondingly not exceed, not be less than or shall be equal to that specified amount or, as the case may be, the amount ascertained when so calculated as aforesaid. 3 Any annual sum payable to or for the benefit of a widow, child or other dependant under this regulation shall cease to be payable in any circumstances in which a corresponding pension under the pension scheme referred to in paragraph (2) would have ceased to be payable. 4 Except where the compensation has been reduced under regulation 25, compensation payable under this regulation and regulation 28 shall in the aggregate be reduced by an amount the capital value whereof is equal to the amount of any pension contributions as defined in regulation 25(2) returned to the person in respect of whom the compensation is payable and either not paid to the compensating authority or repaid by the compensating authority to him, the compensation under each such regulation being reduced in proportion to the capital value of each amount. 5 In this regulation “ prescribed proportion ” means — a where provision is made in any last relevant pension scheme of a person to whom this Part of these regulations applies for the pension payable to his widow, child or other dependant to be of such annual amounts as will bear a certain proportion to that person's pension (whether that person's pension is payable to him under that same pension scheme or under another such scheme dealing exclusively with his pension), that certain proportion, and b where no such provision is made, the proportion which the annual amounts of the pension to which the widow, child or other dependant of the person in question would have become entitled, in the circumstances mentioned in paragraph (6) , (such amounts being calculated in the manner specified in paragraph (7)), bears to the amount of that person's accrued pension or, as the case may be, accrued incapacity pension as assessed for the purpose of calculating his retirement compensation except that any reduction in the amount of such pension made by reason of the provisions of any Act relating to National Insurance shall, for the purpose of this sub-paragraph, be disregarded. 6 The circumstances referred to in paragraph (5)(b) are that the person to whom this Part of these regulations applies had died immediately before the date on which he suffered the loss or diminution of the pension rights concerned, having then complied with any requirements of the pension scheme as to a minimum period of qualifying service or contribution and completed any additional contributory payments or payments in respect of added years which he was then in the course of making. 7 The calculation referred to in paragraph (5)(b) shall be made on the basis of the method prescribed by the last relevant pension scheme of the person in question for the calculation of benefits for a widow, child or other dependant, but in making that calculation in a case where that person has attained the age of 40 years at the date when he suffered the loss or diminution of pension rights he shall be credited, unless he is a person who is entitled to retirement compensation under regulation 23, with such number of additional years of service or such period of contribution as was or may be properly credited to him under regulation 20(3) (subject to the provisions of paragraph (5) of regulation 22 if the person in question is entitled to compensation under that regulation) for the purpose of calculating the amount of his retirement compensation: Provided always that in so crediting him as aforesaid, any number of years of service or period of contribution prescribed by the scheme to be taken into account as a limit in calculating any pension payable to the widow, child or other dependant shall not as a result be exceeded. Compensation where death grant would have been payable 28 1 If the widow or the personal representatives of a person to whom this Part of these regulations applies (in this regulation called “ the deceased person ”) might, but for that person having suffered a loss or diminution of pension rights, have become entitled to a death grant under his last relevant pension scheme, she or they, as the case may be, shall be entitled to receive a sum calculated in accordance with the provisions of this regulation and of regulation 27(4) which sum shall hereafter in this regulation be referred to as “the said sum”. 2 The amount of the said sum shall be ascertained in accordance with the method of calculation of the death grant prescribed by the deceased person's last relevant pension scheme, as modified for the purpose of this regulation by paragraph (3), but in making this calculation in any particular case such of the following assumptions as may be applicable shall be made — a where the deceased person had not been in receipt of retirement compensation, it shall be assumed that he had died immediately before the date on which he suffered the loss or diminution of pension rights; b where the deceased person had been in receipt of retirement compensation, it shall be assumed that he had retired on that date; and c except where the deceased person had been in receipt of retirement compensation under regulation 23, it shall be assumed that on the date on which he suffered the loss or diminution of pension rights he had served for a further period of pensionable service equivalent to the aggregate of any additional years of service or period of contribution credited to him under regulation 20(3), but so however that — i in a case where the deceased person had been in receipt of retirement compensation under regulation 22, such further period shall not exceed the period between the date on which the said loss or diminution was suffered and the date of the claim under that regulation, and ii in any other case such further period shall not exceed the period between the date on which the said loss or diminution was suffered and the actual date of the death of the deceased person. 3 For the purpose of applying the method of calculation specified in paragraph (2) in a case where the last relevant pension scheme contains a provision to the effect that payment of death grant is to be related to the period which has elapsed from retirement to death, the reference in that provision to such a period shall be treated as a reference to the period which has elapsed from the first accrual of retirement compensation to the actual death of the deceased person. 4 If the number of years of the deceased person's service or period of contribution is less than the minimum number of years of qualifying service or period prescribed by the pension scheme for the receipt of a death grant, the said sum shall not exceed such proportion of the death grant calculated as aforesaid as the number of years of the person's pensionable service or period of contribution bears to the minimum number of years of qualifying service or period prescribed by the pension scheme. 5 There shall be deducted from the said sum the amount of any retirement compensation paid to or in respect of the deceased person or where any part of that compensation has been surrendered under regulation 20(6), the amount which would have been paid but for any such surrender. 6 Where payment of more than one such sum under this regulation is made in relation to one death, the part of the total amount of retirement compensation to be deducted from each such sum under paragraph (5) shall bear the same proportion to such total amount as the said sum in question bears to the aggregate of such sums paid under this regulation in relation to that death. 7 For the purpose of calculating any death grant which might be payable under the last relevant pension scheme, an annual sum payable to, or for the benefit of, a widow, child or other dependant under regulation 27 shall be deemed to be a pension payable to, or for the benefit of, the widow, child or dependant, as the case may be. 8 If the widow or the personal representatives of the deceased person became entitled under his last relevant pension scheme to a smaller death grant than would have been payable had he not suffered a diminution of pension rights attributable to the happening of the relevant event, she or they, as the case may be, shall be entitled to receive a sum calculated in accordance with the foregoing provisions of this regulation modified as follows: — a in a case where the reduction of the death grant has occurred because the diminution of pension rights has been occasioned by the diminution of the deceased person's pensionable emoluments, the amount of the pensionable emoluments to be taken into account for ascertaining the said sum in accordance with paragraph (2) shall be the amount of that diminution, and b in all other cases, the sum payable to the widow or the personal representatives shall be the said sum calculated in accordance with the foregoing provisions of this regulation but reduced by the amount of the death grant to which the widow or the personal representatives became entitled as aforesaid. Balances payable to claimant's widow or personal representatives 29 1 If no annual sum is payable to the widow, child or other dependant of any person under regulation 27 and no sum is payable under regulation 28 and the person dies before he has received in the aggregate by way of retirement compensation a sum equivalent to the amount of any contributions repaid by him under regulation 25, together with compound interest thereon calculated at the rate of 3 per cent. per annum with half-yearly rests up to the date of his death as from the 1st April or 1st October following the half year in which the amount was paid, there shall be paid to his personal representatives the difference between the aggregate amount received by way of retirement compensation as aforesaid and the said equivalent sum. 2 If an annual sum becomes payable to a widow under regulation 27 and on her re-marriage or death the sum ceases to be payable, and any sum payable to a child or other dependant under that regulation has ceased to be payable, and if the aggregate amount of the payments which were made as aforesaid to her husband by way of retirement compensation and to the widow or personal representatives under regulation 28 is less than a sum equivalent to the amount which would have been payable to the personal representatives under that regulation if no annual sum had been payable under regulation 27, there shall be paid to her or her personal representatives the difference between such aggregate amount and the said equivalent sum. 3 For the purposes of this regulation a person who has surrendered any part of his retirement compensation under regulation 20(6) shall be deemed to have received during any period the amount of compensation for that period which he would have received but for any such surrender. Intervals for payment of compensation under Part V 30 Any compensation awarded as an annual sum under this Part of these regulations to or in respect of any person shall be payable at intervals equivalent to those at which the corresponding benefit would have been payable under the person's last relevant pension scheme or at such other intervals as may be agreed between the person entitled to receive the compensation and the compensating authority. PART VI ADJUSTMENT, REVIEW AND COMPOUNDING OF COMPENSATION Adjustment of compensation where pension is also payable 31 1 Where any period of service of which account was taken in calculating the amount of any compensation payable under Part IV or V of these regulations is subsequently taken into account for the purpose of calculating the amount of any pension payable to or in respect of any person in accordance with a pension scheme associated with any employment undertaken subsequent to the date on which the attributable loss was suffered which gave rise to the claim for compensation (in this regulation called “ the said scheme ”), the compensating authority may in accordance with this regulation withhold or reduce the compensation payable in respect of any period for which such pension is being received . 2 If the part of any pension by way of annual amounts which is attributable to a period of service mentioned in paragraph (1) equals or exceeds the part of any compensation by way of annual amounts which is attributable to the same period, that part of the compensation may be withheld, or if such part of the pension is less than such part of the compensation, the compensation may be reduced by an amount not exceeding such part of the pension. 3 Where a death benefit is or becomes payable under the said scheme in respect of any person who is for the purposes of regulation 28 called therein the deceased person, any sum payable under that regulation in respect of such a person may be reduced by an amount not greater than the proportion of the death benefit which the period of service mentioned in paragraph (1) bears to the total period of service of which account was taken in the calculation of the death benefit. 4 In addition to any reduction authorised by paragraph (2) or (3), if, in the circumstances mentioned in paragraph (1), compensation by way of annual amounts is attributable in part to any provision of the said scheme for a minimum benefit or pension, the compensation may be reduced by an amount not exceeding that part. 5 Where any additional years of service or period of contribution have been credited to a person under regulation 20(3), if the number of such years or such period is equal to or less than the period spent in the subsequent employment mentioned in paragraph (1), the compensation by way of annual amounts may be reduced (in addition to any other reduction authorised by this regulation) by an amount not exceeding that attributable to the additional years or period so credited or, if the number of such years or such period is greater than the period spent in the subsequent employment, by such proportion of that amount as the period spent in the subsequent employment bears to the number of additional years or the period so credited. 6 Where compensation has been calculated in accordance with regulation 26, the provisions of this regulation shall apply only in relation to such part (if any) of the pension mentioned in paragraph (1) as is attributable to pensionable emoluments in excess of those to which the person was entitled on entering the new employment referred to in regulation 26. 7 Where long-term compensation is payable to a person in respect of diminution of emoluments or worsening of his position or of both, the provisions of this regulation shall apply only in relation to such part (if any) of the pension as is under the said scheme attributable to his emoluments in the said subsequent employment, being emoluments in excess of those emoluments to which that person was entitled immediately before he suffered the diminution of emoluments or worsening of his position, or if he suffered both, before he suffered whichever was the earlier. 8 Where retirement compensation is payable to a pensionable officer in respect of diminution of pension rights occasioned by a diminution of pensionable emoluments, the provisions of this regulation shall apply only in relation to such part (if any) of the pension as is attributable to pensionable emoluments in excess of those to which that officer was entitled immediately prior to the diminution of his pension rights. Reduction of compensation in certain cases 32 1 If under a person's last relevant pension scheme any benefit or pension for which the scheme provided would have been subject to reduction or suspension on his taking up other employment specified in that behalf in the scheme, any retirement compensation to which he is entitled for loss or diminution of pension rights shall, where such employment is taken up, be reduced or suspended in the like manner and to the like extent: Provided that in calculating the amount of the reduction of the compensation in a case where by the provisions of the scheme the amount of the reduction of the benefit or pension is to be related to the emoluments of the employment taken up, the amount of any pension by way of annual amounts payable to the person under his last relevant pension scheme shall be treated as emoluments which shall for the purpose of the calculation be aggregated with the actual emoluments of the said employment. 2 There shall be deducted from the retirement compensation payable to any person any additional contributory payments remaining unpaid at the date when he suffered loss or diminution of pension rights; and any such payments not recovered at the date of his death shall be deducted from any compensation payable in respect of that person under regulation 27, 28 or 29. 3 Where a person is entitled to compensation under these regulations and the circumstances are such that he is also entitled to — a a redundancy payment under the Redundancy Payments Act 1965, or b any similar payment in consequence of the loss of his employment under any contract or arrangement with the body or person by whom he was employed (other than payments by way of a return of contributions under a pension scheme), or c any payment under or by virtue of the provisions of any enactment relating to the reinstatement in civil employment of persons who have been in the service of the Crown, the compensation which would, apart from this paragraph, become due to the person, whether by instalments or lump sum or both, shall in the aggregate be reduced by the amount of the payments referred to in this paragraph. 4 Where any resettlement or long-term compensation is payable to or in respect of any person, and that person or his widow, child or other dependant or his personal representatives is or are also entitled (whether immediately or on the person's attaining some greater age) to a pension under that person's last relevant pension scheme, any instalment of such compensation which is payable in respect of any period shall be reduced by the amount of the instalment of such pension which is payable in respect of the same period. 5 For the purposes of paragraph (4) no account shall be taken of any sum payable in consequence of the surrender by any person of part of his pension under any provision in that behalf in his last relevant pension scheme with a view to obtaining or increasing allowances for his widow, child or other dependant; and the person shall be deemed to have received during any period the amount of pension which he would have received but for any such surrender. 6 Where in any week a person is entitled to long-term compensation and is also entitled to unemployment, sickness or injury benefit under any Act relating to National Insurance, other than a benefit claimable by him in respect of a dependant, there shall be deducted from the long-term compensation payable for that week a sum equal to the amount by which the aggregate of such National Insurance benefit claimable in respect of that week and the weekly rate at which the long-term compensation would be payable but for this regulation exceeds two thirds of the weekly rate of the net emoluments of the employment which he has lost or in which the emoluments have been diminished: Provided that this paragraph shall not apply in relation to any such sickness or injury benefit in so far as — i an equivalent sum is deducted from the emoluments of his current employment, and ii such deduction from those emoluments has not occasioned an increase in his long-term compensation. 7 In paragraph (6) the expression “ weekly rate ” means seven three hundred and sixty-fifths of the relevant annual rate . Notification of change of circumstances 33 Where — a a pensionable officer after suffering any attributable loss enters any new employment referred to in regulation 26 or becomes entitled to any pension on ceasing to hold any such employment, or b a person entitled to long-term compensation enters employment the remuneration whereof is payable out of public funds or by any nationalised transport body or subsidiary thereof, or ceases to hold such employment, or receives any increase in his remuneration in such employment, or c a person entitled to retirement compensation enters employment in which the compensation is subject to reduction or suspension under regulation 32, or ceases to hold such employment, or receives any increase in his remuneration in such employment, or d a person entitled to long-term compensation starts to receive any benefit, any increase in benefit or any further benefit under any Act relating to National Insurance, he shall forthwith inform the compensating authority in writing of that fact. Review of awards of long-term or retirement compensation 34 1 The compensating authority shall, within a period of 2 years after the date on which any decision on a claim for long-term or retirement compensation (other than compensation payable under regulation 23) is notified to a claimant under regulation 36 and at intervals of not more than 6 months, review their decision or, where the claim has been the subject of an appeal, the decision of the tribunal, and these regulations shall apply in relation to any such review as they apply in relation to the initial determination of the claim; and on such review, in the light of any material change in the circumstances of the case, compensation may be awarded, or compensation previously awarded may be increased, reduced or discontinued, subject to the limits set out in these regulations: Provided that where the person to whom the decision relates ceases to hold the employment in which his emoluments were diminished, a review shall be held within 3 months after the date on which he ceases to hold that employment. 2 After the expiration of the period of 2 years mentioned in paragraph (1), the compensating authority may, at their discretion, carry out reviews in accordance with that paragraph at intervals of not less than 12 months. 3 The person to whom the decision relates may at any time require the compensating authority to carry out a review in accordance with paragraph (1) if he considers that there has been a change in the circumstances of his case which is material for the purposes of these regulations. 4 Notwithstanding anything contained in the foregoing provisions of this regulation, the compensating authority shall review a decision (whether of the authority or the tribunal) on a claim for long-term compensation for loss of employment, diminution of emoluments or worsening of a person's position after the expiration of the said period of 2 years if at any time — a the person to whom the decision relates becomes engaged in employment (hereinafter referred to as his “ current employment ”) the remuneration whereof is payable out of public funds, or by any nationalised transport body or subsidiary thereof, and which he has undertaken subsequent to the date on which he suffered the loss, diminution or worsening, and b the aggregate of the net emoluments of his current employment, any pension or benefit by way of annual amounts payable to him in respect of the employment which he has lost or in which he suffered the diminution or worsening and the long-term compensation payable to him exceeds the net emoluments of the employment which he has lost or, as the case may be, in which he so suffered. 5 The compensating authority shall further review any decision reviewed under paragraph (4) whenever the net emoluments of the person's current employment are increased. 6 If on any review under paragraph (4) or (5) the compensation is reduced, it shall not be reduced below the amount by which the net emoluments of the person's current employment, together with any pension or benefit by way of annual amounts payable to him in respect of the employment in which he has suffered the attributable loss, falls short of the net emoluments of the employment in which he suffered that loss. 7 The compensating authority shall give to a person to whom a decision relates not less than 14 days' notice of any review of that decision to be carried out under this regulation unless the review is carried out at his request. 8 Nothing in this regulation shall preclude the making of any adjustment of compensation required by regulation 31 or 32. Compounding of awards 35 1 In a case where an annual sum which has been or might be awarded under these regulations does not exceed £26, the compensating authority may, at their discretion, compound their liability in respect thereof by paying a lump sum equivalent to the capital value of the annual sum and, if any lump sum payment has been or might be awarded in addition to such annual sum under regulation 21, 22, 23 or 24, the compensating authority may likewise discharge their liability in respect thereof by an immediate payment. 2 In any other case, if the person who has been awarded long-term or retirement compensation requests them to do so, the compensating authority may, after having regard to the state of health of that person and the other circumstances of the case, compound up to one quarter of their liability to make payments under the award (other than payments to a widow, child or other dependant under regulation 27) by the payment of an equivalent amount as a lump sum or, where any compensation has been awarded as a lump sum, by increasing that compensation to such equivalent amount; and in calculating for this purpose the liability of the authority to make such payments, account shall be taken of the annual value of lump sum payments of compensation. 3 The making of a composition under paragraph (2) in relation to an award of long-term or retirement compensation shall not prevent the subsequent making of a composition under paragraph (1) in relation to that award, but, subject as aforesaid, not more than one composition may be made in relation to any award. PART VII PROCEDURE AND MISCELLANEOUS Procedure on making claims 36 1 Every claim for compensation under these regulations and every request for a review of an award of long-term or retirement compensation shall be made in accordance with this regulation. 2 Every such claim and request shall be made to the compensating authority in writing, shall set out the grounds on which the claim or request is made and shall state whether any other claim for compensation has been made by the claimant under these regulations. 3 Resettlement compensation shall be claimed separately from any other form of compensation claimable under these regulations. 4 The compensating authority shall consider any such claim or request in accordance with the relevant provisions of these regulations and shall notify the person making the claim or request in writing of their decision — a in the case of a claim for resettlement compensation, not later than one month after the receipt of the claim, and b in the case of a claim for, or request for the review of an award of, compensation under Part IV or V of these regulations, not later than 13 weeks after the receipt of the claim or request, and c in any other case, as soon as possible after the decision; but the decision of a compensating authority shall not be invalidated by reason of the fact that notice of the decision is given after the expiry of the period mentioned in this paragraph. 5 Every notification of a decision by the compensating authority (whether granting or refusing compensation or reviewing an award, or otherwise affecting any compensation under these regulations) shall contain a statement — a giving reasons for the decision; b showing how any compensation has been calculated and, in particular, if the amount is less than the maximum which could have been awarded under these regulations, showing the factors taken into account in awarding that amount; and c directing the attention of the claimant to his right under regulation 42, if he is aggrieved by the decision, to institute proceedings before a tribunal and giving him the address to which the application instituting such proceedings should be sent. Claimants to furnish information 37 1 Any person claiming or receiving compensation or whose award of compensation is being reviewed shall furnish all such information as the compensating authority may at any time reasonably require; and he shall verify the same in such manner, including the production of books or original documents in his possession or control, as may be reasonably so required. 2 Any such person shall, on receipt of reasonable notice, present himself for interview at such place as the compensating authority may reasonably require; and any person who attends for interview may, if he so desires, be represented by his adviser. Procedure on death of claimant 38 1 In the event of the death of a claimant or of a person who, if he had survived, could have been a claimant, a claim for compensation under these regulations may be continued or made, as the case may be, by his personal representatives. 2 Where any such claim is continued or made as aforesaid by personal representatives, the personal representatives shall, as respects any steps to be taken or thing to be done by them in order to continue or make the claim, be deemed for the purposes of these regulations to be the person entitled to claim, but, save as aforesaid, the person in whose right they continue or make the claim shall be deemed for the purposes of these regulations to be such person, and the relevant provisions of these regulations shall be construed accordingly: Provided that the compensating authority may in any such case extend the period within which a claim is required to be made by regulation 7, 13 or 19. Calculation of service 39 For the purpose of making any calculation under these regulations in respect of a person's reckonable service, all periods of such service shall be aggregated and, except where reference is made to completed years of service, if the aggregated service includes a fraction of a year, that fraction shall, if it equals or exceeds 6 months, be treated as a year, and shall, in any other case be disregarded. Temporary variation of emoluments 40 In calculating for the purposes of these regulations the amount of any emoluments lost, or the amount by which any emoluments have been diminished, and in determining the net emoluments, the accrued pension or the accrued retiring allowance of any person who has suffered attributable loss, no account shall be taken of any increase in the amount of the person's emoluments which is due to any temporary allowance made in consequence of the happening of the relevant event and otherwise than in the ordinary course of his employment. Compensation not assignable 41 Subject to any statutory provision in that behalf, any compensation to which a person becomes entitled under these regulations shall be paid by the compensating authority and shall be payable to, or in trust for, the person who is entitled to receive it, and shall not be assignable: Provided that, without prejudice to any other right of recovery, any compensation paid in error to a person may be recovered by the compensating authority from him by deduction from any compensation payable to him under these regulations. Right of appeal from decision of compensating authority 42 1 Every person who is aggrieved by any decision of the compensating authority with respect to a compensation question or by any failure on the part of the compensating authority to notify him of any such decision within the appropriate time prescribed by these regulations, may within 13 weeks of the notification to him of the decision or the expiry of the prescribed time, as the case may be, institute proceedings for the determination of the question by a tribunal in accordance with the Industrial Tribunals (Employment and Compensation) Regulations 1967 , or in Scotland, the Industrial Tribunals (Employment and Compensation) (Scotland) Regulations 1967 and these regulations; and the tribunal shall determine the question accordingly. 2 For the purpose of any such proceedings a person or persons may be appointed to sit with the tribunal as assessor or assessors. 3 The compensating authority shall give effect to the decision of the tribunal subject to any modifications that may be required in consequence of any appeal from that decision on a point of law. Given under the Official Seal of the Minister of Transport the 9th February 1970 Fred Mulley Minister of Transport Given under the Seal of the Secretary of State for Scotland on 9th February 1970 William Ross Secretary of State for Scotland SCHEDULE 1 Regulation 4 Table showing the events which can occasion a claim for compensation under these regulations and the first material dates and compensating authorities in connection therewith Relevant Event First Material Date Compensating Authority (1) (2) (3) 1. Transfer of property, rights or liabilities under section 4 or 5 of the Act. The date of the passing of the Act. The nationalised transport body by whom, or by whose subsidiary, the person suffering the attributable loss was employed immediately before the occurrence of that loss. 2. Transfer of property, rights or liabilities under section 7 or 8 of the Act. The date of the confirmation of the scheme under section 7 or of the making of the order under section 8. The nationalised transport body by whom, or by whose subsidiary, the person suffering the attributable loss was employed immediately before the occurrence of that loss. 3. Transfer of property, rights or liabilities under section 28 of the Act. The date of the passing of the Act. The Bus Company, where the transfer is to that Company, or the Scottish Group, where the transfer is to that Group. 4. Transfer of property, rights or liabilities under section 29(2) of the Act. The date of the passing of the Act. The Bus Company, where the transfer is to that Company, or the Scottish Group, where the transfer is to that Group. 5. Transfer of property, rights or liabilities under section 29(5) of the Act. The date of the confirmation of the scheme or the making of the order under section 29(5). The nationalised transport body by whom, or by whose subsidiary, the person suffering the attributable loss was employed immediately before the occurrence of that loss. 6. Transfer of property, rights or liabilities under section 53 of the Act. The date of the making of the order under section 53. The nationalised transport body, publicly owned body or Minister of the Crown by whom, or by whose subsidiary, the person suffering the attributable loss was employed immediately before the occurrence of that loss. 7. Transfer of property, rights or liabilities under section 144 of the Act. The date of the passing of the Act. The Railways Board. 8. Change in the manner in which the carrying on of the activities of the Railways Board or the Freight Corporation is organised made either in pursuance of a direction under section 6(1) or 45(5) of the Act, or with the consent of the Minister in order to give effect to conclusions reported under the said section 45 . The date of the giving of the direction, where a direction is given, or the date of the report of the conclusions where the change is made with the Minister's consent and without a direction. The Railways Board, where the change affects that Board, or the Freight Corporation, where the change affects that Corporation. 9. Making of adaptations such as are mentioned in paragraph 5(4) of Schedule 16 to the Act. The date of the making of the order under paragraph 5(4) of Schedule 16. The nationalised transport body, by whom, or by whose subsidiary, the person suffering the attributable loss was employed immediately before the occurrence of that loss. 10. Revocation under paragraph 10(1) of Schedule 6 to the Act of a consent granted under that Schedule. The date of the service on the operator under paragraph 10 of Schedule 6 of the notice revoking the consent. The Executive who have revoked the consent. NOTE : — In determining for the purpose of this Schedule whether a subsidiary is a subsidiary of a particular nationalised transport body, no account shall be taken of the provisions of section 51(5) of the Act. SCHEDULE 2 Regulation 2(2) TABLE I Table showing the capital value of an annual amount of £1 payable for life Capital value of £1 per annum payable for life Age Female Male £ s. d. £ s. d. Under 35 15 11 0 15 3 0 35 and under 40 15 2 0 14 12 0 40 and under 45 14 11 0 13 19 0 45 and under 50 13 18 0 13 2 0 50 13 9 0 12 11 0 51 13 5 0 12 7 0 52 13 2 0 12 3 0 53 12 18 0 11 18 0 54 12 14 0 11 14 0 55 12 10 0 11 9 0 56 12 6 0 11 5 0 57 12 2 0 11 0 0 58 11 18 0 10 15 0 59 11 13 0 10 10 0 60 11 8 0 10 5 0 61 11 4 0 10 0 0 62 10 19 0 9 14 0 63 10 14 0 9 9 0 64 10 8 0 9 3 0 65 10 3 0 8 18 0 66 9 18 0 8 12 0 67 9 12 0 8 7 0 68 9 7 0 8 1 0 69 9 1 0 7 16 0 70 8 15 0 7 10 0 NOTE : — This table is for use in connection with regulation 35(1) and (2) for the compounding of annual retirement compensation which a person is currently entitled to receive under regulation 21, 22, 23 or 24. Where the compensation is payable before age 60 (females), 65 (males) but will be reduced on the attainment of that age (in connection with National Insurance pension) the table should be used in conjunction with Table II, i.e. Table II should be used for valuing that part of the compensation which ceases to be payable at age 60 or 65 as the case may be and this table should be used for valuing the remainder. TABLE II Table showing the capital value of an amount of £1 per annum ceasing at age 60 (females), 65 (males) Capital Value Age Female Male £ s. d. £ s. d. Under 35 13 8 0 14 2 0 35 and under 40 12 5 0 13 3 0 40 and under 45 10 14 0 11 19 0 45 and under 50 8 13 0 10 8 0 50 7 3 0 9 6 0 51 6 12 0 8 18 0 52 6 0 0 8 9 0 53 5 7 0 7 19 0 54 4 13 0 7 10 0 55 3 18 0 6 19 0 56 3 3 0 6 8 0 57 2 6 0 5 17 0 58 1 9 0 5 4 0 59 10 0 4 11 0 60 — 3 17 0 61 — 3 2 0 62 — 2 6 0 63 — 1 8 0 64 — 10 0 NOTE : — This table is for use in connection with regulation 35(1) and (2) for the compounding of any part of annual retirement compensation which will cease to be payable on the attainment of age 60 (females), 65 (males). Table I should be used in relation to the remainder of such compensation, i.e. the part which is payable for life — see note on that table. TABLE III Table showing the capital value of an annual amount of £1 payable to a widow until death or remarriage Age of widow at date of widowhood Capital value of £1 per annum as at date of widowhood £ s. d. 20 6 0 0 21 6 0 0 22 6 0 0 23 6 0 0 24 6 0 0 25 6 5 0 26 6 12 0 27 6 19 0 28 7 6 0 29 7 13 0 30 8 0 0 31 8 8 0 32 8 15 0 33 9 2 0 34 9 8 0 35 9 15 0 36 10 1 0 37 10 6 0 38 10 11 0 39 10 16 0 40 11 1 0 41 11 5 0 42 11 9 0 43 11 12 0 44 11 15 0 45 11 18 0 46 12 1 0 47 12 3 0 48 12 5 0 49 12 6 0 50 12 6 0 51 12 6 0 52 12 5 0 53 12 4 0 54 12 3 0 55 12 1 0 56 11 19 0 57 11 16 0 58 11 13 0 59 11 10 0 60 11 6 0 61 11 3 0 62 10 19 0 63 10 14 0 64 10 8 0 65 10 3 0 66 9 18 0 67 9 12 0 68 9 7 0 69 9 1 0 70 8 15 0 NOTE : — This table is for use in connection with regulation 35(1) for compounding annual compensation payable to a widow under regulation 27. It should also be used, where a reduction of compensation under regulation 27(4) falls to be apportioned between the compensation payable under that regulation and under regulation 28, for ascertaining the capital value of annual compensation to a widow. TABLE IV Table showing the annual amount payable for life equivalent in value to a lump sum of £100 Annual sum, payable for life, equal in value to a lump sum of £100 Age Female Male £ s. d. £ s. d. Under 35 6 8 7 6 12 0 35 and under 40 6 12 5 6 17 0 40 and under 45 6 17 5 7 3 4 45 and under 50 7 3 11 7 12 8 50 7 8 8 7 19 4 51 7 10 11 8 1 11 52 7 12 8 8 4 7 53 7 15 0 8 8 1 54 7 17 6 8 10 11 55 8 0 0 8 14 8 56 8 2 7 8 17 9 57 8 5 3 9 1 10 58 8 8 1 9 6 0 59 8 11 8 9 10 6 60 8 15 5 9 15 1 61 8 18 7 10 0 0 62 9 2 8 10 6 2 63 9 6 11 10 11 8 64 9 12 4 10 18 7 65 9 17 0 11 4 9 66 10 2 0 11 12 7 67 10 8 4 11 19 6 68 10 13 11 12 8 5 69 11 1 0 12 16 5 70 11 8 7 13 6 8 NOTE : — This table is for use in connection with regulation 25(1) for ascertaining the annual amount by which retirement compensation under regulation 21, 22 or 23 is to be reduced where a claimant has not paid to the compensating authority an amount equal to any sum paid to him by way of pension contributions or that amount has been repaid to him by the compensating authority at his request. It should also be used in connection with regulation 35(2) for calculating for the purposes of that paragraph the annual value of retirement compensation awarded as a lump sum. TABLE V Table showing the annual amount payable to a widow until death or remarriage equivalent in value to a lump sum of £100 Age of widow at date of widowhood Annual amount equal in value to a lump sum of £100 £ s. d. 20 16 13 4 21 16 13 4 22 16 13 4 23 16 13 4 24 16 13 4 25 16 0 0 26 15 3 0 27 14 7 9 28 13 14 0 29 13 1 5 30 12 10 0 31 11 18 1 32 11 8 7 33 10 19 9 34 10 12 9 35 10 5 2 36 9 19 0 37 9 14 2 38 9 9 7 39 9 5 2 40 9 1 0 41 8 17 9 42 8 14 8 43 8 12 5 44 8 10 3 45 8 8 1 46 8 6 0 47 8 4 7 48 8 3 3 49 8 2 7 50 8 2 7 51 8 2 7 52 8 3 3 53 8 3 11 54 8 4 7 55 8 6 0 56 8 7 4 57 8 9 6 58 8 11 8 59 8 13 11 60 8 17 0 61 8 19 5 62 9 2 8 63 9 6 11 64 9 12 4 65 9 17 0 66 10 2 0 67 10 8 4 68 10 13 11 69 11 1 0 70 11 8 7 NOTE : — This table is for use in connection with regulation 27(4) for ascertaining the annual amount by which compensation to a widow is to be reduced in the circumstances described in that paragraph. If a reduction is required to be apportioned between compensation payable under regulations 27 and 28, the capital value of annual compensation to a widow should be ascertained by reference to Table III. TABLE VI Table showing, according to the outstanding period of long-term compensation, the capital value of each £100 of the total amount of long-term compensation compounded Capital value of each £100 of the total amount of long-term compensation Outstanding number of complete years of long-term compensation Female Male £ s. d. £ s. d. 0 98 8 0 98 4 0 1 95 4 0 94 16 0 2 92 2 0 91 10 0 3 89 4 0 88 6 0 4 86 8 0 85 8 0 5 83 16 0 82 14 0 6 81 6 0 80 2 0 7 78 18 0 77 14 0 8 76 14 0 75 8 0 9 74 12 0 73 4 0 10 72 12 0 71 4 0 11 70 12 0 69 6 0 12 68 16 0 67 10 0 13 67 0 0 65 14 0 14 65 6 0 64 2 0 15 63 14 0 62 10 0 16 62 2 0 61 0 0 17 60 12 0 59 12 0 18 59 4 0 58 4 0 19 57 16 0 56 18 0 20 56 10 0 55 12 0 21 55 4 0 54 8 0 22 54 0 0 53 4 0 23 52 16 0 52 0 0 24 51 12 0 50 18 0 25 50 10 0 49 18 0 26 49 8 0 48 18 0 27 48 8 0 47 18 0 28 47 8 0 46 18 0 29 46 8 0 45 18 0 30 45 10 0 45 0 0 NOTE : — This table is for use in connection with regulation 35(1) and (2) for compounding awards of long-term compensation under Part IV of these regulations. The total amount of the annual long-term compensation which is to be compounded must first be calculated, i.e. the amount which the person would receive on account of that compensation or the part of it which is to be compounded, if it were paid until “normal retiring age” (as defined in these regulations). For each £100 so calculated, the lump sum payment will be the amount shown in the table according to the number of complete years in the period between the date of compounding and “normal retiring age”.

The Drivers' Hours (Goods Vehicles) (Modifications) Order 1970 The Minister of Transport, in exercise of his powers under section 96(12) of the Transport Act 1968 and of all other enabling powers, and after consultation with representative organisations in accordance with section 101(6) of the said Act, hereby makes the following Order: — Commencement and citation 1 This Order shall come into operation on the 1st March 1970, and may be cited as the Drivers' Hours (Goods Vehicles) (Modifications) Order 1970. Interpretation 2 1 In this Order, unless the context otherwise requires, “ the Act ” means the Transport Act 1968 and any other expression which is also used in Part VI of the Act has the same meaning as in that Part of the Act . 2 Any reference in this Order to a numbered section is a reference to the section bearing that number in the Act except where otherwise expressly provided. 3 Any reference in this Order to any enactment or instrument shall be construed, unless the context otherwise requires, as a reference to that enactment or instrument as amended by any subsequent enactment or instrument. 4 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. Exemptions for drivers of light goods vehicles 3 1 In this Article “ light goods vehicle ” means a vehicle to which Part VI of the Act applies and which either — a is a goods vehicle which has a relevant plated weight not exceeding three and a half tons or (not having a plated weight) has an unladen weight not exceeding thirty hundredweight; or b is a dual purpose vehicle as defined in Regulation 3(1) of the Motor Vehicles (Construction and Use) Regulations 1969 . For the purposes of sub-paragraph (a) of this paragraph the relevant plated weight of a vehicle is the gross weight not to be exceeded in Great Britain of the vehicle as shown on a Ministry plate as defined in Regulation 118 of the Motor Vehicles (Construction and Use) Regulations 1969, or, if no such plate has been issued in respect of that vehicle, the maximum gross weight of the vehicle as shown on a plate affixed to the vehicle by virtue of Regulation 30 of the said Regulations . 2 Where during any working week a driver does not drive any vehicle to which Part VI of the Act applies except one or more light goods vehicles and in so far as he drives a light goods vehicle during that week otherwise than for social, domestic or pleasure purposes does so — a solely in connection with the carrying on by him or by his employer of the profession of medical practitioner, nurse, midwife, dentist or veterinary surgeon, or b wholly or mainly in connection with the carrying out of any service of inspection, cleaning, maintenance, repair, installation or fitting, or c solely while he is acting as a commercial traveller and is carrying in the vehicle (apart from the effects of any person carried in it) no goods other than goods carried for the purpose of soliciting orders, or d solely while acting in the course of his employment by the Automobile Association, the Royal Automobile Club or the Royal Scottish Automobile Club; then, as respects that driver and that working week or any working day falling wholly within that working week, as the case may be, section 96 shall have effect subject to the following modifications, exception and amendment, that is to say — i subsections (2), (4), (5) and (6) shall not apply, ii there shall be an additional exception to subsection (3)(a) in the case of any such working day of that driver, and iii in the application of subsection (1) the expression “ working day ” therein shall mean a period of 24 hours beginning at midnight . Exemptions for drivers engaged on building, construction and civil engineering work 4 There shall be added to the exemption provided for by section 96(9) (which provides that for the purposes of subsections (1) and (7) of section 96 no account is to be taken of any time spent in driving a vehicle elsewhere than on a road if the vehicle is being so driven in the course of operations of agriculture or forestry) the following exemption, that is to say — For the purposes of subsections (1) and (7) of section 96 no account shall be taken of any time spent in driving a goods vehicle elsewhere than on a road if the vehicle is being so driven in the course of carrying out any work in the construction, reconstruction, alteration, extension or maintenance of, or of a part of, a building, or of any other fixed works of construction or civil engineering (including works for the construction, improvement or maintenance of a road) and, for the purposes of this exemption, where the vehicle is being driven on, or on a part of, a road in the course of carrying out any work for the improvement or maintenance of, or of that part of, that road, it shall be treated as if it were being driven elsewhere than on a road. Given under the Official Seal of the Minister of Transport the 19th February 1970. Fred Mulley Minister of Transport

The Consular Relations (Merchant Shipping) (United States of America) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (United States of America) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 1 The United States of America is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). 2 For the purposes of the said section as applied by virtue of paragraph (1) of this Article a ship shall be treated as belonging to the United States of America if it is documented or registered under the law of any territory subject to the sovereignty or authority of the United States of America, excepting the Panama Canal Zone. 3 Nothing in this Order shall apply to any ship of war. W. G. Agnew

The Consular Relations (Merchant Shipping) (Kingdom of Sweden) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (Kingdom of Sweden) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Article 3 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 4 of this Order a ship shall be treated as belonging to the Kingdom of Sweden if it is registered at a port in the Kingdom of Sweden. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the Kingdom of Sweden shall not be entertained by any court in the United Kingdom unless a consular officer of the Kingdom of Sweden has been notified of the intention to invoke the jurisdiction of that court and has not been objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 The Kingdom of Sweden is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The Drainage Rates (Appeals) Regulations 1970 The Minister of Agriculture, Fisheries and Food, in exercise of the powers conferred on him by sections 32(5) and 34(1) of the Agriculture (Miscellaneous Provisions) Act 1968 and section 76(2) of the General Rate Act 1967, as applied by sections 33(2) and 34(1) of the said Act of 1968, and of all other powers enabling him in that behalf, and after consultation with the Council on Tribunals, hereby makes the following regulations: — PRELIMINARY Citation and commencement 1 These regulations may be cited as the Drainage Rates (Appeals) Regulations 1970 and shall come into operation on 11th August 1970. Interpretation 2 1 Except in so far as the context otherwise requires — a any reference in these regulations to a regulation bearing a number is a reference to the regulation bearing that number in these regulations; and b any reference in a regulation to a paragraph bearing a number is a reference to the paragraph bearing that number in that regulation. 2 In these regulations the following expressions have the meanings hereby assigned to them respectively, that is to say: — “ the Act ” means the Agriculture (Miscellaneous Provisions) Act 1968; “ the Act of 1930 ” means the Land Drainage Act 1930; “ the Act of 1967 ” means the General Rate Act 1967; “ appeal ” means an appeal against a determination made by a drainage board under section 30 or section 31 of the Act or a decision of a drainage board under section 29(2) of the Act of 1930, and in relation to an appeal — “ appellant ” means the person whose notice of objection to the determination or decision results in the hearing of the appeal; “ the court ” means the local valuation court convened, or (where the context so requires) to be convened, under section 33(1) of the Act to hear and determine the appeal; “ the drainage board ” means the drainage board whose determination or decision is the subject of the appeal; “ the drainage district ” means the district for which such board is the drainage board; “ party ” means a person who is entitled to appear and be heard as a party and who appears at the hearing whether in person or in other manner permitted by these regulations; and “ the chairman ” means the person acting as chairman of the court; “ divided hereditament ” means a hereditament different parts of which are situated in different panel areas; “ drainage board ” has the same meaning as in the Act of 1930; “ hereditament ” means a hereditament for the purposes of drainage rates; “ the Minister ” means the Minister of Agriculture, Fisheries and Food; “ panel ” means a local valuation panel constituted in pursuance of the Act of 1967; “ panel area ” means an area for which a panel is constituted under a scheme in force for the purposes of section 88 of the Act of 1967; “ prescribed panel ” has the meaning assigned to it by regulation 3; “ rating unit ” means a hereditament for the purposes of general rates; “ relevant panel area ”, in relation to a divided hereditament means a panel area in which a part of the hereditament is situated; “ undivided hereditament ” means a hereditament the whole of which is situated in one panel area; and “ valuation list ” and “ valuation officer ” have the meanings assigned to them respectively by section 115(1) of the Act of 1967. 3 The Interpretation Act 1889 applies to the interpretation of these regulations as it applies to the interpretation of an Act of Parliament. JURISDICTION General provisions as to jurisdiction 3 1 The panel to whose clerk a notice of objection to a determination made by a drainage board under section 30 or section 31 of the Act (together with a note of such determination) or a notice of objection to a decision of a drainage board under section 29(2) of the Act of 1930 is required to be transmitted is in these regulations referred to as “ the prescribed panel ”, whether the hereditament to which the determination or decision relates is a divided or an undivided hereditament. 2 Where the hereditament to which the determination or decision relates is a divided hereditament, the prescribed panel shall be determined in accordance with the following five regulations. Hereditaments assessable on basis of annual value 4 Where a divided hereditament, not being a hereditament to which regulation 5 applies, consists of land which falls to be assessed to drainage rates only on the basis of annual value, the prescribed panel shall be the panel for the panel area in which is situated that portion of the hereditament which has a greater area than the portion situated in any other panel area. Hereditaments occupied for purposes of extensive undertakings 5 1 This regulation applies where a divided hereditament consists of or includes any land to which paragraph (2) applies. 2 This paragraph applies to land which is occupied — a for the purposes of the Post Office; or b for the purposes of a statutory water undertaking; or c for the purposes of any of the following Boards, that is to say, the British Railways Board, the London Passenger Transport Board and the British Waterways Board; or d by the National Coal Board; or e by a Gas Board or the Gas Council or an Electricity Board. 3 In a case to which this regulation applies the prescribed panel shall be the panel for that one of the relevant panel areas which contains a greater portion of the drainage district in which the hereditament is comprised than the portion of that district comprised in any other relevant panel area. 4 In this regulation — “ Electricity Board ” has the meaning assigned to it by section 34(5) of the Act of 1967; “ Gas Board ” means an Area Board within the meaning of the Gas Act 1948; and “ statutory water undertaking ” has the meaning assigned to it by section 31 of the Act of 1967. Hereditament comprising one rating unit 6 Where a divided hereditament, not being a hereditament to which regulation 5 applies, includes the whole or part of one, but not more than one, rating unit, the prescribed panel shall be the panel for the panel area in which the rating unit is situated. Hereditaments containing contiguous rating units 7 1 The following provisions of this regulation shall apply where — a a divided hereditament, not being a hereditament to which regulation 5 applies, consists of or includes two or more rating units, or parts of two or more rating units, or one or more rating units and parts of other rating units; and b all such rating units are within the same curtilage or contiguous and in the same occupation but (in either case) within not more than two panel areas. 2 If in one relevant panel area there are situated rating units having in the aggregate and according to the valuation lists for the time being in force or, if there are no relevant entries in those valuation lists, according to entries included in proposals made by the valuation officer, a greater rateable value than the rating units situated within the other relevant panel area, the prescribed panel shall be the panel for the relevant panel area first mentioned in this paragraph. 3 If there is an equality of the aggregate rateable values of the said rating units or, where there is no entry in the valuation list, an equality of the aggregate rateable values of the entries included in proposals made by the valuation officer, the prescribed panel shall be the panel for such one of the relevant panel areas as the Minister may determine. Hereditaments not otherwise provided for 8 In the case of any divided hereditament for which the foregoing regulations do not provide the prescribed panel shall be the panel for such one of the relevant panel areas as the Minister may determine. PROCEDURE Notice of hearing 9 1 The clerk to the prescribed panel shall give not less than fourteen days' notice of the date, time and place fixed for the hearing of an appeal to the appellant and to the drainage board. 2 The clerk to the prescribed panel shall not less than fourteen days before the date of such hearing advertise the date, time and place at which the court will sit to hear appeals by causing a notice of the same to be affixed to the office of the prescribed panel and also to be affixed to the office of the drainage board or posted in some conspicuous place or places within the drainage district, and such notice shall name a place where a list of the appeals to be heard by the court may be inspected. Representation 10 On the hearing of an appeal the drainage board may appear by their clerk or other officer duly appointed for the purpose or by counsel or solicitor, and any other person entitled to appear may appear in person or by counsel or solicitor or by any other representative; but no member of the prescribed panel shall be entitled to act in relation to the appeal as representative for any person entitled to appear. Hearing 11 1 On the hearing of an appeal the appellant shall begin unless the court, having regard to the particular circumstances of the case and with the consent of the appellant, otherwise determines. 2 Subject to paragraph (1) the parties to the appeal shall be heard in such order as the court may determine. Non-appearance 12 If any person entitled to appear does not appear at the hearing of an appeal, the court may, on being satisfied that the requirements of regulation 9 have been duly complied with, proceed with the hearing on the assumption that he does not desire to be heard. Adjournment and separate hearings 13 The court may postpone or adjourn the hearing of an appeal for such time and to such place and upon such terms, if any, as it thinks fit, or may order that different questions arising on the appeal be heard at such different times or in such order or at such different places as to the court may seem expedient. Withdrawal of parties etc 14 No person, being a party to an appeal or an employee or a member of a body which is such a party, or a person acting for such a party, or a person called as a witness during the hearing, shall be present while the court is considering its decision on the appeal. Decision 15 1 Except where the court consists of only two persons, the decision of the majority of the court shall be the decision of the court. 2 The decision of the court shall be in writing and signed by the chairman. 3 The clerk to the prescribed panel shall send a copy of the decision certified by him to every party to the appeal and shall inform every such party of the right to appeal against the decision of the court. Non-compliance with procedural regulations 16 Non-compliance with regulations 10 to 15 or any of them shall not render any proceeding in an appeal void unless the court shall so direct, but such proceeding may be set aside either wholly or in part as irregular, or amended, or otherwise dealt with in such manner and upon such terms as the court shall think fit. In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 3rd August 1970. J.M.L. Prior Minister of Agriculture, Fisheries and Food

Parish Councils and Burial Authorities (Miscellaneous Provisions) Act 1970 Maintenance of private graves. 1 1 A burial authority or a local authority may agree with any person in consideration of the payment of a sum by him, to maintain — a a grave, vault, tombstone, or other memorial in a burial ground or crematorium provided or maintained by the authority; b a monument or other memorial to any person situated in any place within the area of the authority to which the authority have a right of access; so, however, that no agreement or, as the case may be, none of the agreements made under this subsection by any authority with respect to a particular grave, vault, tombstone, monument or other memorial may impose on the authority an obligation with respect to maintenance for a period exceeding 99 years from the date of that agreement. 2 On the transfer of a burial ground or crematorium or of responsibility for the maintenance of a burial ground to a burial authority or local authority, any person who was responsible before the transfer for the maintenance of the burial ground or crematorium may transfer to the authority any assets held by him for the general purpose of the maintenance of the burial ground or crematorium, other than any such assets the devolution of which is affected by any condition of a trust, being a condition relating to the maintenance of a particular grave, vault, tombstone or other memorial. 3 If assets are transferred to an authority by any person under subsection (2) of this section, any agreement binding on that person and made with a third party for the maintenance of any grave, vault, tombstone or other memorial in the burial ground or crematorium to which those assets relate shall also be binding on the authority. 4 In this section, the expression " local authority " shall be construed as if contained in the Local Government Act 1933, but it shall also be deemed, for the purposes of this section, to include the Council of the Isles of Scilly. Form of grants. 2 Where a burial authority has power under any enactment (whether local or general) to grant, with respect to a burial ground, any right relating to burial, the construction and use of a vault or other place of burial, or the placing of any tombstone or other memorial therein, that right may be granted under the hand of the town clerk, clerk, or other authorised officer of the burial authority. Signs etc. 3 1 In this section references to " highway authority ", " traffic sign ", " road ", " public service vehicles ", " footpaths " and " bridleway " shall be construed in like manner as if they were contained in the Road Traffic Regulation Act 1967, and section 67 of that Act shall have effect in relation to references in this section to a highway authority as it has effect in relation to references thereto in sections 55, 56, 56A, 61, 62 and 63 of that Act. 2 A parish council may with the permission of the highway authority and subject to any conditions imposed by that authority provide on or near any road (other than a footpath or bridleway), or may contribute either wholly or in part towards the cost of providing on or near any road (other than a footpath or bridleway), traffic signs indicating — a a stopping place for public service vehicles; b a warning of the existence of any danger; or c the name of the parish or of any place therein. 3 A parish council may provide or contribute either wholly or in part towards the cost of providing, on or near any footpath or bridleway, any object or device, not being a traffic sign, for conveying to users of that footpath or bridleway warnings of the existence of danger. 4 No traffic sign, object or device provided by a parish council in pursuance of this section shall be placed on any land (not being a road or part thereof) without the consent of the owner and occupier thereof. 5 Nothing in this section shall prejudice the exercise by the highway authority or the appropriate Minister of their powers under section 61 of the Road Traffic Regulation Act 1967 (removal of traffic signs, etc.), but in the case of any such object or device as is mentioned in subsection (1) of that section, being such an object or device provided by a parish council in pursuance of this section on land which the council neither owns nor occupies, the powers conferred on the highway authority by the said subsection (1) shall be exercisable in relation to the parish council instead of in relation to the owner or occupier of the land ; but, for the purpose of complying with a notice under that subsection which, by virtue of this subsection, requires a parish council to remove any such object or device, the council may enter any land and exercise such other powers as may be necessary for that purpose. 6 A parish council may warn the public of any danger in or apprehended in their area, subject, however, in the case of a warning given by providing any traffic sign, object or device, to the provisions of subsections (2) to (4) of this section. Power to amend local Acts. 4 Subsections (1), (2), (4) and (5) of section 82 of the Public Health Act 1961 shall apply for the purpose of conferring power on the Minister of Housing and Local Government to repeal or amend any such provision as is mentioned in subsection (1) of that section, being a provision appearing to him to be inconsistent with, or unnecessary in consequence of, any provision of this Act, as if references in those subsections to that Act were references to this Act. Interpretation. 5 1 In this Act references to a parish council shall be construed as including references to the council or corporation of a borough included in a rural district. 2 In this Act" burial authority " means any body or authority exercising powers under the Burial Acts 1852 to 1906, the Public Health (Interments) Act 1879, the Cremation Acts 1902 and 1952, or any local Act relating to the provision or maintenance of a burial ground, and " burial ground " has the same meaning as in the Open Spaces Act 1906. Expenses. 6 Any increase attributable to the provisions of this Act in the sums payable out of moneys provided by Parliament by way of rate support grant under the enactments relating to local government in England and Wales shall be paid out of moneys so provided. Short title and extent. 7 1 This Act may be cited as the Parish Councils and Burial Authorities (Miscellaneous Provisions) Act 1970. 2 This Act shall not apply to Scotland or Northern Ireland.

The Drivers' Hours (Passenger Vehicles) (Exemptions) Regulations 1970 The Minister of Transport, in exercise of his powers under section 96(10) of the Transport Act 1968 and of all other enabling powers, and after consultation with representative organisations in accordance with section 101(6) of the said Act of 1968, hereby makes the following Regulations: — Commencement and citation 1 These Regulations shall come into operation on the 1st March 1970, and may be cited as the Drivers' Hours (Passenger Vehicles) (Exemptions) Regulations 1970. Interpretation 2 1 In these Regulations, unless the context otherwise requires, — “ the Act ” means the Transport Act 1968 , “ emergency ” means an event which — causes or is likely to cause such — danger to the life or health of one or more individuals, or a serious interruption in the maintenance of public services for the supply of water, gas, electricity or drainage or of telecommunication or postal services, or a serious interruption in the use of roads, or a serious interruption in private transport or in public transport (not being an interruption caused by a trade dispute (within the meaning of the Trade Disputes Act 1906) involving persons who carry passengers for hire or reward), or is likely to cause such serious damage to property, as to necessitate the taking of immediate action to prevent the occurrence or continuance of such danger or interruption or the occurrence of such damage ; and any other expression which is also used in Part VI of the Act has the same meaning as in that Part of that Act. 2 Any reference in these Regulations to an enactment or instrument shall be construed, unless the context otherwise requires, as a reference to that enactment or instrument as amended by any subsequent enactment or instrument. 3 The Interpretation Act 1889 shall apply for the interpretation of these Regulations as it applies for the interpretation of an Act of Parliament. Exemptions from requirements as to drivers' hours 3 1 Any driver of a passenger vehicle who spends time on duty to deal with an emergency is, in accordance with paragraphs (2) and (3) of this Regulation, hereby exempted from the requirements of subsections (1) to (6) of section 96 of the Act in respect of the time so spent. 2 Any time so spent by such a driver shall for the purposes of — a subsection (1) of the said section 96 be deemed not to have been spent in driving vehicles to which Part VI of the Act applies, and b subsections (1) to (6) of the said section 96 (including the expression “working day” used therein) — i be deemed to have been spent by him off duty, and ii if it would apart from the emergency have been spent in taking an interval for rest or an interval for rest and refreshment be deemed to have been so spent by him. 3 The requirements of subsection (6) of the said section 96 shall, in relation to such a driver, be deemed to be satisfied in respect of a working week in which he spends time on such duty if he is off duty for a period of twenty-four hours in accordance with that subsection less a period equal to the total time which he spends on such duty in that week. 4 Any driver of a passenger vehicle who spends time on duty during a working day to meet a special need, that is to say work done solely in connection with the collection and delivery of blood for the purposes of transfusion, is hereby exempted from the requirements of section 96(3) in relation to that day, subject to the conditions that — a he is able to obtain rest and refreshment during that day for a period which is, or for periods which taken together are, not less than the time by which the working day exceeds 10 hours, b that day does not exceed 14 hours, and c he has not taken advantage of this exemption from the requirements of section 96(3) on more than one previous working day which forms part of the working week of which that day forms part. Given under the Official Seal of the Minister of Transport the 3rd February 1970. Fred Mulley Minister of Transport

Education (Handicapped Children) Act 1970 Mentally handicapped children. 1 1 As from such day (" the appointed day ") as the Secretary of State may appoint by order made by statutory instrument — a no further use shall be made of the powers conferred by section 57 of the Education Act 1944 (that is to say the section having effect as section 57 by virtue of the Mental Health Act 1959) for classifying children suffering from a disability of mind as children unsuitable for education at school; and b a local health authority shall not, under section 12 of the Health Services and Public Health Act 1968 have the power or be subject to a duty to make arrangements for training children who suffer from a disability of mind and who are for purposes of the Education Act 1944 of compulsory school age; and, where immediately before the appointed day a decision under section 57 of the Education Act 1944 was in force with respect to a child, section 34(4) to (6) of that Act shall apply as if the decision had been made, and the examination in consequence of which it was made had been carried out, under section 34. 2 The Secretary of State shall by order make such provision as appears to him to be necessary or expedient in consequence of subsection (1) above — a for the transfer to the employment of local education authorities of persons employed by local health authorities (not being also local education authorities) or by regional hospital boards; and b for the protection of the interests of persons who before the appointed day have been employed for the purpose of functions of local health authorities (including those functions of authorities which are also local education authorities) or functions of regional hospital boards; and c for the transfer to local education authorities of property, rights and liabilities of local health authorities or regional hospital boards. 3 The provision to be made under subsection (2)(b) above shall include provision — a for the payment by a Secretary of State, local health authority or local education authority, subject to such exceptions or conditions as may be prescribed by the order, of compensation to or in respect of any such persons as are referred to in subsection (2)(b) who suffer loss of employment or loss or diminution of emoluments which is attributable to the provisions of this section; and b as respects any person so referred to who on the appointed day is in consequence of this section employed for the purpose of functions of a local education authority, for securing that, so long as he continues in that authority's employment for the purpose of those functions — i he shall enjoy terms and conditions of employment not less favourable than those he enjoyed immediately before that date, except as regards the scale of his salary or remuneration if on that date or afterwards he ceases to be engaged in duties reasonably comparable to those in which he was engaged immediately before that date; and ii in the event of his ceasing to be so engaged, the scale of his salary or remuneration shall also be not less favourable so long as he has not been served with a statement in writing of new terms and conditions of employment. A written statement given in accordance with section 4 of the Contracts of Employment Act 1963 shall not be regarded as a statement of new terms and conditions of employment for the purposes of paragraph (b) above unless the statement indicates that it is to be. 4 An order under subsection (2) above may include provision — a for the determination of questions arising under any such order and as to the manner in which and persons to whom claims for compensation are to be made; b for applying, with or without modifications, any provision made by or under any enactment and relating to the transfer of staff between authorities; and the provision made under subsection (2)(b) shall have effect notwithstanding, and may amend or repeal, any provision made by or under any enactment and relating to the remuneration of teachers or to superannuation. 5 Any order under subsection (2) above may be varied or revoked by a subsequent order of the Secretary of State, and the power of the Secretary of State to make orders under that subsection shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. 6 There shall be defrayed out of moneys provided by Parliament — a any expenses incurred by a Secretary of State in the payment of compensation under any provision made in accordance with subsection (3)(a) above; and b any increase attributable to this section in the sums payable out of moneys so provided by way of rate support grant. Citation, repeal and extent. 2 1 This Act may be cited as the Education (Handicapped Children) Act 1970, and shall be included among the Acts which may be cited as the Education Acts 1944 to 1970. 2 As from the appointed day, the enactments mentioned in the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule. 3 Nothing in this Act extends to Scotland or to Northern Ireland. SCHEDULE Enactments Repealed Section 2. Chapter Short Title Extent of Repeal 7 & 8 Geo. 6. c. 31 . The Education Act 1944. Sections 57 to 57B (as inserted by the Mental Health Act 1959). In section 116 the words from " to any", where first occurring, down to (but not including) the same words where last occurring. 7 & 8 Eliz. 2. c. 72 . The Mental Health Act 1959. Sections 11 to 13. Schedule 2. Schedule 6, paragraph 2. In Schedule 7, the entry for the Education Act 1944. 1967 c, 80 . The Criminal Justice Act 1967. In Schedule 3, in Part I, the entries for the Education Act 1944 section 57(2) and for the Mental Health Act 1959 section 12(3), except as respects offences committed before the appointed day. 1968 c. 46 . The Health Services and Public Health Act 1968. In Schedule 3, in the second paragraph of the entry for the Mental Health Act 1959, the words " and 12(1) ". 1970 c. 42 . The Local Authority Social Services Act 1970. In Schedule 1, in the entry for the Mental Health Act 1959, paragraph (a).

The Superannuation (Teaching and Local Government) Interchange Rules 1970 The Secretary of State for Education and Science, with the consent of the Minister for the Civil Service, and the Minister of Housing and Local Government, acting jointly in exercise of the powers conferred on them by sections 2 and 15 of the Superannuation (Miscellaneous Provisions) Act 1948, as amended by section 11 of the Superannuation (Miscellaneous Provisions) Act 1967 and as read with the Minister for the Civil Service Order 1968 . hereby make the following Rules: — PART I GENERAL Citation and Commencement 1 These Rules may be cited as the Superannuation (Teaching and Local Government) Interchange Rules 1970 and shall come into operation on 19th November 1970. Revocation 2 1 The Superannuation (Teaching and Local Government) Interchange Rules 1961 are hereby revoked. 2 Section 38(2) of the Interpretation Act 1889 (which relates to the effect of repeals) shall have effect in relation to the Rules hereby revoked as if both they and these Rules were Acts of Parliament. Interpretation 3 1 In these Rules, unless the context otherwise requires — “ the Act of 1948 ” means the Superannuation (Miscellaneous Provisions) Act 1948; “ the Act of 1909 ” means the Asylums' Officers' Superannuation Act 1909; “ the Act of 1937 ” means the Local Government Superannuation Act 1937; “ the Act of 1953 ” means the Local Government Superannuation Act 1953; “ the Acts of 1937 to 1953 ” means the Local Government Superannuation Acts 1937 to 1953 ; “ added years ” means, in relation to local government employment, any additional years of service reckonable under regulation 12 of the Benefits Regulations, any corresponding provision of a local Act scheme or that regulation or any such provision as aforesaid as applied by regulations made under Schedule 3 or 4 to the Act of 1953; and includes any additional years of service which, having been granted under any such provision or under any similar provision contained in any other enactment or scheme, have subsequently become and are reckonable under or by virtue of interchange rules; “ the Benefits Regulations ” means the Local Government Superannuation (Benefits) Regulations 1954 ; “ fund authority ” means the local authority maintaining the superannuation fund to which a person first becomes a contributor after ceasing to be employed in teaching service or, as the case may be, was last a contributor before he became employed in teaching service; “ interchange rules ” means rules made under section 2 of the Act of 1948 (which provides for the pensions of persons transferring to different employment) and includes provisions similar to those of such rules contained in any instrument made under any other Act; “ local government employment ” means employment by virtue of which the person employed is or is deemed to be a contributory employee or local Act contributor within the meaning of the Act of 1937; “ Local Government Modification Regulations ” means the National Insurance (Modification of Local Government Superannuation Schemes) Regulations 1969 ; “ national service ”, in relation to any person, means service which is relevant service within the meaning of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 and any similar service immediately following relevant service entered into with the consent of the authority or person by whom he was last employed before undertaking that service or, in the case of a person who holds an appointment, to an office and is not employed under a contract of employment, with the consent of the authority by whom he was appointed; “ operative date ” means the date of the coming into operation of these Rules; “ pension ” has the meaning assigned to it by the Act of 1948; “ prescribed period ” has the meaning assigned to that expression by rule 4; “ reckonable service ” means reckonable service within the meaning of the Teachers' Superannuation Act 1967; “ repaid contributions ” means any sum paid to a person under the Teachers (Superannuation) Acts 1918 to 1956, the Teachers' Regulations, the Acts of 1937 to 1953 or a local Act scheme by way of repayment or return of contributions (other than voluntary contributions and contributions made or deemed to be made for the purpose of securing benefits for a widow, children or other dependants); and includes both any interest included in such sum and any amount deducted therefrom in respect of liability to income tax arising by reason of its payment; “ the Secretary of State ” means the Secretary of State for Education and Science; “ the Teachers' Regulations ” means the Teachers' Superannuation Regulations 1967 to 1970 ; and “ the principal Teachers' Regulations ” means the Teachers' Superannuation Regulations 1967; “ teaching service ” means — reckonable service; and service which for the purposes of the Teachers' Regulations is service as an organiser, a teacher in an admitted school, a services civilian teacher, a services education officer or a part-time teacher; “ the Transfer Value Regulations ” means the Local Government Superannuation (Transfer Value) Regulations 1954 ; “ voluntary contributions ” means — in relation to employment in teaching service, additional contributions being paid under section 19 of the Teachers (Superannuation) Act 1956 or regulation 32 of the principal Teachers' Regulations in respect of a period of previous employment and any contributions being paid as a condition of any other period (not being a period of war service within the meaning of the Teachers' Superannuation (War Service) Act 1939 or of national service) being reckoned as reckonable service; and in relation to local government employment, payments (other than completed payments, that is to say, payments made in respect of a liability which has been wholly discharged) of any of the following categories — additional contributory payments of the kind referred to in section 2(3) and (4) of the Act of 1953; any similar payments made under a local Act scheme as a condition of reckoning any period of employment as service or as a period of contribution for the purposes of the scheme, or, where the local Act scheme provides for the reckoning of non-contributing service, as contributing service for the purposes of the scheme; any payments made for the purpose of increasing the length at which any period of service or of contribution would be reckonable for the purpose of calculating a benefit under a local Act scheme; and any payments made in respect of added years. 2 Other expressions which have meanings assigned to them by the Acts of 1937 to 1953 or the Teachers' Regulations have, unless the context otherwise requires, the same respective meanings for the purposes of these Rules. 3 For the purposes of these Rules a justices' clerk shall be deemed to be in the employment of the magistrates' courts committee or committee of magistrates by whom he is, or under the provisions of any enactment is deemed to have been, appointed ; and in relation to a justices' clerk references to “ employment ” shall be construed accordingly. 4 Any reference in these Rules to the provisions of any enactment, rules, regulations or other instrument shall, unless the context otherwise requires, be construed as a reference to those provisions as amended, modified, extended, applied or re-enacted by any subsequent enactment, rules, regulations or instrument. 5 Unless the context otherwise requires, any reference in these Rules to a rule, Part or paragraph shall be construed as a reference to that rule or Part of these Rules or to that paragraph of the rule in which the reference occurs, as the case may be. 6 The Interpretation Act 1889 shall apply for the interpretation of these Rules as it applies for the interpretation of an Act of Parliament. Prescribed Period 4 1 For the purposes of these Rules, subject as hereafter in this rule provided, the expression “ prescribed period ” shall mean — a in the case of a person who, immediately after ceasing to be employed in teaching service or local government employment became engaged in national service, a period of six months after the date of termination of the national service; b in the case of a person to whom section 6 of the Act of 1948 has become applicable, a period of five years after the date on which he ceased to be employed in local government employment or such longer period as the Minister of Housing and Local Government may in any particular case allow; and c in the case of any other person, a period of twelve months after the date on which he ceased to be employed in teaching service or local government employment. 2 The Secretary of State in the case of a person entering teaching service and the fund authority in the case of a person entering local government employment may, with the agreement of the other, extend the period of six months or twelve months, whichever is appropriate, specified in paragraph (1). 3 Subject as in paragraph (4) provided — a in reckoning the period of six months and twelve months specified in paragraph (1) no account shall be taken of any period spent by a person on a course of study or training which he undertook after leaving his former employment; and b if a person left his former employment in order to undertake a course of study or training and on completion of that course became engaged in national service, he shall be deemed for the purposes of paragraph (1) to have left his former employment at the time when he completed the said course of study or training. 4 The provisions of paragraph (3) shall not apply to a person who in his new employment is in local government employment unless the authority employing him are satisfied, or to a person who in his new employment is in teaching service unless the Secretary of State is satisfied, that by reason of his having undertaken the said course of study or training he is better fitted for the duties of his new employment. PART II TRANSFER FROM TEACHING SERVICE TO LOCAL GOVERNMENT EMPLOYMENT Application 5 1 Except as in rule 6 provided, this Part shall apply to a person who — a enters, or since the beginning of April 1967 has entered, local government employment within the prescribed period after ceasing to be employed in teaching service; b before or within three months after entering local government employment or six months after the operative date, whichever period shall last expire, or within such longer period as the fund authority may with the agreement of the Secretary of State in any particular case allow, notifies that authority in writing that he desires this Part to apply to him and furnishes that authority with particulars in writing of any national service in which he has been engaged since ceasing to be employed in teaching service; and c within three months after entering local government employment or six months after the operative date, whichever period shall last expire, or within such longer period as the fund authority may in any particular case allow, pays to that authority an amount equal to any repaid contributions paid to him after he last ceased to be employed in teaching service, together with any compound interest thereon payable in accordance with paragraph (2). 2 For the purposes of paragraph (1)(c) — a compound interest shall be paid where the prescribed period exceeds twelve months and shall be calculated on the amount of the repaid contributions at the rate of three per cent. per annum with half-yearly rests from the day twelve months after that on which the person ceased to be employed in teaching service or from the day on which repaid contributions were paid to him, whichever shall be the later, to the day on which he notified the fund authority as required by paragraph (1)(b); and b if the amount of compound interest calculated as aforesaid exceeds a sum equal to one half of the difference between the amount of the transfer value payable under rule 7 and the amount of the transfer value which would have been so payable if calculated by reference to the person's age on ceasing to be employed in teaching service, it shall be reduced to that sum. Excepted Cases 6 This Part shall not apply to a person who — a has received payment of any pension (other than repaid contributions) under the Teachers (Superannuation) Acts 1918 to 1956 or the Teachers' Regulations; or b is a person in respect of whom a transfer value has been paid otherwise than under these Rules by the Secretary of State since he last ceased to be employed in teaching service. Transfer Value 7 1 In respect of a person to whom this Part applies the Secretary of State shall, out of moneys provided by Parliament, pay to the fund authority a transfer value of an amount calculated in accordance with the following provisions of this rule. 2 Subject as hereafter in this rule provided, the transfer value shall be an amount equal to the transfer value which would have been payable under the Transfer Value Regulations if the person, at the date when he ceased to be employed in teaching service, had ceased to be a contributory employee under one local authority and had become such an employee under another local authority in the circumstances described in section 29 of the Act of 1937 and had been entitled to reckon as contributing service his reckonable service and his service reckonable for the purposes of Parts VII, IX and X of the principal Teachers' Regulations at the length at which it is so reckonable. 3 For the purpose of calculating the amount of a transfer value any period of service which, having originally been non-contributing service or non-contributing service for the purposes of regulations made under section 66 of the National Health Service Act 1946 or section 66 of the National Health Service (Scotland) Act 1947, became reckonable as reckonable service by virtue of interchange rules shall be treated as non-contributing service. 4 In calculating the amount of a transfer value there shall be excluded — a any period of war service within the meaning of the Teachers Superannuation (War Service) Act 1939 and of national service within the meaning of the Teachers Superannuation (National Service) Rules 1949 in respect of which, at the time the transfer value is paid, the contributions remain unpaid; and b any period of previous employment and any period additional to actual service in respect of which the person was immediately before ceasing to be employed in teaching service paying voluntary contributions and in respect of which, at the time the transfer value is paid, he has not elected to continue to pay such contributions. 5 The amount of the transfer value payable in respect of a person shall be calculated by reference to his age — a on the operative date if, having ceased to be employed in teaching service more than twelve months before that date, he entered local government employment before that date; or b on the date on which he entered local government employment if that date is on or after the operative date and more than twelve months after that on which he ceased to be employed in teaching service. 6 The amount of the transfer value payable in respect of any person shall be reduced by an amount equal to any compound interest payable by him in accordance with rule 5(2). Reckoning of Service 8 1 Subject as hereafter in this rule provided, so much service as is taken into account as contributing service under rule 7 for the purpose of calculating the amount of the transfer value payable in respect of a person shall be reckoned as contributing service or as service under a local Act scheme or a period of contribution for the purposes of such a scheme. 2 So much service as is taken into account as non-contributing service under rule 7 for the purpose of calculating the amount of the transfer value payable in respect of a person shall be reckoned as non-contributing service or, for the purpose of a local Act scheme, in the manner and to the extent to which it would have been reckonable if in his employment in teaching service he had been a contributory employee. 3 Any service of a person to whom this Part applies which under the Teachers' Regulations is reckonable only for the purpose of calculating the amount of any pension payable to or in respect of him or only for the purpose of determining whether he is entitled to any pension shall be reckoned only for the corresponding like purpose under the Acts of 1937 to 1953 or a local Act scheme. 4 Except as in this rule before provided, a person to whom this Part applies shall not be entitled under section 12(2) of the Act of 1937 or any corresponding provision of a local Act scheme to reckon as non-contributing service any service as referred to therein prior to the date on which he became employed in teaching service if a transfer value has been paid in respect of that service under rule 17 or under any corresponding provision contained in interchange rules or if a transfer of assets in respect of his local government pension rights has been made out of a local authority's superannuation fund under any enactment. Voluntary Contributions 9 1 A person to whom this Part applies may elect to continue to pay voluntary contributions being paid by him immediately before ceasing to be employed in teaching service. 2 If a person elects as aforesaid and — a within three months of becoming employed in local government employment, or within such longer period as the fund authority may in any particular case allow, pays to that authority a sum equal to the aggregate of any sum paid to him by way of return of voluntary contributions on or after ceasing to be employed in teaching service, any interest added thereto and any amount deducted therefrom in respect of liability to income tax by reason of the payment; and b thereafter pays to that authority any amounts outstanding in respect of those voluntary contributions as they would have been payable if he had remained in teaching service his local government employment shall be affected in the manner prescribed by the following provisions of this rule. 3 In respect of voluntary contributions made in respect of any period of previous employment and any period additional to actual service, the person shall enjoy rights and be subject to liabilities as if any such period were added years in respect of which payments are being made in his local government employment under regulation 12 of the Benefits Regulations or, if in his local government employment he is subject to a local Act scheme, under such provisions corresponding to the said regulation 12 or to regulation 5 of the Local Government Superannuation (Reckoning of Service on Transfer) Regulations 1954 as are contained in that scheme. 4 In respect of voluntary contributions other than those to which paragraph (3) applies, the person shall be treated as if those contributions had been completed immediately before he ceased to be employed in teaching service. Computation of Contributions 10 1 Where a person to whom this Part applies ceases to be employed in local government employment or dies, then, in calculating any amount payable to or in respect of him by way of return of contributions, the amount of his contributions in respect of service reckonable in accordance with rule 8(1) shall be taken to include such amount as would have been payable by way of return of contributions under the Teachers' Regulations if, on his ceasing to be employed in teaching service, he had been entitled to be repaid his contributions without interest. 2 Where an amount payable by way of return of contributions or by way of benefit is a sum equal to, or which falls to be calculated by reference to, the amount of a person's contributions with compound interest thereon, compound interest shall also be payable in respect of the amount by which those contributions are increased under the last preceding paragraph, calculated — a as respects the period ending immediately before the day on which he entered local government employment, at the rate at which it would have been calculated under the Teachers' Regulations, if on ceasing to be employed in teaching service he had been entitled to a return of contributions together with compound interest thereon; and b as respects the period beginning with the date on which he entered local government employment, in accordance with the provisions of section 10 of the Act of 1937 or, as the case may be, the corresponding provisions of the relevant local Act scheme. 3 Notwithstanding anything in this rule previously contained, the sum by which contributions are increased by virtue of paragraph (1) or (2) shall not include — a any sum in respect of contributions which, on or after the person's ceasing to be employed in teaching service, were returned to and retained by him; or b any amount in respect of voluntary contributions which are not continued in pursuance of rule 9 of these Rules. Benefits under Teachers' Regulations 11 Subject to the provisions of Part III and of interchange rules, no payment of any pension shall be made under the Teachers' Regulations to or in respect of any person by reason of any service which is taken into account in calculating the amount of a transfer value under rule 7 other than a payment by way of return of voluntary contributions. Provisions relating to National Insurance 12 1 A person to whom this Part applies shall for the purposes of the Local Government Modification Regulations be — a a person subject to flat-rate reduction but not a person entitled to the optant's rate if, on the day on which he ceased to be employed in teaching service, paragraph 2 of Schedule 5 to the principal Teachers' Regulations (which paragraph provides for the reduction of contributions at a flat-rate) applied to him and if, for the purpose of determining the amount of any pension payable to him under the Teachers' Regulations, paragraph 4 of that Schedule (which provides for the reduction of pensions by fixed annual amounts) would have been applicable to him; b a person subject to flat-rate reduction and a person entitled to the optant's rate if, on the day on which he ceased to be employed in teaching service, paragraph 2 of Schedule 5 to the principal Teachers' Regulations applied to him and if, for the purpose aforesaid, paragraph 5 of that Schedule (which paragraph provides for the reduction of pensions by annual amounts ascertained by reference to a table) would have been applicable to him; or c a person who retains unmodified status if, on the day on which he ceased to be employed in teaching service, paragraph 2 of Schedule 5 to the principal Teachers' Regulations did not apply to him and if, for the purpose aforesaid, neither paragraph 4 nor paragraph 5 of that Schedule would have been applicable to him. 2 Where, by virtue of paragraph (1)(b), a person to whom this Part applies is a person entitled to the optant's rate the material date for the purposes of Part II of the Local Government Modification Regulations shall be the date which was in relation to him the date of modification for the purposes of paragraph 5 of Schedule 5 to the principal Teachers' Regulations. Questions and Appeals 13 The provisions of section 35 of the Act of 1937 (which section relates to the decision of questions and appeals) shall have effect in relation to a person (not being a local Act contributor) to whom this Part applies as if the reference therein to regulations made under that Act included a reference to these Rules. PART III TRANSFER FROM LOCAL GOVERNMENT EMPLOYMENT TO TEACHING SERVICE Application 14 1 Except as in rule 15 provided, this Part shall apply to a person who — a becomes, or since the beginning of April 1967 has become, employed in teaching service within the prescribed period after ceasing to be employed in local government employment; b before or within three months after becoming employed in teaching service or six months after the operative date, whichever period shall last expire, or within such longer period as the Secretary of State may with the agreement of the fund authority in any particular case allow, notifies the Secretary of State in writing that he desires this Part to apply to him and furnishes the Secretary of State with particulars in writing of any national service in which he has been engaged since ceasing to be employed in local government employment; and c within three months after becoming employed in teaching service or six months after the operative date, whichever period shall last expire, or within such longer period as the Secretary of State may in any particular case allow, pays to the Secretary of State an amount equal to any repaid contributions paid to him after he last ceased to be employed in local government employment, together with any compound interest thereon payable in accordance with paragraph (2) 2 For the purposes of paragraph (1)(c) — a compound interest shall not be payable unless — i the prescribed period exceeds twelve months; and ii the fund authority requires that it be paid; b compound interest shall be calculated on the amount of the repaid contributions at the rate of three per cent. per annum with half-yearly rests from the day twelve months after that on which the person ceased to be employed in local government employment or from the day on which repaid contributions were paid to him, whichever shall be the later, to the day on which he notified the Secretary of State as required by paragraph (1)(b); and c if the amount of compound interest calculated as aforesaid exceeds a sum equal to one half of the difference between the amount of the transfer value payable under rule 17 and the amount of the transfer value which would have been so payable if calculated by reference to the person's age on ceasing to be employed in local government employment, it shall be reduced to that sum. Excepted Cases 15 This Part shall not apply to a person who — a ceased to be employed in local government employment before the operative date unless the fund authority consents to its application; or b has received payment of any pension (other than repaid contributions) under the Acts of 1937 to 1953 or a local Act scheme; or c is a person in respect of whom a transfer value has been paid otherwise than under these Rules by a fund authority since he last ceased to be employed in local government employment. Discretionary Increase of Benefits 16 1 The local authority by whom a person to whom this Part applies was last employed may, within six months after the date on which they are notified by the Secretary of State of such application, exercise in relation to that person any discretion which, with a view to increasing the pension payable to him, it would have been open to them to exercise at the time when he left their employment if he had then retired and had been entitled to a retirement pension under regulation 5 of the Benefits Regulations or, if that regulation was not applicable to him, to any corresponding benefit provided under the superannuation provisions which were applicable to him in his former employment. 2 A decision made in the exercise of any discretion under paragraph (1) shall be subject to the limitations and restrictions (if any) and to the right of appeal (if any) to which it would have been subject if the discretion had been exercised on the person's retirement in the circumstances aforesaid. 3 Where a discretion has been exercised under paragraph (1) the service reckonable, immediately before he ceased to be employed in local government employment, by a person in whose favour the discretion has been exercised shall be deemed to have been correspondingly increased. 4 Any increase in service, if attributable to a decision under this rule to increase the pension payable to the person otherwise than by any notional increase or extension of the service reckonable for the purpose of calculating that pension or by treating any specified period of non-contributing service as contributing service, or, under a local Act scheme, by similarly converting service of one category to service of another category, shall be ascertained by converting the service in respect of which the higher rate of benefit is payable into contributing service or service for the purposes of the relevant local Act scheme in the manner in which non-contributing service is converted into contributing service under section 2(4) of the Act of 1953. Transfer Value 17 1 In respect of a person to whom this Part applies the fund authority shall, out of the superannuation fund maintained by them, pay to the Secretary of State a transfer value of an amount calculated in accordance with the following provisions of this rule. 2 Subject as hereafter in this rule provided, the transfer value shall be an amount equal to the transfer value which would have been payable under the Transfer Value Regulations if the person, at the date when he ceased to be a contributory employee or local Act contributor, had become such an employee or contributor under another local authority in the circumstances described in section 29 of the Act of 1937. 3 In calculating the amount of a transfer value — a there shall be included any increase of service of the person by reason of the exercise under rule 16 of a discretion in his favour; and b the Transfer Value Regulations shall be deemed to be modified — i by the omission from sub-paragraph (a) of the definition of “service” in paragraph 1 of the First Schedule thereto of the words “not being such service as is mentioned in proviso (a) to that sub-section” ; and ii by the omission, in respect of a person who was an established officer or servant within the meaning of the Act of 1909, of sub-paragraph (c) of the said definition. 4 The amount of the transfer value payable in respect of a person shall be calculated by reference to his age — a on the operative date if, having ceased to be employed in local government employment more than twelve months before that date, he became employed in teaching service before that date; or b on the date on which he became employed in teaching service if that date is on or after the operative date and more than twelve months after that on which he ceased to be employed in local government employment. 5 The amount of the transfer value payable in respect of any person shall be reduced by — a an amount equal to any compound interest payable by him in accordance with rule 14(2); and b an amount equal to any sum payable by the fund authority by way of income tax by reason of the payment of the transfer value. Supplementary Provisions as to Transfer Value 18 1 Where the amount of a transfer value payable under rule 17 is increased by reason of the exercise under rule 16 of a discretion by a local authority, that authority shall pay the amount of the increase to the superannuation fund out of which the transfer value is payable. 2 When paying a transfer value under rule 17 a fund authority shall furnish to the Secretary of State and to the person in respect of whom it is paid the like particulars relating to that person's pensionable service as would have been given to him if instead of becoming employed in teaching service he had re-entered local government employment. 3 Where — a a transfer value is payable under rule 17 by a fund authority in respect of a person who before entering local government employment had been subject to the Act of 1909; and b the body by whom he was last employed while subject to that Act (in this rule called “ the hospital body ”) would, if he had become entitled to a superannuation allowance on leaving local government employment, have been liable to contribute to that allowance the hospital body shall pay to the fund authority a sum equal to the transfer value which they would have been liable to pay to the Minister of Health under regulation 56(4) of the National Health Service (Superannuation) Regulations 1950 if that regulation had become applicable to the person when he become employed in teaching service. 4 Where the hospital body would have had in respect of any such contribution as aforesaid a right of contribution from any other body, that other body shall pay to the fund authority a sum equal to the transfer value which they would have been liable to pay to the Minister of Health under paragraph (5) of the said regulation 56 if that regulation had become applicable to the person when he became employed in teaching service. 5 Where any body referred to in paragraph (3) or (4) has been dissolved or has ceased to exercise functions as such, references to that body shall be construed as references to the appropriate authority as defined in paragraph (15) of the said regulation 56. Reckoning of Service 19 1 Subject as hereafter in this rule provided, in respect of a person to whom this Part applies — a there shall be reckoned as reckonable service — i any period of service which, at the time of his ceasing to be employed in local government employment, is reckonable as contributing service or as service or a period of contribution for the purposes of a local Act scheme; ii any period of national service after ceasing to be employed in local government employment which would have been reckonable as aforesaid if he had again become employed in local government employment after the termination thereof; and iii one-half of any period of service which, at the time of his ceasing to be employed in local government employment, is reckonable as non-contributing service; and b there shall be reckoned as class C external service for the purposes of the Teachers' Regulations any period of service which, at the time of his ceasing to be employed in local government employment, is reckonable as non-contributing service, except in so far as that service is reckoned under this rule or those Regulations as reckonable service. 2 Where a person to whom this Part applies has, during his local government employment, been employed as a part-time employee, the period of his part-time service shall be treated — a for the purpose of determining whether he has served for any minimum period prescribed by the Teachers' Regulations as necessary for any pension to be paid to or in respect of him, as if it were whole-time service; and b for the purpose of calculating the amount of any pension payable under the Teachers' Regulations, as if it were whole-time service for a proportionately reduced period. 3 Where by virtue of a scheme modifying the Act of 1937 any period of service of a person to whom this Part applies is reckoned at a fraction of its actual length for the purpose of calculating the amount of the transfer value payable under rule 17, then, for the purpose of calculating the amount of any pension payable to or in respect of him under the Teachers' Regulations, only that fraction of that period of service shall be reckoned as reckonable service. 4 In respect of a person to whom this Part applies there shall not by virtue of this Part be reckoned as reckonable service — a any service which he is or was entitled to reckon as contributing or non-contributing service by virtue of section 17 of the Act of 1937 or the corresponding provisions of a local Act scheme if that service is reckonable as reckonable service otherwise than by virtue of these Rules; b any service which in his case is deemed to be service to which the said section 17 applies by virtue of the Local Government Superannuation (England and Scotland) Regulations 1948 , if that service is reckonable as reckonable service within the meaning of regulations made under the Teachers Superannuation (Scotland) Act 1968; or c any service which is the subject of a direction under section 17(3) of the Act of 1953 that all rights enjoyed by or in respect of the person with respect to that service shall be forfeited. 5 The whole of any period of service to which paragraph (1) applies shall, for the purpose of calculating under section 4(3) of the Teachers' Superannuation Act 1967 the average salary of a person to whom this Part applies, be reckoned as a period of employment in reckonable service and his salary during any period so reckoned shall be such amount as would under the Benefits Regulations be taken into account for the purpose of determining the annual average of his remuneration during that period. 6 Notwithstanding anything in this rule before contained, any service of a person to whom this Part applies which under the Acts of 1937 to 1953 or a local Act scheme was at the time he ceased to be employed in local government employment reckonable only for the purpose of calculating the amount of any pension payable to or in respect of him or only for the purpose of determining whether he was entitled to any pension shall be reckoned only for the corresponding like purpose under the Teachers' Regulations. Voluntary Contributions 20 1 A person to whom this Part applies may elect to continue to pay voluntary contributions of any category being paid by him immediately before ceasing to be employed in local government employment. 2 If a person elects as aforesaid and — a within three months of becoming employed in teaching service, or within such longer period as the Secretary of State may in any particular case allow, pays to the Secretary of State a sum equal to the aggregate of any sum paid to him on or after ceasing to be employed in local government employment by way of return of voluntary contributions of any category he has elected to continue to pay, any interest added thereto and any amount deducted therefrom in respect of liability to income tax arising by reason of the payment; and b thereafter pays to the Secretary of State any amounts outstanding in respect of voluntary contributions of any category he has elected to continue to pay at the times at which they would have been payable if he had remained in local government employment his teaching service shall be affected in the manner prescribed by the following provisions of this rule. 3 In respect of voluntary contributions paid in respect of added years, those years shall be reckoned as reckonable service. 4 In respect of voluntary contributions paid otherwise than in respect of added years, the service in respect of which they are paid shall be reckoned for the purposes of the Teachers' Regulations in the manner in which it would under rule 19 have been so reckoned if the payment of the contributions had been completed immediately before the person ceased to be employed in local government. 5 The provisions of paragraph (5)(b), (6), (7), (8) and (12) of regulation 32 and of regulation 38 of the principal Teachers' Regulations shall apply to voluntary contributions payable under this rule as if they were additional contributions payable in respect of previous employment within the meaning of those Regulations. 6 If a person does not elect as aforesaid or if voluntary contributions are repaid to him under regulation 38 of the principal Teachers' Regulations, as applied by this rule, the period in respect of which such contributions were paid shall be reckoned for the purposes of the Teachers' Regulations only to the extent, if any, to which it would have been so reckoned if no such payments or contributions had been made in respect thereof. Commencement of Employment 21 For the purposes of regulation 41(1)(a)(ii) of the principal Teachers' Regulations the date on which a person to whom this Part applies entered any service taken into account for the purpose of calculating the amount of the transfer value payable in respect of him shall be deemed to be a date on which he became employed in teaching service. Computation of Contributions 22 1 Where a person to whom this Part applies ceases to be employed in teaching service or dies, then, in computing the sum to which he or his personal representatives shall be entitled under the Teachers' Regulations, there shall be included a sum in respect of contributions paid by him in respect of service which by virtue of these Rules is reckoned as reckonable service and, in the case of a person who has elected in pursuance of rule 20 to continue paying voluntary contributions, in respect also of voluntary contributions paid by him before becoming employed in teaching service which have either not been returned to him or, if returned, have been paid to the Secretary of State under rule 20 and have not subsequently been again returned. 2 In computing the amount of the sum so included for the purposes of this rule compound interest shall be calculated — a as respects the period ending immediately before the date on which the person became employed in teaching service, in the manner in which such interest, if any, would have been calculated if the occasion for making the calculation had occurred immediately before that date; and b as respects the period beginning with that date, in accordance with the provisions of Part IV of the principal Teachers' Regulations. Benefits under Acts or Scheme 23 Notwithstanding anything in the Acts of 1937 to 1953 or any local Act scheme, a person to whom this Part has become applicable shall cease to be entitled to any payment out of the superannuation fund to which he contributed while in local government employment in respect of any service of which account was taken in calculating the transfer value payable under this Part out of that fund, other than a payment by way of return of voluntary contributions. Provisions relating to National Insurance 24 1 In relation to a person to whom this Part applies — a the following paragraphs of Schedule 5 to the principal Teachers' Regulations, that is to say — paragraph 2 (which provides for the reduction of contributions), paragraph 4 (which provides for the reduction of pensions by fixed annual amounts specified therein), and paragraph 5 (which provides for the reduction of pensions by annual amounts ascertained by reference to a table) shall not apply if, on the day on which he ceased to be employed in local government employment, he was a person who retained unmodified status; b paragraphs 2 and 4 of the said Schedule 5 shall apply if, on the day on which he ceased to be employed in local government employment, he was a person subject to flat rate reduction and, for the purpose of determining the amount of any pension payable to him under the Acts of 1937 to 1953 or a local Act scheme, would not have been a person entitled to the optant's rate; and c paragraphs 2 and 5 of the said Schedule 5 shall apply if, for the purpose aforesaid, he would have been a person entitled to the optant's rate. 2 Where, by virtue of paragraph (1)(c), paragraph 5 of Schedule 5 to the principal Teachers' Regulations applies to a person the date of modification for the purposes of the latter paragraph shall be the date which was in relation to him the material date for the purposes of Part II of the Local Government Modification Regulations. 3 Expressions to which meanings are assigned by the Local Government Modification Regulations have the same respective meanings in this rule. PART IV MISCELLANEOUS Designated Employees 25 A person who — a immediately before 1st April 1967 enjoyed rights as a designated employee; and b elected under regulation 5(3) of the Teachers' Superannuation (Amending) Regulations 1968 that his service from 1st September 1968 should not be reckonable service shall be deemed for the purposes of sections 6 and 31 of the Act of 1937 not to have had a disqualifying break of service between the said two dates. Exclusion of Section 17 of Act of 1937 26 In relation to a person who, having been employed in reckonable service, enters local government employment — a section 17(1) of the Act of 1937 (which section as extended by the Teachers' Regulations, provides for the reckoning of reckonable service as contributing service) shall not apply; and b his service in respect of which contributions were payable under the Teachers' Superannuation Act 1967 shall not be reckonable for any purpose of the Acts of 1937 to 1953 or a local Act scheme otherwise than in accordance with these Rules. Application of Section 11(3) of Act of 1953 27 1 Section 11(3) of the Act of 1953 (which sub-section enables certain persons who would otherwise be debarred on grounds of age from becoming contributory employees or local Act contributors to become such employees or such contributors and to reckon previous pensionable employment) shall apply to a person who before the operative date entered the employment of a local authority after ceasing to be employed in teaching service on or after 1st April 1967. 2 For the purposes of paragraph (1) section 11(3) of the Act of 1953 shall have effect as if for the references therein to the passing of that Act there were substituted references to the coming into operation of these Rules. Given under the Official Seal of the Secretary of State for Education and Science on 2nd November 1970. Margaret H. Thatcher Secretary of State for Education and Science Consent of the Minister for the Civil Service given under his Official Seal on 3rd November 1970. K.H. McNeill Authorised by the Minister for the Civil Service Given under the Official Seal of the Minister of Housing and Local Government on 4th November 1970. Peter Walker Minister of Housing and Local Government

Game Act 1970 Amendment of Game Act 1831. 1 1 The following amendments and repeals shall have effect in the Game Act 1831: — a in section 3, for the words " one pound " there shall be substituted the words " five pounds " , and for the words " ten pounds" there shall be substituted the words " twenty pounds " b in section 4, for the words " one pound " there shall be substituted the words " five pounds " ; c in section 4, the following words shall cease to have effect and are hereby repealed: — i " or knowingly have in his house, shop, stall, possession, or control"; ii " or shall knowingly have in his house, possession or control any bird of game (except birds of game kept in a mew or breeding place) after the expiration of forty days (one inclusive and the other exclusive) from the respective days in each year on which it shall become unlawful to kill or take such birds of game respectively as aforesaid"; iii " or found in his house, shop, possession or control"; d in section 4, after the words " any bird of game ", in both places where those words occur in the section as amended as above, there shall be inserted the words " (except live birds for rearing or exhibition purposes or for sale alive) ". 2 Section 10 of the Revenue Act 1911 is hereby repealed. 3 The amendments made by this Act in section 4 of the Game Act 1831 shall have effect also in that section as applied by any subsequent enactment. Short title and commencement. 2 1 This Act may be cited as the Game Act 1970, and shall come into force on the second day of February 1971. 2 Nothing in this Act extends to Northern Ireland.

The Transport Act 1968 (Commencement No. 4) Order 1970 The Minister of Transport hereby makes this Order in exercise of his powers under section 166 of the Transport Act 1968 and of all other enabling powers: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 4) Order 1970. 2 Subsections (10) and (12) of section 96 of the Transport Act 1968 shall come into force on the 22nd January 1970. Sealed with the Official Seal of the Minister of Transport the 16th January 1970. G. R. W. Brigstocke An Under Secretary of the Ministry of Transport

Chronically Sick and Disabled Persons Act 1970 Welfare and housing Information as to need for and existence of welfare services 1 1 It shall be the duty of every local authority having functions under section 29 of the National Assistance Act 1948 to inform themselves of the number of persons to whom that section applies within their area and of the need for the making by the authority of arrangements under that section for such persons. 2 Every such local authority — a shall cause to be published from time to time at such times and in such manner as they consider appropriate general information as to the services provided under arrangements made by the authority under the said section 29 which are for the time being available in their area; and b shall ensure that any such person as aforesaid who uses any of those services is informed of any other of those services which in the opinion of the authority is relevant to his needs. 3 This section shall come into operation on such date as the Secretary of State may by order made by statutory instrument appoint. Provision of welfare services 2 1 Where a local authority having functions under section 29 of the National Assistance Act 1948 are satisfied in the case of any person to whom that section applies who is ordinarily resident in their area that it is necessary in order to meet the needs of that person for that authority to make arrangements for all or any of the following matters, namely — a the provision of practical assistance for that person in his home; b the provision for that person of, or assistance to that person in obtaining, wireless, television, library or similar recreational facilities; c the provision for that person of lectures, games, outings or other recreational facilities outside his home or assistance to that person in taking advantage of educational facilities available to him; d the provision for that person of facilities for, or assistance in, travelling to and from his home for the purpose of participating in any services provided under arrangements made by the authority under the said section 29 or, with the approval of the authority, in any services provided otherwise than as aforesaid which are similar to services which could be provided under such arrangements; e the provision of assistance for that person in arranging for the carrying out of any works of adaptation in his home or the provision of any additional facilities designed to secure his greater safety, comfort or convenience; f facilitating the taking of holidays by that person, whether at holiday homes or otherwise and whether provided under arrangements made by the authority or otherwise; g the provision of meals for that person whether in his home or elsewhere; h the provision for that person of, or assistance to that person in obtaining, a telephone and any special equipment necessary to enable him to use a telephone, then, notwithstanding anything in any scheme made by the authority under the said section 29, but subject to the provisions of section 35(2) of that Act (which requires local authorities to exercise their functions under Part III of that Act under the general guidance of the Secretary of State and in accordance with the provisions of any regulations made for the purpose), it shall be the duty of that authority to make those arrangements in exercise of their functions under the said section 29. 2 Without prejudice to the said section 35(2), subsection (3) of the said section 29 (which requires any arrangements made by a local authority under that section to be carried into effect in accordance with a scheme made thereunder) shall not apply — a to any arrangements made in pursuance of subsection (1) of this section; or b in the case of a local authority who have made such a scheme, to any arrangements made by virtue of subsection (1) of the said section 29 in addition to those required or authorised by the scheme which are so made with the approval of the Secretary of State. Duties of housing authorities 3 1 Every local authority for the purposes of Part V of the Housing Act 1957 in discharging their duty under section 91 of that Act to consider housing conditions in their district and the needs of the district with respect to the provision of further housing accommodation shall have regard to the special needs of chronically sick or disabled persons; and any proposals prepared and submitted to the Minister by the authority under that section for the provision of new houses shall distinguish any houses which the authority propose to provide which make special provision for the needs of such persons. 2 In the application of this section to Scotland for the words " Part V of the Housing Act 1957 ", " 91 " and " Minister " there shall be substituted respectively the words " Part VII of the Housing (Scotland) Act 1966 " , " 137 " and " Secretary of State ". Premises open to public Access to, and facilities at, premises open to the public 4 1 Any person undertaking the provision of any building or premises to which the public are to be admitted, whether on payment or otherwise, shall, in the means of access both to and within the building or premises, and in the parking facilities and sanitary conveniences to be available (if any), make provision, in so far as it is in the circumstances both practicable and reasonable, for the needs of members of the public visiting the building or premises who are disabled. 2 This section shall not apply to any building or premises intended for purposes mentioned in subsection (2) of section 8 of this Act. Provision of public sanitary conveniences 5 1 Where any local authority undertake the provision of a public sanitary convenience, it shall be the duty of the authority, in doing so, to make provision, in so far as it is in the circumstances both practicable and reasonable, for the needs of disabled persons. 2 Any local authority which in any public sanitary convenience provided by them make or have made provision for the needs of disabled persons shall take such steps as may be reasonable, by sign-posts or similar notices, to indicate the whereabouts of the convenience. 3 In this section " local authority " means a local authority within the meaning of the Local Government Act 1933 or the Local Government (Scotland) Act 1947 and any joint board or joint committee of which all the constituent authorities are local authorities within the meaning of either of those Acts. Provision of sanitary conveniences at certain premises open to the public 6 1 Any person upon whom a notice is served with respect to any premises under section 89 of the Public Health Act 1936 (which empowers local authorities by notice to make requirements as to the provision and maintenance of sanitary conveniences for the use of persons frequenting certain premises used for the accommodation, refreshment or entertainment of members of the public) shall in complying with that notice make provision, in so far as it is in the circumstances both practicable and reasonable, for the needs of persons frequenting those premises who are disabled. 2 The owner of a building, who has been ordered under section 11(4) of the Building (Scotland) Act 1959 to make the building conform to a provision of building standards regulations made under section 3 of that Act requiring the provision of suitable and sufficient sanitary conveniences therein, shall in complying with that order make provision, in so far as it is in the circumstances both practicable and reasonable, for the needs of persons frequenting that building who are disabled. Signs at buildings complying with ss. 4-6 7 1 Where any provision required by or under section 4, 5 or 6 of this Act is made at a building in compliance with that section, a notice or sign indicating that provision is made for the disabled shall be displayed outside the building or so as to be visible from outside it. 2 This section applies to a sanitary convenience provided elsewhere than in a building, and not itself being a building, as it applies to a building. University and school buildings Access to, and facilities at, university and school buildings 8 1 Any person undertaking the provision of a building intended for purposes mentioned in subsection (2) below shall, in the means of access both to and within the building, and in the parking facilities and sanitary conveniences to be available (if any), make provision, in so far as it is in the circumstances both practicable and reasonable, for the needs of persons using the building who are disabled. 2 The purposes referred to in subsection (1) above are the purposes of any of the following: — a universities, university colleges and colleges, schools and halls of universities; b schools within the meaning of the Education Act 1944, teacher training colleges maintained by local education authorities in England or Wales and other institutions providing further education pursuant to a scheme under section 42 of that Act; c educational establishments within the meaning of the Education (Scotland) Act 1962. Advisory committees, etc. Central advisory committee on war pensions 9 1 The Secretary of State shall ensure that the central advisory committee constituted under section 3 of the War Pensions Act 1921 includes the chairmen of not less than twelve of the committees established by schemes under section 1 of that Act and includes at least one war disabled pensioner, and shall cause that central advisory committee to be convened at least once in every year. 2 This section extends to Northern Ireland. Housing Advisory Committees 10 In the appointment of persons to be members of the Central Housing Advisory Committee set up under section 143 of the Housing Act 1957 or of the Scottish Housing Advisory Committee set up under section 167 of the Housing (Scotland) Act 1966, regard shall be had to the desirability of that Committee's including one or more persons with knowledge of the problems involved in housing the chronically sick and disabled and to the person or persons with that knowledge being or including a chronically sick or disabled person or persons. National Insurance Advisory Committee 11 The National Insurance Advisory Committee shall include at least one person with experience of work among and of the needs of the chronically sick and disabled and in selecting any such person regard shall be had to the desirability of having a chronically sick or disabled person. Industrial Injuries Advisory Council 12 The Industrial Injuries Advisory Council shall include at least one person with experience of work among and of the needs of the chronically sick and disabled and in selecting any such person regard shall be had to the desirability of having a chronically sick or disabled person. Youth employment service 13 1 Without prejudice to any other arrangements that may be made by the Secretary of State, the Central Youth Employment Executive shall include at least one person with special responsibility for the employment of young disabled persons. 2 In the appointment of persons to be members of any of the bodies constituted in pursuance of section 8(1) of the Employment and Training Act 1948 (that is to say, the National Youth Employment Council and the Advisory Committees on Youth Employment for Scotland and Wales respectively) regard shall be had to the desirability of the body in question including one or more persons with experience of work among, and the special needs of, young disabled persons and to the person or persons with that experience being or including a disabled person or persons. Miscellaneous advisory committees 14 1 In the appointment of persons to be members of any of the following advisory committees or councils, that is to say, the Transport Users' Consultative Committees, the Gas Consultative Councils, the Electricity Consultative Councils, the Post Office Users' Councils and the Domestic Coal Consumers' Council, regard shall be had to the desirability of the committee or council in question including one or more persons with experience of work among, and the special needs of, disabled persons and to the person or persons with that experience being or including a disabled person or persons. 2 In this section the reference to the Post Office Users' Councils is a reference to the Councils established under section 14 of the Post Office Act 1969, and in relation to those Councils this section shall extend to Northern Ireland. Co-option of chronically sick or disabled persons to local authority committees 15 Where a local authority within the meaning of the Local Government Act 1933 or the Local Government (Scotland) Act 1947 appoint a committee of the authority under any enactment, and the members of the committee include or may include persons who are not members of the authority, then in considering the appointment to the committee of such persons regard shall be had, if the committee is concerned with matters in which the chronically sick or disabled have special needs, to the desirability of appointing to the committee persons with experience of work among and of the needs of the chronically sick and disabled, and to the person or persons with that experience being or including a chronically sick or disabled person or persons. Duties of national advisory council under Disabled Persons (Employment) Act 1944 16 The duties of the national advisory council established under section 17(1)(a) of the Disabled Persons (Employment) Act 1944 shall include in particular the duty of giving to the Secretary of State such advice as appears to the council to be necessary on the training of persons concerned with — a placing disabled persons in employment; or b training disabled persons for employment. Provisions with respect to persons under 65 Separation of younger from older patients 17 1 Every Board constituted under section 11 of the National Health Service Act 1946 (that is to say, every Regional Hospital Board and every Board of Governors of a teaching hospital) and every Regional Hospital Board constituted under section 11 of the National Health Service (Scotland) Act 1947 shall use their best endeavours to secure that, so far as practicable, in any hospital for which they are responsible a person who is suffering from a condition of chronic illness or disability and who — a is in the hospital for the purpose of long-term care for that condition; or b normally resides elsewhere but is being cared for in the hospital because — i that condition is such as to preclude him from residing elsewhere without the assistance of some other person; and ii such assistance is for the time being not available, is not cared for in the hospital as an in-patient in any part of the hospital which is normally used wholly or mainly for the care of elderly persons, unless he is himself an elderly person. 2 Each such Board as aforesaid shall provide the Secretary of State in such form and at such times as he may direct with such information as he may from time to time require as to any persons to whom subsection (1) of this section applied who, not being elderly persons, have been cared for in any hospital for which that Board are responsible in such a part of the hospital as is mentioned in that subsection; and the Secretary of State shall in each year lay before each House of Parliament such statement in such form as he considers appropriate of the information obtained by him under this subsection. 3 In this section " elderly person " means a person who is aged sixty-five or more or is suffering from the effects of premature ageing. Information as to accommodation of younger with older persons under welfare powers 18 1 The Secretary of State shall take steps to obtain from local authorities having functions under Part III of the National Assistance Act 1948 information as to the number of persons under the age of 65 appearing to the local authority in question to be persons to whom section 29 of that Act applies for whom residential accommodation is from time to time provided under section 21(1)(a) or 26(1)(a) of that Act at any premises in a part of those premises in which such accommodation is so provided for persons over that age. 2 The Secretary of State shall take steps to obtain from local authorities having functions under the Social Work (Scotland) Act 1968 information as to the number of persons under the age of 65 who suffer from illness or mental disorder within the meaning of section 6 of the Mental Health (Scotland) Act 1960 or are substantially handicapped by any deformity or disability and for whom residential accommodation is from time to time provided under section 59 of the said Act of 1968 at any premises in a part of those premises in which such accommodation is so provided for persons over that age. 3 Every local authority referred to in this section shall provide the Secretary of State in such form and at such times as he may direct with such information as he may from time to time require for the purpose of this section; and the Secretary of State shall in each year lay before each House of Parliament such statement in such form as he considers appropriate of the information obtained by him under this section. Provision of information relating to chiropody services 19 Every local health authority empowered to provide chiropody services under section 12 of the Health Services and Public Health Act 1968, or under section 27 of the National Health Service (Scotland) Act 1947, shall provide the Secretary of State in such form and at such times as he may direct with information as to the extent to which those services are available and used for the benefit of disabled persons under the age of sixty-five. Miscellaneous provisions Use of invalid carriages on highways 20 1 In the case of a vehicle which is an invalid carriage complying with the prescribed requirements and which is being used in accordance with the prescribed conditions — a no statutory provision prohibiting or restricting the use of footways shall prohibit or restrict the use of that vehicle on a footway; b if the vehicle is mechanically propelled, it shall be treated for the purposes of the Road Traffic Act 1960, the Road Traffic Act 1962, the Road Traffic Regulation Act 1967 and Part I of the Road Safety Act 1967 as not being a motor vehicle; and c whether or not the vehicle is mechanically propelled, it shall be exempted from the requirements of the Road Transport Lighting Act 1957. 2 In this section — " footway " means a way which is a footway, footpath or bridleway within the meaning of the Highways Act 1959; and in its application to Scotland means a way over which the public has a right of passage on foot only or a bridleway within the meaning of section 47 of the Countryside (Scotland) Act 1967; " invalid carriage " means a vehicle, whether mechanically propelled or not, constructed or adapted for use for the carriage of one person, being a person suffering from some physical defect or disability; " prescribed " means prescribed by regulations made by the Minister of Transport; " statutory provision " means a provision contained in, or having effect under, any enactment. 3 Any regulations made under this section shall be made by statutory instrument, may make different provision for different circumstances and shall be subject to annulment in pursuance of a resolution of either House of Parliament. Badges for display on motor vehicles used by disabled persons 21 1 There shall be a badge of a prescribed form to be issued by local authorities for motor vehicles driven by, or used for the carriage of, disabled persons; and — a subject to the provisions of this section, the badge so issued for any vehicle or vehicles may be displayed on it or on any of them either inside or outside the area of the issuing authority; and b any power under section 84C of the Road Traffic Regulation Act 1967 (which was inserted by the Transport Act 1968) to make regulations requiring that orders under the Act shall include exemptions shall be taken to extend to requiring that an exemption given with reference to badges issued by one authority shall be given also with reference to badges issued by other authorities. 2 A badge may be issued to a disabled person of any prescribed description resident in the area of the issuing authority for one or more vehicles which he drives and, if so issued, may be displayed on it or any of them at times when he is the driver. 3 In such cases as may be prescribed, a badge may be issued to a disabled person of any prescribed description so resident for one or more vehicles used by him as a passenger and, if so issued, may be displayed on it or any of them at times when the vehicle is being used to carry him. A badge may be issued to the same person both under this subsection and under subsection (2) above. 4 A badge may be issued to an institution concerned with the care of the disabled for any motor vehicle or, as the case may be, for each motor vehicle kept in the area of the issuing authority and used by or on behalf of the institution to carry disabled persons of any prescribed description; and any badge so issued may be displayed on the vehicle for which it is issued at times when the vehicle is being so used. 5 A local authority shall maintain a register showing the holders of badges issued by the authority under this section, and the vehicle or vehicles for which each of the badges is held; and in the case of badges issued to disabled persons the register shall show whether they were, for any motor vehicle, issued under subsection (2) or under subsection (3) or both. 6 A badge issued under this section shall remain the property of the issuing authority, shall be issued for such period as may be prescribed, and shall be returned to the issuing authority in such circumstances as may be prescribed. 7 Anything which is under this section to be prescribed shall be prescribed by regulations made by the Minister of Transport and Secretary of State by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and regulations so made may make provision — a as to the cases in which authorities may refuse to issue badges, and as to the fee (if any) which an authority may charge for the issue or re-issue of a badge; and b as to the continuing validity or effect of badges issued before the coming into force of this section in pursuance of any scheme having effect under section 29 of the National Assistance Act 1948 or any similar scheme having effect in Scotland; and c as to any transitional matters, and in particular the application to badges issued under this section of orders made before it comes into force and operating with reference to any such badges as are referred to in paragraph (b) above (being orders made, or having effect as if made, under the Road Traffic Regulation Act 1967). 8 The local authorities for purposes of this section shall be the common council of the City of London, the council of a county or county borough in England or Wales or of a London borough and the council of a county or large burgh in Scotland; and in this section " motor vehicle" has the same meaning as in the Road Traffic Regulation Act 1967. 9 This section shall come into operation on such date as the Minister of Transport and Secretary of State may by order made by statutory instrument appoint. Annual report on research and development work 22 The Secretary of State shall as respects each year lay before Parliament a report on the progress made during that year in research and development work carried out by or on behalf of any Minister of the Crown in relation to equipment that might increase the range of activities and independence or well-being of disabled persons, and in particular such equipment that might improve the indoor and outdoor mobility of such persons. War pensions appeals 23 1 The Pensions Appeal Tribunals Act 1943 shall have effect with the amendments specified in the subsequent provisions of this section. 2 In section 5 — a so much of subsection (1) as prevents the making of an appeal from an interim assessment of the degree of a disablement before the expiration of two years from the first notification of the making of an interim assessment (that is to say, the words from " if" to " subsection " where first occurring, and the words " in force at the expiration of the said period of two years ") is hereby repealed except in relation to a claim in the case of which the said first notification was given before the commencement of this Act; b in the second paragraph of subsection (1) (which defines " interim assessment" for the purposes of that subsection), for the words " this subsection " there shall be substituted the words " this section " ; c in subsection (2) (which provides for an appeal to a tribunal from a Ministerial decision or assessment purporting to be a final settlement of a claim) at the end there shall be added the words " and if the Tribunal so set aside the Minister's decision or assessment they may, if they think fit, make such interim assessment of the degree or nature of the disablement, to be in force until such date not later than two years after the making of the Tribunal's assessment, as they think proper " ; d subsection (3) (which makes provision as to the coming into operation of section 5) is hereby repealed. 3 In section 6, after subsection (2) there shall be inserted the following subsection — 2A Where, in the case of such a claim as is referred to in section 1, 2, 3 or 4 of this Act — a an appeal has been made under that section to the Tribunal and that appeal has been decided (whether with or without an appeal under subsection (2) of this section from the Tribunal's decision); but b subsequently, on an application for the purpose made (in like manner as an application for leave to appeal under the said subsection (2)) jointly by the appellant and the Minister, it appears to the appropriate authority (that is to say, the person to whom under rules made under the Schedule to this Act any application for directions on any matter arising in connection with the appeal to the Tribunal fell to be made) to be proper so to do — i by reason of the availability of additional evidence; or ii (except where an appeal from the Tribunal's decision has been made under the said subsection (2)), on the ground of the Tribunal's decision being erroneous in point of law, the appropriate authority may, if he thinks fit, direct that the decision on the appeal to the Tribunal be treated as set aside and the appeal from the Minister's decision be heard again by the Tribunal . 4 In subsection (3) of section 6 (under which, subject to subsection (2) of that section, a tribunal's decision is final and conclusive) for the words " subject to the last foregoing subsection " there shall be substituted the words " subject to subsections (2) and (2A) of this section ". 5 In consequence of the Secretary of State for Social Services Order 1968, in section 12(1), for the definition of " the Minister " there shall be substituted the following: — ' the Minister ' means the Secretary of State for Social Services . 6 This section extends to Northern Ireland. Institute of hearing research 24 The Secretary of State shall collate and present evidence to the Medical Research Council on the need for an institute for hearing research, such institute to have the general function of co-ordinating and promoting research on hearing and assistance to the deaf and hard of hearing. Special educational treatment for the deaf-blind 25 1 It shall be the duty of every local education authority to provide the Secretary of State at such times as he may direct with information on the provision made by that local education authority of special educational facilities for children who suffer the dual handicap of blindness and deafness. 2 The arrangements made by a local education authority for the special educational treatment of the deaf-blind shall, so far as is practicable, provide for the giving of such education in any school maintained or assisted by the local education authority. 3 In the application of this section to Scotland for any reference to a local education authority there shall be substituted a reference to an education authority within the meaning of section 145 of the Education (Scotland) Act 1962. Special educational treatment for children suffering from autism, &c 26 1 It shall be the duty of every local education authority to provide the Secretary of State at such times as he may direct with information on the provision made by that local education authority of special educational facilities for children who suffer from autism or other forms of early childhood psychosis. 2 The arrangements made by a local education authority for the special educational treatment of children suffering from autism and other forms of early childhood psychosis shall, so far as is practicable, provide for the giving of such education in any school maintained or assisted by the local education authority. 3 In the application of this section to Scotland for any reference to a local education authority there shall be substituted a reference to an education authority within the meaning of section 145 of the Education (Scotland) Act 1962. Special educational treatment for children suffering from acute dyslexia 27 1 It shall be the duty of every local education authority to provide the Secretary of State at such times as he may direct with information on the provision made by that local education authority of special educational facilities for children who suffer from acute dyslexia. 2 The arrangements made by a local education authority for the special educational treatment of children suffering from acute dyslexia shall, so far as is practicable, provide for the giving of such education in any school maintained or assisted by the local education authority. 3 In the application of this section to Scotland for any reference to a local education authority there shall be substituted a reference to an education authority within the meaning of section 145 of the Education (Scotland) Act 1962. Power to define certain expressions 28 Where it appears to the Secretary of State to be necessary or expedient to do so for the proper operation of any provision of this Act, he may by regulations made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament, make provision as to the interpretation for the purposes of that provision of any of the following expressions appearing therein, that is to say, " chronically sick ", " chronic illness ", " disabled " and " disability ". Short title, extent and commencement 29 1 This Act may be cited as the Chronically Sick and Disabled Persons Act 1970. 2 Sections 1 and 2 of this Act do not extend to Scotland. 3 Save as otherwise expressly provided by sections 9, 14 and 23, this Act does not extend to Northern Ireland. 4 This Act shall come into force as follows: — a sections 1 and 21 shall come into force on the day appointed thereunder; b sections 4, 5, 6, 7 and 8 shall come into force at the expiration of six months beginning with the date this Act is passed; c the remainder shall come into force at the expiration of three months beginning with that date.

The Double Taxation Relief (Taxes on Income) (Finland) Order 1970 At the Court at Buckingham Palace, the 4th day of February 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order was laid before the Commons House of Parliament in accordance with the provisions of section 347(6) of the Income Tax Act 1952, and an Address has been presented to Her Majesty by that House praying that an Order may be made in the terms of this Order: Now, therefore, Her Majesty, in exercise of the powers conferred upon Her by section 347(1) of the said Income Tax Act 1952, as amended by section 39 and section 64 of the Finance Act 1965, and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Double Taxation Relief (Taxes on Income) (Finland) Order 1970. 2 It is hereby declared — a that the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Government of the Republic of Finland with a view to affording relief from double taxation in relation to income tax, corporation tax or capital gains tax and taxes of a similar character imposed by the laws of Finland; and b that it is expedient that those arrangements should have effect. W.G. Agnew For the Government of the United Kingdom of Great Britain and Northern Ireland: MICHAEL STEWART For the Government of the Republic of Finland: AHTI KARJALAINEN SCHEDULE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE REPUBLIC OF FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Finland; Desiring to conclude a new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital; Have agreed as follows: — Personal scope ARTICLE 1 This Convention shall apply to persons who are residents of one or both of the Contracting States. Taxes covered ARTICLE 2 1 The taxes which are the subject of this Convention are: a in the United Kingdom of Great Britain and Northern Ireland: i the income tax (including surtax); ii the corporation tax; and iii the capital gains tax; b in Finland: i the State income and capital tax; ii the communal tax; iii the church tax; and iv the sailors' tax. 2 This Convention shall also apply to any identical or substantially similar taxes which are imposed in either Contracting State after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any changes which are made in their respective taxation laws. General definitions ARTICLE 3 1 In this Convention, unless the context otherwise requires: a the term “ United Kingdom ” means Great Britain and Northern Ireland, including any area outside the territorial sea of the United Kingdom which in accordance with international law has been or may hereafter be designated, under the laws of the United Kingdom concerning the Continental Shelf, as an area within which the rights of the United Kingdom with respect to the sea bed and sub-soil and their natural resources may be exercised ; b the term “ Finland ” means the Republic of Finland, including any area outside the territorial sea of Finland within which in accordance with international law and under the laws of Finland concerning the Continental Shelf the rights of Finland with respect to the sea bed and sub-soil and their natural resources may be exercised ; c the term “ nationals ” means : i in relation to the United Kingdom, all citizens of the United Kingdom and Colonies who derive their status as such from their connection with the United Kingdom and all legal persons, partnerships and associations deriving their status as such from the law in force in the United Kingdom; ii in relation to Finland, all individuals possessing the nationality of Finland and all legal persons, partnerships, associations and other entities deriving their status as such from the law in force in Finland; d the term “ United Kingdom tax ” means tax imposed in the United Kingdom being tax to which this Convention applies by virtue of the provisions of Article 2; the term “ Finnish tax ” means tax imposed in Finland being tax to which this Convention applies by virtue of the provisions of Article 2 ; e the term “ tax ” means United Kingdom tax or Finnish tax, as the context requires ; f the terms “ a Contracting State ” and “ the other Contracting State ” mean the United Kingdom or Finland, as the context requires ; g the term “person” comprises an individual, a company and any other body of persons; h the term “ company ” means any body corporate or any entity which is treated as a body corporate for tax purposes ; i the terms “ enterprise of a Contracting State ” and “ enterprise of the other Contracting State ” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State ; j the term “ competent authority ” means, in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative, and in the case of Finland, the Ministry of Finance or its authorised representative . 2 As regards the application of this Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Convention. Fiscal domicile ARTICLE 4 1 For the purposes of this Convention, the term “ resident of a Contracting State ” means, subject to the provisions of paragraphs (2) and (3) of this Article, any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein . The terms “ resident of the United Kingdom ” and “ resident of Finland ” shall be construed accordingly . 2 Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules: a he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (centre of vital interests); b if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; d if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3 Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. Permanent establishment ARTICLE 5 1 For the purposes of this Convention, the term “ permanent establishment ” means a fixed place of business in which the business of the enterprise is wholly or partly carried on . 2 The term “ permanent establishment ” shall include especially: a a place of management; b a branch; c an office; d a factory; e a workshop; f a mine, quarry or other place of extraction of natural resources; g a building site or construction or assembly project which exists for more than twelve months . 3 The term “permanent establishment” shall not be deemed to include: a the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise; e the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise. 4 An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it carries on the activity of providing the services within that other Contracting State of public entertainers or athletes referred to in Article 18. 5 A person acting in a Contracting State on behalf of an enterprise of the other Contracting State — other than an agent of an independent status to whom the provisions of paragraph (6) of this Article apply — shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise. 6 An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business. 7 The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. Limitation of relief ARTICLE 6 Where under any provision of this Convention income is relieved from furnish tax and, under the law in force in the United Kingdom, an individual in respect of the said income is subject to tax by reference to the amount thereof which is remitted to or received in the United Kingdom and not by reference to the full amount thereof, then the relief to be allowed under this Convention in Finland shall apply only to so much of the income as is remitted to or received in the United Kingdom. Income from immovable property ARTICLE 7 1 Income from immovable property may be taxed in the Contracting State in which such property is situated. 2 a The term “ immovable property ” shall, subject to the provisions of sub-paragraph (b) below, be defined in accordance with the law of the Contracting State in which the property in question is situated . b The term “ immovable property ” shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property . 3 The provisions of paragraph (1) of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property. They shall also apply to income derived as consideration for the occupation of or the right to occupy immovable property. 4 The provisions of paragraphs (1) and (3) of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of professional services. Business profits ARTICLE 8 1 The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. 2 Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment. 3 In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses of the enterprise (other than expenses which would not be deductible if the permanent establishment were a separate enterprise) which are incurred for the purposes of the permanent establishment, including executive and general administration expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 4 In so far as it has been customary in a Contracting State, according to its law, to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total income of the enterprise to its various parts, nothing in paragraph (2) of this Article shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles of this Article. 5 No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6 For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7 Where profits include items which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. Shipping and air transport ARTICLE 9 A resident of a Contracting State shall be taxable only in that Contracting State on profits from the operation of ships or aircraft other than profits from voyages of ships or aircraft confined solely to places in the other Contracting State. Associated enterprises ARTICLE 10 Where a an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or b the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. Dividends ARTICLE 11 1 Dividends paid by a company being a resident of a Contracting State which are beneficially owned by a resident of the other Contracting State may be taxed in that other State. 2 However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the law of that State, but the tax so charged shall not exceed: a 5 per cent of the gross amount of the dividends if the beneficial owner is a company (excluding a partnership) which controls directly or indirectly at least 25 per cent of the voting power of the company paying the dividends; b in all other cases, 15 per cent of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3 The term “ dividends ” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident and also includes any other item (other than interest or royalties relieved from tax under the provisions of Article 12 or Article 13 of this Convention) which, under the law of the Contracting State of which the company paying the dividend is a resident, is treated as a dividend or distribution of a company . 4 The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, has in the other Contracting State, of which the Company paying the dividends is a resident, a permanent establishment and the holding by virtue of which the dividends are paid is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply. 5 If the beneficial owner of a dividend being a resident of a Contracting State owns 10 per cent or more of the class of shares in respect of which the dividend is paid then the relief from tax provided for in paragraph (2) of this Article shall not apply to the dividend to the extent that it can have been paid only out of profits which the company paying the dividend earned or other income which it received in a period ending twelve months or more before the relevant date. For the purposes of this paragraph the term “ relevant date ” means the date on which the beneficial owner of the dividend became the owner of 10 per cent or more of the class of shares in question . Provided that this paragraph shall not apply if the beneficial owner of the dividend shows that the shares were acquired for bona fide commercial reasons and not primarily for the purpose of securing the benefit of this Article. 6 Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company and beneficially owned by persons who are not residents of that other State, or subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other State. Interest ARTICLE 12 1 Interest derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. 2 The term “ interest ” as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and other debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the State in which the income arises. 3 The provisions of paragraph (1) of this Article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, has in the other Contracting State a permanent establishment and the debt-claim from which the interest arises is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply. 4 Without prejudice to the provisions of paragraph (6) of this Article, any provision of the law of one of the Contracting States which, with or without any further requirement, relates only to interest paid to a non-resident company, or which relates only to interest payments between inter-connected companies with or without any further requirement, shall not operate so as to require such interest paid to a company which is a resident of the other Contracting State to be left out of account as a deduction in computing the taxable profits of the company paying the interest. 5 The exemption from tax provided for in paragraph (1) of this Article shall not apply to interest on any form of debt-claim dealt in on a stock exchange where the beneficial owner of the interest: a does not bear tax in respect thereof in the Contracting State of which it is a resident; and b sells (or makes a contract to sell) the debt-claim from which such interest is derived within three months of the date on which such beneficial owner acquired such debt-claim. 6 Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. 7 The provisions of this Article shall not apply if the debt-claim in respect of which the interest is paid was created or assigned mainly for the purpose of taking advantage of this Article and not for bona fide commercial reasons. Royalties ARTICLE 13 1 Royalties derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. 2 The term “ royalties ” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience . 3 The provisions of paragraph (1) of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, has in the other Contracting State a permanent establishment and the right or property giving rise to the royalties is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply. 4 Without prejudice to the provisions of paragraph (5) of this Article, any provision of the law of a Contracting State which requires royalties paid by a company to be left out of account as a deduction in computing the company's taxable profits as being a distribution shall not operate in relation to royalties paid to a resident of the other Contracting State. The preceding sentence shall not however apply to royalties derived and beneficially owned by a company which is a resident of that other Contracting State where: a the same persons participate directly or indirectly in the management or control of the company paying the royalties and the company beneficially owning the royalties; and b more than 50 per cent of the voting power in the company beneficially owning the royalties is controlled directly or indirectly by a person or persons resident in the Contracting State in which the company paying the royalties is resident. 5 Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. Capital gains ARTICLE 14 1 Capital gains from the alienation of immovable property, as defined in paragraph (2) of Article 7, may be taxed in the Contracting State in which such property is situated. 2 Capital gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State. 3 Notwithstanding the provisions of paragraph (2) of this Article, capital gains derived by a resident of a Contracting State from the alienation of ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in that Contracting State. 4 Capital gains from the alienation of any property other than those mentioned in paragraphs (1), (2) and (3) of this Article shall be taxable only in the Contracting State of which the alienator is a resident. 5 The provisions of paragraph (4) of this Article shall not affect the right of a Contracting State to levy according to its own law a tax on capital gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property. Independent personal services ARTICLE 15 1 Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base. 2 The term “ professional services ” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants . Employments ARTICLE 16 1 Subject to the provisions of Articles 17, 19, 20, 21 and 22, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2 Notwithstanding the provisions of paragraph (1) of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and b the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and c the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 3 Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State of which the person deriving the profits from the operation of the ship or aircraft is a resident. Directors' fees ARTICLE 17 Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. Artistes and athletes ARTICLE 18 Notwithstanding the provisions of Articles 15 and 16, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which those activities are exercised. Pensions ARTICLE 19 1 Subject to the provisions of paragraphs (1) and (2) of Article 20 , pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State and any annuity paid to such a resident shall be taxable only in that State. 2 The term “ annuity ” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth. Governmental functions ARTICLE 20 1 Remuneration or pensions paid out of public funds of the United Kingdom or Northern Ireland or of the funds of any local authority in the United Kingdom to any individual in respect of services rendered to the Government of the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge of functions of a governmental nature, shall be taxable only in the United Kingdom unless the individual is a Finnish national without also being a United Kingdom national. 2 Remuneration or pensions paid by, or out of funds created by Finland or a local authority or public community thereof to any individual in respect of services rendered to the Government of Finland or a local authority or public community thereof, in the discharge of functions of a governmental nature, shall be taxable only in Finland unless the individual is a national of the United Kingdom without also being a Finnish national. 3 The provisions of paragraphs (1) and (2) of this Article shall not apply to remuneration or pensions in respect of services rendered in connection with any trade or business. Students ARTICLE 21 1 An individual who is a resident of a Contracting State immediately before his visit to the other Contracting State and who is temporarily present in that other Contracting State solely: a as a student at a university, college, school or other educational institution; or b as a business, technical, agricultural or forestry apprentice; or c as the recipient of a grant, allowance or award from a religious, charitable, scientific or educational organisation made for the primary purpose of study; shall not be taxed in that other Contracting State in respect of: i remittances from abroad for the purpose of his maintenance, education or training; ii the grant, allowance or award; and iii remuneration for services rendered in that other Contracting State, provided that the services are in connection with his studies or training or the remuneration constitutes earnings reasonably necessary for his maintenance or education. 2 The benefits under the provisions of paragraph (1) of this Article shall extend only for such period of time as may be reasonably or customarily required to effectuate the purpose of the visit, but in no event shall any individual have the benefits of the provisions of that paragraph for more than five years. 3 An individual who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State, and who is present in the first-mentioned Contracting State as a recipient of a grant, allowance or award from a religious, charitable, scientific or educational organisation made for the primary purpose of research to be carried out in a period which does not exceed two years, shall not be taxed in that first-mentioned Contracting State in respect of the grant, allowance or award. Teachers ARTICLE 22 A professor or teacher who visits a Contracting State for a period not exceeding two years for the purpose of teaching at a university, college, school or other educational institution in that Contracting State and who is, or was immediately before that visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching in respect of which he is subject to tax in the other Contracting State. Income not expressly mentioned ARTICLE 23 Items of income of a resident of a Contracting State being income of a class or from sources not expressly mentioned in the foregoing Articles of this Convention shall be taxable only in that State. Capital ARTICLE 24 1 Capital represented by immovable property, as defined in paragraph (2) of Article 7, may be taxed in the Contracting State in which such property is situated. 2 Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise, or by movable property pertaining to a fixed base used for the performance of professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated. 3 Notwithstanding the provisions of paragraph (2) of this Article, ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State of which the operator is a resident. 4 All other elements of capital of a resident of a Contracting State shall be taxable only in that State. Elimination of double taxation ARTICLE 25 1 Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof): a Finnish tax payable under the laws of Finland and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Finland (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Finnish tax is computed; b in the case of a dividend paid by a company which is a resident of Finland to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Finnish tax creditable under the provisions of sub-paragraph (a) of this paragraph) the Finnish tax payable by the company in respect of the profits out of which such dividend is paid, if at the time when the dividend is paid a company which is a resident of Finland is exempt from Finnish tax in respect of dividends received from a company which is a resident of Finland. 2 a Where a resident of Finland derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the United Kingdom, Finland shall, subject to the provisions of sub-paragraph (b) of this paragraph, allow as a deduction from the income or capital tax that part of the income tax or capital tax, respectively, which is appropriate, as the case may be, to the income derived from or the capital owned in the United Kingdom. b Where a resident of Finland derives income or chargeable gains which, in accordance with the provisions of paragraph (2) of Article 11 and paragraph (5) of Article 14 may be taxed in the United Kingdom, Finland shall allow as a deduction from the tax on the income of that person an amount equal to the tax paid in the United Kingdom. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is appropriate to the income or chargeable gains derived from the United Kingdom. c Notwithstanding the provisions of sub-paragraph (b) of this paragraph, dividends paid by a company which is a resident of the United Kingdom to a company which is a resident of Finland shall be exempt from Finnish tax. This exemption shall not apply unless in accordance with the laws of Finland the dividends would have been exempt from Finnish tax if the first-mentioned company had been a resident of Finland and not a resident of the United Kingdom. d Where a resident of Finland derives income which in accordance with the provisions of paragraph (1) of Article 20 shall be taxable only in the United Kingdom, such income shall be exempt from Finnish tax; however, the graduated rates of Finnish tax may be calculated as though income thus exempted were included in the amount of the total income. 3 For the purposes of paragraph (1) of this Article income, profits and capital gains owned by a resident of the United Kingdom which may be taxed in Finland in accordance with this Convention shall be deemed to arise from sources in Finland. Personal allowances ARTICLE 26 1 Subject to the provisions of paragraph (3) of this Article, individuals who are residents of Finland shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom. 2 Subject to the provisions of paragraph (3) of this Article, individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Finnish tax as Finnish nationals not resident in Finland. 3 Nothing in this Convention shall entitle an individual who is a resident of a Contracting State and whose income from the other Contracting State consists solely of dividends, interest or royalties (or solely of any combination thereof) to the personal allowances, reliefs and reductions of the kind referred to in this Article for the purposes of taxation in that other Contracting State. Non-discrimination ARTICLE 27 1 The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. 2 The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 3 Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected. 4 In determining for the purpose of United Kingdom tax whether a company is a close company, the term “ recognised stock exchange ” shall include the Helsinki Stock Exchange . 5 Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident, nor as obliging the United Kingdom to grant to a company which is a resident of Finland a greater relief from United Kingdom income tax chargeable upon dividends received from a company which is a resident of the United Kingdom than the relief to which the first-mentioned company may be entitled under the provisions of Article 11 of this Convention. 6 In this Article the term “ taxation ” means taxes of every kind and description . Mutual agreement procedure ARTICLE 28 1 Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident. 2 The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. 3 The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. 4 The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. Exchange of information ARTICLE 29 The competent authorities of the Contracting States shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of this Convention or for the prevention of fraud or the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of this Convention. Any information so exchanged shall be treated as secret but may be disclosed to persons (including a court or administrative body) concerned with assessment, collection, enforcement or prosecution in respect of taxes which are the subject of this Convention. No information shall be exchanged which would disclose any trade, business, industrial or professional secret or any trade process. Territorial extension ARTICLE 30 1 This Convention may be extended, either in its entirety or with modifications, to any territory for whose international relations either Contracting Party is responsible and which imposes taxes substantially similar in character to those to which this Convention applies. Any such extension shall take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed between the Contracting States in notes to be exchanged through diplomatic channels. 2 Unless otherwise agreed by both Contracting States, the termination of this Convention shall terminate the application of this Convention to any territory to which it has been extended under the provisions of this Article. Entry into force ARTICLE 31 1 This Convention shall be ratified and the instruments of ratification shall be exchanged at Helsinki as soon as possible. 2 The Convention shall enter into force after the expiration of thirty days following the date on which the instruments of ratification are exchanged and shall thereupon have effect: a in the United Kingdom: i as respects income tax (including surtax) and capital gains tax, for any year of assessment beginning on or after 6th April, 1968; and ii as respects corporation tax, for any financial year beginning on or after 1st April, 1968; b in Finland: as respects Finnish taxes for any year of assessment beginning on or after 1st January, 1969, and chargeable on the income or capital of the tax year 1968 or thereafter. 3 Subject to the provisions of paragraph (4) of this Article the Convention between the Government of the United Kingdom and the Government of Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at London on 12th December, 1951 , as amended by the Protocol signed at London on 16th June, 1966 (hereinafter referred to as “ the 1951 Convention ” ), shall cease to have effect as respects taxes to which this Convention in accordance with the provisions of paragraph (2) of this Article applies . 4 Subject to the provisions of paragraph (5) of this Article where any provision of the 1951 Convention would have afforded any greater relief from tax any such provision as aforesaid shall continue to have effect for any year of assessment or financial year or tax year beginning before the entry into force of this Convention. 5 The provisions of sub-paragraphs (a) and (b) of paragraph (2) of this Article, of paragraph (3) of this Article and of paragraph (4) of this Article shall not apply in relation to dividends but the provisions of this Convention shall have effect, and the provisions of the 1951 Convention shall cease to be effective, in relation to dividends payable on or after the date of entry into force of this Convention. 6 The following Agreements between the Contracting Parties shall not have effect in relation to any tax for any period for which this Convention has effect, as respects that tax: a the Agreement between the Government of the United Kingdom and the Government of Finland for the Reciprocal Exemption from Income Tax in certain cases of Profits from the Business of Shipping signed at London on 18th November, 1925 ; b the Agreement between the Government of the United Kingdom and the Government of Finland for the Reciprocal Exemption from Income Tax in certain cases of Profits or Gains arising through an Agency signed at London on 21st February, 1935 . 7 The 1951 Convention shall terminate on the last date on which it has effect in accordance with the foregoing provisions of this Article. Termination ARTICLE 32 This Convention shall remain in force until denounced by one of the Contracting States. Either Contracting State may denounce the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the year 1972. In such event, the Convention shall cease to have effect: a in the United Kingdom: i as respects income tax (including surtax) and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; ii as respects corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the notice is given; b in Finland: as respects Finnish tax for any tax year beginning on or after 1st January in the calendar year next following that in which the notice is given. In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Convention. Done in duplicate at London this 17th day of July, 1969, in the English and Finnish languages, both texts being equally authoritative.

The Consular Relations (Privileges and Immunities) (Union of Soviet Socialist Republics) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act, or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Union of Soviet Socialist Republics) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence, of which the Union of Soviet Socialist Republics or any person acting on its behalf is the owner or lessee, of any member of any consular post of the Union of Soviet Socialist Republics. 4 Paragraph 1 of Article 49 in Schedule 1 to the Act (exemption from taxation) shall be extended to members of the service staff of any consular post of the Union of Soviet Socialist Republics who satisfy the conditions set out in Article 6 of this Order. 5 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to members of consular posts of the Union of Soviet Socialist Republics and members of their families forming part of their households as if the reference to consular employees included members of the service staff who satisfy the conditions set out in Article 6 of this Order and also such members of the families of consular employees or of members of the service staff as form part of their households and satisfy the conditions set out in Article 6(a) and (b) of this Order. 6 The conditions referred to in Articles 4 and 5 of this Order are that the person concerned — a is not a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c in the case of a member of the consular post) is a permanent official of the Union of Soviet Socialist Republics. 7 1 Subject to the provisions of paragraphs (2) and (3) of this Article — a Article 29 in Schedule 1 to the Diplomatic Privileges Act 1964 (personal inviolability) shall be extended to members of any consular post of the Union of Soviet Socialist Republics and to members of their families forming part of their households; b paragraphs 1 and 3 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (immunity from jurisdiction) shall be extended to members of any consular post of the Union of Soviet Socialist Republics and to members of their families forming part of their households, except that the immunity from civil jurisdiction of consular officers shall not apply where they exercise the rights relating to the estate of a deceased person accorded under Article 34 of the Consular Convention between the United Kingdom and the Union of Soviet Socialist Republics signed in Moscow on 2nd December 1965 ; c paragraph 2 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (exemption from obligation to give evidence) shall be extended to members of any consular post of the Union of Soviet Socialist Republics and to members of their families forming part of their households. 2 The provisions of paragraph (1) of this Article shall not apply to any person who is a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948. 3 Any privilege or immunity conferred by the provisions of paragraph (1) of this Article may be waived by the Union of Soviet Socialist Republics. Waiver must always be express. A waiver shall be deemed to have been expressed by the Union of Soviet Socialist Republics if it has been expressed by the head, or any person for the time being performing the functions of head, of the diplomatic mission in the United Kingdom of the Union of Soviet Socialist Republics or, if there is no such mission, of the consular post concerned. Waiver of immunity in respect of civil or administrative proceedings shall not be held to imply waiver of immunity in respect of execution of the judgment for which separate waiver shall be required. 8 Paragraph 1 of Article 22 in Schedule 1 to the Diplomatic Privileges Act 1964 (inviolability and protection of premises) shall be extended to any consular premises of the Union of Soviet Socialist Republics, and paragraph 1 of Article 30 in that Schedule (inviolability of private residence) shall be extended to the residences of consular officers of the Union of Soviet Socialist Republics, provided that any such premises or residence may be entered by the authorities of the United Kingdom with the consent of the head of the consular post or the head of the diplomatic mission in the United Kingdom of the Union of Soviet Socialist Republics or of a person nominated by either of them. 9 Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964 (freedom of communications) shall be extended to the communications of any consular post of the Union of Soviet Socialist Republics. W. G. Agnew

Law Reform (Miscellaneous Provisions) Act 1970 Legal consequences of termination of contract to marry Engagements to marry not enforceable at law 1 1 An agreement between two persons to marry one another shall not under the law of England and Wales have effect as a contract giving rise to legal rights and no action shall lie in England and Wales for breach of such an agreement, whatever the law applicable to the agreement. 2 This section shall have effect in relation to agreements entered into before it comes into force, except that it shall not affect any action commenced before it comes into force. Property of engaged couples 2 1 Where an agreement to marry is terminated, any rule of law relating to the rights of husbands and wives in relation to property in which either or both has or have a beneficial interest, including any such rule as explained by section 37 of the Matrimonial Proceedings and Property Act 1970, shall apply, in relation to any property in which either or both of the parties to the agreement had a beneficial interest while the agreement was in force, as it applies in relation to property in which a husband or wife has a beneficial interest. 2 Where an agreement to marry is terminated, section 17 of the Married Women's Property Act 1882 and section 7 of the Matrimonial Causes (Property and Maintenance) Act 1958 (which sections confer power on a judge of the High Court or a county court to settle disputes between husband and wife about property) shall apply, as if the parties were married, to any dispute between, or claim by, one of them in relation to property in which either or both had a beneficial interest while the agreement was in force; but an application made by virtue of this section to the judge under the said section 17, as originally enacted or as extended by the said section 7, shall be made within three years of the termination of the agreement. Gifts between engaged couples 3 1 A party to an agreement to marry who makes a gift of property to the other party to the agreement on the condition (express or implied) that it shall be returned if the agreement is terminated shall not be prevented from recovering the property by reason only of his having terminated the agreement. 2 The gift of an engagement ring shall be presumed to be an absolute gift; this presumption may be rebutted by proving that the ring was given on the condition, express or implied, that it should be returned if the marriage did not take place for any reason. Damages for adultery Abolition of right to claim damages for adultery 4 After this Act comes into force no person shall be entitled to petition any court for, or include in a petition a claim for, damages from any other person on the ground of adultery with the wife of the first-mentioned person. Enticement of spouse, etc. Abolition of actions for enticement, seduction and harbouring of spouse or child 5 No person shall be liable in tort under the law of England and Wales — a to any other person on the ground only of his having induced the wife or husband of that other person to leave or remain apart from the other spouse; b to a parent (or person standing in the place of a parent) on the ground only of his having deprived the parent (or other person) of the services of his or her child by raping, seducing or enticing that child; or c to any other person for harbouring the wife or child of that other person, except in the case of a cause of action accruing before this Act comes into force if an action in respect thereof has been begun before this Act comes into force. Maintenance for survivor of void marriage Orders for maintenance of surviving party to void marriage from estate of other party 6 1 Where a person domiciled in England and Wales dies after the commencement of this Act and is survived by someone (hereafter referred to as " the survivor ") who, whether before or after the commencement of this Act, had in good faith entered into a void marriage with the deceased, then subject to subsections (2) and (3) below the survivor shall be treated for purposes of the Inheritance (Family Provision) Act 1938 as a dependant of the deceased within the meaning of that Act. 2 An order shall not be made under the Inheritance (Family Provision) Act 1938 in favour of the survivor unless the court is satisfied that it would have been reasonable for the deceased to make provision for the survivor's maintenance; and if an order is so made requiring provision for the survivor's maintenance by way of periodical payments, the order shall provide for their termination not later than the survivor's death and, if the survivor remarries, not later than the remarriage. 3 This section shall not apply if the marriage of the deceased and the survivor was dissolved or annulled during the deceased's lifetime and the dissolution or annulment is recognised by the law of England and Wales, or if the survivor has before the making of the order entered into a later marriage. 4 It is hereby declared that the reference in subsection (2) above to remarriage and the reference in subsection (3) above to a later marriage include references to a marriage which is by law void or voidable. 5 In section 26 of the Matrimonial Causes Act 1965 (orders for maintenance from deceased's estate following dissolution or annulment of a marriage), in the definition of " net estate " and " dependant" in subsection (6) (as amended by subsequent enactments) for the words " and the Family Law Reform Act 1969 " there shall be substituted the words " the Family Law Reform Act 1969 and the Law Reform (Miscellaneous Provisions) Act 1970 ". Supplemental Citation, repeal, commencement and extent 7 1 This Act may be cited as the Law Reform (Miscellaneous Provisions) Act 1970. 2 The enactments specified in the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule, but the repeal of those enactments shall not affect any action commenced or petition presented before this Act comes into force or any claim made in any such action or on any such petition. 3 This Act shall come into force on 1st January 1971. 4 This Act does not extend to Scotland or Northern Ireland. SCHEDULE Enactments Repealed Section 7. Chapter Short Title Extent of Repeal 32 & 33 Vict. c. 68 . The Evidence Further Amendment Act 1869. Section 2. 23 & 24 Geo. 5. c. 36 . The Administration of Justice (Miscellaneous Provisions) Act 1933. In section 6(1)(b), the words " or breach of promise of marriage ". 24 & 25 Geo. 5. c. 41 . The Law Reform (Miscellaneous Provisions) Act 1934. In section 1(1), the words from " or for inducing " to the end; and section 1(2)(b). 12, 13 & 14 Geo. 6. c. 51 . The Legal Aid and Advice Act 1949. In Part II of Schedule 1, paragraph 1(b) and (d). 7 & 8 Eliz. 2. c. 22 . The County Courts Act 1959. In section 39(1)(c), and in section 94(3)(b), the words " or breach of promise of marriage ". 1965 c. 72 . The Matrimonial Causes Act 1965. Section 41. Section 46(2) so far as it applies for the interpretation of section 41(3) of that Act.

The Consular Relations (Merchant Shipping and Civil Aviation) (People's Republic of Bulgaria) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping and Civil Aviation) (People's Republic of Bulgaria) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of this Order a ship shall be treated as belonging to the People's Republic of Bulgaria if it is registered at a port of the People's Republic of Bulgaria. 2 For the purposes of this Order an aircraft shall be treated as belonging to the People's Republic of Bulgaria if it is registered in the People's Republic of Bulgaria. 3 Nothing in this Order shall apply to any ship of war or military aircraft. 4 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or commander or a member of the crew of any ship or aircraft belonging to the People's Republic of Bulgaria shall not be entertained by any court in the United Kingdom unless a consular officer of the People's Republic of Bulgaria has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. W. G. Agnew

The Milk (Eradication of Brucellosis) Scheme 1970 The Minister of Agriculture, Fisheries and Food, the Secretary of State for Scotland and the Secretary of State for Wales, acting jointly, in exercise of the powers conferred upon them by section 106(2), (9) and (10) of the Agriculture Act 1970 and of all other powers enabling them in that behalf, with the consent of the Treasury, hereby make the following scheme: — Extent, citation and commencement 1 This scheme, which applies throughout the United Kingdom, may be cited as the Milk (Eradication of Brucellosis) Scheme 1970 and shall come into operation on 4th September 1970, except that paragraph 4(2) hereof shall come into operation on 15th February 1971. Interpretation 2 1 In this scheme, unless the context otherwise requires — “ accredited herd ” means a herd of cattle in Great Britain which, to the satisfaction of the appropriate Minister — has been found to be free from brucellosis by means of a series of diagnostic tests carried out by him or on his behalf, and has been, since the date of the commencement of such tests, the subject of adequate precautions against the introduction or re-introduction and consequent spreading of brucellosis, or which, to the satisfaction of the appropriate Minister, has been wholly constituted by the transfer of animals from such a herd or herds and has since the date of such transfer been the subject of adequate precautions against the introduction or reintroduction and consequent spreading of brucellosis; “ the appropriate Minister ” means , the Minister of Agriculture, Fisheries and Food or, in relation to herds kept in Scotland or sums required for making payments to producers in Scotland, the Secretary of State for Scotland; “ authorised herd ” means an accredited herd which is for the time being authorised in accordance with the provisions of paragraph 7 hereof; “ board ” means a board constituted by a scheme relating to the marketing of milk made or having effect as if made under the Agricultural Marketing Act 1958 and includes a Northern Ireland board; “ brucellosis ” means the disease caused by brucella abortus “ certified herd ” means a herd of cattle in Northern Ireland in respect of which the Ministry of Agriculture for Northern Ireland has issued a Brucellosis Certificate in accordance with the provisions of an order made under the Diseases of Animals Act (Northern Ireland) 1958 in connection with the eradication of that disease, being an order which provides for such certificates to be issued only in respect of herds — which have been officially tested by that Ministry for the presence of brucella infection, with negative results, or which have been wholly constituted by the transfer of animals from other certified herds or from similar herds in the Republic of Ireland; “ Northern Ireland board ” means a board constituted by a scheme made or having effect as if made under the Agricultural Marketing Act (Northern Ireland) 1964; “ reactor ” means an animal which, when tested for brucellosis by or on behalf of the appropriate Minister or the Ministry of Agriculture for Northern Ireland, as the case may be, gives rise to a reaction consistent with its being affected with that disease. 2 The Interpretation Act 1889 shall apply to the interpretation of this scheme as it applies to the interpretation of an Act of Parliament. Application 3 1 The provisions of this scheme shall apply to milk from cows in a herd of cattle which is an authorised herd or a certified herd or which by virtue of sub-paragraph (3) of this paragraph is deemed to be an authorised herd or which becomes an authorised herd or a certified herd, being milk — a sold under the provisions of any scheme constituting a board by a producer registered under that scheme, or b deemed for the purposes of any payments under such a scheme to have been produced from that herd of cattle, during a period determined in accordance with sub-paragraph (2) hereof or during such longer period (but not in any case commencing before 1st April 1970) as the appropriate Minister may in special circumstances allow or as from a date determined by the Ministry of Agriculture for Northern Ireland in accordance with sub-paragraph (4) hereof, as the case may require. 2 The period referred to in sub-paragraph (1) hereof, shall — a in the case of milk from cows in a herd which on 1st April 1970 was an accredited herd and the owner of which has applied for an authorisation under paragraph 7(1) hereof — i if the application for such authorisation is made on or before 31st August 1970, be the period of 5 years from 1st April 1970; ii if the application for such authorisation is made after 31st August 1970, be the period from the first day of the month following that in which application is made until 31st March 1975; b in the case of milk from cows in a herd which on 1st April 1970 was not an accredited herd but was on that date the subject of an application for it to become an accredited herd, which application has been granted and the owner of the herd has subsequently applied for an authorisation under paragraph 7(1) hereof — i if the application for authorisation is made within one month after the date on which the owner of the herd is notified that his herd has become an accredited herd or by 31st August 1970, whichever is the later, be the period of 5 years from the first day of the month following that in which was begun the final diagnostic test as a result of which the herd became an accredited herd; ii if the application for authorisation is made after 31st August 1970 and not within one month after the date on which the owner of the herd is notified that his herd has become an accredited herd, be the period from the first day of the month following that in which the application for such authorisation is made until the expiry of 5 years from the first day of the month following that in which was begun the final diagnostic test as a result of which the herd became an accredited herd; c in the case of milk from cows in a herd which has, after 1st April 1970, become the subject of an application for it to become an accredited herd, which application has been granted, and the herd has then become an authorised herd, be the period of 5 years from the first day of the month following that in which was begun the final diagnostic test as a result of which the herd became an accredited herd; Provided that — aa where a herd is, at the date of application for authorisation of that herd under paragraph 7(1) hereof, an accredited herd which has nevertheless been found, to the satisfaction of the appropriate Minister, to have been infected with brucellosis at that date and to have become so infected after 31st August 1970, sub-paragraph (a)(ii) or, as the case may be, (b)(ii) above shall have effect in relation to that herd with the substitution for the reference to the first day of the month following that in which application for such authorisation is made of a reference to the first day of the month following that in which the herd has been found to be free from that infection to the satisfaction of the appropriate Minister; ab where, in any case described in sub-paragraph (b) or (c) above, a herd has become an accredited herd otherwise than as a result of diagnostic tests, the relevant provision in sub-paragraph (b) or (c), as the case may be, shall in such a case apply as if the words “was begun the final diagnostic test as a result of which” were omitted. 3 In the event of a herd which has been an authorised herd ceasing to be such a herd it shall, for the purposes of payments under this scheme, be deemed to be an authorised herd until the expiry of the month in which it ceased to be such a herd. 4 The date referred to in sub-paragraph (1) hereof shall, in the case of milk from cows in a certified herd, — a which was a certified herd on 1st April 1970 and was, to the satisfaction of the Ministry of Agriculture for Northern Ireland, free of brucellosis on 1st September 1970, be 1st April 1970; b which was not a certified herd on 1st April 1970 but subsequently became a certified herd and was, to the satisfaction of the Ministry of Agriculture for Northern Ireland, free of brucellosis on 1st September 1970, be the first day of the month following that in which was begun the final diagnostic test as a result of which the herd was certified; c to which neither the foregoing sub-paragraph (a) nor the foregoing sub-paragraph (b) applies, be the first day of the month following that in which was begun the final diagnostic test as a result of which the herd was certified: Provided that if, in any case described in sub-paragraph (b) or (c) above, no diagnostic test has been carried out, the date shall be the first day of the month following that in which the herd was certified. Incentive payments 4 1 Each board shall make payments at a rate of 1¼d. per gallon to each producer registered under the scheme constituting that board in respect of milk which is the subject of a payment under that scheme to or by that producer, being milk to which this scheme applies. 2 On the day on which this sub-paragraph comes into operation sub-paragraph (1) of this paragraph shall be amended by substituting for the reference to 1¼d. per gallon a reference to 0.52p. per gallon. Keeping and production of records 5 Each board shall keep or cause to be kept records of payments made by them under this scheme and of the administrative cost of making such payments in such form as may be approved by the appropriate Minister and shall make such records available for inspection at all reasonable times by any duly authorised officer, servant or agent of the appropriate Minister or the Comptroller and Auditor General. Rendering of statements 6 Each board shall submit to the appropriate Minister, in such form as he may specify, a statement, certified by the board's auditors, of payments made by the board under this scheme and of the administrative cost of making such payments. Such statements shall be rendered annually and at such lesser intervals, and covering such periods, as the appropriate Minister may specify in a written notice to that board. Authorisation of herds 7 1 The owner of any accredited herd may apply to the appropriate Minister for that herd to be authorised by him for the purposes of this scheme and the appropriate Minister may thereupon so authorise that herd accordingly: Provided that the appropriate Minister shall not authorise as aforesaid any accredited herd for so long as the owner of that herd remains eligible under any arrangements made by that Minister for compensation out of public funds in respect of any animal in that herd which is slaughtered as a reactor, other than in accordance with section 17 of the Diseases of Animals Act 1950. 2 The appropriate Minister may at any time withdraw any authorisation given by him if he is satisfied that the authorised herd to which it relates has not been the subject of adequate precautions against the introduction or re-introduction and consequent spreading of brucellosis. In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 11th August 1970. J.M.L. Prior Minister of Agriculture, Fisheries and Food Given under the Seal of the Secretary of State for Scotland on 14th August 1970. Gordon Campbell Secretary of State for Scotland Given under my hand on 17th August 1970. Peter Thomas Secretary of State for Wales We consent 26th August 1970. Reginald Eyre H.S.P. Monro Two of the Lords Commissioners of Her Majesty's Treasury

The British Transport (Amalgamation of Railways' Pension Funds) (No. 2) Order 1970 The Minister of Transport makes this Order in exercise of his powers under section 74 of the Transport Act 1962 and of all other enabling powers: — Commencement, citation and interpretation 1 1 This Order shall come into operation on the 14th September 1970, and may be cited as the British Transport (Amalgamation of Railways' Pension Funds) (No. 2) Order 1970. 2 In this Order, unless the context otherwise requires — “ the Amalgamated Fund ” has the same meaning as in the No. 1 Order of 1970, and references to an existing section or Sectional Committee in relation to the Amalgamated Fund are references to a section or Sectional Committee as defined in that Order; “ the Board ” means the British Railways Board; “ funded scheme ” means a pension scheme (not being an insurance scheme) where the pensions are payable out of a fund held by any person for the purposes of the scheme; “ insurance scheme ” means a pension scheme where the pensions are provided by means of contracts or policies made or effected with an insurance company carrying on life assurance business within the meaning of the Insurance Companies Act 1958 (including contracts or policies made or effected with such a company for the purpose of implementing any form of private superannuation fund); “ the Male Wages Grades Scheme ” means the pension scheme established by the British Transport Commission (Male Wages Grades Pensions) Regulations 1954 as amended , (as that scheme now has effect subject to the provisions of any Order made by the Minister under section 74 of the Transport Act 1962); “ the Minister ” means the Minister of Transport; “ the New Fund ” means the New Section of the British Railways Superannuation Fund constituted and established by the Board, with the consent of the Minister, under the terms of a Trust Deed executed by the Board on the 21st August 1970; “ the No. 1 Order of 1970 ” means the British Transport (Amalgamation of Railways' Pension Funds) (No. 1) Order 1970 ; “ the persons administering ”, in relation to a pension scheme, means the persons responsible for administering the scheme under the terms thereof, and includes the trustees (if any) of the scheme; “ the service ” means whole time employment with the Board or with a subsidiary of the Board; and “ term ”, in relation to a pension scheme to which this Order applies, includes any rule or provision of the scheme, or of any statutory provision relating to the scheme, or of any deed or other instrument made for the purposes of the scheme. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. Application of Order 2 1 This Order shall apply to the New Fund, the Amalgamated Fund, the Male Wages Grades Scheme and the other pension schemes mentioned in this Order. 2 A pension scheme to which this Order applies shall be construed and have effect as if the relevant provisions of this Order were terms of the scheme, any other term thereof, whether expressed or implied, to the contrary notwithstanding. Administration of the New Fund 3 1 The provisions of this Article shall have effect for co-ordinating the administrative arrangements applicable to the New Fund with those applicable to the Amalgamated Fund. 2 The following provisions of the No. 1 Order of 1970, that is to say: — a Article 6(1) to (3) and Schedule 2 (which relate to the constitution and functions of the Management Committee of the Amalgamated Fund), b Schedules 3 and 4 (which relate to the general meetings of members of the Amalgamated Fund and the appointment and functions of officers of that fund) and Article 7(1) (in so far as it gives effect to Schedules 3 and 4), shall (subject to this Order) have effect on and after the 14th September 1970 as if the New Fund were a section of the Amalgamated Fund, as if members of the New Fund were members of a section of the Amalgamated Fund and as if the Committee of the New Fund were a Sectional Committee for one of the sections of the Amalgamated Fund. 3 The provisions of the British Transport Reorganisation (Pensions of Employees) (No. 1)Order 1964 (so far as applicable) and of Articles 3 and 4 of the British Transport (Pensions of Employees) (No. 1) Order 1969 (which relate to the interavailability of pension schemes in the publicly owned transport industry) shall on and after the 14th September 1970 apply in relation to the New Fund as they apply immediately before that date by virtue of Article 4(2) of the No. 1 Order of 1970 to the Amalgamated Fund. 4 Except as provided in this Article, the New Fund and the Amalgamated Fund shall be separate pension funds and the provisions of the No. 1 Order of 1970 shall not apply to the New Fund. Amendments to the British Transport (Amalgamation of Railways' Pension Funds) (No. 1) Order 1970 4 1 For paragraph 1 of Schedule 2 to the No. 1 Order of 1970 (which relates to the constitution of the Management Committee) there shall be substituted the following: — 1.The Management Committee shall consist of 20 persons, of whom 10 shall be Board's committee-men and 10 members' committee-men. 2 The Management Committee of the Amalgamated Fund shall, as soon as may be after the 14th September 1970, convene an Extraordinary Meeting of members of that fund for the purpose of the election of persons as contributors' or members' committee-men for the existing Sectional Committees to take the place of any persons who, on becoming members of the New Fund, have ceased to be members of the Amalgamated Fund and have, in consequence, ceased to be eligible to continue as such contributors' or members' committee-men. Until such election has taken place, the persons who immediately before the 14th September 1970 are the members of the Management Committee and the existing Sectional Committees may continue to act as such members notwithstanding that their eligibility to be such members may have ceased as aforesaid. 3 The provisions of paragraph (1) of this Article shall have effect for the purpose of the application by Article 3 of this Order of certain provisions of the No. 1 Order of 1970 to the New Fund, but for the purpose of paragraph (2) of this Article the application of those provisions of the said Order to the New Fund shall be disregarded. 4 For paragraph 4(1) of Schedule 5 to the No. 1 Order of 1970 (which relates to the accounts of the Amalgamated Fund) there shall be substituted the following: — 1 The annual income and expenditure accounts shall be made up separately for each section and the annual balance sheet shall be made up for the amalgamated fund as a whole. Alterations in the terms of the Male Wages Grades Scheme 5 1 This Article shall apply to the Male Wages Grades Scheme. 2 The terms of the Male Wages Grades Scheme which require persons to become members of Section A of that Scheme shall not apply to any person who has entered the service before the 16th March 1970 but who, because the age and length of service conditions of the Male Wages Grades Scheme have not been satisfied in relation to him, has not become a member of Section A of that Scheme before the 14th September 1970 and who on or before the date on which those conditions are satisfied in relation to him is accepted for membership of the New Fund. 3 The terms of the Male Wages Grades Scheme which require persons to become members of Section B of that Scheme shall not apply to — a any person referred to in paragraph (2) of this Article, or b any other person who becomes a member of the New Fund on or after the 14th September 1970. 4 Any person in the service who immediately before the 14th September 1970 is a member of the Male Wages Grades Scheme and who becomes a member of the New Fund on or after that date shall, on becoming such a member, cease to be a member of the Male Wages Grades Scheme. 5 Any person who becomes a member of the New Fund on or after the 14th September 1970 shall at all times after becoming a member thereof be ineligible for membership of either Section of the Male Wages Grades Scheme. 6 Where a person ceases to be a member of the Male Wages Grades Scheme under the foregoing provisions of this Article, the New Fund shall be credited with a sum equal to the contributions paid by such person to the Male Wages Grades Scheme. 7 Where under the foregoing provisions of this Article a person who has a right of re-admission to the Male Wages Grades Scheme becomes ineligible for membership thereof, that right of re-admission shall terminate. Alterations in the terms of the Amalgamated Fund and of certain other schemes for providing pensions 6 1 This Article shall apply to the Amalgamated Fund and to the other pension schemes listed in Schedule 1 to this Order. 2 A person who becomes a member of the New Fund on or after the 14th September 1970 shall, so long as he is a contributing member of the New Fund, be ineligible for admission to a pension scheme to which this Article applies. 3 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 14th September 1970, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall cease to be a member of that pension scheme and (except as hereinafter provided) his liability to pay contributions to and his right to receive benefit from that scheme shall cease; and b as soon as may be after that date the persons administering that pension scheme shall pay to the New Fund an appropriate transfer value in respect of the accrued pension rights of that member in that scheme. 4 Where by reason of the foregoing provisions of this Article a person ceases to be a member of the Railway Clearing System Superannuation Fund and immediately before that cessation he was a member of the Committee of that fund, he may, notwithstanding that cessation, continue to act as a member of the said Committee for a period not exceeding three years from the date of that cessation, but subject, however, to all the other provisions applicable to the office of member of that Committee. Alterations in the terms of certain schemes for providing pensions and other benefits 7 1 This Article shall apply to the pension schemes listed in column (1) of Schedule 2 to this Order. 2 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 14th September 1970, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall cease to be entitled to receive from that scheme any benefit of the type indicated in relation to that scheme in column (2) of the said Schedule and (subject to this Order) such adjustment as may be appropriate shall be made in respect of the liability of that member to pay contributions to that scheme after that date; and b as soon as may be after that date the persons administering that pension scheme shall pay to the New Fund an appropriate transfer value in respect of the accrued pension rights of that member in that scheme to benefits of the type so indicated. Alterations in the terms of certain insurance schemes 8 1 This Article shall apply to the pension schemes listed in Schedule 3 to this Order. 2 Where a member of a pension scheme to which this Article applies becomes a member of the New Fund on or after the 14th September 1970, the following provisions shall have effect: — a upon the date of his admission to membership of the New Fund he shall (subject to this Order) cease to be liable to pay contributions to that scheme; and b as soon as may be after that date the Board shall make such arrangements as may be appropriate to secure to that member by means of non-assignable and non-commutable insurance policies his accrued pension rights in that scheme. Alterations as respects ex-gratia schemes 9 1 Subject to paragraph (2) of this Article, where a person who has an expectation of benefit from a pension scheme of the Board which originated in a customary practice of a predecessor of the Board becomes a member of the New Fund on or after the 14th September 1970, his expectation of benefit from that scheme shall cease. 2 Paragraph (1) of this Article shall not apply in relation to the supplementary pension scheme for officers and certain other salaried staff of the former London and North Eastern Railway Company who were in the Special Class (or equivalent) at the 31st December 1947. Ascertainment and payment of transfer values 10 1 Where under any of the foregoing provisions of this Order there falls to be paid in relation to a member of a pension scheme to which this Order applies a transfer value in respect of his accrued pension rights in that scheme, then — a if the scheme is a funded scheme, the amount to be paid shall be ascertained by first determining the portion of the funds of that scheme properly attributable to the accrued pension rights of that member in that scheme and then by deducting therefrom such sum as may be necessary to cover the cost actually incurred by the persons administering that scheme in making the apportionment and the payment and also an amount equal to any income tax which may then become payable by virtue of regulations made, or having effect as if made, under section 208 of the Income and Corporation Taxes Act 1970; b if the scheme is not a funded scheme, the amount to be paid shall be ascertained by first determining a sum representing the value of the accrued pension rights of that member in that scheme and then by deducting therefrom such sum as may be necessary to cover the cost actually incurred by the persons administering that scheme in making the determination and the payment. 2 Any payment of a transfer value under any provision of this Order may take the form of a transfer of securities, deposits or other assets, valued as at the date of the transfer, and any question whether a transfer value shall be paid in cash or in the form of such a transfer as aforesaid shall be determined in each case when the transfer value falls to be paid. Consequential provisions 11 1 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies or where under those provisions an adjustment falls to be made in respect of the liability of a member of such a pension scheme to pay contributions to that scheme, such cessation or adjustment (as the case may be) shall be without prejudice to the obligation of that person to pay any outstanding contributions to that scheme in respect of any period before such cessation or adjustment, and at the rate appropriate to that period, and to the right of his employer to deduct such contributions from his emoluments. 2 Where under the foregoing provisions of this Order a person ceases to be a member of a pension scheme to which this Order applies, his rights to benefit from that scheme shall, except as otherwise provided in this Order, terminate with the cessation of his membership of that scheme. Determination of questions 12 1 Where under the foregoing provisions of this Order any matter or thing is to be determined in relation to a member of a pension scheme to which this Order applies who becomes a member of the New Fund, that matter or thing shall be determined by agreement between the persons administering that pension scheme on the one hand and the persons administering the New Fund on the other hand or, in default of such agreement, by the Minister. 2 In the application of paragraph (1) of this Article in a case where a member of one of the existing sections of the Amalgamated Fund becomes a member of the New Fund the relevant Sectional Committee of the Amalgamated Fund shall be regarded as the persons administering that Fund and the Committee of the New Fund shall be regarded as the persons administering the New Fund. Safeguarding of existing rights 13 No person who is a member of, or has a right of re-admission to, a pension scheme to which this Order applies (other than the New Fund) shall be required by a term of his employment in the service to become a member of the New Fund. Sealed with the Official Seal of the Minister of Transport the 28th August 1970. John Peyton Minister of Transport SCHEDULE 1 SCHEMES FOR PROVIDING PENSIONS ONLY Atlantic Steam Navigation Co. Ltd. Staff Pension Scheme. British Railways (Wages Grades) Pension Fund. Cheshire County Council Superannuation Fund — Divided. Grand Union Canal Company Superannuation Fund. Great Eastern Railway New Pension Supplemental Fund. North Eastern Railway Servants' Pension Society. Great Northern Railway Superannuation Fund. Greater London Council Superannuation Fund. Hay's Wharf Companies Superannuation Fund (Section B). Lee Conservancy Board — Employees' Scheme. London Transport (Administrative & Supervisory) Staff Superannuation Fund. National Freight Salaried Staff Pension Fund. Railway Clearing System Superannuation Fund. Scottish Bus Group Pension Fund. Superannuation Fund Association of Chaplins Ltd. Thos. Bantock & Co. Superannuation Fund. Thos. Cook & Son Staff Pension and Provident Fund. SCHEDULE 2 SCHEMES FOR PROVIDING PENSIONS AND OTHER BENEFITS (1) (2) Title of Scheme Type of benefit ceasing to be payable London, Midland and Scottish Railway (London and North Western) Provident and Pension Society Benefits payable on retirement or death London, Midland and Scottish Railway (North Staffordshire Section) Friendly Society Benefit payable on retirement SCHEDULE 3 INSURANCE SCHEMES Hay's Wharf Cartage Co. Ltd., Pickfords Ltd. and Carter Paterson & Co. Ltd. and Associated Cartage Companies Pension Scheme. Joseph Nall & Company Ltd. Pension Scheme. Pullman Car Co. Salaried Staff Group Superannuation Fund and Life Assurance Scheme. The B.E.T. Group Pension Fund and Group Endowment Scheme.

The Transport Act 1968 (Commencement No.9) Order 1970 The Minister of Transport hereby makes this Order in exercise of his powers under section 166 of the Transport Act 1968 and of all other enabling powers: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 9) Order 1970. 2 The provisions of the Transport Act 1968 specified in columns 1 and 2 of the Schedule to this Order shall come into force for the purposes specified for those provisions in that Schedule — a in relation to the use of vehicles by the Post Office (as established by section 6 of the Post Office Act 1969), on 30th November 1970; and b in relation to the use of vehicles which are farmers' goods vehicles (within the meaning of paragraph 7(1), of Schedule 4 to the Vehicles (Excise) Act 1962), on 1st March 1971. 3 Section 94(8), (9) and (10) of the said Act of 1968 shall come into force on 1st December 1970. Sealed with the Official Seal of the Minister of Transport the 30th October 1970. S.M.A. Banister An Under Secretary of the Ministry of Transport SCHEDULE (see Article 2) Column 1 Column 2 Provisions coming into force so far as not brought into force by the Transport Act 1968 (Commencement No. 3) Order 1969 . Provisions coming into force so far as not brought into force by the said Order of 1969 and in so far as they relate to operators' licensing. Section 60 Section 84 Section 62 Section 86 Section 63 Section 87 Section 64(1) to (4) Section 89 Section 66 Section 67 Section 68 Section 69 Section 70 Section 82(4) and (5) Section 94(1), (2) and (7) Part I of Schedule 10

The Consular Relations (Privileges and Immunities) (Kingdom of Belgium) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) : Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Kingdom of Belgium) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer or a consular employee of the Kingdom of Belgium of which the Kingdom of Belgium or any person acting on its behalf is the owner or lessee. 4 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the Kingdom of Belgium who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted. 2 The conditions referred to in paragraph (1) of this Article are that the consular employee concerned — a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948, or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. W.G. Agnew

The Local Authority Social Services (Staff Protection) Order 1970 The Secretary of State for Social Services, in exercise of his powers under section 9(1) of the Local Authority Social Services Act 1970 and of all other powers enabling him in that behalf, hereby makes the following Order: — 1 This Order may be cited as the Local Authority Social Services (Staff Protection) Order 1970 and shall come into operation on 1st January 1971. 2 1 In this Order any reference to the Act is a reference to the Local Authority Social Services Act 1970. 2 In this Order any reference to a protected person is a reference to a member of the existing staff of a local authority, as defined in section 9(4) of the Act, who is employed by the authority in connection with the discharge of a relevant function and is affected by the provisions of section 2 or 6 of the Act. 3 In this Order, the following expressions have, in relation to a protected person, the meanings hereby respectively assigned to them: — “ a relevant function ” means any function which, immediately after the relevant date, is a social services function of the local authority by whom he is employed except that, where he is affected by an order under section 2(2) of the Act or such a direction under section 2(4) of the Act as is mentioned in section 9(4)(b) thereof, it means any function of that authority to which the order or direction, as the case may be, relates; “ the relevant date ” means the date on which section 2 or 6 of the Act, as the case may be, comes into force in the area of the local authority by whom he is employed except that, where he is affected by an order under section 2(2) of the Act, or such a direction under section 2(4) of the Act as is mentioned in section 9(4)(b) thereof, it means the date on which the order or direction, as the case may be, so comes into force. “ tribunal ” means a tribunal established under section 12 of the Industrial Training Act 1964. 4 The Interpretation Act 1889 shall apply to the interpretation of this Order as it applies to the interpretation of an Act of Parliament. 3 1 A protected person shall, until he is served with a statement in writing of new terms and conditions of employment, enjoy terms and conditions of employment not less favourable than those he enjoyed immediately before the relevant date. 2 Any new terms and conditions of employment contained in such a statement as aforesaid shall be such that — a so long as the person is engaged in duties reasonably comparable to those in which he was engaged immediately before the relevant date, the scale of his salary or remuneration; and b the other terms and conditions of his employment, are not less favourable than those he enjoyed immediately before the relevant date. 3 For the purposes of this Article any question as to comparability of duties shall be determined by a tribunal and for the purposes hereof a person or persons may be appointed to sit with the tribunal as assessor or assessors. 4 A written statement given in accordance with section 4(1) of the Contracts of Employment Act 1963 shall not be regarded as a statement of new terms and conditions of employment for the purposes of this Article unless the statement so indicates; and such a statement for the purposes of this Article shall draw the attention of the person concerned to his right to have any question as to comparability of duties determined in accordance with the preceding paragraph and give him the address to which the reference of any such question for determination should be sent. 5 For the purposes of this Article any reference to terms and conditions of employment includes a reference to any restriction, arising under any Act or any instrument made under any Act, on the termination of the employment of any person. 4 1 This Article shall apply to a protected person, irrespective of any change in his duties, so long as he continues to be employed in connection with a relevant function by the local authority by whom he was employed on the relevant date without a break of twelve months or more in that employment. 2 Section 6(5) of the Local Government Superannuation Act 1937 (which relates to the payment of superannuation contributions on the reduction of remuneration) shall apply to a protected person to whom this Article applies who on or after the relevant date suffers a reduction in his emoluments attributable to the provisions of section 2 or 6 of the Act, as the case may be. 3 Where under section 6(5) of the said Act of 1937 as applied by the preceding paragraph a protected person pays contributions to a superannuation fund as if his remuneration had not been reduced, he shall be deemed for the purposes of Regulation 3(1) of the Local Government Superannuation (Benefits) Regulations 1954 or proviso (b) to section 8(5) of the said Act of 1937 to have received the remuneration which he would have received but for the reduction. 4 In calculating for the purposes of this Article whether, or the amount by which, a protected person's remuneration has been reduced, no account shall be taken of any increase in his remuneration which is attributable to any temporary allowance granted in consequence of the provisions of section 2 or 6 of the Act, as the case may be, and otherwise than in the ordinary course of his employment. 5 1 This Article shall, subject to paragraph (4) thereof, apply to a protected person to whom section 16 (modification applicable to female nursing staff) of the Local Government Superannuation Act 1937 applies as originally enacted by virtue of an option to retain existing benefits under Regulation 17 of the Local Government Superannuation (Benefits) Regulations 1954 or to whom Regulation 21 or 22 or Regulation 23 of the said Regulations applied immediately before the relevant date, save as provided in the next following paragraph, so long as he continues to be employed in connection with a relevant function by the local authority by whom he was employed on the relevant date without any break in that employment. 2 Where a person's duties are changed and his new duties are such that he is not such a person as is mentioned in the said section 16 or in paragraph (1) of the said Regulation 21 or, where the said Regulation 23 applied to him immediately before the relevant date, such a person as is mentioned in that Regulation, then — a if the change is made at his request, this Article shall cease to apply to him on the change taking effect; b if the change is made otherwise than at his request and within 6 months thereof he gives notice in writing to the local authority that he does not desire this Article to apply in his case, this Article shall cease to apply to him on his giving the said notice. 3 Without prejudice to the application of the said section 16 or of Regulation 21 or 22 or of Regulation 23 of the said Regulations of 1954 to a person otherwise than by virtue of this Article, so long as this Article applies to a protected person, the provision which applied to him immediately before the relevant date shall continue to apply in his case, notwithstanding that on or after the relevant date he ceases to be such a person as is mentioned in the said section 16 or in paragraph (1) of the said Regulation 21 or, as the case may be, such a person as is mentioned in the said Regulation 23. 4 In relation to a person to whom the Manchester Superannuation (Benefits) Scheme 1955 applies, this Article shall have effect as if for any references to the said section 16, the said Regulation 17 and the said Regulation 23 there were substituted respectively references to section 47 of the Manchester Corporation Act 1946 and Articles 25 and 23 of the said Scheme. Keith Joseph Secretary of State for Social Services 18th December 1970

Taxes Management Act 1970 PART I Administration Taxes under care and management of the Board 1 1 Income tax, corporation tax and capital gains tax shall be under the care and management of the Commissioners of Inland Revenue (in this Act referred to as " the Board "), and the definition of " inland revenue " in section 39 of the Inland Revenue Regulation Act 1890 shall have effect accordingly. 2 The Board shall appoint inspectors and collectors of taxes who shall act under the direction of the Board. 3 Any legal proceedings or administrative act relating to any tax begun by one inspector or collector may be continued by another inspector or, as the case may be, another collector; and any inspector or collector may act for any division or other area. General Commissioners 2 1 For the purpose of exercising such powers relating to appeals and other matters as are conferred on them by the Taxes Acts there shall be " Commissioners for the general purposes of the income tax " (in the Taxes Acts referred to as " General Commissioners ") who shall act for the same separate areas in Great Britain as heretofore (in the Taxes Acts referred to as "divisions "). 2 General Commissioners for divisions in England and Wales shall be appointed by, and shall hold office during the pleasure of, the Lord Chancellor. 3 General Commissioners for divisions in Scotland shall be appointed by, and shall hold office during the pleasure of, the appropriate local authority, but any such General Commissioner shall not be dismissed except with the consent in writing of the Lord President of the Court of Session. For the purposes of this subsection the appropriate local authority is — a in the case of a division wholly within a county or a county of a city, the county council or the town council of the county of the city, as the case may be, and b in the case of any other division, such county council or town council of a county of a city as the Secretary of State may from time to time determine, and any appointments under this subsection shall be made at the request of the Board. 4 In Scotland a sheriff shall be ex officio a General Commissioner for any division wholly or partly within his sheriffdom and a salaried sheriff-substitute shall be ex officio a General Commissioner for any division wholly or partly within his district. 5 General Commissioners shall be entitled to receive out of moneys provided by Parliament payments by way of travelling allowance or subsistence allowance of such amounts and in such circumstances as may be determined by the Treasury. 6 The Lord Chancellor or, in Scotland, the Secretary of State may by order create a new division or abolish an existing division or alter in any other respect the divisions or their boundaries ; and any such order may contain such consequential and transitional provisions as the Lord Chancellor or the Secretary of State, as the case may be, thinks fit and may be revoked or varied by a subsequent order under this subsection. Subject to the preceding provisions of this subsection, the areas of the divisions shall be the same as immediately before the passing of this Act. 7 A General Commissioner shall not continue in office after he attains the age of seventy-five years. 8 The validity of any proceedings of General Commissioners shall not be affected by a defect in the appointment of any of them, or by a failure to observe the requirements of the last preceding subsection. Clerk to General Commissioners 3 1 The General Commissioners for every division shall appoint a clerk and, if they think it necessary, an assistant clerk, and persons appointed under this subsection shall hold office during the pleasure of the Commissioners and act under their direction. 2 A clerk shall be paid such remuneration in respect of his services as the Board may with the consent of the Minister for the Civil Service determine. 3 The Board may, in such cases as they may in their discretion determine, pay to or in respect of any full-time clerk such pension or gratuity, or make such provision for the payment of pension or gratuity to or in respect of any full-time clerk, as they may with the consent of the Minister for the Civil Service determine. In this subsection " full-time clerk " means a clerk as regards whom the Board are satisfied that he is required to devote substantially the whole of his time to the duties of his office. 4 Without prejudice to the power of any General Commissioners to dismiss their clerk or assistant clerk, the Lord Chancellor or, in Scotland, the Secretary of State may, after consulting the General Commissioners for any division, dismiss their clerk or assistant clerk. 5 A clerk or assistant clerk shall not continue in office after he has attained the age of seventy years unless the General Commissioners for whom he acts think it desirable in the public interest and extend his term of office; and the term shall not be extended beyond the age of seventy-five years. Special Commissioners 4 1 Such persons as the Treasury may by warrant from time to time appoint shall be " Commissioners for the special purposes of the Income Tax Acts " (in the Taxes Acts referred to as " Special Commissioners "), and shall, by virtue of their appointment, and without other qualification, have authority to execute such powers, and to perform such duties, as are assigned to them by the Taxes Acts. 2 The Treasury shall cause an account of all appointments of Special Commissioners with salaries to be laid before Parliament within twenty days of their appointment, or, if Parliament be not then sitting, within twenty days after the next meeting of Parliament. 3 Special Commissioners shall be allowed such sums in respect of salary and incidental expenses as the Minister for the Civil Service directs. General and Special Commissioners 5 1 No General Commissioner or Special Commissioner shall act as such in relation to any matter in which he has a personal interest, or is interested on behalf of another person, except with the express consent of the parties to the proceedings. 2 Every General Commissioner or Special Commissioner shall be discharged from serving on juries in the county wherein he dwells: Provided that this subsection shall not affect section 2(1) of the Juries Act 1922 (persons named in the jurors' book to serve notwithstanding that they might have claimed exemption). Declarations on taking office 6 1 Every person who is appointed to be — a a General Commissioner or a Special Commissioner, or b a member of the Board of Referees appointed under section 26(7) of the Capital Allowances Act 1968, or c a member of the tribunal established under section 463 of the principal Act (cancellation of tax advantages), shall make a declaration in the form set out in Part I of Schedule 1 to this Act before another person holding the same office, or before a General Commissioner. 2 Every person who is appointed to be a clerk or assistant clerk to the General Commissioners for any division, or who assists any such clerk, shall make a declaration in the form set out in Part I of Schedule 1 to this Act. A clerk or assistant clerk shall make the declaration before a General Commissioner for the division, and a person who assists any such clerk shall make the declaration before such a General Commissioner or the clerk. 3 Every person who is appointed to be a member of the Board shall make a declaration in the form set out in Part II of Schedule 1 to this Act before another member of the Board. 4 Every person who is appointed an inspector or collector, or who is appointed by the Board to serve in any other capacity, shall make a declaration in the form set out in Part III of Schedule 1 to this Act before such person as the Board may direct. 5 A declaration under this section shall be made as soon as may be after first appointment to the office in question. PART II Returns of Income and Gains Income tax Notice of liability to tax 7 1 Every person who is chargeable to income tax for any year of assessment and who has not delivered a return of his profits or gains or his total income for that year in accordance with the provisions of the Income Tax Acts shall, not later than one year after the end of that year of assessment, give notice that he is so chargeable. 2 A notice under this section shall be given to the inspector or, in the case of an individual who is not chargeable to income tax other than surtax, either to the inspector or to the Board. 3 If any person fails to give a notice which he is required to give under this section he shall be liable to a penalty not exceeding £100. Return of income 8 1 Any person may be required by a notice given to him by an inspector or other officer of the Board to deliver to the officer within the time limited by the notice a return of his income, computed in accordance with the Income Tax Acts and specifying each separate source of income and the amount from each source. 2 Any person may be required by a notice given to him by an inspector or other officer of the Board to deliver to the officer within the time limited by the notice a return of income which is not his income, but in respect of which he is chargeable in any capacity specified in the notice, computed in accordance with the Income Tax Acts and specifying each separate source of income and the amount from each source. 3 A notice under this section may require a return of income for a specified year of assessment, or a return which is, so far as relates to certain sources of income, a return of income for one year of assessment, and, so far as relates to the remaining sources of income, a return of income for the preceding year of assessment. 4 So far as a notice under this section relates to income chargeable under Case I or Case II of Schedule D, or any other income which may be computed by reference to the profits or gains of a period which is not a year of assessment, the notice may require a return of profits or gains (computed in accordance with the Income Tax Acts) for a period for which accounts are made up or a period by reference to which income is to be computed. 5 A notice under this section may require an individual to deliver a return of all his income computed in accordance with the provisions of the Income Tax Acts relating to surtax, or may require a return of his income which will afford the requisite information for computing his income both in accordance with the provisions of the Income Tax Acts relating to surtax and in accordance with the provisions of those Acts relating to tax at the standard rate. 6 For the purpose of charging surtax a notice under this section may require a person liable to be charged to tax at the standard rate on the income of any incapacitated, deceased or non-resident person under Part VII or Part VIII of this Act to deliver a return of all the income of the incapacitated, deceased or non-resident person, computed in accordance with the provisions of the Income Tax Acts relating to surtax, and made to the best of his knowledge. 7 Every return under this section shall include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete. 8 In this section references to returns of income computed in accordance with the Income Tax Acts are references to returns which include, as well as all particulars relating to income from which tax has not been deducted, all particulars relating to income from which tax has been deducted before receipt, and relating to charges on income, which are required for computing total income for the purposes of the provisions of the Income Tax Acts relating to surtax or, as the case may require, to tax at the standard rate; and in this subsection the expression " charges on income " means amounts which fall to be deducted in computing total income for either or both of those purposes, or which would fall to be so deducted if the person to whose income the return relates were an individual. Partnership return 9 1 Where a trade or profession is carried on by two or more persons jointly, the precedent partner, that is to say, the partner who, being resident in the United Kingdom — a is first named in the agreement of partnership, or b if there is no agreement, is named singly, or with precedence to the other partners in the usual name of the firm, or c is the precedent acting partner, if the person named with precedence is not an acting partner, shall make and deliver a return under section 8 above of the profits or gains of the trade or profession, on behalf of himself and the other partners, and declare in the return the names and residences of the other partners. 2 Where no partner is resident in the United Kingdom, the return shall be made and delivered by the agent, manager or factor of the firm resident in the United Kingdom. 3 Any other partner may, if a return has been delivered as aforesaid, notify the fact that he is a partner together with his name and place of abode, without returning the amount of tax payable in respect of the partnership, but an inspector may, if he thinks fit, require from every partner a like return, and the like information and evidence, as he is entitled to require from the precedent partner. 4 This section shall apply to income chargeable to income tax in accordance with section 155 of the principal Act (partnerships involving companies), matters relevant only to corporation tax being omitted from the return, and the obligation to make and deliver the return being that of the individual partner or partners. 5 Any return of the profits or gains of a partnership delivered under this section shall include, with respect to any disposal of partnership property during the year of assessment to which the return relates, the like particulars as if the partnership were chargeable under Case VII of Schedule D in respect of any gain accruing on the disposal. Corporation tax Notice of liability to corporation tax 10 1 Every company which is chargeable to corporation tax for any accounting period and which has not made a return of its profits for that accounting period shall not later than one year after the end of that accounting period give notice to the inspector that it is so chargeable. 2 If a company fails to give a notice which it is required to give under this section the company shall be liable to a penalty not exceeding £100. Return of profits 11 1 A company may be required by a notice served on the company by an inspector or other officer of the Board to deliver to the officer within the time limited by the notice a return of the profits of the company computed in accordance with the Corporation Tax Acts — a specifying the income taken into account in computing those profits, with the amount from each source, b giving particulars of all disposals giving rise to chargeable gains or allowable losses under the provisions of Part III of the Finance Act 1965 and the Corporation Tax Acts and particulars of those chargeable gains or allowable losses, and c giving particulars of all charges on income to be deducted against those profits for the purpose of assessment to corporation tax. 2 A notice under this section may require a return of profits arising in any period during which the company was within the charge to corporation tax. 3 Every return under this section shall include a declaration to the effect that the return is correct and complete. 4 A return under this section which includes profits which are payments on which the company has borne income tax by deduction shall specify the amount of income tax so borne. 5 A notice under this section may require the inclusion in the return of particulars of management expenses, capital allowances and balancing charges which have been taken into account in arriving at the profits included in the return. Capital gains Information about chargeable gains 12 1 Sections 7 and 8 of this Act shall apply in relation to capital gains tax as they apply in relation to income tax at the standard rate, and subject to any necessary modifications. 2 A notice under section 8 or section 11 of this Act may require particulars of any assets acquired by the person on whom the notice was served (or if the notice relates to income or chargeable gains of some other person, of any assets acquired by that other person) in the period specified in the notice (being a period beginning not earlier than 6th April 1965) but excluding — a any assets exempted by section 27 of the Finance Act 1965 (miscellaneous exemptions), without subsection (2) of that section, or b unless the amount or value of the consideration for its acquisition exceeded £1,000, any asset which is tangible movable property and is not within the exceptions in section 30(6) of the said Act (terminal markets and currency), or c any assets acquired as trading stock. 3 The particulars required under this section may include particulars of the person from whom the asset was acquired, and of the consideration for the acquisition. 4 A return of income of a partnership under section 9 of this Act shall include — a with respect to any disposal of partnership property during a period to which any part of the return relates, the like particulars as if the partnership were liable to tax on any chargeable gain accruing on the disposal, and b with respect to any acquisition of partnership property, the particulars required under subsection (2) above. 5 In this section " trading stock " has the meaning given by section 137(4) of the principal Act. PART III Other Returns and Information Persons in receipt of taxable income belonging to others 13 1 Every person who, in whatever capacity, is in receipt of any money or value, or of any profits or gains from any of the sources mentioned in the Income Tax Acts, of or belonging to another person who is chargeable to income tax in respect thereof, or who would be so chargeable if he were resident in the United Kingdom and not an incapacitated person, shall, whenever required to do so by a notice given to him by an inspector, prepare and deliver, within the time mentioned in the notice, a return in the prescribed form, signed by him, containing — a a statement of all such money, value, profits or gains, and b the name and address of every person to whom the same belong, and c a declaration whether every such person is of full age, or is a married woman, or is resident in the United Kingdom or is an incapacitated person. 2 If any person described above is acting jointly with any other person, he shall, in like manner, deliver a return of the names and addresses of all persons joined with him at the time of delivery of the return mentioned in subsection (1) above. Return of lodgers and inmates 14 Every person, when required to do so by a notice served on him by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return, in writing, containing to the best of his belief — a the name of every lodger or inmate resident in his dwelling-house, and b the name and ordinary place of residence of any such lodger or inmate who has any ordinary place of residence elsewhere at which he can be assessed and who desires to be assessed at such ordinary place of residence. Return of employees, etc. 15 1 Every employer, when required to do so by notice Return of from an inspector, shall, within the time limited by the notice, employees, prepare and deliver to the inspector a return containing — a the names and places of residence of all persons employed by him, and b the payments made to those persons in respect of that employment, except persons who are not employed in any other employment and whose remuneration in the employment for the year does not exceed £110 or, if the employment is for less than the year, a proportionately reduced amount: Provided that, notwithstanding anything in section 98 of this Act, an employer shall not be liable to any penalty for omitting from any such return the name or place of residence of any person employed by him and not employed in any other employment, if it appears to the General Commissioners, on inquiry before them, that that person is entitled to total exemption from tax. The references in this subsection to payments made to persons in respect of their employment and to the remuneration of persons in their employment shall be deemed to include references — i to any payments made to employed persons in respect of expenses, and ii to any payments made on behalf of employed persons and not repaid, and iii to any payments made to the employees in a trade or business for services rendered in connection with the trade or business, whether the services were rendered in the course of their employment or not. 2 Any director of a company, or person engaged in the management of a company, shall be deemed for the purposes of this section to be a person employed. 3 Where the employer is a body of persons, the secretary of the body, or other officer (by whatever name called) performing the duties of secretary, shall be deemed to be the employer for the purposes of this section: Provided that where the employer is a body corporate, that body corporate shall be liable to a penalty for failure to deliver a return in pursuance of this section as well as the secretary or other officer. 4 In this section " director " has the same meaning as in Chapter II of Part VIII of the principal Act Fees, commissions, etc. 16 1 Every person carrying on a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of any kind specified in the notice made during a period so specified, being — a payments made in the course of the trade or business, or of such part of the trade or business as may be specified in the notice, for services rendered by persons not employed in the trade or business, or b payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business, or any part of it, by persons not employed in the trade or business, or c periodical or lump sum payments made in respect of any copyright. 2 Every body of persons carrying on any activity which does not constitute a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of a kind specified in the notice made during a period so specified, being — a payments made in the course of carrying on the activity, or such part of the activity as may be specified in the notice, for services rendered by persons not employed by the said body of persons, or b periodical or lump sum payments made in respect of any copyright. 3 A return required under either of the preceding subsections shall, if the trade or business or other activity is carried on by an unincorporated body of persons (other than a company), be made and delivered by the person who is or performs the duties of secretary of the body, and the notice shall be framed accordingly. 4 A return under the preceding provisions of this section shall give the name of the person to whom each payment was made, the amount of the payment and such other particulars (including particulars as to the services or rights in respect of which the payment was made, the period over which any services were rendered and any business name and any business or home address of the person to whom payment was made) as may be specified in the notice. 5 No person shall be required under the preceding provisions of this section to include in a return — a particulars of any payment from which income tax is deductible, or b particulars of payments made to any one person where the total of the payments to that person which would otherwise fall to be included in the return does not exceed £15, or c particulars of any payment made in a year of assessment ending more than three years before the service of the notice requiring him to make the return. 6 A person who fails to deliver, within the time limited in any notice served on him under this section, a true and correct return which he is required by the notice to deliver shall be liable to a penalty not exceeding £50 and, after judgment has been given for that penalty, to a further penalty of the like amount for every day during which the failure continues. 7 In this section — a references to payments for services include references to payments in the nature of commission of any kind and references to payments in respect of expenses incurred in connection with the rendering of services, and b references to the making of payments include references to the giving of any valuable consideration, and the requirement imposed by subsection (4) above to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration. Interest paid or credited by banks etc. without deduction of income tax 17 1 Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so by notice from an inspector, make and deliver to the inspector, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest: Provided that — a no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £15, and b the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice. 2 Without prejudice to the generality of so much of subsection (1) above as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under the said subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends. 3 This section shall, with any necessary adaptations, apply in relation to the National Savings Bank as if it were a trade or business carried on by the Director of Savings. 4 This section shall apply only to money received or retained in the United Kingdom, and if a person to whom any interest is paid or credited in respect of any money received or retained in the United Kingdom by notice in writing served on the person paying or crediting the interest — a declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the United Kingdom, and b requests that the interest shall not be included in any return under this section, the person paying or crediting the interest shall not be required to include that interest in any such return. Interest paid without deduction of income tax 18 1 Any person by whom any interest is paid in the year 1969-70 or any subsequent year of assessment without deduction of income tax shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice — a the name and address of the person to whom the interest has been paid or on whose behalf the interest has been received, and b the amount of the interest so paid or received, and any person who receives any such interest on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the interest has been received, and its amount. 2 The persons to whom this section applies include any officer in any public office or in any department of the Crown. 3 This section shall not impose any obligation on a bank carrying on a bona fide business in the United Kingdom in respect of any interest paid by the bank in the ordinary course of that business. Information for purposes of Schedule A 19 1 For the purpose of obtaining particulars of profits or gains chargeable to tax under Schedule A (or, for chargeable periods ending before 6th April 1970, under Case VIII of Schedule D), the inspector may by notice in writing require — a any lessee, occupier or former lessee or occupier of land (including any person having, or having had, the use of land) to give such information as may be prescribed by the Board as to the terms applying to the lease, occupation or use of the land, and where any of those terms are established by any written instrument, to produce the instrument to the inspector, b any lessee or former lessee of land to give such information as may be so prescribed as to any consideration given for the grant or assignment to him of the tenancy, c any person who as agent manages land or is in receipt of rent or other payments arising from land to furnish the inspector with such particulars relating to payments arising therefrom as may be specified in the notice. 2 Subsection (1) above shall apply in relation to sums chargeable to tax under Case VI of Schedule D by virtue of any provision of sections 80 to 82 of the principal Act as it applies to profits or gains chargeable to tax under Schedule A or Case VIII of Schedule D. 3 In this section — a " lease " includes an agreement for a lease, and any tenancy, but does not include a mortgage or heritable security, and " lessee " shall be construed accordingly but shall include the successor in title of a lessee, b in relation to Scotland " assignment" means an assignation. Production of accounts, books and other information Powers in connection with trades, professions and vocations 20 1 Where — a a person who has been duly required to deliver a statement for purposes of income tax of the profits or gains arising to him from any trade, profession or vocation fails to deliver the statement, or the Board are not satisfied with the statement delivered by any such person, or b a company which has been duly required to make a return under section 11 of this Act relating to profits which consist of or comprise profits arising from a trade or vocation fails to deliver the return, or the Board are not satisfied with the return delivered by any such company, the Board may serve on the person or company a notice in writing or notices in writing requiring that person or company to do any of the following things, that is to say — i to deliver to the inspector copies of such accounts (including balance sheets) relating to the trade, profession or vocation as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate, ii to make available, within such time as may be specified in the notice, for inspection by the inspector or by any officer authorised by the Board, all such books, accounts and documents in the possession or power of the said person or company as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade, profession or vocation. 2 The inspector or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under this section. Stock jobbers' transactions 21 1 The Board may exercise the powers conferred by this section as respects, and in connection with, any business which is, or has been, carried on by a jobber or dealing broker whose liability to tax in respect of the business is determined on the footing that any excess of his payments in respect of interest on securities over his receipts in respect thereof, being payments made or receipts accrued in pursuance of a contract for the sale or purchase of the securities, is to be treated for all the purposes of the Income Tax Acts or the Corporation Tax Acts as an annual payment made by him. 2 With a view to obtaining information about transactions in the course of a business within subsection (1) above, the Board may serve on the jobber or dealing broker by whom the business is or has been carried on a notice requiring him to make available within a time specified in the notice, for inspection by an inspector or other officer of the Board, all such books, accounts and other documents in his possession or power as may be specified or described in the notice, being books, accounts or other documents which in the opinion of the Board contain or may contain information directly or indirectly relating to any such transactions. 3 The Board may serve on any broker a notice requiring him to make available within a time specified in the notice, for inspection by an inspector or other officer of the Board, all such books, accounts or other documents in his possession or power as may be specified or described in the notice, being books, accounts or other documents which in the opinion of the Board contain or may contain information relating directly or indirectly to transactions in the course of a business within subsection (1) above. 4 The Board may by notice in writing require — a a person, other than a broker, who has directly or indirectly received from a jobber or dealing broker any payment made by the jobber or dealing broker in the course of a business within subsection (1) above, being a payment treated by the jobber or dealing broker as made in respect of interest on securities, to state within a time specified in the notice whether the amount received is in whole or in part received on behalf of, or for payment on to, any other person and, if so, to furnish the name and address of that other person, or b a person who has directly or indirectly paid to a jobber or dealing broker any sum constituting a receipt by him in the course of a business within subsection (1) above, being a receipt treated by the jobber or dealing broker as accruing in respect of interest on securities, to state within a time specified in the notice whether the amount paid is in whole or in part received from, or paid on account of, any other person and, if so, to furnish the name and address of that other person. 5 If, for the purpose of obtaining (from any persons whether brokers or jobbers or not) information directly or indirectly relating to any transactions in the course of a business within subsection (1) above, any person in whose name any securities are registered is so required by notice in writing by the Board, he shall state whether or not he is the beneficial owner of those securities, and, if not the beneficial owner of those securities or any of them, shall furnish the name and address of the person or persons on whose behalf the securities are registered in his name. 6 The Board may not exercise their powers under the preceding provisions of this section for the purpose of obtaining information relating to transactions in any year of assessment ending more than six years before the service of the notice. 7 In this section — " broker " means a member of a stock exchange in the United Kingdom other than a jobber, " dealing broker ", in relation to any sale of securities, means a member of a stock exchange in the United Kingdom, other than the London Stock Exchange, who is recognised by the committee of his exchange as carrying on the business of a dealer and authorised by them to deal in those securities, " jobber " means a member of the London Stock Exchange who is recognised by the committee thereof as carrying on the business of a jobber, " securities " includes shares and stock, and references to interest include references to dividends. Surtax Additional particulars for surtax 22 The Board may, for the purpose of charging surtax, by notice in writing require any individual to furnish to them within such time as they may prescribe, not being less than twenty-eight days, such particulars as to the several sources of his income and the amount arising from each source, and as to the nature and the amount of any deductions claimed to be allowed therefrom, as they consider necessary. Power to obtain copies of registers of securities 23 1 The Board may cause to be served upon any body corporate a notice requiring them to deliver to the Board within a specified time, being not less than twenty-one days, a copy, certified by a duly authorised officer of such body, of the whole of, or any specified class of entries in, any register containing the names of the holders of any securities issued by them. 2 On delivery of the copy in accordance with the notice payment shall be made therefor at the rate of five shillings in respect of each one hundred entries. 3 In this section, " security " includes shares, stock, debentures and debenture stock, and " entry " means, in relation to any register, so much thereof as relates to the securities held by any one person. Power to obtain information as to income from securities 24 1 The Board may by notice in writing require — a any person, being a registered or inscribed holder of any United Kingdom securities, who, in any year of assessment, has received on behalf of any other person any income arising from any such securities, or b any person by or through whom, in any year of assessment, any income in respect of United Kingdom securities has been paid in any case where — i the registered or inscribed holder of the securities is not the person to whom the income was paid, or ii the securities are bearer securities, to furnish them, within such time as may be specified in the notice (not being less than twenty-eight days) with particulars of the amounts so received or, as the case may be, paid in that year (other than amounts received or paid in that year on behalf of or to any one person which did not exceed in the aggregate the sum of £15), the securities to which those amounts respectively relate, and the names and addresses of the persons on whose behalf or to whom those amounts were respectively received or paid. 2 The Board may similarly require any person who acts or has acted, directly or indirectly, as an intermediary or as one of a series of intermediaries between any such person as is specified in subsection (1)(a) or (b) above and the person or persons beneficially entitled to the income in question to furnish such information as the Board may require for the purpose of enabling them to ascertain the names and addresses of the person or persons beneficially entitled to the income and the respective amounts to which those persons were beneficially entitled. 3 Nothing in this section shall impose on any bank the obligation to disclose any particulars relating to income from securities in cases where the person beneficially entitled to the income is not resident in the United Kingdom. 4 In this section — " securities " includes shares, stocks, bonds, debentures and debenture stock, and " United Kingdom securities " means any securities issued by or on behalf of Her Majesty's Government in the United Kingdom or the Government of Northern Ireland and any securities of a body corporate incorporated in any part of the United Kingdom. Chargeable gains Issuing houses, stockbrokers, auctioneers, etc. 25 1 For the purpose of obtaining particulars of chargeable gains an inspector may by notice in writing require a return under any of the provisions of this section. 2 An issuing house or other person carrying on a business of effecting public issues of shares or securities in any company, or placings of shares or securities in any company, either on behalf of the company, or on behalf of holders of blocks of shares or securities which have not previously been the subject of a public issue or placing, may be required to make a return of all such public issues or placings effected by that person in the course of the business in the period specified in the notice requiring the return, giving particulars of the persons to or with whom the shares or securities are issued, allotted or placed, and the number or amount of the shares or securities so obtained by them respectively. 3 A person not carrying on such a business may be required to make a return as regards any such public issue or placing effected by that person and specified in the notice, giving particulars of the persons to or with whom the shares or securities are issued, allotted, or placed and the number or amount of the shares or securities so obtained by them respectively. 4 A member of a stock exchange in the United Kingdom, other than a jobber, may be required to make a return giving particulars of any transactions effected by him in the course of his business in the period specified in the notice requiring the return and giving particulars of — a the parties to the transactions, b the number or amount of the shares or securities dealt with in the respective transactions, and c the amount or value of the consideration. 5 A person (other than a member of a stock exchange in the United Kingdom) who acts as an agent or broker in the United Kingdom in transactions in shares or securities may be required to make a return giving particulars of any such transactions effected by him after 5th April 1968 and in the period specified in the notice, and giving particulars of — a the parties to the transactions, b the number or amount of the shares or securities dealt with in the respective transactions, and c the amount or value of the consideration. 6 The committee or other person or body of persons responsible for managing a clearing house for any terminal market in commodities may be required to make a return giving particulars of any transactions effected through the clearing house in the period specified in the notice requiring the return and giving particulars of — a the parties to the transactions, b the amounts dealt with in those transactions respectively, and c the amount or value of the consideration. 7 An auctioneer, and any person carrying on a trade of dealing in any description of tangible movable property, or of acting as an agent or intermediary in dealings in any description of tangible movable property, may be required to make a return giving particulars of any transactions effected by or through him in which any asset which is tangible movable property is disposed of for a consideration the amount or value of which, in the hands of the recipient, exceeds £1,000. 8 No person shall be required under this section to include in a return particulars of any transaction effected more than three years before the service of the notice requiring him to make the return. 9 In this section " company " and " shares " shall be construed in accordance with subsections (1) and (8) of section 45 of the Finance Act 1965. Nominee shareholders 26 1 If, for the purpose of obtaining particulars of chargeable gains, any person in whose name any shares of a company are registered is so required by notice in writing by the Board or an inspector, he shall state whether or not he is the beneficial owner of those shares and, if not the beneficial owner of those shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name. 2 In this section references to shares include references to securities and loan capital. Settled property 27 1 The Board may by notice in writing require any person, being a party to a settlement, to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of Part III of the Finance Act 1965 (chargeable gains). 2 In this section " settlement" has the meaning given by section 454(3) of the principal Act. Non-resident companies and trusts 28 1 A person holding shares or securities in a company which is not resident or ordinarily resident in the United Kingdom, or who is interested in settled property under a settlement the trustees of which are not resident or ordinarily resident in the United Kingdom, may be required by a notice by the Board to give such particulars as the Board may consider are required to determine whether the company or trust falls within section 41 (non-resident companies) or section 42 (non-resident trusts) of the Finance Act 1965, and whether any chargeable gains have accrued to that company, or to the trustees of that settlement, in respect of which the person to whom the notice is given is liable to capital gains tax under the said section 41 or the said section 42. 2 In this section " settled property " has the meaning given by section 45(1) of the Finance Act 1965, and " company " and " shares " shall be construed in accordance with subsections (1) and (8) of that section. PART IV Assessment and Claims Assessing procedure 29 1 Except as otherwise provided, all assessments to tax shall be made by an inspector, and — a if the inspector is satisfied that any return under the Taxes Acts affords correct and complete information concerning profits in respect of which tax is chargeable, he shall make an assessment accordingly, b if it appears to the inspector that there are any profits in respect of which tax is chargeable and which have not been included in a return under Part II of this Act, or if the inspector is dissatisfied with any return under Part II of this Act, he may make an assessment to tax to the best of his judgment. 2 All assessments to surtax shall be made by the Board and — a if they are satisfied that a return under Part II of this Act of the income of an individual affords correct and complete information concerning the whole of his income computed in accordance with the provisions of the Income Tax Acts relating to surtax, they shall make an assessment accordingly, and b if it appears to them that there has been a failure to make a return under Part II of this Act of the income of an individual, or if they are dissatisfied with such a return, they may make an assessment to surtax to the best of their judgment. 3 If an inspector or the Board discover — a that any profits which ought to have been assessed to tax have not been assessed, or b that an assessment to tax is or has become insufficient, or c that any relief which has been given is or has become excessive, the inspector or, as the case may be, the Board may make an assessment in the amount, or the further amount, which ought in his or their opinion to be charged. 4 All income tax at the standard rate which is charged for any year on any person under subsection (3)(c) above may, notwithstanding that it was chargeable under more than one Schedule, be included in one assessment and an appeal against an assessment under subsection (3)(c) above shall be to the Commissioners to whom an appeal would lie on a claim for the relief in connection with which the assessment is made. 5 Notice of any assessment to tax shall be served on the person assessed and shall state the time within which any appeal against the assessment may be made. 6 After the notice of assessment has been served on the person assessed, the assessment shall not be altered except in accordance with the express provisions of the Taxes Acts. 7 Assessments to income tax at the standard rate which are under any provision in the Income Tax Acts to be made by the Board shall be made in accordance with this section, and as if in subsection (1)(a) and (b) above the references to the inspector were references to the Board. 8 In this section " profits " — a in relation to income tax, means income, b in relation to capital gains tax, means chargeable gains, c in relation to corporation tax, means profits as computed for the purposes of that tax, and " return under Part II of this Act" includes a return under that Part as extended by section 39(3) of the principal Act (returns of income of husband and wife). Recovery of tax repaid in consequence of fraud or negligence 30 Where, in consequence of a person's fraud, wilful default or negligence, any tax has been repaid which ought not to have been repaid, the amount thereof may be assessed to tax and recovered accordingly, and an assessment to income tax or corporation tax under this section shall be made under Case VI of Schedule D. Right of appeal 31 1 An appeal may be brought against an assessment to tax by a notice of appeal in writing given within thirty days after the date of the notice of assessment. 2 The notice of appeal shall be given to the inspector or other officer of the Board by whom the notice of assessment was given. 3 The appeal shall be to the Special Commissioners if the assessment — a is an assessment to surtax, or any other assessment made by the Board, or b is made under section 53, 316 or 480(1) of the principal Act. 4 Subject to subsection (3) above the appeal shall be to the General Commissioners, except that the appellant may elect (in accordance with section 46(1) of this Act) to bring the appeal before the Special Commissioners instead of the General Commissioners. 5 The notice of appeal against any assessment shall specify the grounds of appeal, but on the hearing of the appeal the Commissioners may allow the appellant to put forward any ground not specified in the notice, and take it into consideration if satisfied that the omission was not wilful or unreasonable. 6 This section has effect subject to any express provision in the Taxes Acts, including in particular any provision under which an appeal lies to the Special Commissioners to the exclusion of the General Commissioners, any provision transferring jurisdiction to some other tribunal, and any provision making one kind of assessment conclusive in an appeal against another kind of assessment. Relief for excessive assessments Double assessment 32 1 If on a claim made to the Board it appears to their satisfaction that a person has been assessed to tax more than once for the same cause and for the same chargeable period, they shall direct the whole, or such part of any assessment as appears to be an overcharge, to be vacated, and thereupon the same shall be vacated accordingly. 2 An appeal on a claim under this section shall lie to any of the bodies of Commissioners having jurisdiction to hear an appeal against the assessment, or the later of the assessments, to which the claim relates. Error or mistake 33 1 If any person who has paid tax charged under an assessment alleges that the assessment was excessive by reason of some error or mistake in a return, he may by notice in writing at any time not later than six years after the end of the year of assessment (or, if the assessment is to corporation tax, the end of the accounting period) in which the assessment was made, make a claim to the Board for relief. 2 On receiving the claim the Board shall inquire into the matter and shall, subject to the provisions of this section, give by way of repayment such relief (including, in the case of assessment to income tax at the standard rate, any consequential relief from surtax) in respect of the error or mistake as is reasonable and just: Provided that no relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the claimant ought to have been computed where the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when the return was made. 3 In determining the claim the Board shall have regard to all the relevant circumstances of the case, and in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of the claimant, and for this purpose the Board may take into consideration the liability of the claimant and assessments made on him in respect of chargeable periods other than that to which the claim relates. 4 If any appeal is brought from the decision of the Board on the claim the Special Commissioners shall hear and determine the appeal in accordance with the principles to be followed by the Board in determining claims under this section; and neither the appellant nor the Board shall be entitled to require a case to be stated under section 56 of this Act otherwise than on a point of law arising in connection with the computation of profits. 5 In this section " profits " — a in relation to income tax, means income, b in relation to capital gains tax, means chargeable gains, c in relation to corporation tax, means profits as computed for the purposes of that tax. Time limits Ordinary time limit of six years 34 1 Subject to the following provisions of this Act, and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case, an assessment to tax may be made at any time not later than six years after the end of the chargeable period to which the assessment relates. 2 An objection to the making of any assessment on the ground that the time limit for making it has expired shall only be made on an appeal against the assessment. Emoluments received after year for which they are assessable 35 1 Where income to which this section applies is received in a year of assessment subsequent to that for which it is assessable, assessments to income tax as respects that income may be made at any time within six years after the year of assessment in which it was received. 2 The income to which this section applies is any income which is chargeable to tax under Schedule E, but which is not taken into account in an assessment to income tax for the year of assessment in which it is received; and for the purposes of this section — a any sums which by virtue of Chapter II of Part VIII of the principal Act (expenses allowances, benefits and facilities for directors and others) fall to be treated as perquisites of a person's office or employment but which are not actually paid to that person shall be treated as having been received at the time when (the relevant expenses were incurred or are treated for the purposes of the said Chapter II as having been incurred, b any payment chargeable to tax by virtue of section 187 of the principal Act (payments on retirement or loss of office or employment) shall notwithstanding anything in subsection (4) of that section (notional date of payment) be treated as having been received at the time it was actually received. Fraud or wilful default 36 Subject to section 41 below, where any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, assessments on that person to tax may, for the purpose of making good to the Crown any loss of tax attributable to the fraud or wilful default, be made at any time. Neglect: income tax and capital gains tax 37 1 Where, for the purpose of making good to the Crown a loss of tax wholly or partly attributable to the fraud, wilful default or neglect of any person, an assessment for any year (in this section referred to as " the normal year") has been made on him not later than six years after the end of that year, assessments to tax for earlier years may, to the extent provided by the following provisions of this section, be made on him notwithstanding that, but for this section, they would be out of time. 2 No assessment under this section shall be made on any person except for the purpose of making good to the Crown a loss of tax attributable to his neglect. 3 An assessment under this section for any year ending not earlier than six years before the end of the normal year may, subject to section 41 below, be made at any time not later than the end of the year of assessment following that in which the tax covered by the assessment mentioned in subsection (1) of this section is finally determined. 4 An assessment under this section for any year ending earlier than six years before the end of the normal year may only be made with 'the leave of the General or Special Commissioners, given under the following provisions of this section. 5 Where an assessment for any year (in this section referred to as " the earlier year ") has been made on any person more than six years after the end of that year — a under this section, or b (in the circumstances mentioned in subsection (6) below) under section 36 above, and it appears to the General or Special Commissioners, on an application made to them not later than the end of the year of assessment following that in which the tax covered by the assessment for the earlier year is finally determined, that there are reasonable grounds for believing that tax for a year ending not earlier than six years before the end of the earlier year was or may have been lost to the Crown owing to the neglect of that person, they may give leave for the making on him of an assessment under this section for that year. 6 The circumstances referred to in subsection (5)(b) above are that the assessment for the earlier year was one of a number of assessments made on that person for the purpose mentioned in subsection (1) above and that of the years for which those assessments were made — a the latest, apart from the normal year, ended not more than six years before the end of the normal year, b the next, if any, ended not more than six years before the end of the said latest year, and so on for any earlier years. 7 An application for leave under this section may be made by the inspector or the Board, and on any such application the person to be assessed shall be entitled to appear and be heard. 8 In determining the amount of the tax to be charged for any year in any assessment made under this section effect shall be given, if the person to be assessed so requires, to any relief or allowance to which he would have been entitled for that year on a claim or application made within the time allowed by the Taxes Acts. 9 In this section and section 38 below " tax" does not include corporation tax, and this section shall apply separately to income tax and to capital gains tax, so that the making of an assessment to one of those taxes shall not affect the time allowed for the making of an assessment to the other tax. Modification of s. 37 in relation to partnerships 38 1 The following provisions of this section shall have effect where such an assessment to tax as is mentioned in section 37(1) above was made on any person who at any time carried on a trade, profession or vocation in partnership with any other person (whether the assessment was made in respect of the profits or gains thereof or not). 2 In this section — " the business " means the trade, profession or vocation mentioned in subsection (1) of this section, " the normal year " has the same meaning as in section 37 above, " the person in default " means the person mentioned in section 37(1) above. 3 Subject to subsection (5) of this section, an assessment in respect of the profits or gains of the business may be made under section 37 above not only on the person in default but on any person who carried on the business at any time in the year for which the assessment is made and either — a then carried it on in partnership with the person in default or with a person who at any time in the normal year carried it on in partnership with the person in default; or b at any time in the normal year carried on the business in partnership with the person in default; and may be made for the purpose of making good to the Crown a loss of tax attributable to the neglect of any person who carried on the business at any time in the year for which the assessment is made. 4 For the purpose of determining whether leave may be given for the making of such an assessment on two or more persons who carried on the business in partnership subsections (5) and (6) of section 37 above shall have effect as if the neglect referred to therein were the neglect of any of those persons and as if the assessments referred to therein were assessments made on any one of those persons. 5 Where such an assessment is made on two or more persons who carried on the business in partnership and those persons include any person (in this subsection referred to as " the exempted partner ") who was not charged in any such assessment as is mentioned in subsection (1) of this section, the tax charged in the assessment — a shall not include tax on so much of the profits or gains as would fall to be included in the exempted partner's total income; and b shall not be recoverable from the exempted partner; and where a person who was not charged as aforesaid carried on the business otherwise than in partnership no such assessment shall be made on him. Neglect: corporation tax 39 1 Where, for the purpose of making good to the Crown a loss of tax wholly or partly attributable to the fraud, wilful default or neglect of any person, an assessment to corporation tax for any accounting period (in this section referred to as " the normal accounting period ") has been made on him not later than six years after the end of that accounting period, assessments to corporation tax, income tax and the profits tax for earlier accounting periods, years of assessment and chargeable accounting periods may, to the extent provided by the following provisions of this section, be made on him notwithstanding that, but for this section, they would be out of time. 2 No assessment under this section shall be made on any person except for the purpose of making good to the Crown a loss of tax attributable to his neglect. 3 An assessment under this section for any accounting period, year of assessment or chargeable accounting period ending not earlier than six years before the end of the normal accounting period may, subject to section 41 below, be made at any time not later than one year after the time when the tax covered by the assessment mentioned in subsection (1) above is finally determined. 4 An assessment under this section for any accounting period, year of assessment or chargeable accounting period ending earlier than six years before the end of the normal accounting period may only be made with the leave of the General or Special Commissioners, given under the following provisions of this section. 5 Where an assessment for any accounting period, year of assessment or chargeable accounting period (in this section referred to as " the earlier period ") has been made on any person more than six years after the end of that period — a under this section, or b (in the circumstances mentioned in subsection (6) below) under section 36 above, and it appears to the General or Special Commissioners, on an application made to them not later than one year after the tax covered by the assessment for the earlier period is finally determined, that there are reasonable grounds for believing that tax for an accounting period, year of assessment or chargeable accounting period ending not earlier than six years before the end of the earlier period was or may have been lost to the Crown owing to the neglect of that person, they may give leave for the making on him of an assessment under this section for that accounting period, year of assessment or chargeable accounting period. 6 The circumstances referred to in subsection (5)(b) above are that the assessment for the earlier period was one of a number of assessments made on that person for the purpose mentioned in subsection (1) above and that of the accounting periods, years of assessment and chargeable accounting periods for which those assessments were made — a the latest, apart from the normal accounting period, ended not more than six years before the end of the normal accounting period, b the next, if any, ended not more than six years before the end of the said latest accounting period, year of assessment or chargeable accounting period, and so on for any earlier accounting periods, years of assessment or chargeable accounting periods. 7 An application for leave under subsection (5) above may be made by the inspector or the Board, and on any such application the person to be assessed shall be entitled to appear and be heard. 8 In determining the amount of the tax to be charged for any accounting period, year of assessment or chargeable accounting period in any assessment made under this section effect shall be given, if the person to be assessed so requires, to any relief or allowance to which he would have been entitled for that accounting period, year of assessment or chargeable accounting period on a claim or application made within the time allowed by the Taxes Acts or the enactments relating to the profits tax, as the case may be. 9 For the purposes of this section the year 1965-66 and any earlier year of assessment, and any chargeable accounting period, is to be regarded as earlier than any corporation tax accounting period. 10 For the purpose of making assessments to income tax for the year 1965-66 and earlier years of assessment, section 38 above shall apply in relation to this section as it applies in relation to section 37 above, but as if references in the said section 38 to the normal year were references to the normal accounting period, and with any other necessary modifications. Assessment on personal representatives 40 1 For the purpose of the charge of tax on the executors or administrators of a deceased person in respect of the income, or chargeable gains, which arose or accrued to him before his death, the time allowed by section 34, 35 or 36 above shall in no case extend beyond the end of the third year next following the year of assessment in which the deceased died. 2 Subject to section 41 below, for the purpose of making good to the Crown any loss of tax attributable to the fraud, wilful default or neglect of a person who has died, an assessment on his personal representatives to tax for any year of assessment ending not earlier than six years before his death may be made at any time before the end of the third year next following the year of assessment in which he died. 3 In this section " tax " means income tax or capital gains tax. Leave of General or Special Commissioners required for certain assessments 41 1 An assessment to tax made by virtue of — a section 36 of this Act, or b so far as they relate to an assessment for a period ending not earlier than six years before the end of the normal year or normal accounting period, section 37, 38 or 39 of this Act, or c section 40(2) of this Act, may only be made with the leave of a General or Special Commissioner given on being satisfied by an inspector or other officer of the Board that there are reasonable grounds for believing that tax has or may have been lost to the Crown owing to the fraud or wilful default or neglect of any person. 2 The General or Special Commissioner giving leave to make such an assessment shall take no part in the proceedings, and shall not be present, when any appeal against the assessment is heard or determined. Claims Procedure for making claims 42 1 Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim. 2 Subject to any provision in the Taxes Acts for a claim to be made to the Board, every claim shall be made to an inspector. 3 An appeal may be brought against the decision of the inspector or the Board on a claim by giving written notice to the inspector or the Board as the case may be within thirty days of receipt of written notice of that decision: Provided that the time for appealing against the Board's decision — a under section 27 of the principal Act (personal reliefs for non-residents), or b on a question of residence, ordinary residence or domicile, or c in the case of a claim under section 218 of the principal Act (pension funds for service abroad) on the question whether a fund is one to which that section applies, shall be three months from receipt of notice of their decision. 4 Schedule 2 to this Act shall have effect as respects the Commissioners to whom an appeal lies under this section. 5 A claim shall be in such form as the Board may determine and the form of claim — a shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the knowledge and belief of the person making the claim, and b may require — i a return of profits to be made in support of the claim, and ii any such particulars of assets acquired as may be required in a return by virtue of subsections (2) and (3) of section 12 of this Act, and, in the case of a claim made by or on behalf of a person who is not resident, or who claims to be not resident or not ordinarily resident or not domiciled, in the United Kingdom, the inspector or the Board may require a statement or declaration in support of the claim to be made by affidavit. 6 A claim may be made on behalf of an incapacitated person by his trustee, guardian, tutor or curator; and a person who under Part VIII of this Act has been charged with tax on the profits of another person may make any such claim for relief by discharge or repayment of that tax. 7 The inspector or the Board may give effect to any claim by discharge of tax or, on proof to the satisfaction of the inspector or the Board that any tax has been paid by the claimant by deduction or otherwise, by repayment of tax. 8 Where a claim has been made and the claimant subsequently discovers that an error or mistake has been made in the claim, the claimant may make a supplementary claim within the time allowed for making the original claim. 9 On an appeal on a claim, the Commissioners may vary the decision appealed against whether or not the variation is to the advantage of the appellant. 10 Where it is necessary, in order to give effect to a claim, or as a result of allowing a claim, to make any adjustment by way of an assessment on any person, the assessment shall not be out of time if it is made within one year of the final determination of the claim. For the purposes of this subsection, a claim shall not be deemed to be finally determined until the amount recoverable under the claim can no longer be varied, whether by any Commissioners on appeal or by the order of any court. 11 In this section " profits " — a in relation to income tax, means income, b in relation to capital gains tax, means chargeable gains, c in relation to corporation tax, means profits as computed for the purposes of that tax. Time limit for making claims 43 1 Subject to any provision of the Taxes Acts prescribing a longer or shorter period, no claim for relief under the Taxes Acts shall be allowed unless it is made within six years from the end of the chargeable period to which it relates. 2 A claim (including a supplementary claim) which could not have been allowed but for the making of an assessment to income tax or capital gains tax after the year of assessment to which the claim relates may be made at any time before the end of the year of assessment following that in which the assessment was made. PART V Appeals and Other Proceedings Jurisdiction General Commissioners 44 1 Proceedings before the General Commissioners under the Taxes Acts shall, subject to the provisions of this section, be brought before the General Commissioners for the division in which the place given by the rules in Schedule 3 to this Act is situated. 2 The parties to any proceedings under the Taxes Acts which are to be heard by any General Commissioners may if they think fit agree that, notwithstanding the said rules, the proceedings shall be brought before the General Commissioners for the division specified in the agreement, but an inspector or the Board shall not enter into any such agreement unless satisfied that the Commissioners concerned would be likely to see no objection to the agreement. 3 In any case in which proceedings under the Taxes Acts may be brought at the election of any person before the Special Commissioners instead of before the General Commissioners, the Commissioners before whom the proceedings are to be brought or have been brought may, if they think fit, on an application made by the parties, arrange with the other Commissioners concerned for the transfer of the proceedings to those other Commissioners; and the proceedings may be so transferred notwithstanding that the election has been exercised, or that the time for exercising the election has expired without its being exercised. 4 No determination of any General Commissioners under the Taxes Acts shall be questioned, whether by a case stated under section 56 of this Act or otherwise, on the ground that this section did not authorise those General Commissioners to make the determination, except by a party by whom or on whose behalf an objection to the jurisdiction was made to those General Commissioners before or in the course of the proceedings leading to the determination. 5 Anything to be done by the General Commissioners may, save as otherwise expressly provided by the Taxes Acts, be done by any two or more General Commissioners. Quorum of Special Commissioners 45 1 Anything to be done under any Act (including, except where otherwise expressly provided, any Act passed after this Act) by, to or before the Special Commissioners may be done by, to or before a single Special Commissioner, or any two or more Special Commissioners; and this section applies not only for the purposes of the Taxes Acts but also for the purposes of any other affairs under the care and management of the Board. 2 Subject to the following provisions of this section, proceedings shall not by virtue of this section be brought before a single Special Commissioner unless — a the party, or the parties, to the proceedings, other than the Board or any officer of the Board, have given their consent, and b a Special Commissioner so directs on being satisfied that the direction will avoid undue delay in the hearing of those or any other proceedings. 3 Proceedings brought before two or more Special Commissioners may be continued and determined by any one or more of them if the parties to the proceedings have given their consent, and if the continuing Special Commissioner or Commissioners, after such consultation as is practicable with any Special Commissioner retiring from the proceedings, is or are satisfied that to do so will avoid undue delay in the hearing of those or any other proceedings. 4 If the notice to the appellant of the setting down for hearing of an appeal to the Special Commissioners states that it is intended that the appeal should be heard by a single Special Commissioner and draws attention to the provisions of this section, the appeal may be so heard without compliance with the requirements of subsection (2) above, but if, in the course of the hearing of the appeal or at any earlier time, the Special Commissioner to whom the appeal is assigned is satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, the case shall thereafter be treated as one which cannot be brought before a single Special Commissioner unless the requirements of subsection (2) above are fulfilled. 5 Nothing in subsection (1) of this section shall authorise a single Special Commissioner to entertain proceedings under section 100 of this Act (penalties), and subsection (3) of this section shall not apply to proceedings under that section. 6 No determination of a Special Commissioner shall be questioned, whether by a case stated or otherwise, on the ground that this section did not authorise the Special Commissioner to make the determination, except by a party by whom or on whose behalf an objection to the jurisdiction was made to the Special Commissioner before or in the course of the proceedings leading to the determination. General and Special Commissioners 46 1 A right to elect to bring an appeal or other proceedings under the Taxes Acts before the Special Commissioners instead of before the General Commissioners shall be exercised by notice combined (in the case of an appeal) with the notice of appeal, or by a separate notice in writing to the inspector or other officer of the Board within the time limited for bringing the proceedings, and if no such notice of election is given the appeal or other proceedings shall be brought before the General Commissioners. 2 Save as otherwise provided in the Taxes Acts, the determination of the General Commissioners or the Special Commissioners in any proceedings under the Taxes Acts shall be final and conclusive. Special jurisdiction relating to tax on chargeable gains 47 1 If and so far as the question in dispute on any appeal against an assessment to tax (whether capital gains tax or corporation tax) on chargeable gains, or against a decision on a claim under Part III of the Finance Act 1965 is a question of the value of any land, or of a lease of land then — a if the land is in England or Wales the question shall be determined on a reference to the Lands Tribunal, and b if the land is in Northern Ireland the question shall be determined on a reference to the Lands Tribunal for Northern Ireland. 2 In relation to land and leases of land in Scotland for any reference to the Lands Tribunal in subsection (1) above there shall be substituted a reference to the Lands Tribunal for Scotland: Provided that until sections 1 to 3 of the Lands Tribunal Act 1949 come into force as regards Scotland, this subsection shall have effect as if for the reference to the Lands Tribunal for Scotland there were substituted a reference to a person selected from the panel of referees appointed under Part I of the Finance (1909-1910) Act 1910. 3 If and so far as any appeal mentioned in subsection (1) above involves the question of the value of any shares or securities in a company resident in the United Kingdom, other than shares or securities dealt in on a stock exchange in the United Kingdom, that question shall be determined by the General Commissioners having jurisdiction in an appeal against an assessment to income tax or corporation tax made on the company, but subject to section 44(4) of this Act, and those Commissioners shall hear and determine the question in the same way as an appeal. 4 This section shall be construed in accordance with section 45 of the Finance Act 1965 (interpretation). Proceedings before Commissioners Application to appeals and other proceedings 48 1 In the following provisions of this Part of this Act, unless the context otherwise requires — " appeal " means any appeal to the General Commissioners or to the Special Commissioners under the Taxes Acts, " the Commissioners " means the General Commissioners or the Special Commissioners as the case may be. 2 The following provisions of this Part of this Act shall apply in relation to — a appeals other than appeals against assessments, and b proceedings which under the Taxes Acts are to be heard and determined in the same way as an appeal, subject to the omission of section 56(9) below and to any other necessary modifications. Proceedings brought out of time 49 1 An appeal may be brought out of time if on an application for the purpose an inspector or the Board is satisfied that there was a reasonable excuse for not bringing the appeal within the time limited, and that the application was made thereafter without unreasonable delay, and gives consent in writing; and the inspector or the Board, if not satisfied, shall refer the application for determination by the Commissioners. 2 If there is a right to elect to bring the appeal before the Special Commissioners instead of before the General Commissioners, the Commissioners to whom an application under this section is to be referred shall be the General Commissioners unless the election has been exercised before the application is so referred. Procedure 50 1 The Commissioners shall cause notice of the day for hearing appeals to be given to every appellant, and shall meet together for the hearing of appeals from time to time, with or without adjournment until all appeals have been determined. 2 Notice of appeal meetings to be held by the Commissioners shall also be given to the inspector by the clerk to the Commissioners, except that in proceedings to which the Board, or an officer of the Board other than an inspector, are parties, the notice shall be given to the Board or to that officer. 3 Any officer of the Board may attend every appeal, and shall be entitled — a to be present during all the time of the hearing and at the determination of the appeal, and b to give reasons in support of the assessment or other decision against which the appeal is made. 4 If it is shown to the satisfaction of the Commissioners that owing to absence, sickness or other reasonable cause any person has been prevented from attending at the hearing of an appeal on the day fixed for that purpose, they may postpone the hearing of his appeal for such reasonable time as they think necessary, or may admit the appeal to be made by any agent, clerk or servant on his behalf. 5 Upon any appeal the Commissioners shall permit any barrister or solicitor to plead before them on behalf of any party to the appeal, either orally or in writing, and shall hear any accountant, that is to say, any person who has been admitted a member of an incorporated society of accountants: Provided that on an appeal against an assessment under Schedule B the Commissioners shall permit any agent appointed by the appellant to plead before them on his behalf. 6 If, on an appeal, it appears to the majority of the Commissioners present at the hearing, by examination of the appellant on oath or affirmation, or by other lawful evidence, that the appellant is overcharged by any assessment, the assessment shall be reduced accordingly, but otherwise every such assessment shall stand good. 7 If on any appeal it appears to the Commissioners that the person assessed ought to be charged in an amount exceeding the amount contained in the assessment, the assessment shall be increased accordingly. Power of Commissioners to obtain information from appellant 51 1 The Commissioners may at any time before the determination of an appeal give notice to the appellant or other party to the proceedings (not being an inspector or the Board) requiring him within the time specified in the notice — a to deliver to them such particulars as they may require for the purpose of determining the appeal, and b to make available for inspection by them, or by any officer of the Board, all such books, accounts or other documents in his possession or power as may be specified or described in the notice, being books, accounts or other documents which, in the opinion of the Commissioners issuing the notice, contain or may contain information relating to the subject matter of the proceedings. 2 Any officer of the Board may, at all reasonable times, inspect and take copies of, or extracts from, any particulars delivered under subsection (1)(a) above ; and the Commissioners or any officer of the Board may take copies of, or extracts from, any books, accounts, or other documents made available for their or his inspection under subsection (1)(b) above. Evidence 52 1 Any party to an appeal shall be entitled to adduce any lawful evidence. 2 The Commissioners may summon any person (other than the appellant) to appear before them and give evidence, and a witness before the Commissioners may be examined on oath: Provided that any agent or servant of the appellant, and any other person confidentially employed in the affairs of the appellant, may refuse to be sworn or to answer any question to which he objects. 3 A person who after being duly summoned — a neglects or refuses to appear before the Commissioners at the time and place appointed for that purpose, or b appears, but refuses to be sworn, or c refuses to answer any lawful question concerning the matters under consideration, shall incur a penalty not exceeding £50 : Provided that the penalty imposed in respect of any offence under paragraph (b) or paragraph (c) of this subsection shall not apply to any such person as is within the proviso to subsection (2) above. Summary award of penalties 53 1 Any penalty incurred by any person for a failure to comply with a notice under section 51 above, or incurred by any person under section 52 above, may be awarded summarily by the Commissioners notwithstanding that no proceedings for its recovery have been commenced, and accordingly section 98(3) of this Act shall not apply to any penalty so awarded. 2 An appeal shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, from the award of any penalty under this section, and on any such appeal the court may either confirm or reverse the decision of the Commissioners or reduce or increase the sum awarded. 3 Any penalty awarded by virtue of this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable. Settling of appeals by agreement 54 1 Subject to the provisions of this section, where a person gives notice of appeal and, before the appeal is determined by the Commissioners, the inspector or other proper officer of the Crown and the appellant come to an agreement, whether in writing or otherwise, that the assessment or decision under appeal should be treated as upheld without variation, or as varied in a particular manner or as discharged or cancelled, the like consequences shall ensue for all purposes as would have ensued if, at the time when the agreement was come to, the Commissioners had determined the appeal and had upheld the assessment or decision without variation, had varied it in that manner or had discharged or cancelled it, as the case may be. 2 Subsection (1) of this section shall not apply where, within thirty days from the date when the agreement was come to, the appellant gives notice in writing to the inspector or other proper officer of the Crown that he desires to repudiate or resile from the agreement. 3 Where an agreement is not in writing — a the preceding provisions of this section shall not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by the inspector or other proper officer of the Crown to the appellant or by the appellant to the inspector or other proper officer; and b the references in the said preceding provisions to the time when the agreement was come to shall be construed as references to the time of the giving of the said notice of confirmation. 4 Where — a a person who has given a notice of appeal notifies the inspector or other proper officer of the Crown, whether orally or in writing, that he desires not to proceed with the appeal; and b thirty days have elapsed since the giving of the notification without the inspector or other proper officer giving to the appellant notice in writing indicating that he is unwilling that the appeal should be treated as withdrawn, the preceding provisions of this section shall have effect as if, at the date of the appellant's notification, the appellant and the inspector or other proper officer had come to an agreement, orally or in writing, as the case may be, that the assessment or decision under appeal should be upheld without variation. 5 The references in this section to an agreement being come to with an appellant and the giving of notice or notification to or by an appellant include references to an agreement being come to with, and the giving of notice or notification to or by, a person acting on behalf of the appellant in relation to the appeal. Recovery of tax not in dispute 55 1 This section applies to an appeal to the Commissioners against — a an assessment under Schedule A or Schedule D, b an assessment to surtax, c an assessment to capital gains tax, d an assessment to corporation tax, e an assessment made by virtue of Schedule 9 to the principal Act (income tax on company distributions, etc.). 2 Notwithstanding that the appeal is pending — a such part of the tax assessed as appears to the Commissioners not to be in dispute shall be collected and paid in all respects as if it were tax charged by an assessment in respect of which no appeal was pending, and b on the determination of the appeal, any balance of tax chargeable in accordance with the determination shall be paid, or any tax overpaid shall be repaid, as the case may require. 3 If the appellant and the inspector or other officer of the Board come to an agreement, whether in writing or otherwise, as to the amount of tax charged by the assessment which should be paid as if it were tax charged by an assessment in respect of which no appeal is pending, the like consequences shall ensue as would have ensued if the Commissioners had come to a decision to that effect under subsection (2) above on the date when the agreement was come to, but without prejudice to the making of a further agreement, or of a decision or further decision under subsection (2) above. 4 Subsection (3) above shall not apply where within thirty days from the date when the agreement was come to, the appellant gives notice in writing to the inspector or other officer of the Board that he desires to repudiate or resile from the agreement. 5 Where an agreement is not in writing — a the preceding provisions of this section shall not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by the inspector or other officer of the Board to the appellant, or by the appellant to the inspector or other officer, and b references in the preceding provisions of this section to the time when the agreement was come to shall be construed as references to the time of the giving of the said notice of confirmation. 6 References in this section to an agreement being come to with an appellant and the giving of notice to or by an appellant include references to an agreement being come to with, and the giving of notice to or by, a person acting on behalf of the appellant in relation to the appeal. 7 The transfer of proceedings under this Act from one body of Commissioners to another body of Commissioners shall not affect the validity of a decision by the Commissioners under subsection (2) above. Statement of case for opinion of the High Court 56 1 Immediately after the determination of an appeal by the Commissioners, the appellant or the inspector or other officer of the Board, if dissatisfied with the determination as being erroneous in point of law, may declare his dissatisfaction to the Commissioners who heard the appeal. 2 The appellant or the inspector or other officer of the Board, as the case may be, having declared his dissatisfaction, may, within thirty days after the determination, by notice in writing addressed to the clerk to the Commissioners, require the Commissioners to state and sign a case for the opinion of the High Court thereon. 3 The party requiring the case shall pay to the clerk to the Commissioners a fee of £1 for and in respect of the same, before he is entitled to have the case stated. 4 The case shall set forth the facts and the determination of the Commissioners, and the party requiring it shall transmit the case, when stated and signed, to the High Court, within thirty days after receiving the same. 5 At or before the time when he transmits the case to the High Court, the party requiring it shall send notice in writing of the fact that the case has been stated on his application, together with a copy of the case, to the other party. 6 The High Court shall hear and determine any question or questions of law arising on the case, and shall reverse, affirm or amend the determination in respect of which the case has been stated, or shall remit the matter to the Commissioners with the opinion of the Court thereon, or may make such other order in relation to the matter as to the Court may seem fit. 7 The High Court may cause the case to be sent back for amendment, and thereupon the case shall be amended accordingly, and judgment shall be delivered after it has been amended. 8 An appeal shall lie from the decision of the High Court to the Court of Appeal and thence to the House of Lords: Provided that — a no appeal shall lie to the House of Lords from the Court of Appeal unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934, and b this subsection has effect subject to Part II of the Administration of Justice Act 1969 (appeal from High Court to House of Lords). 9 Where the appeal is against an assessment, then notwithstanding that a case has been required to be stated or is pending before the High Court, tax shall be paid in accordance with the determination of the Commissioners who have been required to state the case : Provided that, if the amount of the assessment is altered by the order or judgment of the High Court, then — a if too much tax has been paid the amount overpaid shall be refunded with such interest, if any, as the High Court may allow ; or b if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax, and shall be paid and recovered accordingly. 10 All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer, and an appeal shall lie from the decision under this section of the Court of Session, as the Court of Exchequer in Scotland, to the House of Lords. 11 This section has effect in Northern Ireland subject to section 58 below. Chargeable gains Regulations about appeals 57 1 The Board may make regulations — a as respects the conduct of appeals against assessments and decisions on claims under Part III of the Finance Act 1965, b entitling persons, in addition to those who would be so entitled apart from the regulations, to appear on such appeals, c regulating the time within which such appeals or claims may be brought or made, d where the market value of an asset on a particular date, or an apportionment or any other matter, may affect the liability to capital gains tax of two or more persons, enabling any such person to have the matter determined by the tribunal having jurisdiction to determine that matter if arising on an appeal against an assessment, and prescribing a procedure by which the matter is not determined differently on different occasions, e authorising an inspector or other officer of the Board, notwithstanding the obligation as to secrecy imposed by virtue of this or any other Act, to disclose to a person entitled to appear on such an appeal the market value of an asset as determined by an assessment or decision on a claim, or to disclose to a person whose liability to tax may be affected by the determination of the market value of an asset on a particular date, or an apportionment or any other matter, any decision on the matter made by an inspector or other officer of the Board. 2 In paragraphs (d) and (e) of subsection (1) above references to market value shall, in relation to land in Great Britain, include references to current use value; and the Capital Gains Tax Regulations 1967 shall, except where the context otherwise requires, be construed accordingly. This subsection shall be construed in accordance with Schedule 14 to the Finance Act 1967. 3 Regulations under this section may contain such supplemental and incidental provisions as appear to the Board to be expedient including in particular — a provisions as to the choice of the Commissioners, whether a body of General Commissioners or the Special Commissioners, to hear the appeal where, in addition to the appellant against an assessment, or the claimant in the case of an appeal against the decision on a claim, and in addition to the inspector or other officer of the Board, some other person is entitled to be a party to the appeal, and b provisions corresponding to section 81 of the Capital Allowances Act 1968 (procedure on apportionments where more than one body of General Commissioners has jurisdiction), and c provisions authorising the giving of conditional decisions where, under section 47 of this Act, or under any provision in the Finance Act 1965, questions on an appeal against an assessment or a decision on a claim may go partly to one tribunal and partly to another. 4 Regulations under this section — a shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons, and b shall have effect notwithstanding anything in this Act. Northern Ireland Proceedings in tax cases in Northern Ireland 58 1 Subject to this section, all references in the Taxes Acts to the General Commissioners (however expressed, and including references in enactments conferring a right of appeal to the General Commissioners or, at the election of the appellant, to the Special Commissioners) shall, in relation to proceedings in Northern Ireland, be taken as references to the Special Commissioners or, in the cases provided for in section 59 below, a county court in Northern Ireland. 2 A case concerning tax which is stated by the Special Commissioners under section 56 of this Act in proceedings in Northern Ireland shall be a case for the opinion of the Court of Appeal in Northern Ireland, and the Taxes Acts shall have effect as if that section applied in relation to such proceedings — a with the substitution for references to the High Court of references to the Court of Appeal in Northern Ireland, and b with the omission of subsections (4), (5) and (8) of that section, and the procedure relating to the transmission of the case to, and the hearing and determination of the case by, the Court of Appeal in Northern Ireland shall be that for the time being in force in Northern Ireland as respects cases stated by a county court in exercise of its general jurisdiction, and an appeal shall lie from the Court of Appeal to the House of Lords in accordance with section 1 of the Northern Ireland Act 1962. 3 For the purposes of this section and section 59 below — a " proceedings in Northern Ireland " means proceedings as respects which the place given by the rules in Schedule 3 to this Act is in Northern Ireland, and " proceedings in Great Britain" shall be construed accordingly; b proceedings under sections 11, 137, 154(5), 252(9) or 494(9) of the principal Act, or paragraph 22 of Schedule 7 to that Act, or section 81 of the Capital Allowances Act 1968 (proceedings to which more than one taxpayer is a party) shall be proceedings in Northern Ireland if the place given by the rules in Schedule 3 to this Act in relation to each of the parties concerned in the proceedings is in Northern Ireland, and in relation to such proceedings the right of election to bring proceedings before a county court in Northern Ireland which is mentioned in subsection (1) of this section and section 59 below shall be exercisable jointly by all the parties concerned in the proceedings, and sections 21, 22 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if references in those provisions to any enactment included a reference to this section and section 59 below. 4 No determination of the Special Commissioners shall be questioned, whether by a case stated under section 56 of this Act or otherwise, on the ground that the place given by the rules in Schedule 3 to this Act was not in Northern Ireland, and accordingly that the proceedings ought to have been determined by some body of General Commissioners, except by a party by whom or on whose behalf an objection to the jurisdiction was made to the Special Commissioners before or in the course of the proceedings leading to the determination. Election for county court in Northern Ireland 59 1 Proceedings in Northern Ireland — a which are brought under the Taxes Acts by an appellant or other party who is not the Board or an officer of the Board, and b which, if they had been proceedings in Great Britain, might have been brought before the General Commissioners, shall, if the party bringing the proceedings by notice combined (in the case of an appeal) with the notice of appeal, or by a separate notice in writing to the inspector given within the time limited for bringing the proceedings, so elects, be brought before a county court in Northern Ireland instead of before the Special Commissioners. 2 In relation to proceedings brought under this section the following provisions of this Act — section 49 section 51 with 53 sections 54 and 55 shall apply with the substitution for references to the Special Commissioners (however expressed) of references to the county court. 3 Where proceedings are brought before a county court in Northern Ireland under this section — a the county court shall have and exercise the same powers and authority in relation to the assessment appealed against (if any), the proceedings, the determination, and all matters consequent thereon, as the Special Commissioners would have and exercise, b subject to county court rules, the practice and procedure in the proceedings shall be that followed in income tax cases in a county court in Northern Ireland before the commencement of this Act, and c the proceedings shall be heard and determined by a single judge sitting alone, and not in public, who may, for all purposes of and incidental to the hearing and determination of the proceedings, exercise all the powers, authority and jurisdiction exercisable by a county court in Northern Ireland in relation to the hearing and determination of an appeal to which Part VI of the County Courts Act (Northern Ireland) 1959 (appeals to the county court) applies. 4 Within thirty days after the determination by the county court of proceedings brought under this section any party to the proceedings may require the court to state a case on a point of law for the opinion of the Court of Appeal in Northern Ireland. 5 The procedure relating to the statement of the case shall be that for the time being in force in Northern Ireland as respects cases stated under section 2 of the County Courts Appeals Act (Northern Ireland) 1964 or any enactment of the Parliament of Northern Ireland re-enacting the said section 2 with or without modification so, however, that notwithstanding anything in subsection (7) of the said section 2 or in any such re-enactment, an appeal, with leave as required by section 1 of the Northern Ireland Act 1962, shall lie to the House of Lords from any decision of the Court of Appeal in Northern Ireland upon a case stated to it pursuant to subsection (4) above. 6 On the determination by the county court under this section of an appeal against an assessment, tax shall be paid in accordance with the determination notwithstanding that a case has been required to be stated or is pending: Provided that if the amount of the assessment is altered by the order or judgment of the Court of Appeal, then — a if too much tax has been paid, the amount overpaid shall be refunded with such interest, if any, as the Court of Appeal may allow, or b if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax, and shall be paid and recovered accordingly. 7 Subject to the preceding provisions of this section the determination of the county court in proceedings under this section shall be final and conclusive. 8 No determination of a county court under this section shall be questioned, whether by a case stated or otherwise, on the ground that the proceedings were not proceedings in Northern Ireland. PART VI Collection and Recovery Issue of demand notes and receipts 60 1 Every collector shall, when the tax becomes due and payable, make demand of the respective sums given to him in charge to collect, from the persons charged therewith, or at the places of their last abode, or on the premises in respect of which the tax is charged, as the case may require. 2 On payment of the tax, the collector shall if so requested give a receipt. Distraint and poinding Distraint by collectors 61 1 if a person neglects or refuses to pay the sum charged, upon demand made by the collector, the collector shall, for non-payment thereof, distrain upon the lands, tenements and premises in respect of which the tax is charged, or distrain the person charged by his goods and chattels, and all such other goods and chattels as the collector is hereby authorised to distrain. 2 For the purpose of levying any such distress, a collector may, after obtaining a warrant for the purpose signed by the General Commissioners, break open, in the daytime, any house or premises, calling to his assistance any constable. Every such constable shall, when so required, aid and assist the collector in the execution of the warrant and in levying the distress in the house or premises. 3 A levy or warrant to break open shall be executed by, or under the direction of, and in the presence of, the collector. 4 A distress levied by the collector shall be kept for five days, at the costs and charges of the person neglecting or refusing to pay. 5 If the person aforesaid does not pay the sum due, together with the costs and charges, within the said five days, the distress shall be appraised by two or more inhabitants of the parish in which the distress is taken, or by other sufficient persons, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges. The costs and charges of taking, keeping, and selling the distress shall be retained by the collector, and any overplus coming by the distress, after the deduction of the costs and charges and of the sum due, shall be restored to the owner of the goods distrained. Priority of claim for tax 62 1 No goods or chattels whatever, belonging to any person at the time any tax becomes in arrear, shall be liable to be taken by virtue of any execution or other process, warrant, or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the landlord for rent, unless the person at whose suit the execution or seizure is made, or to whom the assignment was made, pays or causes to be paid to the collector, before the sale or removal of the goods or chattels, all arrears of tax which are due at the time of seizure, or which are payable for the year in which the seizure is made: Provided that, where tax is claimed for more than one year, the person at whose instance the seizure has been made may, on paying to the collector the tax which is due for one whole year, proceed in his seizure in like manner as if no tax had been claimed. 2 In case of neglect or refusal to pay the tax so claimed or the tax for one whole year, as the case may be, the collector shall distrain the goods and chattels notwithstanding the seizure or assignment, and shall proceed to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of the tax charged and claimed, and the reasonable costs and charges attending such distress and sale, and every collector so doing shall be indemnified by virtue of this Act. Recovery in Scotland 63 In Scotland, the following provisions shall have effect — 1 Upon certificate made to them by the collector that any tax is due and not paid, the General Commissioners, or sheriff or sheriff substitute for the county, shall issue a warrant for the collector recovering the said tax by poinding the goods and effects of any person entered in the certificate as being a defaulter, and any person who has made default in paying any sum which may be levied on him in respect of tax may be entered in the certificate as a defaulter, notwithstanding that he was not named in the assessment to tax: 2 The warrant shall be executed by the sheriff officers of the county: 3 The goods and effects so poinded shall be detained and kept on the ground, or at the house where the same were poinded, or in such other place of which the owner shall have notice, near to the said ground or house, as the officer so poinding the same shall think proper, for the space of five days, during which time the said goods and effects shall remain in the custody of the said officer, and liable to the payment of the whole tax in arrear and to the costs to be paid to the officer who poinded the same as hereinafter directed, unless the owner from whom the same were poinded shall redeem the same, within the said space of five days, by payment to the officer of the said tax in arrear and costs, to be settled in the same manner as if the said goods and effects had been sold as hereinafter directed: 4 The goods and effects so poinded shall, after the expiration of the said five days, be valued and appraised by any two persons to be appointed by the officer (which two persons shall be obliged to value the same, under the penalty of £2 for each neglect or refusal), and shall be sold and disposed of, at a sum not less than the value, by the officer who does poind the same: 5 The value shall be applied, in the first place to the satisfaction and payment of the tax owing by the person whose goods are so poinded, and, in the second place, to the payment for the trouble of the officer so poinding, at the rate of two shillings per pound of the tax for which the goods shall be so poinded unless the owner from whom the same were poinded shall redeem the same by payment of the appraised value, within the space of five days after the valuation, to the officer who poinded the same: 6 In case any surplus remains of the price or value, after payment of the said tax, and after payment of what is allowed to be retained by the officer in manner herein directed, such surplus shall be returned to the owner from whom the goods were poinded: 7 In case no purchaser appears at the said sale, then the said goods and effects, so poinded, shall be consigned and lodged in the hands of the sheriff of the county, or his substitute, and if not redeemed by the owner within the space of five days after the consignment in the hands of the said sheriff or sheriff substitute, the same shall be rouped, sold, and disposed of by order of the sheriff, in such manner, and at such time and place, as he shall appoint, he always being liable to the payment of the tax to the collector, and to payment to the officer who shall have poinded the same, for his trouble and expense, as before stated, and to the fees due to the officer, and being, in the third place, entitled to one shilling per pound of the value of the goods so disposed of, for his own pains and trouble, after preference and allowance of the said tax, and of what is appointed to be paid to the officer for his trouble: 8 There shall also be allowed, to the officer so poinding, the expense of preserving the said goods and effects, and of maintaining the cattle, if there should happen to be any among the goods and effects so poinded, from the time of poinding the same, during the period allowed to the owner to redeem them, and also the expense of the sale; and in like manner the expense shall be allowed to the sheriff or sheriff substitute, for preserving and maintaining the goods or cattle poinded, during the period that the owner is allowed to redeem, after consignment in his hands, and until the sale thereof, and also the expense of the sale: 9 Every auctioneer, or seller by commission, selling by auction, in Scotland, any goods or effects whatsoever by any mode of sale at auction, shall, at least three days before he begins any sale by way of auction, deliver or cause to be delivered to the collector a notice in writing, signed by such auctioneer or seller by auction, specifying therein the particular day when such sale is to begin, and the name and surname of the person whose goods and effects are to be sold, with his place of residence: 10 If any such auctioneer or seller by auction shall sell any such goods and effects by way of auction, without delivering the notice hereinbefore required to be delivered, every such auctioneer, or person selling by auction, offending therein shall, for every such offence, incur a penalty of £50. Priority of claim for tax in Scotland 64 1 No moveable goods and effects belonging to any person in Scotland, at the time any tax became in arrear or was payable, shall be liable to be taken by virtue of any poinding, sequestration for rent, or diligence whatever, or by any assignation, unless the person proceeding to take the said goods and effects pays the tax so in arrear or payable: Provided that where the tax is claimed for more than one year the person proceeding to take the said goods and effects may on paying the tax for one whole year proceed as he might have done if no tax had been so claimed. 2 If the said person neglects or refuses to pay the tax so in arrear or payable, or the tax for one whole year, as the case may be, the tax claimed shall, notwithstanding any proceeding at his instance for the purpose of taking the said moveable goods and effects, be recoverable by poinding and selling the said moveable goods and effects under warrant obtained in conformity with the provisions contained in section 63 above. Court proceedings Magistrates' courts 65 1 Where — a the amount of any tax for the time being due and payable under any assessment is less than £50, or b the tax under any assessment is payable by instalments and the sum for the time being due and payable in respect of any of those instalments is less than £50, the tax shall, without prejudice to any other remedy, be recoverable summarily as a civil debt by proceedings commenced in the name of a collector. 2 All or any of the sums due in respect of tax from any one person and payable to any one collector (being sums which are by law recoverable summarily) may, whether or not they are due under one assessment, be included in the same complaint, summons, order, warrant or other document required by law to be laid before justices or to be issued by justices, and every such document as aforesaid shall, as respects each such sum, be construed as a separate document and its invalidity as respects any one such sum shall not affect its validity as respects any other such sum. 3 Proceedings under this section for the recovery of any tax charged under Schedule E may be brought in England and Wales at any time within one year from the time when the matter complained of arose. 4 It is hereby declared that in subsection (1) above the expression " recoverable summarily as a civil debt" in respect of proceedings in Northern Ireland means recoverable in the manner provided by the Summary Jurisdiction Acts for the recovery of sums declared under enactments of the Parliament of Northern Ireland to be a debt recoverable summarily. County courts 66 1 Where the amount of tax for the time being due and payable under any assessment does not exceed the limit specified in section 40(1)(b) of the County Courts Act 1959 (money recoverable by statute), as for the time being in force, the tax may, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings in a county court commenced in the name of a collector. 2 Any barrister who is an officer of the Board may appear in, conduct, defend and address the court in any legal proceedings under this section in a county court in England or Wales. 3 In the application of subsection (1) of this section to Northern Ireland, for the reference to section 40(1)(b) of the County Courts Act 1959 there shall be substituted a reference to section 10(1) of the County Courts Act (Northern Ireland) 1959, and in this section as it applies in Northern Ireland the expression " county court " shall mean a county court held for a division under that Act. 4 Sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this section, and Part III of the County Courts Act (Northern Ireland) 1959 (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland. Inferior courts in Scotland 67 1 In Scotland, where the amount of tax for the time being due and payable under any assessment does not exceed £250 the tax may, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings commenced in the name of a collector in the sheriff court or in the sheriff's small debt court, whichever is appropriate. 2 Sections 65 and 66 above shall not apply in Scotland. High Court, etc. 68 1 Any tax may be sued for and recovered from the person charged therewith in the High Court as a debt due to the Crown, or by any other means whereby any debt of record or otherwise due to the Crown can, or may at any time, be sued for and recovered, as well as by the other means specially provided by this Act for levying the tax. 2 All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer. Supplemental Interest on tax 69 Interest charged under Part IX of this Act shall be treated for the purposes — a of sections 61, 63 and 65 to 68 above, and b of section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court to impose restrictions on set-off and counterclaim where the proceedings or set-off or counterclaim relate to taxes) and of any rules of court (including county court rules) for England and Wales or Northern Ireland, which impose such a restriction, and c of section 35(2)00 of the said Act of 1947 as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland), as if it were tax charged and due and payable under the assessment to which it relates. Evidence 70 1 Where tax is in arrear, a certificate of the inspector or any other officer of the Board that tax has been charged and is due, together with a certificate of the collector that payment of the tax has not been made to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown ; and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate until the contrary is proved. 2 A certificate of a collector that interest is payable under section 86 or 87 of this Act and that payment of the interest has not been made to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown, and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate unless the contrary is proved. 3 A certificate by the General or Special Commissioners that the tax or a specified part of the tax charged by an assessment specified in the certificate carries interest under section 88 of this Act from a date so specified shall be sufficient evidence of that fact in proceedings for the recovery of that interest. A certificate under this subsection shall not be given except on the application of the inspector or the Board, and on any such application the person charged by the assessment (or, if he has died, his personal representatives) shall be entitled to appear and be heard. 4 A written statement as to the wages, salaries, fees, and other emoluments paid for any period to the person against whom proceedings are brought under section 65, 66 or 67 of this Act, purporting to be signed by his employer for that period or by any responsible person in the employment of the employer, shall in such proceedings be prima facie evidence that the wages, salaries, fees and other emoluments therein stated to have been paid to the person charged have in fact been so paid. PART VII Persons Chargeable in a Representative Capacity, etc. Income tax Bodies of persons 71 1 Subject to Part XI of the principal Act (charge of corporation tax on companies), every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the Income Tax Acts. 2 Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under the Income Tax Acts for the purpose of the assessment of the body and for payment of the tax. 3 Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged upon the body, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts. Trustees, guardians, etc. of incapacitated persons 72 1 The trustee, guardian, tutor, curator or committee of any incapacitated person having the direction, control or management of the property or concern of any such person, whether such person resides in the United Kingdom or not, shall be assessable and chargeable to income tax in like manner and to the like amount as that person would be assessed and charged if he were not an incapacitated person. 2 The person who is chargeable in respect of an incapacitated person shall be answerable for all matters required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax. 3 Any person who has been charged under the Income Tax Acts in respect of any incapacitated person as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts. Further provision as to infants 73 If a person chargeable to income tax is an infant, then his parent, guardian or tutor — a shall be liable for the tax in default of payment by the infant, and b on neglect or refusal of payment, may be proceeded against in like manner as any other defaulter, and c if he makes such payment, shall be allowed all sums so paid in his accounts. Personal representatives 74 1 If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased. 2 On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter. Receivers appointed by a court 75 1 A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court. 2 Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax. Protection for certain trustees, agents and receivers 76 1 A trustee who has authorised the receipt of profits arising from trust property by, or by the agent of, the person entitled thereto shall not, if — a that person or agent actually received the profits under that authority, and b the trustee makes a return, as required by section 13 of this Act, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person to income tax. 2 An agent or receiver of any person resident in the United Kingdom, other than an incapacitated person, shall not, if he makes a return, as required by section 13 of this Act, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person to income tax. Capital gains tax Application of Part VII to capital gains tax 77 1 This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax chargeable at the standard rate, and subject to any necessary modifications. 2 This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable. PART VIII Charges on Non-Residents Income tax Method of charging non-residents 78 Subject to section 89 of the principal Act (Schedule A etc.) a person not resident in the United Kingdom, whether a British subject or not, shall be assessable and chargeable to income tax in the name of any such trustee, guardian, tutor, curator or committee as is mentioned in section 72 of this Act, or of any branch or agent, whether the branch or agent has the receipt of the profits or gains or not, in like manner and to the like amount as such non-resident person would be assessed and charged if he were resident in the United Kingdom and in the actual receipt of such profits or gains. Profits from branch or agency 79 A non-resident person shall be assessable and chargeable to income tax in respect of any profits or gains arising, whether directly or indirectly, through or from any branch or agency, and shall be so assessable and chargeable in the name of the branch or agent. Charge on percentage of turnover 80 1 Where it appears to the inspector or, on appeal, to the General or Special Commissioners, that the true amount of the profits or gains of any non-resident person chargeable with income tax in the name of a resident person cannot in any case be readily ascertained, the inspector or Commissioners may, if he or they think fit, assess and charge the non-resident person on a percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and the inspector may by notice require the resident person to deliver a return of the business so done by the non-resident person through or with the resident person. 2 The amount of percentage under subsection (1) of this section shall in each case be determined, having regard to the nature of the business, by the inspector or Commissioners. 3 If either the resident person or the non-resident person is dissatisfied with the percentage as confirmed or determined by the General or Special Commissioners on appeal, he may within four months of the determination, require the Commissioners to refer the question of the percentage to a referee or board of referees to be appointed for the purpose by the Treasury and the decision of the referee or board shall be final and conclusive. Taxation on basis of merchanting profit 81 Where a non-resident person is chargeable to income tax in the name of any branch or agent in respect of any profits or gains arising from the sale of goods or produce manufactured or produced out of the United Kingdom by the non-resident person, the person in whose name the non-resident person is so chargeable may, by notice included in a return of income delivered within six years from the end of the year of assessment for which he is chargeable, elect to be assessed in respect of those profits or gains on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct. Savings 82 1 Nothing in this Part of this Act shall render a non-resident person chargeable in the name of a broker or in the name of an agent not being an authorised person carrying on the regular agency of the non-resident person, in respect of profits or gains arising from sales or transactions carried out through such a broker or agent: Provided that where sales or transactions are carried out on behalf of a non-resident person through a broker in the ordinary course of his business as such and the broker — a is a person carrying on bona fide the business of a broker in the United Kingdom, and b receives in respect of the business of the non-resident person which is transacted through him remuneration at a rate not less than that customary in the class of business in question, then, notwithstanding that the broker is a person who acts regularly for the non-resident person as such broker, the non-resident person shall not be chargeable in the name of that broker in respect of profits or gains arising from those sales or transactions. In this subsection, " broker " includes a general commission agent. 2 The fact that a non-resident person executes sales or carries out transactions with other non-residents which would make him chargeable in pursuance of this Part of this Act in the name of a resident person shall not of itself make him chargeable in respect of profits arising from those sales or transactions. Responsibilities and indemnification of persons in whose name a non-resident person is chargeable 83 1 A person in whose name a non-resident person is chargeable shall be answerable for all matters required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax. 2 A person who has been charged under the Income Tax Acts in respect of any non-resident person as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts. Capital gains tax Gains from branch or agency 84 1 A non-resident person shall be assessable and chargeable to capital gains tax in respect of any chargeable gains arising, whether directly or indirectly, through or from any branch or agency, and shall be so assessable and chargeable in the name of the branch or agent. 2 The person in whose name the non-resident person is chargeable shall be answerable for all matters required to be done under the enactments relating to capital gains tax for the purpose of assessment and payment of that tax. 3 A person who has been charged under this section in respect of any non-resident person may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of the enactments relating to capital gains tax. Corporation tax Application of Part VIII to corporation tax 85 The provisions of this Part of this Act relating to income tax, so far as they are applicable to tax chargeable on a company, shall apply with any necessary adaptations in relation to corporation tax chargeable on companies not resident in the United Kingdom. PART IX Interest on Overdue Tax Interest on overdue tax 86 1 Any tax charged by any assessment to which this subsection applies shall carry interest at the prescribed rate from the date when the tax becomes due and payable until payment. This subsection applies to — a any assessment to income tax made under Schedule A or Schedule D, b any assessment to surtax, c any assessment to capital gains tax, d any assessment to corporation tax. 2 Where any tax is paid not later than two months from the date on which it becomes due and payable, the interest thereon under this section shall be remitted. As respects tax becoming due and payable before 1st July 1968 this subsection has effect with the substitution of " three months " for " two months ". 3 Interest shall not be payable under this section on the tax charged by any assessment unless — a the total tax charged by that assessment exceeds £1,000, and b the total amount of the interest exceeds £5, so, however, that in the case of tax becoming due and payable before 19th April 1967, paragraph (b) above has effect with the substitution of " £1 " for " £5 ". 4 Interest shall not be deemed to have begun to run under this section from any date before 1st January 1948. Interest on overdue income tax on company distributions etc. 87 1 Any tax assessable in accordance with Schedule 9 to the principal Act shall carry interest at the prescribed rate from the date when the tax becomes due and payable until payment. 2 The discharge or repayment of tax in respect of distributions, or payments other than distributions, made in any month in a year of assessment by setting off, under paragraph 3 of Schedule 9 to the principal Act, income tax in respect of any franked investment income or other payment received in a later month in that year shall not affect interest under this section on the tax so discharged or repaid — a for any period before the expiration of fourteen days from the end of the later month, unless the claim is made on an earlier date (but after the end of that later month), and b if the claim is made on an earlier date (but after the end of the later month), any period ending before that earlier date, but subject to that, this section shall apply as if any such tax which is discharged or repaid had never become payable. 3 Interest shall not be payable under this section on the tax charged by any assessment unless the total amount of the interest exceeds — a in the case of tax becoming due and payable before 19th April 1967. £1. b in the case of tax becoming due and payable on or after that date, £5. 4 Subsection (3) above shall have effect — a as if all tax due from a company in accordance with paragraph 2(3) of Schedule 9 to the principal Act for any month, whether or not it is actually assessed, were included in a single assessment, and b as if all tax due from a company in accordance with paragraph 1(2) of the said Schedule 9 for any year, whether or not it is actually assessed, were included in a single assessment. 5 No tax under Schedule 9 to the principal Act shall carry interest from a date earlier than 19th November 1966. 6 In this section " month " means a month of a year of assessment, that is to say a month beginning on the sixth day of a month of the calendar year. 7 It is hereby declared that this section applies to income tax which, in accordance with Schedule 9 to the principal Act, is paid without the making of any assessment (but is paid after it is due), and that where the tax is charged by an assessment (whether or not any part of it has been paid when the assessment is made) it applies as respects interest running before as well as after the making of the assessment. Interest on tax recovered to make good loss due to taxpayer's fault 88 1 Where an assessment has been made for the purpose of making good to the Crown a loss of tax wholly or partly attributable to the fraud, wilful default or neglect of any person, the tax charged by the assessment, or as the case may be such part thereof as corresponds to the part so attributable, shall carry interest at the prescribed rate from the date on which the tax ought to have been paid until payment. 2 This section shall not apply in relation to tax under Schedule 9 to the principal Act. 3 Tax carrying interest under this section shall not carry interest under section 86 above. 4 The Board may at their discretion mitigate (whether before or after judgment) any interest due under this section and may stay or compound any proceedings for the recovery thereof. 5 For the purposes of this section the date when tax ought to have been paid shall be taken to be — a in the case of income tax, 1st January in the year of assessment for which the tax is charged, but subject to paragraphs (b) and (c) below, b in the case of one-half of any income tax specified in section 4(2) of the principal Act, the following 1st July, c in the case of surtax, 1st January in the year of assessment next following the year for which the tax is charged, d in the case of capital gains tax, 6th July in the year of assessment next following the year for which the tax is charged, e in the case of corporation tax, the date nine months from the end of the accounting period for which the tax is charged or, where section 244(1) of the principal Act applies, at the end of the interval mentioned in that subsection (without the alternative of one month from the making of the assessment). The prescribed rate of interest 89 1 In this Part of this Act " the prescribed rate" means — a for the purposes of sections 86 and 87 above, the rate specified in column 2 of the Table below, b for the purposes of section 88 above, the rate specified in column 3 of the Table below. TABLE 1 2 3 Interest for any period For the purposes of section 86 or 87 above For the purposes of section 88 above before 19th April 1967 3 per cent. 3 per cent. after 18th April 1967 and before 19th April 1969 4 per cent. 4 per cent. after 18th April 1969 6 per cent. 4 per cent. The references in column 1 of this Table to any period before or after a specified date apply whether or not interest continues to run after that period, or, as the case may be, runs from before that period. 2 The Treasury may, by order in a statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament, from time to time increase or decrease any rate or rates of interest prescribed by subsection (1) above, either for the purposes of all the provisions of this Part of this Act, or so as to prescribe different rates for different purposes. 3 Any variation of the rate of interest prescribed under subsection (2) above shall apply to interest for periods beginning on or after the date when the order is expressed to come into force, whether or not interest runs from before that date. Disallowance of relief for interest on tax 90 Interest payable under this Part of this Act shall be paid without any deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes. Effect on interest of reliefs 91 1 Where any amount of interest is payable under section 86 or section 88 of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under those provisions in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under those provisions in relation to the assessment is the same as it would have been if the tax discharged had never been charged. 2 Where relief from tax paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby. 3 Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as — a affecting tax charged by any assessment to surtax unless it is a relief from surtax, or b affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either — i it is a relief from surtax, or ii it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or iii it relates to a source income from which is taxable otherwise than under Schedule A or Schedule D. 4 For the purposes of this section a relief from corporation tax or capital gains tax shall not be treated as affecting tax charged by any assessment unless the assessment is to the same tax. Remission in certain cases of interest on tax in arrear by reason of exchange restrictions 92 1 The provisions of this section shall have effect where the Board are satisfied as respects any tax carrying interest under section 86 of this Act — a that the tax is in respect of income or chargeable gains arising in a country outside the United Kingdom, and b that, as the result of action of the government of that country, it is impossible for the income or gains to be remitted to the United Kingdom, and c that having regard to the matters aforesaid and to all the other circumstances of the case it is reasonable that the tax should for the time being remain uncollected, and the Board allow the tax to remain uncollected accordingly. 2 Interest on the said tax shall, subject to subsection (3) below, cease to run under the said section 86 as from the date on which the Board were first in possession of the information necessary to enable them to be satisfied as aforesaid and, if the said date is not later than three months from the time when the tax became due and payable, the interest thereon under the said section 86 in respect of the period before the said date shall be remitted. 3 Where, under subsection (2) above, interest has ceased to run on any tax and thereafter demand is made by the collector or other proper officer for payment of all or any of that tax, interest under the said section 86 shall again begin to run from the date of the demand in respect of the amount demanded: Provided that where all or any part of the amount demanded is paid not later than three months from the date of the demand, the interest under the said section 86 on the amount so paid running from the date of the demand shall be remitted. PART X Penalties, etc. Failure to make return for income tax or capital gains tax 93 1 If any person has been required by a notice served under or for the purposes of section 8 or 9 of this Act (or either of those sections as extended by section 12 of this Act or section 39(3) of the principal Act (husband and wife)) to deliver any return, and he fails to comply with the notice he shall be liable, subject to the provisions of this section — a to a penalty not exceeding, except in the case mentioned in subsection (2) below, £50, and b if the failure continues after it has been declared by the court or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues. 2 If the failure continues after the end of the year of assessment following that during which the notice was served, the penalty under subsection (1)(a) above shall be an amount not exceeding the aggregate of £50 and the total amount of the tax with which the said person is charged (whether for one or for more than one year of assessment) in assessments — a based wholly or partly on any income or chargeable gains that ought to have been included in the return required by the notice, and b made after the end of the year next following the year of assessment in which the said notice was served. 3 Where in any year of assessment any amount was deducted from the said person's emoluments under section 204 of the principal Act (pay as you earn), and that amount exceeds the total amount (if any) charged in any assessments under Schedule E made on him for that year before the end of the year of assessment next following that in which the said notice was served, the amount of the excess shall be treated, for the purposes of subsection (2) of this section, as reducing the amount of the tax charged in assessments under Schedule E made on him for the first-mentioned year after the end of the said following year. 4 The reference in subsection (2) above to tax includes surtax, except that in relation to a return required for the purposes of section 9 of this Act it does not include any tax not chargeable in the partnership name; and in relation to a person's failure to deliver any other return it does not include tax assessed in the name of a partnership on so much of the profits or gains assessed as falls to be included in the total income of any other person. 5 Except in the case mentioned in subsection (2) above, a person shall not be liable to any penalty incurred under this section for a failure to comply with any notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced. 6 Where a person is liable to more than one penalty of an amount determined under subsection (2) above, any assessment taken into account for the purposes of one of those penalties shall be left out of account for the purposes of the other or others. 7 If the defendant (or, in Scotland, the defender) in proceedings under this section proves that there was no income and no chargeable gains to be included in the return, the penalty shall not exceed £5. 8 References in this section to the amount of tax with which a person is charged for any year of assessment and to assessments made on him include, in the case of a person who has died, references to any amount with which his personal representatives are charged for that year and to assessments made on them. Failure to make return for corporation tax 94 1 If any company has been required by a notice served under section 11 of this Act (or under that section as extended by section 12 of this Act) to deliver a return and the company fails to comply with the notice the company shall be liable, subject to subsection (3) of this section — a to a penalty not exceeding, except in the case mentioned in subsection (2) of this section, £50, and b if the failure continues after it has been declared by the court or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues. 2 If the failure continues after the end of the period of two years beginning with the date on which the notice was served, the penalty under subsection (1)(a) above shall be an amount not exceeding the aggregate of £50 and the total amount of the tax with which the said company is charged (whether for one or more accounting periods) in assessments to corporation tax — a based wholly or partly on any profits that ought to have been included in the return required by the notice, and b made after the end of the said period of two years, and in arriving at the amount of corporation tax with which the company is so charged no account shall be taken of any income tax which under section 240(5) or 246(3) of the principal Act (income tax borne by deduction from receipts) may be set off against corporation tax. 3 Except in the case mentioned in subsection (2) above, the company shall not be liable to any penalty incurred under this section for failure to comply with a notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced. 4 If in proceedings under this section it is proved that there were no profits to be included in the return, the penalty under this section shall not exceed £5. Incorrect return or accounts for income tax or capital gains tax 95 1 Where a person fraudulently or negligently — a delivers any incorrect return of a kind mentioned in section 8 or 9 of this Act (or either of those sections as extended by section 12 of this Act or section 39(3) of the principal Act (husband and wife)), or b makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of income tax or capital gains tax, or c submits to an inspector or the Board or any Commissioners any incorrect accounts in connection with the ascertainment of his liability to income tax or capital gains tax, he shall be liable to a penalty not exceeding the aggregate of — i £50, and ii the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (2) below. 2 The difference is that between — a the amount of income tax and capital gains tax payable for the relevant years of assessment by the said person (including any amount of income tax deducted at source and not repayable), and b the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct. 3 The relevant years of assessment for the purposes of this section are, in relation to anything delivered, made or submitted in any year of assessment, that, the next following, and any preceding year of assessment; and the references in subsection (2) to the amount of income tax payable include surtax, except that, in relation to anything done in connection with a partnership they do not include any income tax not chargeable in the partnership name. Incorrect return or accounts for corporation tax 96 1 Where a company fraudulently or negligently — a delivers any incorrect return under section 11 of this Act (or under that section as extended by section 12 of this Act), or b makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or c submits to an inspector or any Commissioners any incorrect accounts in connection with the ascertainment of the company's liability to corporation tax, the company shall be liable to a penalty not exceeding the aggregate of — i £50, and ii the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (2) below. 2 The difference is that between — a the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and b the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct. Incorrect return or accounts: supplemental 97 1 Where any such return, statement, declaration or accounts as are mentioned in sections 95 and 96 above were made or submitted by any person neither fraudently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that they were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of those sections as having been negligently made or submitted by him. 2 For the purpose of sections 95 and 96 above, any accounts submitted on behalf of any person shall be deemed to have been submitted by him unless he proves that they were submitted without his consent or connivance. Special returns, etc. 98 1 Where any person — a has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or b fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below, he shall be liable, subject to subsection (3) below — i to a penalty not exceeding £50, and ii if the failure continues after it has been declared by the court or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues. 2 Where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding £250, or, in the case of fraud, £500. 3 A person shall not be liable to any penalty incurred under this section for a failure to comply with any notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced. TABLE 1. 2. Part III of this Act, except section 16 and section 24(2) In the principal Act — section 34(4) section 53(2) Section 51 of this Act section 87(1) section 186(11) section 187(7) In the principal Act — section 224(5)(a) section 402 section 30(1)(2) section 411(4) section 167(4) section 200 section 224(5)(b) Schedule 5, paragraph 6 section 301 section 431(4) Schedule 9, paragraph 2(1) section 443 section 453 Regulations under section 204 of the principal Act section 465 section 469(8) section 470(6) section 477(7) section 481(1) section 483(7) section 486(5) section 490 Schedule 5, paragraph 13(1) Schedule 6, paragraph 10 Assisting in making incorrect return, etc. 99 Any person who assists in or induces the making or delivery for any purposes of tax of any return or accounts which he knows to be incorrect shall be liable to a penalty not exceeding £500. Procedure for recovery of penalties 100 1 Except as otherwise provided in this section, no proceedings shall be commenced against any person for the recovery of any penalty under the Taxes Acts except by order of the Board. 2 Any such proceedings which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted in the name of an officer, or — a in England and Wales, in the name of the Attorney General, b in Scotland, in the name of the Lord Advocate, and c in Northern Ireland, in the name of the Attorney General for Northern Ireland. 3 Any such proceedings may, except as otherwise provided in the Taxes Acts, be commenced either before the General or Special Commissioners, or a in England, Wales or Northern Ireland, in the High Court, b in Scotland, in the Court of Session as the Court of Exchequer in Scotland, and any proceedings commenced as mentioned in paragraph (a) of this subsection shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 or, as the case may be, 'that Part as for the time being in force in Northern Ireland. 4 The inspector may, without an order of the Board, commence before the General Commissioners (or, in Northern Ireland, the Special Commissioners) proceedings for a penalty incurred by any person under section 93(1) or section 98(1) of this Act for a failure to deliver, furnish or produce anything to the inspector; but in any proceedings so commenced the Commissioners shall not in any case award, in respect of the penalty under paragraph (a) of the said section 93(1), a sum exceeding £50. 5 Where the person who has incurred any penalty has died, any proceedings under this section which have been or could have been commenced against him may be continued or commenced against his personal representatives, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate; but nothing in this subsection shall extend the time for commencing proceedings against personal representatives. 6 Where any proceedings under this section are brought before any Commissioners, an appeal shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, from their decision — a by any party, on a question of law, and b by the defendant (or, in Scotland, the defender) against the amount of any penalty awarded, and on any appeal under paragraph (b) above the court may either confirm the decision or reduce or increase the sum awarded. 7 Proceedings under this section before any Commissioners shall be by way of information in writing, made to them, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons, and they shall hear and determine each case in a summary way; and any penalty awarded by them in such proceedings shall for all purposes be treated as if it were tax charged in an assessment and due and payable. 8 The Commissioners or the court before whom any proceedings for a penalty of a fixed amount are brought under this section may, if they think fit, give judgment for a less amount. 9 The Governor of Northern Ireland may, if he thinks fit, appoint some other person to act instead of the Attorney General for Northern Ireland in relation to any matters to which this section relates, and in that case the reference in this section to the Attorney General for Northern Ireland shall be construed as a reference to the person so appointed. Evidence of profits for purposes of preceding provisions of Part X 101 For the purposes of the preceding provisions of this Part of this Act, any assessment which can no longer be varied by any Commissioners on appeal or by order of any court shall be sufficient evidence that the income or chargeable gains in respect of which tax is charged in the assessment arose or were received as stated therein. Mitigation of penalties 102 The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for recovery thereof, and may also, after judgment, further mitigate or entirely remit the penalty. Time limit for recovery of penalties 103 1 Proceedings for the recovery of any penalty incurred under the Taxes Acts in connection with or in relation to tax may be commenced at any time within six years next after the date on which it was incurred, or at any later time allowed under the following provisions of this section. 2 Proceedings for the recovery of any penalty from any person in connection with or in relation to any tax covered by any assessment may, where any form of fraud or wilful default has been committed by him or on his behalf in connection with or in relation to that tax, be commenced at any time within three years from the final determination of the amount of tax covered by the assessment: Provided that this subsection shall not extend the time for the bringing of any proceedings against the personal representatives of any person by whom or on whose behalf any form of fraud or wilful default has been committed. 3 Where the amount of any penalty to which a person is liable under the Taxes Acts is determined by reference to tax charged in an assessment for any chargeable period which is made not later than six years after the end of that chargeable period, proceedings for the recovery of the penalty may be commenced within three years from the final determination of the amount of that tax. 4 In any proceedings for the recovery of a penalty which could not have been commenced but for subsection (3) above, any tax charged in an assessment made under section 37, 39 or 40(2) of this Act shall be left out of account in determining the amount of the penalty. Saving for criminal proceedings 104 The provisions of the Taxes Acts shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour. Evidence in cases of fraud or wilful default 105 1 Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that — a in relation to tax, the Board may accept pecuniary settlements instead of instituting proceedings, and b though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any fraud or default to which he has been a party and has given full facilities for investigation, and that he was or may have been induced thereby to make the statements or produce the documents. 2 The proceedings mentioned in subsection (1) above are — a any criminal proceedings against the person in question for any form of fraud or wilful default in connection with or in relation to tax, and b any proceedings against him for the recovery of any sum due from him, whether by way of tax or penalty, in connection with or in relation to tax. Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction 106 1 A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50. 2 Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void. Scotland Criminal liability for false statements made to obtain allowances 107 1 This section applies only in Scotland. 2 If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months. 3 Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed. 4 The expression " return " in this section shall be construed without regard to the definition in section 118(1) of this Act. PART XI Miscellaneous and Supplemental Companies Responsibility of company officers 108 1 Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company, and service on a company of any document under or in pursuance of the Taxes Acts may be effected by serving it on the proper officer. This subsection is without prejudice to Part VIII of this Act (charges on non-residents) as it applies to corporation tax. 2 Corporation tax or other tax chargeable under the Corporation Tax Acts on a company which is not a body corporate, or which is a body corporate not incorporated under the Companies Act 1948 or any other enactment forming part of the law of the United Kingdom, or by Charter, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax, and, so far as he is not so reimbursed, shall be entitled to be indemnified by the company in respect of the liability so imposed on him. 3 For the purposes of this section — a the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator has been appointed for the company the liquidator shall be the proper officer, b the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company. Tax at the standard rate on close companies 109 1 In this section "the tax" means tax assessable under section 286, 288 or 289 of the principal Act (charges in connection with loans and covenants and charges in respect of shortfall). 2 The provisions of the said sections directing that the tax be assessed and recoverable as if it were an amount of income tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to income tax, including those relating to the assessing, collecting and receiving of income tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom. 3 Section 33 and section 55 of this Act shall apply to any assessment of the tax as if it were an assessment under Schedule D. 4 Section 86 of this Act shall apply in relation to the tax as it applies to income tax charged by an assessment under Schedule D, except that subsection (2) and paragraph (a) of subsection (3) of the said section 86 shall not apply. 5 For the purposes of section 88 of this Act as applied by subsection (2) above, the date when the tax charged ought to have been paid shall be taken to be — a for tax under sections 286 and 288 of the principal Act, the first day of the year of assessment following that in which the loan or advance (for tax under section 286) or the payment or consideration (for tax under section 288) was made or given, and b for tax under section 289, the first day after the period of twelve months from the end of the accounting period for which there is a shortfall. 6 Section 91 of this Act shall not apply in consequence of any repayment of tax under section 286(5) of the principal Act. 7 For the purposes of the said section 91, a relief from the tax under section 286, 288 or 289 of the principal Act shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under the same section. Valuation Valuation of land: power of entry 110 Any person authorised in that behalf by the Board may, on producing if so required evidence of his authority, at any reasonable time enter on and inspect, with a view to establishing its annual value, any land the annual value of which falls to be determined for purposes of income tax or corporation tax. Valuation of assets: power to inspect 111 1 If for the purposes of Part III of the Finance Act 1965 the Board authorise an inspector or other officer of the Board to inspect any property for the purpose of ascertaining its market value the person having the custody or possession of that property shall permit the inspector or other officer so authorised to inspect it at such reasonable times as the Board may consider necessary. 2 If any person wilfully delays or obstructs an inspector or other officer of the Board acting in pursuance of this section he shall be liable on summary conviction to a fine not exceeding £5. Documents Loss, destruction or damage to assessments, returns, etc. 112 1 Where any assessment to tax, or any duplicate of assessment to tax, or any return or other document relating to tax, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless, the Commissioners, inspectors, collectors and other officers having powers in relation to tax may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been, if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished or required to be made or furnished: Provided that, where any person who is charged with tax in consequence or by virtue of any act or thing done under or in pursuance of this section proves to the satisfaction of the Commissioners having jurisdiction in the case that he has already paid any tax for the same chargeable period in respect of the subject matter and on the account in respect of and on which he is so charged, relief shall be given to the extent to which the liability of that person has been discharged by the payment so made either by abatement from the charge or by repayment, as the case may require. 2 In this section, "the Commissioners " means, as the case may require, either the Board or the General or Special Commissioners concerned. Form of returns and other documents 113 1 Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom. 2 Any return or assessment or other document relating to chargeable gains or tax on capital gains may be combined with one relating to income or income tax. 3 Every assessment, duplicate, warrant, notice of assessment or of demand, or other document required to be used in assessing, charging, collecting and levying tax shall be in accordance with the forms prescribed from time to time in that behalf by the Board, and a document in the form prescribed and supplied or approved by them shall be valid and effectual. Want of form or errors not to invalidate assessments, etc. 114 1 An assessment, warrant or other proceeding which purports to be made in pursuance of any provision of the Taxes Acts shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Taxes Acts, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding. 2 An assessment shall not be impeached or affected — a by reason of a mistake therein as to — i the name or surname of a person liable, or ii the description of any profits or property, or iii the amount of the tax charged, or b by reason of any variance between the notice and the assessment. Delivery and service of documents 115 1 A notice or form which is to be served under the Taxes Acts on a person may be either delivered to him or left at his usual or last known place of residence. 2 Any notice or other document to be given, sent, served or delivered under the Taxes Acts may be served by post, and, if to be given, sent, served or delivered to or on any person by the Board, by any officer of the Board, or by or on behalf of any body of Commissioners, may be so served addressed to that person — a at his usual or last known place of residence, or his place of business or employment, or b in the case of a company, at any other prescribed place and, in the case of a liquidator of a company, at his address for the purposes of the liquidation or any other prescribed place. 3 In subsection (2) above " prescribed " means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons. 4 Notices to be given or delivered to, or served on, the General Commissioners shall be valid and effectual if given or delivered to or served on their clerk. Receipts, etc. exempt from stamp duty 116 No receipt or certificate of payment given in pursuance and for the purposes of the Taxes Acts shall be liable to any stamp duty. Northern Ireland Action of ejectment in Northern Ireland 117 Unless other provision is made in that behalf by any enactment, an action of ejectment in Northern Ireland for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under the Income Tax Acts to a deduction which would reduce the amount due by him below a year's rent. Interpretation Interpretation 118 1 In this Act, unless the context otherwise requires — " Act " includes an Act of the Parliament of Northern Ireland and " enactment" shall be construed accordingly, " the Board " means the Commissioners of Inland Revenue, " body of persons " means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate, " branch or agency " means any factorship, agency, receivership, branch or management, and " branch or agent " shall be construed accordingly, " chargeable gain " has the same meaning as in Part III of the Finance Act 1965, " chargeable period " means a year of assessment or a company's accounting period, " collector " means any collector of taxes, " company " has the meaning given by section 526(5) of the principal Act (with section 354 of that Act), " incapacitated person " means any infant, person of unsound mind, lunatic, idiot or insane person, " inspector " means any inspector of taxes, " neglect " means negligence or a failure to give any notice, make any return or to produce or furnish any document or other information required by or under the Taxes Acts, " the principal Act " means the Income and Corporation Taxes Act 1970, " return " includes any statement or declaration under the Taxes Acts, " tax ", where neither income tax nor capital gains tax nor corporation tax is specified, means any of those taxes, " the Taxes Acts " means this Act and — the Tax Acts as defined in section 526(2) of the principal Act, and Part III of the Finance Act 1965 and all other enactments relating to capital gains tax, " trade " includes every trade, manufacture, adventure or concern in the nature of trade. 2 For the purposes of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the Commissioners or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased: Provided that this subsection shall not apply for the purposes of section 10(2) or 16(6) of this Act. 3 For the purposes of sections 37 to 39 and Part X of this Act, an assessment made in the partnership name and the tax charged in such an assessment shall, according to the law in Scotland as well as according to the law elsewhere in the United Kingdom, be deemed to be respectively an assessment made on the partners and tax charged on and payable by them. 4 For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by any Commissioners on appeal or by the order of any court. PART XII General Commencement and construction 119 1 This Act shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by the principal Act. 2 This Act, and the repeals made by the principal Act, have effect subject to Schedule 4 to this Act. 3 This Act, so far as it relates to income tax or corporation tax, shall be construed as one with the principal Act. 4 This Act, so far as it relates to chargeable gains, shall be construed as one with Part III of the Finance Act 1965. Short title 120 This Act may be cited as the Taxes Management Act 1970. SCHEDULES SCHEDULE 1 Forms of Declarations Section 6. PART I General and Special Commissioners and Others I, A.B., do solemnly declare that I will impartially and to the best of my ability execute my duties under the Income Tax Acts and the enactments relating to any tax on company profits or capital gains ; and that I will not disclose any information received by me in the execution of my duties except for the purposes of my duties or for the purposes of any prosecution for an offence relating to income tax or any tax on company profits or capital gains, or in such other cases as may be required by law. PART II Commissioners of Inland Revenue I, A.B., do solemnly declare that I will not disclose any information received by me in the execution of my duties except for the purposes of those duties or for the purposes of any prosecution for an offence relating to inland revenue, or in such other cases as may be required by law. PART III Inspectors, Collectors and other Officers I, A.B., do solemnly declare that I will not disclose any information received by me in the execution of the duties which may from time to time be assigned to me by the Board of Inland Revenue except for the purposes of my duties, or to the Board of Inland Revenue or in accordance with their instructions, or for the purposes of any prosecution for an offence relating to inland revenue, or in such other cases as may be required by law. SCHEDULE 2 Jurisdiction in Appeals on Claims Section 42. Appeal from inspector 1 1 Except as otherwise provided by the following provisions of this Schedule, or any other provision of the Taxes Acts, an appeal against the decision of an inspector on a claim shall lie to the General Commissioners, but the appellant may elect to bring the appeal before the Special Commissioners instead of the General Commissioners. 2 If an appeal to either body of Commissioners is pending against an assessment on the appellant which relates to the same source of income as that to which the claim relates, the appeal on the claim shall lie to that body of Commissioners. 2 1 An appeal from a decision of an inspector on a claim under any provision in column 1 of the Table below shall be to the General Commissioners, and paragraph 1 of this Schedule shall not apply. 2 An appeal from a decision of an inspector on a claim under any provision in column 2 of the said Table shall be to the Special Commissioners, and paragraph 1 of this Schedule shall not apply. TABLE 1 2 Appeal exclusively to General Commissioners Appeal exclusively to Special Commissioners In the principal Act — In the principal Act — Chapter II of Part I section 158(1) section 65(4) section 310 Schedule 3 section 311 section 315(3) section 331 section 332 section 338 section 339 section 384 section 389 section 391 section 392 Chapter I of Part XVIII Appeal from Board 3 Except as otherwise provided by any provision of the Taxes Acts, an appeal against the decision of the Board on a claim shall lie to the Special Commissioners. SCHEDULE 3 Rules for Assigning Proceedings to Commissioners Section 44. Description of proceedings Place given by these rules Rules 3 and 5 have effect subject to rule 4 above. Rules 7 and 8 have effect to the exclusion of any other rules. Where under rules 3 and 5 above a right of election for the place of residence is provided in column 2 above, the appellant may, by notice in writing to the inspector or the Board (given not later than the notice of appeal), elect for the place where he ordinarily resided in the year of assessment to which the proceedings relate. The rules in this Schedule have effect subject to sections 11, 137, 154(5), 252(9) and section 494(9) of the principal Act, to paragraph 22 of Schedule 7 to the principal Art and to section 81 of the Capital Allowances Art 1968 (all of which relate to proceedings to which more than one taxpayer may be a party) and to any other express provisions in the Taxes Acts. Income tax and capital gains tax 1. An appeal against an assessment under Case I or Case II of Schedule D. } The place where the trade, profession or vocation is carried on, or in which the head office or principal place of business is situated. 2. Any other proceedings relating to a trade, profession or vocation the profits of which are assessable under Case I or Case II of Schedule D, or would be so assessable if there were any. 3. An appeal against an assessment under Schedule E and any appeal in exercise of a right conferred by regulations under section 204 of the principal Act (pay as you earn). Subject to the right of election for place of residence, the place of employment or such other place as may be assigned instead by regulations under section 204 of the principal Act. 4. An appeal against an assessment under Schedule B and any proceedings concerning the annual value of land. The place where the property is situated. 5. An appeal against an assessment under Schedule A or under Schedule D, other than Cases I and II. An appeal against an assessment to capital gains tax. Subject to the right of election for place of residence, — if the person assessed is carrying on a trade, profession or vocation, the place in which the trade, profession or vocation is carried on, or in which the head office or principal place of business is situated, or if the person assessed is employed, and does not carry on a trade, profession or vocation, the place of employment. 6. Any proceedings under the Income Tax Acts not covered by the preceding rules. Any proceedings relating to capital gains tax not covered by rule 5. The place where the appellant or other party to the proceedings (not being an inspector or the Board) ordinarily resided in the year of assessment to which the proceedings relate. If the party was resident or ordinarily resident outside the United Kingdom, the Board may give directions, which may be either general or addressed to a particular occasion, to meet the case. Corporation tax, etc. 7. Proceedings which relate to corporation tax. Proceedings which relate to income tax, but to which a company resident in the United Kingdom and within the charge to corporation tax is a party. The place where the company or other body concerned carries on its trade or business, or in which its head office or principal place of business is situated, or where it resides. 8. Proceedings relating to tax assessable under section 286, 288 or 289 of the principal Act. The place where the company concerned carries on its trade or business, or in which its head office or principal place of business is situated, or where it resides. SCHEDULE 4 Savings and Transitory Provisions Section 119. Declaration of secrecy 1 1 Section 6(4) of this Act shall not apply to a person who, before 10th July 1964, made a declaration in any of the forms set out in Schedule 2 to the Income Tax Act 1952, or a declaration of secrecy in a form approved by the Board. 2 General or Special Commissioners or other persons who made declarations in the form in Part I of Schedule 1 to the Income Tax Management Act 1964, or in the form in Schedule 2 to the Income Tax Act 1952, before the coming into force of paragraph 16 of Schedule 10 to the Finance Act 1965 (which included in the form of declaration a reference to the new taxes imposed by that Act) shall be subject to the same obligations as to secrecy with respect to those taxes as they are subject to with respect to income tax. 3 The repeals made by the principal Act shall not alter the effect or validity of any declaration made before the commencement of this Act. Information about interest paid or credited without deduction of tax by banks, etc. 2 A notice served under section 29 of the Income Tax Act 1952 (re-enacted in section 17 of this Act) on the Postmaster General before 1st October 1969 shall, if it has not been complied with before that date, be deemed to have been served on the Director of Savings; and section 17(1) of this Act shall, in its application to the National Savings Bank, have effect as if the reference to interest paid or credited by the Director of Savings included, as regards any period before the said date, a reference to interest paid or credited by the Postmaster General to depositors. Assessments 3 1 Section 36 of this Act shall not apply to tax for any year before the year 1.936-37. 2 Section 41 of this Act shall not apply to any assessment signed before 6th April 1965. Claims 4 1 This paragraph has effect as respects relief under any enactment repealed by the principal Act, or repealed or terminated by any Act passed before that Act, so far as it remains in force after the commencement of this Act. 2 Section 42 of this Act shall apply to any such relief in like manner as section 9 of the Income Tax Management Act 1964 would have applied but for the passing of this Act, and nothing in the repeals made by the principal Act shall affect any enactment determining whether the claim is made to the inspector or the Board, or the Commissioners to whom an appeal lies on the claim. 5 An appeal, or other proceedings in the nature of an appeal, instituted on a claim, or proceedings in the nature of a claim, made before 6th April 1965 shall be continued before the same Commissioners notwithstanding that, under Schedule 2 to this Act or Schedule 2 to the Income Tax Management Act 1964, an appeal on the claim should have been made to some other Commissioners. 6 1 Any relief obtainable under section 87(8) of the Finance Act 1965 (transitional relief for existing companies on cessation of trade) by way of discharge or repayment of tax shall be given on the making of a claim. 2 After the making of such a claim in respect of a trade no notice as regards the trade shall be given or revoked under section 129 of the Income Tax Act 1952 or section 80(6) of the Finance Act 1965 (period of computation of profits for second and third years of trade). Choice of Commissioners to hear proceedings 7 Neither section 44 of this Act nor any other provision in this Act shall apply to an appeal against an assessment signed, claim made, or other proceedings instituted, before 6th April 1965 so as to require the proceedings to be heard by Commissioners other than those who would have heard the proceedings if the Income Tax Management Act 1964 had not passed. Settling of appeals by agreement 8 Section 54 of this Act shall apply to the Board of Referees as it applies to the General or Special Commissioners (that is to say in any appeal to the Board of Referees in any jurisdiction under an enactment repealed by the Finance Act 1965). Interest on tax 9 1 For the purposes of section 86(3) of this Act, the tax charged by any assessment by virtue of section 15(2) of the Finance Act 1967 (increase of surtax rates for 1965-66) shall be treated as if it had been charged by an assessment separately made. 2 For the purposes of section 88 of this Act the due date for payment of so much of any surtax for the year 1965-66 as is attributable to subsection (1) of the said section 15 shall be taken to be 1st September 1967, instead of 1st January 1967. Penalties, etc. 10 Section 98 of this Act shall have effect as if the Table contained in it (columns 1 and 2 of which correspond respectively to columns 2 and 3 of Schedule 6 to the Finance Act 1960) included, in the appropriate column, so far as they remain in force, the enactments and regulations mentioned in or added to the said Schedule 6 which were repealed or terminated by any Act passed before this Act. 11 Section. 103(2) of this Act shall not apply to tax for any year before the year 1936-37. 12 The repeals made by the principal Act shall not affect proceedings for any offence punishable under section 505 of the Income Tax Act 1952 and committed before the repeal of the said section 505 by the Theft Act 1968, or, in Northern Ireland, by the Theft Act (Northern Ireland) 1969. Northern Ireland 13 For the purposes of section 3 of the Northern Ireland Act 1962 (appellate jurisdiction of High Court in Northern Ireland under enactments passed before that Act) any provision of this Act reproducing such an enactment shall be treated as also having been passed before the passing of the said Act of 1962. 14 Part V of this Act, and the repeal by the principal Act of the provisions corresponding to Part V of this Act, shall not apply to proceedings falling within paragraph 10(1) of Schedule 5 to the Income Tax Management Act 1964 (assessments, etc. for 1964-65 and earlier years).

The Rules of the Supreme Court (Amendment) 1970 We, the Rule Committee of the Supreme Court, being the authority having for the time being power under section 99(4) of the Supreme Court of Judicature (Consolidation) Act 1925 to make, amend or revoke rules regulating the practice and procedure of the Supreme Court of Judicature, hereby exercise those powers and all other powers enabling us in that behalf as follows: — 1 1 These rules may be cited as the Rules of the Supreme Court (Amendment) 1970 and shall come into operation on 26th May 1970. 2 In these rules an Order referred to by number means the Order so numbered in the Rules of the Supreme Court 1965 , as amended , and a Form referred to by number means the Form so numbered in Appendix A to those Rules. 3 The Interpretation Act 1889 shall apply to the interpretation of these rules as it applies to the interpretation of an Act of Parliament. 2 In Order 47, rule 4, for the words “£40” there shall be substituted the words “£100”. 3 The following Appendix shall be substituted for Appendix 3 to Order 62: — APPENDIX 3 FIXED COSTS ( In this Appendix decimal equivalents are shown in italics and brackets ) PART I Costs on recovery of a liquidated sum without trial 1 The scale of costs following paragraph 2 of this Part of this Appendix shall apply in relation to the following cases if the writ of summons therein was issued on or after 26th May 1970 and was indorsed in accordance with Order 6, rule 2(1)(b), with a claim for a debt or liquidated demand only of £100 or upwards, that is to say — a cases in which the defendant pays the amount claimed or a sum of not less than £100 within the time and in the manner required by the indorsement of the writ; b cases in which the plaintiff obtains judgment in default of appearance under Order 13, rule 1, or under that rule by virtue of Order 83, rule 4, or Order 84, rule 3, or judgment in default of defence under Order 19, rule 2, or under that rule by virtue of Order 83, rule 4, or Order 84, rule 3, being in any case judgment for a sum of £100 or upwards; c cases in which the plaintiff obtains judgment under Order 14, for a sum of £100 or upwards, either unconditionally or unless that sum is paid into court or to the plaintiff's solicitors. 2 In every case to which the said scale applies there shall be added to the basic costs set out in the said scale the fee paid on the issue of the writ. SCALE OF COSTS A. Basic costs Amount to be allowed in cases under the following sub-paragraphs of paragraph 1 of this Appendix (a) (b) (c) £. s. (£. p) £. s. (£. p) £. s. (£. p) If the amount recovered is: — not less than £100 but less than £500 7 0 (7.00) 8 10 (8.50) 11 0 (11.00) not less than £500 10 5 (10.25) 16 0 (16.00) 21 0 (21.00) B. Additional costs Amount to be allowed where the amount recovered is — (i) (ii) not less than £100 but less than £500 not less than £500 £. s. (£. p) £. s. (£. p) (1) Where there is more than one defendant, in respect of each additional defendant served 1 0 (1.00) 1 10 (1.50) (2) Where substituted service is ordered and effected, in respect of each defendant served 2 0 (2.00) 6 5 (6.25) (3) Where the plaintiff's solicitor has no place of business within 5 miles of the Royal Courts of Justice or his nearest District Registry, or where he has a place of business within that area but any defendant is served outside that area 10 (0.50) 1 10 (1.50) (4) Where service out of the jurisdiction is orderedandeffected,inthecaseof service — (a) in Scotland, Northern Ireland, the Isle of Man or the Channel Islands 6 0 (6.00) 8 10 (8.50) (b) in any other place out of the jurisdiction 9 0 (9.00) 13 0 (13.00) (5) In the case of judgment in default of defence or judgment under Order 14, where, notice of appearance is not given on the day on which the appearance is entered, and the plaintiff makes an affidavit of service for the purpose of ajudgmentin default of appearance (the allowance to include the search fee) 1 5 (1.25) 2 10 (2.50) (6) In the case of judgment under Order 14 where an affidavit of service of the summons is required 1 5 (1.25) 2 10 (2.50) (7) In the case of judgment under Order 14, for each adjournment of the summons 1 0 (1.00) 1 10 (1.50) (8) In the case of judgment in default of appearance or defence on an application by summons under Order 83, rule 4 — (a) where judgment is given for interest at a rate exceeding 48 per cent, per annum on production of an affidavit justifying that rate 2 10 (2.50) 4 0 (4.00) (b) in any other case 1 10 (1.50) 3 0 (3.00) (c) where there is more than one defendant, in respect of each additional defendant 10 (0.50) 1 10 (1.50) (9) In the case of judgment in default of appearance or defence on an application by summons under Order 84, rule 3 2 10 (2.50) 3 10 (3.50) and, where there is more than one defendant in respect of each additional defendant 10 (0.50) 1 0 (1.00) Costs to be allowed £ s. (£. p) (10) Where the amount recovered is not less than £500 and there is no available solicitor carrying on business within 2 miles of the place where the defendant is served, a mileage allowance in respect of each mile after the first two miles between that place and the nearest place of business of an available solicitor 2 (0.10) PART II Costs on judgment without trial for possession of land 1 1 Where the writ of summons is indorsed with a claim for the possessionof land and the plaintiff obtains judgment — a under Order 13, rule 4 or 5, in default of appearance, or b under Order 19, rule 5 or 6, in default of defence, or c under Order 14, for possession of the land and costs, then, subject to sub-paragraph (2), there shall be allowed the costs prescribed by paragraph 2 of this Part of this Appendix. 2 Where the plaintiff is also entitled under the judgment to damages to be assessed, or where the plaintiff claims any relief of the nature specified in Order 88, rule 1, this Part of this Appendix shall not apply. 2 The costs to be allowed under this Part of this Appendix shall be the costs which would be allowed under Part I (together with the fee paid on the writ) if judgment had been obtained in the same circumstances, that is to say, in default of appearance or defence or under Order 14, but the writ has been indorsed with a claim for a debt or liquidated demand only of £100 or upwards and judgment for not less than £100 but less than £500 had been obtained, PART III Miscellaneous 1 Where a plaintiff or defendant signs judgment for costs under rule 10, there shall be allowed — Costs of the judgment £1. 12s. (£1.60) 2 Where a certificate of a judgment or decree is registered in the High Court in the Register for Irish Judgments or the Register for Scottish Judgments under the Judgments Extension Act 1868, within 12 months of the date of the judgment and without an order, there shall be allowed — Costs of registration £7. 0s. (£7 00) 3 Where the Court orders ajudgment or order of an inferior court to be removed into the High Court for enforcement, there shall be allowed in the case of a judgemnt or order — (a) of the Mayor's and City of London Court £2. 10s. (£2.50) (b) of the Salford Hundred Court, the Liverpool Court of Passage or any other court £5. 5s.(£5.25) 4 Where, upon the application of any person who has obtained a judgment or order against a debtor for the recovery or payment of money, a gamishee order, is made under Order 49, rule 1, against a gamishee attaching debts due or accruing due from him to the debtor, the following costs shall be allowed — a to the gamishee, to be deducted by him from any debt due by him as aforesaid before payment to the applicant — If no affidavit used If affidavit used £. s. (£. p) £. s. (£. p) (i) where the gamishee resides within 5 miles of the court office from which the gamishee order was obtained 1 10 (1.50) 3 5 (3.25) (ii) where the garoishee does not so reside 2 10 (2.50) 4 10 (4.50) b to the applicant, to be retained, unless the Court otherwise orders, out of the money recovered by him under the gamishee order and in priority to the amount of the debt owing to him under the judgment or order — Basic costs £. s. (£. p) If the amount recovered by the applicant from the gamishee is — less than £5 Nil not less than £5 but not more than £10 2 5 (2.25) more than £10 7 0 (7.00) Additional costs Where the gamishee fails to attend the hearing of the application and an affidavit of service is required 2 10 (2.50) 5 Where a charging order is made — a in respect of any securities, under Order 50, rule 2; or b in respect of any partnership property or profits, under section 23 of the Partnership Act 1890; or c in respect of land, under section 35 of the Administration of Justice Act 1956; there shall be allowed — £. s. (£. p) Basic costs 9 0 (9.00) Additional costs where an affidavit of service is required 2 10 (2.50) 6 Where leave is given under Order 45, rule 3, to enforce a judgment or order for the giving of possession of land by writ of possession, if costs are allowed on the judgment or order there shall be allowed the following costs, which shall be added to the judgment or order — £. s. (£. p) Basic costs 2 10 (2.50) Where notice of the proceedings has been given to more than one person, in respect of each additional person 8 (0.40) 7 Where a writ of execution within the meaning of Order 46, rule 1, is issued against any party, there shall be allowed — £. s. (£. p) Costs of issuing execution 3 10 (3.50) 4 In Form 53 for the words “the sums of £ and £ for costs of execution” there shall be substituted the words “the sum[s] of £ [and £ for costs of execution]” and in the note for the words “£40” there shall be substituted the words “£100”. Gardiner, C Parker of Waddington, C.J Denning, M.R J. E. S. Simon, P Cyril Salmon, L.J Denys B. Buckley, J John R. Willis, J Nigel Bridge, J E. S. Fay Oliver Lodge W. O. Carter Arthur J. Driver Dated 30th April 1970

The Yorkshire Deeds Registries (Compensation to Officers) Regulations 1970 The Lord Chancellor, in exercise of the powers conferred on him by section 19 of the Law of Property Act 1969, hereby makes the following Regulations: — PART I PRELIMINARY Citation and commencement 1 These Regulations may be cited as the Yorkshire Deeds Registries (Compensation to Officers) Regulations 1970 and shall come into operation on 15th October 1970. Interpretation 2 1 In these Regulations, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say: — “ accrued pension ”, in relation to a pensionable officer who has suffered loss of employment, means — if his last relevant pension scheme provided benefits in which he had a right to participate, the pension to which he would have become entitled in respect of his pensionable service according to the method of calculation, modified where necessary for the purpose of giving effect to these Regulations, prescribed by that scheme if, at the date on which he ceased to be subject to that scheme, he had attained normal retiring age and complied with any requirement of that scheme as to a minimum period of qualifying service or contribution and completed any additional contributory payments or payments in respect of added years which he was in the course of making; and in any other case, such portion of the pension (if any) of which he had reasonable expectations as the compensating authority consider equitable, having regard to his age, the length of his employment at the date of loss and all the other circumstances of the case; “ accrued retiring allowance ”, in relation to a pensionable officer who has suffered loss of employment, means — if his last relevant pension scheme provided benefits in which he had a right to participate, any lump sum payment to which he would have become entitled in respect of his pensionable service according to the method of calculation, modified where necessary for the purpose of giving effect to these Regulations, prescribed by that scheme if, at the date on which he ceased to be subject to that scheme, he had attained normal retiring age and complied with any requirement of that scheme as to a minimum period of qualifying service or contribution and completed any additional contributory payments or payments in respect of added years which he was in the course of making; and in any other case, such portion of the lump sum payment (if any) of which he had reasonable expectations as the compensating authority consider equitable, having regard to his age, the length of his employment at the date of loss and all the other circumstances of the case; “ accrued incapacity pension ” and “ accrued incapacity retiring allowance ” have the same respective meanings as “accrued pension” and “ accrued retiring allowance ” except that the reference to a person's attaining normal retiring age shall be construed as a reference to his becoming incapable of discharging efficiently the duties of his employment by reason of permanent ill-health or infirmity of mind or body; “ added years ”, in relation to a person who suffers loss of employment, means — in the case of a contributory employee or local Act contributor any additional years of service reckonable by him in his employment immediately prior to the loss in question under Regulation 12 of the Local Government Superannuation (Benefits) Regulations 1954 as amended , or any corresponding provision of a local Act scheme, or those Regulations or any such provision as aforesaid as applied by or under any enactment, and includes any additional years of service which, having been granted under any such provision or under any similar provision contained in any other enactment or scheme, have subsequently become and are reckonable under or by virtue of rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948, or any other enactment; and in the case of any other person, any additional years of service, similar to those mentioned in paragraph (a) of this definition, reckonable by him under the pension scheme associated with the employment he has lost; “ additional contributory payments ” means — additional contributory payments of the kind referred to in section 2(3) and (4) of the Local Government Superannuation Act 1953; or any similar payments made under a local Act scheme or other pension scheme as a condition of reckoning any period of employment as service or as a period of contribution for the purposes of the scheme, or, where the scheme provides for the reckoning of non-contributing service, as contributing service for the purposes of the scheme; or any payments made for the purpose of increasing the length at which any period of service or of contribution would be reckonable for the purpose of calculating a benefit under a local Act scheme; or any payments similar to any of those mentioned in the foregoing sub-paragraphs made in pursuance of rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948; “ compensating authority ”, in relation to a Yorkshire deeds registry, means the county council of the riding for which the registry is or was maintained; “ compensation question ” means a question arising under these Regulations — as to a person's entitlement to compensation for loss of employment, or for loss or diminution of emoluments; or as to the manner of a person's employment or the comparability of his duties; “ contributory employee ”, “ contributing service ”, “ non-contributing service ”, “ local Act contributor ” and “ local Act scheme ” have the same meanings as in the Local Government Superannuation Act 1937; “ emoluments ” means all salary, wages, fees and other payments paid or made to an officer as such for his own use, and also the money value of any apartments, rations or other allowances in kind appertaining to his employment, but does not include payments for overtime which are not a usual incident of his employment, or any allowances payable to him to cover the cost of providing office accommodation or clerical or other assistance, or any travelling or subsistence allowance or other moneys to be spent, or to cover expenses incurred by him for the purposes of his employment; and “ net emoluments ”, in relation to any employment, means the annual rate of the emoluments of that employment less such part of those emoluments as the officer was liable to contribute under a pension scheme, and in relation to any employment which has been lost or the emoluments of which have been diminished, the expression means the annual rate of emoluments as aforesaid immediately before the loss or diminution, as the case may be: Provided that, where fees or other variable payments were paid to an officer as part of his emoluments during any period immediately preceding the loss or diminution, the amount in respect of fees or other variable payments to be included in the annual rate of emoluments shall be the annual average of the fees or other payments paid to him during the period of five years immediately preceding the loss or diminution, or such other period as the compensating authority may think reasonable in the circumstances; “ enactment ” means any Act or any instrument made under an Act; “ local authority ” means the council of a county, county borough, metropolitan borough, London borough, county district, rural parish or borough included in a rural district, the Greater London Council, the Common Council of the City of London and the council of the Isles of Scilly, any two or more of those authorities acting jointly and any joint committee, combined authority or joint board and a police authority for a county, a borough or a combined police area; “ long-term compensation ” means compensation payable in accordance with the provisions of Part IV of these Regulations for loss of employment or loss or diminution of emoluments; “ material date ” means — in relation to the North Riding Registry of Deeds and the West Riding Registry of Deeds, 15th October 1970; in relation to the East Riding Registry of Deeds, the date which is the relevant date in relation to that registry for the purposes of section 16 of the Law of Property Act 1969; “ minimum pensionable age ” means, in relation to a pensionable officer, the earliest age at which, under his last relevant pension scheme, he could have become entitled to receive payment of a pension, other than a pension payable in consequence of his redundancy or the termination of his employment in the interests of efficiency or his incapacity to discharge efficiently the duties of his employment by reason of permanent ill-health or infirmity of mind or body; “ national service ” means service which is relevant service within the meaning of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 and includes service immediately following such service as aforesaid, being service in any of Her Majesty's naval, military or air forces pursuant to a voluntary engagement entered into with the consent of the authority or person under whom an officer held his last relevant employment; “ normal retiring age ” means, in the case of a pensionable officer to whom an age of compulsory retirement applied by virtue of any enactment to which he was subject in the employment which he has lost or the emoluments of which have been diminished or by virtue of the conditions of that employment, that age, and, in any other case, the age of sixty-five years if the officer is a male, or sixty years if the officer is a female; “ officer ” includes the holder of any place, situation or employment and the expression “ office ” shall be construed accordingly; “ pensionable officer ”, in relation to a person who has suffered loss of employment or loss or diminution of emoluments, means a person who immediately before such loss or diminution was subject to a pension scheme; “ pension scheme ”, in relation to a pensionable officer, means any form of arrangement associated with his employment for the payment of superannuation benefits, whether subsisting by virtue of Act of Parliament, trust, contract or otherwise; and “ last relevant pension scheme ”, in relation to a pensionable officer, means a pension scheme to which he was subject immediately before suffering loss of employment or loss or diminution of emoluments; “ reckonable service ”, in relation to a person, means any period of whole-time or part-time employment in any relevant employment and includes any period of war service or national service undertaken on his ceasing to hold any such employment but does not include employment of which account has been taken, or is required to be taken, in calculating the amount of any superannuation benefit to which he has become entitled; “ relevant employment ” means employment — under the Crown or in the service of a local authority or local deeds registry; or by any authority or body for the purposes of the Crown or of local government in Great Britain; or under any officer employed as mentioned in paragraph (a) or (b) of this definition for the purposes of the functions of the employing authority or body; or preceding any of the foregoing employments which was reckonable for the purposes of the last relevant pension scheme, but, except as provided in Regulations 6(1) and 12(1), does not include service in the armed forces of the Crown; “ resettlement compensation ” means compensation payable in accordance with Part III of these Regulations for loss of employment; “ retirement compensation ” means compensation payable in accordance with the provisions of Regulation 19, 20, 21 or 22; “ tribunal ” means a tribunal established under section 12 of the Industrial Training Act 1964; “ war service ” means was service within the meaning of the Local Government Staffs (War Service) Act 1939, the Teachers Superannuation (War Service) Act 1939, the Police and Firemen (War Service) Act 1939 or employment for war purposes within the meaning of the Superannuation Schemes (War Service) Act 1940 and includes any period of service in the First World War in the armed forces of the Crown or in the forces of the Allied or Associated Powers if such service immediately followed a period of relevant employment and was undertaken either compulsorily or with the permission of the employer in that employment. 2 a Where under any provision of these Regulations an annual value is to be assigned to a capital sum or a capital value to an annual amount, the annual or capital value shall be ascertained in accordance with the tables set out in the Schedule to these Regulations in so far as they provide for the particular case. b For the purpose of determining the application of the said tables the headings and the note to each table shall be treated as part of the table. c Where the said tables do not provide for a case in which an annual value is to be assigned to a capital sum or a capital value to an annual amount, the annual or capital value shall be such as may be agreed between the compensating authority and the person to whom the capital sum or annual amount is payable. 3 The holder of an office or appointment shall, for the purposes of these Regulations, be regarded as employed in that office or appointment and the expression “employment” shall be construed accordingly. 4 Unless the context otherwise requires, references in these Regulations to the provisions of any enactment shall be construed as references to those provisions as amended, re-enacted or modified by any subsequent enactment. 5 References in these Regulations to a numbered Regulation shall, unless the reference is to a regulation of specified regulations, be construed as references to the Regulation bearing that number in these Regulations. 6 References in any of these Regulations to a numbered paragraph shall, unless the reference is to a paragraph of a specified Regulation, be construed as references to the paragraph bearing that number in the first mentioned Regulation. 7 The Interpretation Act 1889 shall apply for the interpretation of these Regulations as it applies for the interpretation of an Act of Parliament. PART II ENTITLEMENT TO COMPENSATION Persons to whom the Regulations apply 3 These Regulations shall apply to any person who was employed immediately before the material date for the whole or for part only of his time as a registrar, deputy registrar, clerk, messenger or servant appointed under section 37 of the Yorkshire Registries Act 1884. Grounds of entitlement to compensation 4 Subject to the provisions of these Regulations, any person to whom these Regulations apply and who suffers loss of employment or loss or diminution of emoluments in consequence of Part II of the Law of Property Act 1969 shall be entitled to have his case considered for the payment of compensation under these Regulations, and such compensation shall be determined in accordance with these Regulations. PART III RESETTLEMENT COMPENSATION Resettlement compensation for loss of employment 5 The compensating authority shall, subject to the provisions of these Regulations, pay resettlement compensation to any person to whom these Regulations apply and who satisfies the conditions set out in Regulation 6. Conditions for payment of resettlement compensation 6 1 Without prejudice to any other requirement of these Regulations, the conditions for the payment of resettlement compensation to any person are that — a he has, not later than ten years after the material date, suffered loss of employment in consequence of Part II of the Law of Property Act 1969; b he has not at the date of the loss attained normal retiring age; c he has been, for a period beginning on the date three years immediately before the material date and ending on the date when the loss of employment occurred, continuously engaged (disregarding breaks not exceeding in the aggregate six months) for the whole or part of his time in relevant employment; and for this purpose the expression “ relevant employment ” includes any period of national service immediately following such employment; d he has made a claim for such compensation in accordance with the provisions of Part VII of these Regulations not later than thirteen weeks after the loss of employment which is the cause of his claim; e the loss of employment which is the cause of his claim has occurred for some reason other than misconduct or incapacity to perform such duties as, immediately before the loss, he was performing or might reasonably have been required to perform; and f he has not, subject to paragraph (3), been offered any reasonably comparable employment under the Crown or in the service of a local authority. 2 In ascertaining for the purposes of this Regulation whether a person has been offered employment which is reasonably comparable with the employment which he has lost, no account shall be taken of the fact that the duties of the employment offered are in relation to a different service from that in connection with which his employment was held or are duties which involve a transfer of his employment from one place to another within England and Wales. 3 No account shall be taken for the purposes of this Regulation of an offer of employment where the compensating authority are satisfied — a that acceptance would have involved undue hardship to the person, or b that he was prevented from accepting the offer by reason of ill-health or other circumstances beyond his control. Amount of resettlement compensation 7 1 The amount of resettlement compensation which may be paid to a person shall, for each week for which such compensation is payable, be a sum ascertained by taking two-thirds of the weekly rate of the net emoluments which that person has lost and deducting therefrom, in addition to the items mentioned in Regulation 32(3) and (4), such of the following items as may be applicable: — a unemployment, sickness or injury benefit under any Act relating to National Insurance claimable by him in respect of such week (excluding any amount claimable by him in respect of a dependant); and b two-thirds of the net emoluments received by him in respect of such week from work or employment undertaken as a result of the loss of employment. 2 For the purposes of this Regulation the weekly rate of a person's net emoluments shall be deemed to be seven three hundred and sixty-fifths of those emoluments. Period for payment of resettlement compensation 8 Subject to the provisions of these Regulations, resettlement compensation shall be payable to a person only in respect of the period of thirteen weeks next succeeding the week in which he lost the employment in respect of which his claim has been made or, in the case of a person who has attained the age of forty-five years, the said thirteen weeks and one additional week for every year of his age after attaining the age of forty-five years and before the date of the loss of employment, subject to a maximum addition of thirteen such weeks. Additional provisions relating to resettlement compensation 9 1 Resettlement compensation shall be payable to a person at intervals equivalent to those at which the emoluments of his employment were previously paid or at such other intervals as may be agreed between the person and the compensating authority. 2 Resettlement compensation shall be terminated by the compensating authority — a if without reasonable cause the recipient fails to comply with any of the provisions of Regulation 10, or b if on being requested to do so, he fails to satisfy the compensating authority that, so far as he is able, he is seeking suitable employment. Claimant for resettlement compensation to furnish particulars of employment 10 Every person claiming or in receipt of resettlement compensation shall (after as well as before the compensation begins to be paid) — a forthwith supply the compensating authority in writing with particulars of any employment which he obtains or of any change in his earnings from any such employment, and b if the compensating authority so require, so long as he is out of employment and is not receiving sickness or injury benefit, register with the Department of Employment and Productivity. PART IV LONG-TERM COMPENSATION FOR LOSS OF EMPLOYMENT OR LOSS OR DIMINUTION OF EMOLUMENTS Long-term compensation 11 The compensating authority shall, subject to the provisions of these Regulations, pay long-term compensation to any person to whom these Regulations apply and who satisfies the conditions set out in Regulation 12. Conditions for payment of long-term compensation 12 1 Without prejudice to any other requirement of these Regulations, the conditions for the payment of long-term compensation to any person are that — a he has, not later than ten years after the material date, suffered loss of employment or loss or diminution of emoluments in consequence of Part II of the Law of Property Act 1969; b he has not, save as is provided in Regulation 28, at the date of the loss or diminution attained normal retiring age; c he has been, for a period beginning on a date not less than eight years immediately before the material date and ending on the date when the loss or diminution occurred, continuously engaged (without a break of more than twelve months at any one time) for the whole or part of his time in relevant employment; and for this purpose the expression “ relevant employment ” includes any period of national service immediately following such employment; d he has made a claim for such compensation in accordance with the provisions of Part VII of these Regulations not later than two years after the loss or diminution which is the cause of the claim; and e if the cause of the claim for compensation is loss of employment — i the loss has occurred for some reason other than misconduct or incapacity to perform such duties as, immediately before the loss, he was performing or might reasonably have been required to perform; and ii he has not been offered any reasonably comparable employment under the Crown or in the service of a local authority. 2 Regulation 6(2) and (3) (which relate to offers of employment) shall apply for the purposes of this Regulation in ascertaining whether a person has been offered reasonably comparable employment. 3 Claims for long-term compensation for loss of employment shall in all respects be treated as claims for such compensation for the loss of emoluments occasioned thereby and the provisions of these Regulations shall apply to all such claims accordingly. Factors to be considered in determining payment of long-term compensation 13 1 For the purpose of determining the amount (subject to the limits set out in these Regulations) of long-term compensation, if any, payable under these Regulations to any person for loss or diminution of emoluments, the compensating authority shall have regard to such of the following factors as may be relevant, that is to say — a the conditions upon which the person held the employment which he has lost, including in particular its security of tenure, whether by law or practice; b the emoluments and other conditions, including security of tenure, whether by law or practice, of any work or employment undertaken by the person as a result of the loss of employment; c the extent to which he has sought suitable employment and the emoluments which he might have acquired by accepting other suitable employment offered to him; d all the other circumstances of his case. 2 In ascertaining for the purposes of paragraph (1)(c) whether a person has been offered suitable employment, Regulation 6(2) and (3) shall apply as they apply for the purpose of ascertaining whether employment is reasonably comparable with employment which has been lost. Amount of long-term compensation payable for loss of emoluments 14 1 Long-term compensation for loss of emoluments shall, subject to the provisions of these Regulations, be payable until the normal retiring age or death of a person to whom it is payable, whichever first occurs, and shall not exceed a maximum annual sum calculated in accordance with the provisions of paragraphs (2) to (4). 2 The said maximum annual sum shall, subject as hereinafter provided, be the aggregate of the following sums, namely — a for every year of the person's reckonable service, one-sixtieth of the net emoluments which he has lost; and b in the case of a person who has attained the age of forty years at the date of the loss, a sum calculated in accordance with the provisions of paragraph (3) appropriate to his age at that date, but the said maximum annual sum shall in no case exceed two-thirds of the net emoluments which the person has lost. 3 The sum referred to in paragraph (2)(b) shall be — a in the case of a person who has attained the age of forty years but has not attained the age of fifty years at the date of the loss, the following fraction of the net emoluments which he has lost — i where his reckonable service is less than ten years, one-sixtieth for each year of such service after attaining the age of forty years; or ii where his reckonable service amounts to ten years but is less than fifteen years, one-sixtieth for each year of such service after attaining the age of forty years and one additional sixtieth; or iii where his reckonable service amounts to fifteen years but is less than twenty years, one-sixtieth for each year of such service after attaining the age of forty years and two additional sixtieths; or iv where his reckonable service amounts to twenty years or more, one-sixtieth for each year of such service after attaining the age of forty years and three additional sixtieths; but the sum so calculated shall not in any case exceed one-sixth of the said net emoluments; b in the case of a person who has attained the age of fifty years but has not attained the age of sixty years at the date of the loss, one-sixtieth of the said net emoluments for each year of his reckonable service after attaining the age of forty years, up to a maximum of fifteen such years; and c in the case of a person who has attained the age of sixty years at the date of the loss, one-sixtieth of the said net emoluments for each year of his reckonable service after attaining the age of forty five years. 4 Where a person has become entitled (whether immediately or prospectively on attaining some greater age) to a superannuation benefit by way of annual amounts under a pension scheme associated with the employment which he has lost, the maximum annual sum referred to in paragraph (1) shall be the maximum sum calculated under paragraphs (2) and (3) as if he had not become so entitled. 5 Where long-term compensation is payable in respect of any period and resettlement compensation has also been paid in respect of that period, the long-term compensation shall be limited to the amount (if any) by which it exceeds the resettlement compensation paid as aforesaid. 6 Long-term compensation shall be payable to a person at intervals equivalent to those at which the emoluments of his employment were previously paid or at such other intervals as may be agreed between the person and the compensating authority. Long-term compensation for diminution of emoluments 15 Long-term compensation for diminution of emoluments in respect of any employment shall, subject to the provisions of these Regulations, be awarded and paid in accordance with the following provisions: — a the compensation shall consist of an annual sum which shall be payable to a person at intervals equivalent to those at which the emoluments of his employment are or were previously paid or at such other intervals as may be agreed between the person and the compensating authority and shall, subject to the provisions of these Regulations, be payable until normal retiring age or death, whichever first occurs; and b the said annual sum shall not exceed the maximum annual sum which could have been awarded under Regulation 14 if the person had suffered loss of employment and the loss of emoluments occasioned thereby had been equivalent to the amount of the diminution; Provided that no compensation shall be payable if the emoluments have been diminished by less than 2½ per cent. Date from which long-term compensation is to be payable 16 1 Long-term compensation shall be payable with effect from the date of the claim or from any earlier date permitted by the succeeding provisions of this Regulation. 2 Where a claim for long-term compensation is duly made within thirteen weeks of the occurrence of the loss or diminution which is the cause of the claim, the award shall be made retrospective to the date on which the loss or diminution occurred. 3 Where a claim for long-term compensation is made after the expiry of the period mentioned in paragraph (2), the award may, at the discretion of the compensation authority, be made retrospective to a date not earlier than thirteen weeks prior to the date on which the claim was made: Provided that if the compensating authority are satisfied that the failure to make the claim within the period mentioned in paragraph (2) was due to ill-health or other circumstances beyond the claimant's control, the award may be made retrospective to a date not earlier than that on which the loss or diminution occurred. PART V RETIREMENT COMPENSATION AND PAYMENTS ON DEATH Entitlement to retirement compensation and other payments 17 1 The compensating authority shall, subject to the provisions of these Regulations, pay retirement compensation to any person to whom this Part of these Regulations applies, and shall make the other payments for which provision is made in Regulations 25 to 29. 2 Save as is provided in Regulation 28, this Part of these Regulations applies to a pensionable officer who satisfies the conditions set out in Regulation 12. 3 Regulation 13 shall apply in relation to retirement compensation as it applies in relation to long-term compensation. Additional factors governing payment of retirement compensation 18 1 Where retirement compensation is payable under any one of Regulations 19, 20, 21 and 22, such compensation shall not be payable under any other of those Regulations. 2 If a person has attained the age of forty years at the date on which he lost his employment or suffered a diminution of his emoluments, the compensating authority, in calculating the amount of the retirement compensation payable to him, shall credit him with additional years of service or an additional period of contribution on the following basis, namely — a two years, whether or not he had completed any years of service after attaining the age of forty years, and b two years for each of the first four completed years of his reckonable service between the date when he attained the age of forty years and the date of the loss or diminution, and c one year for each such year of service after the fourth; but the additional years of service or periods of contribution so credited shall not exceed the shortest of the following periods, namely — i such number of years as, when added to his pensionable service, would amount to the maximum period of such service which would have been reckonable by him had he continued in his employment until attaining normal retiring age, or ii the number of years of his reckonable service, or iii fifteen years; and in calculating the amount of any retirement compensation payable to him any period so added shall be aggregated with any years of service or period of contribution entailing reduction of the relevant pension or retiring allowance because of a retirement pension payable under section 30 of the National Insurance Act 1965. 3 When retirement compensation is awarded, or when an award is reviewed under Regulation 34, the additional compensation payable in consequence of any years of service or period of contribution credited to a person under paragraph (2) may be reduced or withheld to such an extent as the compensating authority may think reasonable having regard to the pension scheme (if any) associated with any further employment obtained by him. 4 If under his last relevant pension scheme the amount of any benefit to which a person might have become entitled could have been increased at the discretion of the authority administering the pension scheme or of any other body, the compensating authority may increase, to an extent not exceeding that to which his accrued pension, accrued retiring allowance, accrued incapacity pension or accrued incapacity retiring allowance might have been increased or supplemented, the corresponding component of any retirement compensation payable to him; and in this connection the compensating authority shall have regard to the terms of any relevant resolutions of the authority or body with regard to the increase of benefits and to the provisions of any enactment protecting the interests of that person. 5 If under his last relevant pension scheme a person would have been entitled to surrender a proportion of any pension which might have become payable to him in favour of his spouse or any dependent, then, if he so desires and informs the compensating authority by notice in writing accordingly within one month after becoming entitled to retirement compensation under these Regulations, he may surrender a proportion of so much of the said compensation as is payable by way of an annual sum on the like terms and conditions and in consideration of the like payments by the compensating authority as if the said annual sum were a pension to which he had become entitled under the said pension scheme. 6 In calculating for the purposes of Regulation 19, 20 or 21 the amount of the annual sum which is equal to a person's accrued pension, no account shall be taken of any reduction falling to be made in that pension by reason of the provisions of any Act relating to National Insurance until the person reaches the age at which under his last relevant pension scheme the pension would have been so reduced. 7 In paragraph (2) the expression “ reckonable service ” includes any period of employment of which account has been taken or is required to be taken in calculating the amount of any superannuation benefit to which a person has become entitled under a pension scheme associated with the employment which he has lost or, as the case may be, the employment in which his emoluments were diminished. Retirement compensation for loss of emoluments payable to pensionable officer on attainment of normal retiring age 19 1 Subject to the provisions of these Regulations, when a person to whom this Part of these Regulations applies reaches normal retiring age, the retirement compensation payable to him for loss of emoluments shall be — a an annual sum equal to the amount of his accrued pension, and b a lump sum equal to the amount of his accrued retiring allowance (if any). 2 Where an annual sum is payable under this Regulation in respect of any period and resettlement compensation is also payable in respect of that period, the said annual sum shall be limited to the amount (if any) by which it exceeds the resettlement compensation so payable as aforesaid. Retirement compensation payable to pensionable officer on his becoming incapacitated or reaching minimum pensionable age 20 1 Where a person to whom this Part of these Regulations applies and who has suffered loss of employment before attaining what would have been his normal retiring age — a becomes incapacitated in circumstances in which, if he had continued in the employment which he has lost, he would have become entitled to a pension under his last relevant pension scheme; or b attains the age which, had he continued to serve in the employment which he has lost, would have been his minimum pensionable age, he shall be entitled on the happening of either event to claim, in lieu of any compensation to which he would otherwise be entitled under these Regulations — i in the case mentioned in sub-paragraph (a) of this paragraph, an annual sum equal to the amount of his accrued incapacity pension and a lump sum equal to the amount of his accrued incapacity retiring allowance (if any), and ii in the case mentioned in sub-paragraph (b) of this paragraph, an annual sum equal to the amount of his accrued pension and a lump sum equal to the amount of his accrued retiring allowance (if any), subject however to the conditions specified in paragraph (5). 2 On receipt of a claim under paragraph (1) the compensating authority shall consider whether the claimant is a person to whom that paragraph applies, and within thirteen weeks after the date of the receipt of the claim — a if they are satisfied that he is not such a person, they shall notify him in writing accordingly; or b if they are satisfied that he is such a person, they shall assess the amount of compensation payable to him and notify him in writing accordingly, and any such notification shall, for the purposes of these Regulations, be deemed to be a notification by the authority of a decision on a claim for compension. 3 The compensating authority may require any person who makes a claim under paragraph (1)(a) to submit himself to a medical examination by a registered medical practitioner selected by that authority, and, if he does so, they shall also offer the person an opportunity of submitting a report from his own medical adviser as a result of an examination by him, and the authority shall take that report into consideration together with the report of the medical practitioner selected by them. 4 If a person wishes to receive compensation under this Regulation, he shall so inform the compensating authority in writing within one month from the receipt of a notification under paragraph (2) or, where the claim has been the subject of an appeal, from the decision of the tribunal thereon; and the compensation shall be payable as from the date on which the compensating authority received the claim. 5 The calculation of compensation under this Regulation shall be subject to the following conditions — a where the compensating authority, by virtue of Regulation 18, have credited the person with additional years of service or an additional period of contribution, no account shall be taken of any additional years or period beyond the number of years which he could have served, had he not lost his employment, before the date on which the claim was received by the compensating authority; and b if, by reason of any provision of the relevant pension scheme for a minimum benefit, the amount of any such pension or retiring allowance is in excess of that attributable to the person's actual service, no account shall be taken of any such additional years or period except to the extent (if any) by which they exceed the number of years represented by the difference between his actual service and the period by reference to which the minimum benefit has been calculated; and c if the number of years by reference to which an accrued incapacity pension or accrued incapacity retiring allowance is to be calculated is less than any minimum number of years of qualifying service prescribed by the relevant pension scheme, the amount of such pension or retiring allowance shall, notwithstanding any minimum benefit prescribed by the pension scheme, not exceed such proportion of such minimum benefit as the number of years of pensionable service bears to the minimum number of years of qualifying service. Option to take retirement compensation prematurely 21 1 If a person to whom this Part of these Regulations applies has suffered loss of employment after attaining the age of fifty years and so requests the compensating authority by notice in writing, he shall be entitled, as from the date on which the compensating authority receives such notice, to an annual sum equal to the amount of his accrued pension and a lump sum equal to the amount of his accrued retiring allowance (if any), and in that event he shall not be entitled to receive any further payment of long-term compensation after that date: Provided that — i in calculating the amount of the compensation payable to a person who has given such notice as aforesaid no account shall be taken of any additional years of service or period of contribution credited to him under Regulation 18; and ii where the person has claimed long-term compensation the said notice shall be given not later than two years after the decision on the claim or, where the decision has been reviewed under Regulation 34(3), not later than two years after the review, or if there has has been more than one such review, after the latest. 2 Regulation 20(2) shall apply in relation to a notice given under the last foregoing paragraph as it applies to a claim made under paragraph (1) of that Regulation. 3 Where an annual sum is payable under this Regulation in respect of any period and resettlement compensation is also payable in respect of that period, the said annual sum shall be limited to the amount (if any) by which it exceeds the resettlement compensation so payable as aforesaid. Retirement compensation for diminution of emoluments 22 1 A person to whom this Part of these Regulations applies and who has suffered a diminution of his emoluments shall be entitled to receive retirement compensation in accordance with the provisions of this Regulation. 2 The provisions of Regulations 19 and 20 shall apply to any such person as if he had suffered loss of employment immediately before the diminution occurred; but the amount of the retirement compensation payable shall be the amount which would have been payable in respect of loss of employment multiplied by a fraction of which — a the numerator is the amount by which his emoluments have been diminished, and b the denominator is the amount of his emoluments immediately before they were diminished. For the purpose of this calculation no account shall be taken of any reduction which might otherwise fall to be made in the accrued pension or accrued incapacity pension because of a retirement pension payable under section 30 of the National Insurance Act 1965. 3 No compensation shall be payable under this Regulation — a if the person's emoluments have been diminished by less than 2½ per cent., or b if the person had continued to pay superannuation contributions as if his emoluments had not been diminished. Superannuation contributions 23 1 A person entitled to retirement compensation under Regulation 19, 20 or 21 shall pay to the compensating authority an amount equal to any sum which was paid to him by way of return of superannuation contributions, including any interest, after ceasing to be employed, and the compensating authority may at his request repay that amount to him at any time before he becomes entitled as aforesaid, but if that amount is not paid to the compensating authority or is repaid by them to the person, the compensation shall be reduced by an annual amount the capital value of which is equal to the amount of the said superannuation contributions. 2 For the purposes of this Regulation the expression “ superannuation contributions ” shall include payments made by the person in respect of added years and any additional contributory payments made by him. Retirement compensation of a person who obtains further pensionable employment 24 1 Where a person to whom this Part of these Regulations applies, after suffering loss of employment or diminution of emoluments, enters employment in which he is subject to a pension scheme and thereafter becomes entitled to reckon for the purposes of that scheme any service or period of contribution which falls to be taken into account for the purpose of assessing the amount of any retirement compensation payable to him, his entitlement to retirement compensation shall be reviewed and no retirement compensation shall be payable in respect of such service or period unless the annual rate of the emoluments to which he was entitled immediately before such loss or diminution exceeds the annual rate on entry of the emoluments of the new employment by more than 2½ per cent. of such first mentioned emoluments, and any retirement compensation so payable to him shall, in so far as it is calculated by reference to remuneration, be calculated by reference to the difference between the said annual rates: Provided that — i if on entering the new employment a person — a becomes a contributory employee or local Act contributor, and b becomes entitled to reckon as non-contributing service, or as service at half-length for purposes of a local Act scheme, any service or period of contribution which immediately before the loss of employment or the diminution of emoluments was reckonable as contributing service or a period of contribution, one-half of that service or period shall not be subject to the provisions of this paragraph; ii this paragraph shall not operate to increase the amount of any retirement compensation payable in respect of diminution of emoluments beyond the amount which would have been payable if the person had attained normal retiring age immediately before he ceased to hold the employment in which he suffered the diminution of emoluments. 2 No retirement compensation shall be payable in the circumstances mentioned in paragraph (1) if the person has continued to pay superannuation contributions as if his emoluments had not been diminished. Compensation payable to widow or dependants of a claimant 25 1 Payments in accordance with this Regulation and Regulations 26 and 27 shall be made to or for the benefit of the widow, child or other dependant or to the personal representatives of a person to whom this Part of these Regulations applies or, as the case may be, to trustees empowered by such a person to stand possessed of any benefit under his last relevant pension scheme. 2 If the widow, child or other dependant of that person might have become entitled to a pension under his last relevant pension scheme, the widow, child or other dependant, as the case may be, shall be entitled to receive an annual sum equal to the prescribed proportion of any retirement compensation by way of annual amounts payable to the person under Regulation 19, 20, 21 or 22 immediately before his death or, if he dies before becoming entitled to receive compensation under any of those Regulations, the prescribed proportion of the compensation by way of annual amounts which he would have received under Regulation 20 or 22 had he become entitled thereto immediately before his death: Provided that — i where any retirement compensation has been surrendered under Regulation 18(5) or compounded under Regulation 35, any sum payable under this Regulation shall be calculated as if such surrender or compounding had not taken place, and ii in calculating the sum payable as aforesaid it shall be assumed that the retirement compensation payable, or which would have been payable, to a person under Regulation 19, 20, 21 or 22 had been such sum as would have been payable if the accrued pension or accrued incapacity pension had not been reduced by reason of the provisions of any Act relating to National Insurance. 3 Any annual sum payable to or for the benefit of a widow, child or other dependant under this Regulation shall cease to be payable in any circumstances in which a corresponding pension under the last relevant pension scheme would have ceased to be payable; and where that scheme provides for payment of the pension to any person on behalf of a child or other dependant, any annual sum payable under this Regulation to a child or other dependant shall be paid to that person on behalf of the child or dependant in the like manner and for the like period as is provided in the pension scheme. 4 Except where the compensation has been reduced under Regulation 23, compensation payable under this Regulation and Regulation 26 shall in the aggregate be reduced by an amount the capital value whereof is equal to the amount of any superannuation contributions as defined in Regulation 23(2) returned to the person in respect of whom the compensation is payable and either not paid to the compensating authority or repaid to that person by the compensating authority, the compensation under each such Regulation being reduced in proportion to the capital value of each amount. 5 In this Regulation “ prescribed proportion ” means the proportion which, by the provisions contained in the last relevant pension scheme of a person to whom this Part of these Regulations applies, the pension payable to his widow, child or other dependant is to bear to that person's pension. Compensation where death grant would have been payable 26 1 If the widow, the personal representatives of a person to whom this Part of these Regulations applies or trustees empowered by such a person to stand possessed of any benefit under his last relevant pension scheme, might have become entitled to a death grant under that scheme, she or they, as the case may be, shall be entitled to receive a sum calculated in accordance with the provisions of Regulation 25(4) and paragraph (2) of this Regulation. 2 The amount of the sum referred to in paragraph (1) shall be ascertained in accordance with the method of calculation prescribed by the last relevant pension scheme for the ascertainment of death grant as if the person had died immediately before losing his employment, subject to the following modifications — a except where the person had been in receipt of retirement compensation under Regulation 21, account shall be taken of any additional years of service or period of contribution credited to him under Regulation 18(2) — i in the case of a person who had been in receipt of retirement compensation under Regulation 20, to the extent of the period between the loss of employment and the date of the claim made under that Regulation; and ii in any other case, to the extent of the period between the loss of employment and the person's death; b if the number of years of the person's service or period of contribution is less than the minimum number of years of qualifying service or period prescribed by the pension scheme for the receipt of a death grant, the said sum shall not exceed such proportion of the death grant calculated as aforesaid as the number of years of the person's pensionable service or period of contribution bears to the minimum number of years of qualifying service or period prescribed by the pension scheme; and c there shall be deducted from such sum the amount of any retirement compensation paid to the person under Regulation 19, 20 or 21, or, where any part of the compensation had been surrendered under Regulation 18(5), the amount which would have been so paid but for any such surrender. 3 For the purpose of calculating such death grant, an annual sum payable under Regulation 25 to or for the benefit of the widow, child or dependant shall be deemed to be a pension payable to or for the benefit of the widow, child or dependant, as the case may be. 4 In the case of a person who has suffered diminution of emoluments, the sum payable under this Regulation to his widow or personal representatives shall be the sum which would have been payable if he had suffered loss of employment, multiplied by the fraction specified in Regulation 22(2); but no sum shall be payable under this paragraph in the circumstances described in Regulation 22(3)(a) or (b). Balance payable to claimant's widow or personal representatives 27 1 If no annual sum is payable to the widow, child or other dependant of any person under Regulation 25 and no sum is payable under Regulation 26 and the person dies before he has received in the aggregate by way of retirement compensation a sum equivalent to the amount of any contributions repaid by him under Regulation 23, together with compound interest thereon calculated at the rate of 3 per cent. per annum with half-yearly rests up to the date of his death as from the 1st April or the 1st October following the half year in which the amount was paid, there shall be paid to his personal representatives the difference between the aggregate amount received by way of retirement compensation as aforesaid and the said equivalent sum. 2 If an annual sum becomes payable to a widow under Regulation 25 and on her re-marriage or death the sum ceases to be payable, and any sum payable to a child or other dependant under that Regulation has ceased to be payable, and if the aggregate amount of the payments which were made as aforesaid to her husband by way of retirement compensation and to the widow, personal representatives or trustees under Regulation 26 is less than a sum equivalent to the amount which would have been payable to the personal representatives under that Regulation if no annual sum had been payable under Regulation 25, there shall be paid to her or her personal representatives the difference between such aggregate amount and the said equivalent sum. 3 For the purposes of this Regulation a person who has surrendered any part of his retirement compensation under Regulation 18(5) shall be deemed to have received during any period the amount of compensation for that period which he would have received but for any such surrender. Compensation payable to non-pensionable officer on reaching retiring age 28 1 Where a person who is not a pensionable officer is receiving long-term compensation for loss of employment and attains normal retiring age, the compensating authority may, if satisfied that the person would, but for the loss, have continued in the employment he has lost for a substantial period beyond that age, continue to pay compensation to him for the remainder of his life at half its former rate. 2 Where a person who is not a pensionable officer suffers loss of employment on or after attaining normal retiring age, the compensating authority may, if satisfied that the person would in the normal course have continued in the employment he has lost for a further substantial period, pay compensation to him for the remainder of his life at half the rate to which he would have been entitled under Regulation 14 had he not attained normal retiring age at the date on which he lost his employment. Persons subject to policy schemes 29 1 Regulations 19, 20, 21, 22 and 26 shall not apply to a person (in this Regulation referred to as a “ policy scheme participant ”) who had been participating in a scheme associated with his employment for providing superannuation benefits by means of contracts or policies of insurance, and who, after the loss of his employment or the diminution of his emoluments, continued to participate in that scheme, or became entitled to a benefit or prospective benefit thereunder other than a return of contributions. 2 If a policy scheme participant has lost his employment, the compensating authority may, if the relevant scheme so permits, make such payments to or in respect of him, whether by way of the payment of premiums or otherwise, as are actuarially equivalent to the amounts by which his retirement compensation might have been increased under Regulation 18(2) or (4) had he been a person to whom Regulation 19, 20 or 21 applied. 3 If a policy scheme participant has suffered a diminution of his emoluments, the compensating authority may, if the relevant scheme so permits, make such payments to or in respect of him, whether by way of the payment of premiums or otherwise, as will secure to him the like benefits as if his emoluments had not been diminished. 4 If a policy scheme participant becomes entitled to a benefit under such a scheme as is mentioned in paragraph (1) before reaching normal retiring age, the compensating authority may reduce any long-term compensation payable to him by the amount of such benefit. Intervals for payment of compensation under Part V 30 Any compensation awarded as an annual sum under this Part of these Regulations to or in respect of any person shall be payable at intervals equivalent to those at which the corresponding benefit would have been payable under the person's last relevant pension scheme or at such other intervals as may be agreed between the person entitled to receive the compensation and the compensating authority. PART VI ADJUSTMENT, REVIEW AND COMPOUNDING OF COMPENSATION Adjustment of compensation where superannuation benefit is also payable 31 1 Where any period of service of which account was taken in calculating the amount of any compensation payable under Part IV or V of these Regulations is subsequently taken into account for the purpose of calculating the amount of any superannuation benefit payable to or in respect of any person in accordance with a pension scheme associated with any employment undertaken subsequently to the loss of employment or diminution of emoluments which was the subject of the claim for compensation, the compensating authority may in accordance with this Regulation withhold or reduce the compensation payable in respect of any period for which such superannuation benefit is being received. 2 If the part of any superannuation benefit by way of annual amounts which is attributable to a period of service mentioned in paragraph (1) equals or exceeds the part of any compensation by way of annual amounts which is attributable to the same period, that part of the compensation may be withheld, or, if such part of the superannuation benefit is less than such part of the compensation, the compensation may be reduced by an amount not exceeding such part of the superannuation benefit. 3 In the case of a death benefit payable in respect of any person, the sum payable under Regulation 26 may be reduced by an amount not greater than the proportion of the death benefit which the period of service mentioned in paragraph (1) bears to the total period of service of which account was taken in the calculation of the death benefit. 4 In addition to any reduction authorised by paragraph (2) or (3), if, in the circumstances mentioned in paragraph (1), compensation by way of annual amounts is attributable in part to any provision of the relevant pension scheme for a minimum benefit, the compensation may be reduced by an amount not exceeding that part. 5 Where any additional years of service or period of contribution have been credited to a person under Regulation 18(2), if the number of such years or such period is equal to or less than the period spent in the subsequent employment mentioned in paragraph (1), the compensation by way of annual amounts may be reduced (in addition to any other reduction authorised by this Regulation) by an amount not exceeding that attributable to the additional years or period so credited or, if the number of such years or such period is greater than the period spent in the subsequent employment, by such proportion of that amount as the period spent in the subsequent employment bears to the number of additional years or the period so credited. 6 Where compensation has been calculated in accordance with Regulation 24, the provisions of this Regulation shall only apply — a in relation to such part (if any) of the superannuation benefit as is attributable to annual emoluments in excess of those to which the person was entitled on entering the new employment referred to in Regulation 24, and b in relation to any non-contributing service which becomes reckonable as contributing service pursuant to section 2 of the Local Government Superannuation Act 1953. 7 Where compensation is payable in respect of diminution of emoluments, the provisions of this Regulation shall apply only in relation to such part (if any) of the superannuation benefit as is attributable to annual emoluments in excess of those to which the person was entitled immediately prior to the diminution. Reduction of compensation in certain cases 32 1 If under a person's last relevant pension scheme any benefit for which the scheme provided would have been subject to reduction or suspension on his taking up other specified employment, any retirement compensation to which he is entitled for loss of employment or diminution of emoluments shall, where such employment is taken up, be reduced or suspended in the like manner and to the like extent: Provided that in calculating the amount of the reduction there shall be aggregated with the emoluments of the employment taken up the amount of any superannuation benefit by way of annual amounts payable to the person under a pension scheme associated with the employment which he has lost or, as the case may be, the employment in which the emoluments were diminished. 2 There shall be deducted from the retirement compensation payable to any person any additional contributory payments remaining unpaid at the date when he suffered loss of employment; and any such payments not recovered at the date of his death shall be deducted from any compensation payable in respect of that person under Regulation 25, 26 or 27(2). 3 Where a person is entitled to compensation under these Regulations and the circumstances are such that he is also entitled to — a a redundancy payment under the Redundancy Payments Act 1965, or b any similar payment in consequence of the loss of his employment under any contract or arrangement with the authority by whom he was employed (other than payments by way of a return of contributions under a pension scheme), or c any payment under or by virtue of the provisions of any enactment relating to the reinstatement in civil employment of persons who have been in the service of the Crown, the compensation which would, apart from this paragraph, become due to the person, whether by instalments or lump sum or both, shall in the aggregate be reduced by the amount of the payments referred to in this paragraph. 4 Where compensation under these Regulations is payable to or in respect of any person, and that person or his widow, child or other dependant or his personal representatives or trustees such as are mentioned in Regulation 26(1) is or are also entitled (whether immediately or on the person's attaining some greater age) to a superannuation benefit under a pension scheme associated with the employment which he has lost — a any instalment of such compensation which is payable in respect of any period shall be reduced by the amount of the instalment of such superannuation benefit which is payable in respect of the same period; and b any such compensation which is payable as a lump sum shall be reduced by the amount of any lump sum superannuation benefit. 5 For the purposes of paragraph (4) no account shall be taken of any sum payable in consequence of the surrender by any person of part of his superannuation benefit under any provision in that behalf in the relevant pension scheme with a view to obtaining or increasing allowances for his widow, child or other dependant; and the person shall be deemed to have received during any period the amount of superannuation benefit which he would have received but for any such surrender. 6 Where in any week a person is entitled to long-term compensation for loss or diminution of emoluments and is also entitled to unemployment, sickness or injury benefit under any Act relating to National Insurance, other than a benefit claimable by him in respect of a dependant, there shall be deducted from the long-term compensation payable for that week a sum equal to the amount by which the aggregate of such National Insurance benefits claimable in respect of that week and the weekly rate at which the long-term compensation would be payable but for this Regulation exceeds two-thirds of the weekly rate of the net emoluments of the employment which he has lost or in which the emoluments have been diminished: Provided that this paragraph shall not apply in relation to any such sickness or injury benefit in so far as — i an equivalent sum is deducted from the emoluments of his current employment, and ii such deduction from those emoluments has not occasioned an increase in his long-term compensation. 7 In paragraph (6) the expression “ weekly rate ” means seven three hundred and sixty-fifths of the relevant annual rate. Notification of change of circumstances 33 Where — a a pensionable officer after suffering loss of employment or diminution of emoluments enters any employment referred to in Regulation 24 or becomes entitled to any superannuation benefit on ceasing to hold such employment, or b a person entitled to long-term compensation enters employment the remuneration whereof is payable out of public funds or ceases to hold such employment, or receives any increase in his remuneration in such employment, or c a person entitled to retirement compensation enters employment in which the compensation is subject to reduction or suspension under Regulation 32, or ceases to hold such employment, or receives any increase in his remuneration in such employment, or d a person entitled to long-term compensation starts to receive any benefit, any increase in benefit or any further benefit, under any Act relating to National Insurance, he shall forthwith inform the compensating authority in writing of that fact. Review of awards of long-term or retirement compensation 34 1 The compensating authority shall, within a period of two years after the date on which any decision on a claim for long-term or retirement compensation for loss of employment (other than compensation payable under Regulation 21) is notified to a claimant under Regulation 36, or within such longer period as is specified in the subsequent provisions of this Regulation, and at intervals of not more than six months, review their decision or, where the claim has been the subject of an appeal, the decision of the tribunal, and these Regulations shall apply in relation to any such review as they apply in relation to the initial determination of the claim; and on such review, in the light of any material change in the circumstances of the case, compensation may be awarded, or compensation previously awarded may be increased, reduced or discontinued, subject to the limits set out in these Regulations. 2 The person to whom the decision relates may require the compensating authority to carry out the review mentioned in paragraph (1) at any time within the period of two years mentioned in that paragraph if he considers that there has been a change in the circumstances of his case which is material for the purposes of these Regulations. 3 The compensating authority shall carry out a review in accordance with paragraph (1), notwithstanding the expiration of the period mentioned in that paragraph, if — a the emoluments of employment or work undertaken as a result of the loss of employment were taken into account in determining the amount of any compensation awarded, and b such employment or work has been lost or the emoluments thereof reduced, otherwise than by reason of misconduct or incapacity to perform such duties as the person might reasonably have been required to perform, and c the compensating authority are satisfied that such loss or reduction is causing him hardship, and where any decision is so reviewed, the decision shall be subject to further review in accordance with paragraph (1) as if the review carried out under this paragraph had been the initial determination of the claim. 4 Paragraphs (1) and (2) shall apply in relation to any decision on a claim for long-term or retirement compensation in respect of diminution of emoluments as they apply in relation to any decision mentioned in paragraph (1): Provided that — i where the person to whom the decision relates ceases to hold the employment in which his emoluments were diminished, a review shall be held within three months after that date, but no further review shall be held after the expiry of that period, and ii while that person continues to hold that employment, there shall be no limit to the period within which a review may take place. 5 Notwithstanding anything contained in the foregoing provisions of this Regulation, the compensating authority shall review a decision (whether of the authority or the tribunal) on a claim for long-term compensation for loss of employment or diminution of emoluments after the expiration of any period within which a review is required to be made if at any time — a the person to whom the decision relates becomes engaged in employment (hereinafter referred to as his “ current employment ”) the remuneration whereof is payable out of public funds and which he has undertaken subsequent to the loss or diminution, and b the aggregate of the net emoluments of his current employment, any superannuation benefit by way of annual amounts payable to him in respect of the employment which he has lost or the employment in which his emoluments have been diminished and the long-term compensation payable to him exceeds the net emoluments of the employment which he has lost or, as the case may be, in which the emoluments have been diminished. 6 The compensating authority shall further review any decision reviewed under paragraph (5) whenever the net emoluments of the person's current employment are increased. 7 If on any review under paragraph (5) or (6) the compensation is reduced, it shall not be reduced below the amount by which the net emoluments of the person's current employment, together with any superannuation benefit by way of annual amounts payable to him in respect of the employment which he has lost or the employment in which his emoluments have been diminished, falls short of the net emoluments of the employment he has lost, or as the case may be, in which the emoluments have been diminished. 8 The compensating authority shall give to a person to whom a decision relates not less than fourteen days' notice of any review of that decision to be carried out under this Regulation unless the review is carried out at that person's request. 9 Nothing in this Regulation shall preclude the making of any adjustment of compensation required by Regulation 31 or 32. Compounding of awards 35 1 In a case where an annual sum which has been or might be awarded under these Regulations does not exceed £26, the compensating authority may, at their discretion, compound their liability in respect thereof by paying a lump sum equivalent to the capital value of the annual sum and, if any lump sum payment has been or might be awarded in addition to such annual sum under Regulation 19, 20, 21 or 22, the compensating authority may likewise discharge their liability in respect thereof by an immediate payment. 2 In any other case, if the person who has been awarded long-term or retirement compensation requests them to do so, the compensating authority may, after having regard to the state of health of that person and the other circumstances of the case, compound up to one quarter of their liability to make payments under the award (other than payments to a widow, child or other dependant under Regulation 25) by the payment of an equivalent amount as a lump sum or, where any compensation has been awarded as a lump sum, by increasing that compensation to such equivalent amount; and in calculating for this purpose the liability of the compensating authority to make such payments, account shall be taken of the annual value of lump sum payments of compensation. 3 The making of a composition under paragraph (2) in relation to an award of long-term or retirement compensation shall not prevent the subsequent making of a composition under paragraph (1) in relation to that award, but subject as aforesaid not more than one composition may be made in relation to any award. PART VII PROCEDURE AND MISCELLANEOUS Procedure on making claims 36 1 Every claim for compensation under these Regulations and every request for a review of an award of long-term or retirement compensation shall be made in accordance with this Regulation. 2 Every such claim and request shall be made to the compensating authority in writing, shall set out the grounds on which the claim or request is made and shall state whether any other claim for compensation has been made by the claimant under these Regulations. 3 Resettlement compensation shall be claimed separately from any other form of compensation claimable under these Regulations. 4 The compensating authority shall consider any such claim or request in accordance with the relevant provisions of these Regulations and shall notify the person making the claim or request in writing of his decision — a in the case of a claim for resettlement compensation, not later than one month after the receipt of the claim, and b in the case of a claim for, or request for the review of an award of, compensation under Part IV or V of these Regulations, not later than thirteen weeks after the receipt of the claim or request, and c in any other case, as soon as possible after the decision; but the decision of the compensating authority shall not be invalidated by reason of the fact that notice of the decision is given after the expiry of the period mentioned in this paragraph. 5 Every notification of a decision by the compensating authority (whether granting or refusing compensation or reviewing an award, or otherwise affecting any compensation under these Regulations) shall contain a statement — a giving reasons for the decision, b showing how any compensation has been calculated and, in particular, if the amount is less than the maximum which could have been awarded under these Regulations, showing the factors taken into account in awarding that amount, and c directing the attention of the claimant to his right under Regulation 42, if he is aggrieved by the decision, to institute proceedings before a tribunal and giving him the address to which the application instituting such proceedings should be sent. Claimants to furnish information 37 1 Any person claiming or receiving compensation or whose award of compensation is being reviewed shall furnish all such information as the compensating authority may at any time reasonably require; and he shall verify the same in such manner, including the production of books or of original documents in his possession or control, as may be reasonably so required. 2 Any such person shall, on receipt of reasonable notice, present himself for interview at such place as the compensating authority may reasonably require; and any person who attends for interview may, if he so desires, be represented by his adviser. Procedure on death of claimant 38 1 In the event of the death of a claimant or of a person who, if he had survived, could have been a claimant, a claim for compensation under these Regulations may be continued or made, as the case may be, by his personal representatives. 2 Where any such claim is continued or made as aforesaid by personal representatives, the personal representatives shall, as respects any steps to be taken or thing to be done by them in order to continue or make the claim, be deemed for the purposes of these Regulations to be the person entitled to claim, but, save as aforesaid, the person in whose right they continue or make the claim shall be deemed for the purposes of these Regulations to be such person, and the relevant provisions of these Regulations shall be construed accordingly: Provided that the compensating authority may in any such case extend the period within which a claim is required to be made by Regulation 6 or 12. Calculation of service 39 1 For the purpose of determining the amount of any compensation payable in respect of the loss of an office to which, or of any two or more offices to which in the aggregate, a person devoted substantially the whole of his time, any previous period of part-time employment shall be treated as though it were whole-time employment for a proportionately reduced period. 2 For the purpose of making any calculation under these Regulations in respect of a person's reckonable service, all periods of such service shall be aggregate and, except where reference is made to completed years of service, if the aggregated service includes a fraction of a year, that fraction shall, if it equals or exceeds six months, be treated as a year, and shall in any other case be disregarded. Emoluments of part-time employments 40 In ascertaining for the purposes of these Regulations whether, and how far, the remuneration of alternative employment falls short of emoluments which have been lost where those emoluments were payable in respect of two or more part-time employments, the remuneration of the alternative employment or of the aggregate of two or more such employments shall be apportioned in the proportion which the emoluments of the part-time employments bore to each other. Compensation not assignable 41 Subject to any statutory provision in that behalf, any compensation to which a person becomes entitled under these Regulations shall be paid by the compensating authority and shall be payable to, or in trust for, the person who is entitled to receive it, and shall not be assignable: Provided that, without prejudice to any other right of recovery, any compensation paid in error to a person may be recovered by the compensating authority by deduction from any compensation payable to him under these Regulations. Right of appeal from decision of compensating authority 42 1 Every person who is aggrieved by any decision of the compensating authority with respect to a compensation question or by any failure on the part of the compensating authority to notify him of any such decision within the appropriate time prescribed by these Regulations, may within thirteen weeks of the notification to him of the decision or the expiry of the prescribed time, as the case may be, institute proceedings for the determination of the question by a tribunal in accordance with the Industrial Tribunals (Employment and Compensation) Regulations 1967 and these Regulations; and the tribunal shall determine the question accordingly. 2 For the purpose of any such proceedings a person or persons may be appointed to sit with the tribunal as assessor or assessors. 3 The compensating authority shall give effect to the decision of a tribunal subject to any modifications that may be required in consequence of any appeal from that decision on a point of law. Hailsham of St. Marylebone, C Dated 7th October 1970 SCHEDULE Regulation 2(2) TABLE I Table showing the capital value of an annual amount of £1 payable for life Capital value of £1 per annum payable for life Age Female Male £ s. d. £ s. d. Under 35 15 11 0 15 3 0 35 and under 40 15 2 0 14 12 0 40 and under 45 14 11 0 13 19 0 45 and under 50 13 18 0 13 2 0 50 13 9 0 12 11 0 51 13 5 0 12 7 0 52 13 2 0 12 3 0 53 12 18 0 11 18 0 54 12 14 0 11 14 0 55 12 10 0 11 9 0 56 12 6 0 11 5 0 57 12 2 0 11 0 0 58 11 18 0 10 15 0 59 11 13 0 10 10 0 60 11 8 0 10 5 0 61 11 4 0 10 0 0 62 10 19 0 9 14 0 63 10 14 0 9 9 0 64 10 8 0 9 3 0 65 10 3 0 8 18 0 66 9 18 0 8 12 0 67 9 12 0 8 7 0 68 9 7 0 8 1 0 69 9 1 0 7 16 0 70 8 15 0 7 10 0 NOTE: — This table is for use in connection with Regulation 35(1) and (2) for the compounding of annual retirement compensation which a person is currently entitled to receive under Regulation 19, 20, 21 or 22. Where the compensation is payable before age 60 (females), 65 (males) but will be reduced on the attainment of that age (in connection with National Insurance pension) the tables should be used in conjunction with Table II, i.e. Table II should be used for valuing that part of the compensation which ceases to be payable at 60 (65) and this table should be used for valuing the remainder. TABLE II Table showing the capital value of an amount of £1 per annum ceasing at age 60 (females), 65 (males) Capital Value Age Female Male £ s. d. £ s. d. Under 35 13 8 0 14 2 0 35 and under 40 12 5 0 13 3 0 40 and under 45 10 14 0 11 19 0 45 and under 50 8 13 0 10 8 0 50 7 3 0 9 6 0 51 6 12 0 8 18 0 52 6 0 0 8 9 0 53 5 7 0 7 19 0 54 4 13 0 7 10 0 55 3 18 0 6 19 0 56 3 3 0 6 8 0 57 2 6 0 5 17 0 58 1 9 0 5 4 0 59 10 0 4 11 0 60 — 3 17 0 61 — 3 2 0 62 — 2 6 0 63 — 1 8 0 64 — 10 0 NOTE: — This table is for use in connection with Regulation 35(1) and (2) for the compounding of any part of annual retirement compensation which will cease to be payable on the attainment of age 60 (females), 65 (males). Table I should be used in relation to the remainder of such compensation, i.e. the part which is payable for life — see note on that table. TABLE III Table showing the capital value of an annual amount of £1 payable to a widow until death or remarriage Age of widow at date of widowhood Capital value of £1 per annum as at date of widowhood £ s. d. 20 6 0 0 21 6 0 0 22 6 0 0 23 6 0 0 24 6 0 0 25 6 5 0 26 6 12 0 27 6 19 0 28 7 6 0 29 7 13 0 30 8 0 0 31 8 8 0 32 8 15 0 33 9 2 0 34 9 8 0 35 9 15 0 36 10 1 0 37 10 6 0 38 10 11 0 39 10 16 0 40 11 1 0 41 11 5 0 42 11 9 0 43 11 12 0 44 11 15 0 45 11 18 0 46 12 1 0 47 12 3 0 48 12 5 0 49 12 6 0 50 12 6 0 51 12 6 0 52 12 5 0 53 12 4 0 54 12 3 0 55 12 1 0 56 11 19 0 57 11 16 0 58 11 13 0 59 11 10 0 60 11 6 0 61 11 3 0 62 10 19 0 63 10 14 0 64 10 8 0 65 10 3 0 66 9 18 0 67 9 12 0 68 9 7 0 69 9 1 0 70 8 15 0 NOTE: — This table is for use in connection with Regulation 35(1) for compounding annual compensation to a widow under Regulation 25. It should also be used, where a reduction of compensation under Regulation 25(4) falls to be apportioned between the compensation payable under that Regulation and under Regulation 26, for ascertaining the capital value of annual compensation to a widow. TABLE IV Table showing the annual amount payable for life equivalent in value to a lump sum of £100 Annual sum, payable for life, equal in value to a lump sum of £100 Age Female Male £ s. d. £ s. d. Under 35 6 8 7 6 12 0 35 and under 40 6 12 5 6 17 0 40 and under 45 6 17 5 7 3 4 45 and under 50 7 3 11 7 12 8 50 7 8 8 7 19 4 51 7 10 11 8 1 11 52 7 12 8 8 4 7 53 7 15 0 8 8 1 54 7 17 6 8 10 11 55 8 0 0 8 14 8 56 8 2 7 8 17 9 57 8 5 3 9 1 10 58 8 8 1 9 6 0 59 8 11 8 9 10 6 60 8 15 5 9 15 1 61 8 18 7 10 0 0 62 9 2 8 10 6 2 63 9 6 11 10 11 8 64 9 12 4 10 18 7 65 9 17 0 11 4 9 66 10 2 0 11 12 7 67 10 8 4 11 19 6 68 10 13 11 12 8 5 69 11 1 0 12 16 5 70 11 8 7 13 6 8 NOTE: — This table is for use in connection with Regulation 23(1) for ascertaining the annual amount by which retirement compensation under Regulation 19, 20 or 21 is to be reduced where a claimant has not paid to the compensating authority an amount equal to any sum paid to him by way of superannuation contributions or that amount has been repaid to him by the compensating authority at his request. It should also be used in connection with Regulation 35(2) for calculating for the purposes of that paragraph the annual value of retirement compensation awarded as a lump sum. TABLE V Table showing the annual amount payable to a widow until death or remarriage equivalent in value to a lump sum of £100 Age of widow at date of widowhood Annual amount equal in value to a lump sum of £100 £ s. d. 20 16 13 4 21 16 13 4 22 16 13 4 23 16 13 4 24 16 13 4 25 16 0 0 26 15 3 0 27 14 7 9 28 13 14 0 29 13 1 5 30 12 10 0 31 11 18 1 32 11 8 7 33 10 19 9 34 10 12 9 35 10 5 2 36 9 19 0 37 9 14 2 38 9 9 7 39 9 5 2 40 9 1 0 41 8 17 9 42 8 14 8 43 8 12 5 44 8 10 3 45 8 8 1 46 8 6 0 47 8 4 7 48 8 3 3 49 8 2 7 50 8 2 7 51 8 2 7 52 8 3 3 53 8 3 11 54 8 4 7 55 8 6 0 56 8 7 4 57 8 9 6 58 8 11 8 59 8 13 11 60 8 17 0 61 8 19 5 62 9 2 8 63 9 6 11 64 9 12 4 65 9 17 0 66 10 2 0 67 10 8 4 68 10 13 11 69 11 1 0 70 11 8 7 NOTE: — This table is for use in connection with Regulation 25(4) for ascertaining the annual amount by which compensation to a widow is to be reduced in the circumstances described in that paragraph. If a reduction is required to be apportioned between compensation payable under Regulations 25 and 26, the capital value of annual compensation to a widow should be ascertained by reference to Table III TABLE VI Table showing, according to the outstanding period of long-term compensation, the capital value of each £100 of the total amount of long-term compensation compounded Outstanding number of complete years of long-term compensation Capital value of each £100 of the total amount of long-term compensation Female Male £ s. d. £ s. d. 0 98 8 0 98 4 0 1 95 4 0 94 16 0 2 92 2 0 91 10 0 3 89 4 0 88 6 0 4 86 8 0 85 8 0 5 83 16 0 82 14 0 6 81 6 0 80 2 0 7 78 18 0 77 14 0 8 76 14 0 75 8 0 9 74 12 0 73 4 0 10 72 12 0 71 4 0 11 70 12 0 69 6 0 12 68 16 0 67 10 0 13 67 0 0 65 14 0 14 65 6 0 64 2 0 15 63 14 0 62 10 0 16 62 2 0 61 0 0 17 60 12 0 59 12 0 18 59 4 0 58 4 0 19 57 16 0 56 18 0 20 56 10 0 55 12 0 21 55 4 0 54 8 0 22 54 0 0 53 4 0 23 52 16 0 52 0 0 24 51 12 0 50 18 0 25 50 10 0 49 18 0 26 49 8 0 48 18 0 27 48 8 0 47 18 0 28 47 8 0 46 18 0 29 46 8 0 45 18 0 30 45 10 0 45 0 0 NOTE: — This table is for use in connection with Regulation 35(1) and (2) for compounding awards of long-term compensation under Part IV of these Regulations. The total amount of the annual long-term compensation which is to be compounded must first be calculated, i.e. the amount which the person would receive on account of that compensation or the part of it which is to be compounded, if it were paid until “normal retiring age” (as defined in these Regulations). For each £100 so calculated, the lump sum payment will be the amount shown in the table according to the number of complete years in the period between the date of compounding and “normal retiring age”.

The Consular Relations (Privileges and Immunities) (Socialist Republic of Romania) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:- 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Socialist Republic of Romania) Order 1970 and shall come into operation on a date to be notified in the London, Edinburgh and Belfast Gazettes. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied to members of consular posts of the Socialist Republic of Romania and members of their families forming part of their households as if the reference to consular employees included members of the service staff who satisfy the conditions set out in paragraph 2(a) and (c) of this Article and also such members of the families of consular employees or of members of the service staff as form part of their households and satisfy the conditions set out in paragraph (2) of this Article. 2 The conditions referred to in paragraph (1) of this Article are that the person concerned — a is not a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b (in the case of a member of the family of a consular employee or of a member of the service staff) does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. 4 1 Subject to the provisions of paragraphs (2) and (3) of this Article — a Article 29 in Schedule 1 to the Diplomatic Privileges Act 1964 personal inviolability) shall be extended to the head of a consular post of the Socialist Republic of Romania; b paragraphs 1 and 3 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (immunity from jurisdiction) shall be extended to the head of a consular post of the Socialist Republic of Romania, and shall be extended to consular employees and to members of the service staff of a consular post of the Socialist Republic of Romania in respect of acts performed in the exercise of their functions, except that in any case the immunity from civil jurisdiction and from execution shall not apply — i to an action arising out of a contract which was not concluded, expressly or impliedly, on behalf of the Socialist Republic of Romania, or ii to an action brought by a third party in respect of damage resulting from an accident in the United Kingdom caused by a vehicle, vessel or aircraft; c Article 29 in Schedule 1 to the Diplomatic Privileges Act 1964 (personal inviolability) and the immunity from criminal jurisdiction accorded under paragraphs 1 and 3 of Article 31 in that Schedule shall be extended to members of the family of the head of a consular post of the Socialist Republic of Romania forming part of his household; d paragraph 2 of Article 31 in Schedule 1 to the Diplomatic Privileges Act 1964 (exemption from obligation to give evidence) shall be extended to consular employees and to members of the service staff of a consular post of the Socialist Republic of Romania to the extent that they shall be entitled to decline to give evidence concerning matters connected with the exercise of their functions or to produce official correspondence and documents relating thereto and to give evidence as expert witnesses with regard to the law of the Socialist Republic of Romania. 2 The provisions of paragraph (1)(a), (b) and (c) of this Article shall not apply to any person (other than a consular employee) who is a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, or who is permanently resident in the United Kingdom, and the provisions of paragraph (1)(c) of this Article shall not apply to any person who carries on any private gainful occupation in the United Kingdom. 3 Any privilege or immunity conferred by the provisions of paragraph (1) of this Article may be waived by the Socialist Republic of Romania. Waiver must always be express. A waiver shall be deemed to have been expressed by the Socialist Republic of Romania if it has been expressed by the head, or any person for the time being performing the functions of head, of the diplomatic mission in the United Kingdom of the Socialist Republic of Romania or, if there is no such mission, of the consular post concerned. Waiver of immunity in respect of civil or administrative proceedings shall not be held to imply waiver of immunity in respect of execution of the judgment for which separate waiver shall be required. 5 Article 22 in Schedule 1 to the Diplomatic Privileges Act 1964 (inviolability and protection of premises) shall be extended to any consular premises of the Socialist Republic of Romania and paragraph 1 of Article 30 in that Schedule (inviolability of private residences) shall be extended to the residence of the head of a consular post of the Socialist Republic of Romania, provided that any such premises or residence may be entered by the authorities of the United Kingdom with the consent of the head of the consular post or the head of the diplomatic mission in the United Kingdom of the Socialist Republic of Romania or, in the case of consular premises, of a person nominated by either of them. 6 Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964 (freedom of communications) shall be extended to the communications of any consular post of the Socialist Republic of Romania. W.G. Agnew

Conservation of Seals Act 1970 Prohibited methods of killing seals 1 1 Subject to section 9(2) and section 10 of this Act, if any person — a uses for the purpose of killing or taking any seal any poisonous substance; or b uses for the purpose of killing, injuring or taking any seal any firearm other than a rifle using ammunition having a muzzle energy of not less than 600 footpounds and a bullet weighing not less than 45 grains, he shall be guilty of an offence. 2 The Secretary of State may by order amend paragraph (b) of subsection (1) of this section by adding any firearm or ammunition to, or by altering the description of, or by substituting any other firearm or ammunition for, the firearm or ammunition mentioned in that subsection. Close seasons for seals 2 1 There shall be an annual close season for grey seals, that is to say seals of the species known as Halichoerus grypus, extending from 1st September to 31st December both inclusive and an annual close season for common seals, that is to say seals of the species known as Phoca vitulina, extending from 1st June to 31st August both inclusive. 2 Subject to sections 9 and 10 of this Act, if any person wilfully kills, injures or takes a seal during the close season prescribed by subsection (1) of this section for seals of the species so killed, injured or taken he shall be guilty of an offence. Orders prohibiting killing seals 3 1 Where, after consultation with the Council, it appears to the Secretary of State necessary for the proper conservation of seals he may by order prohibit with respect to any area specified in the order the killing, injuring or taking of the seals of both or either of the species mentioned in section 2 of this Act. 2 Subject to sections 9 and 10 of this Act, if any person wilfully kills, injures or takes a seal in contravention of an order made under subsection (1) of this section he shall be guilty of an offence. Apprehension of offenders and powers of search and seizure 4 1 A constable may stop any person he suspects with reasonable cause of committing an offence under this Act and may — a without warrant arrest that person if he fails to give his name and address to the constable's satisfaction; b without warrant search any vehicle or boat which that person may be using at that time; and c seize any seal, seal skin, firearm, ammunition or poisonous substance which is liable to be forfeited under section 6 of this Act. 2 A constable may sell or otherwise dispose of any seal seized under this section and the net proceeds of any sale shall be liable to forfeiture in the same manner as the seal sold: Provided that no constable shall be subject to any liability on account of his neglect or failure in the exercise of the powers conferred on him by this subsection. Penalties 5 1 Any person guilty of an offence under section 11(7) of this Act shall be liable on summary conviction to a fine not exceeding £50. 2 Any person guilty of any other offence under this Act shall be liable on summary conviction to a fine not exceeding £50 or, in the case of a second or subsequent conviction for such an offence, to a fine not exceeding £100. Forfeitures 6 The court by which a person is convicted of an offence under this Act may order the forfeiture of any seal or seal skin in respect of which that offence was committed or of any seal, seal skin, firearm, ammunition or poisonous substance in his possession at the time of the offence. Jurisdiction of courts 7 Where any offence under this Act is committed at some place on the sea coast or at sea outside the area of any commission of the peace, the place of the commission of the offence shall, for the purposes of the jurisdiction of any court, be deemed to be any place where the offender is found or to which he is first brought after the commission of the offence. Attempt to commit offence 8 1 Any person who attempts to commit an offence under this Act shall be guilty of an offence. 2 Any person who, for the purpose of committing an offence under this Act, has in his possession any poisonous substance or any firearm or ammunition the use of which is prohibited by section 1(1)(b) of this Act shall be guilty of an offence. General exceptions 9 1 A person shall not be guilty of an offence under section 2 or 3 of this Act by reason only of — a the taking or attempted taking of any seal which had been disabled otherwise than by his act and was taken or to be taken solely for the purpose of tending it and releasing it when no longer disabled; b the unavoidable killing or injuring of any seal as an incidental result of a lawful action; c the killing or attempted killing of any seal to prevent it from causing damage to a fishing net or fishing tackle in his possession or in the possession of a person at whose request he killed or attempted to kill the seal, or to any fish for the time being in such fishing net, provided that at the time the seal was in the vicinity of such net or tackle. 2 A person shall not be guilty of an offence under section 1, 2 or 3 of this Act by reason only of the killing of any seal which had been so seriously disabled otherwise than by his act that there was no reasonable chance of its recovering. Power to grant licences 10 1 A licence may be granted to any person by the Secretary of State authorising that person, notwithstanding anything in the foregoing provisions of this Act, but subject to compliance with any conditions specified in the licence. — a for scientific or educational purposes to kill or take within an area specified in the licence by any means so specified other than by the use of strychnine any number of seals so specified; b for the purposes of any zoological gardens or collection specified in the licence to take within an area specified in the licence by any means so specified any number of seals so specified; c for — i the prevention of damage to fisheries; ii the reduction of a population surplus of seals for management purposes; or iii the use of a population surplus of seals as a resource, to kill or take within any area specified in the licence by any means so specified other than by the use of strychnine any number of seals so specified. 2 A licence granted under this section may be revoked at any time by the Secretary of State and, without prejudice to any other liability to a penalty which he may have incurred under this or any other Act, any person who contravenes or fails to comply with any condition imposed on the grant of a licence under this section shall be guilty of an offence. 3 The Secretary of State — a shall consult the Council before granting a licence under this Act; and b except in relation to the prevention of damage to fisheries shall not without the consent of the Council grant a licence to kill or take seals in a nature reserve within the meaning of section 15 of the National Parks and Access to the Countryside Act 1949 or in an area which has been notified as a site of special scientific interest under section 23 of that Act. Entry upon land 11 1 The Secretary of State may, after consultation with the Council, authorise in writing any person to enter upon any land for the purpose of — a obtaining information relating to seals for the purpose of any of the functions of the Secretary of State under this Act; b killing or taking seals for the purpose of preventing damage to fisheries by seals. 2 Any such authorisation shall specify — a the land to be entered upon; b the period, not exceeding 8 weeks, during which the power of entry upon the land may be exercised; c the purpose of the entry; d the number, species and age of seals that may be killed or taken where the purpose of the entry is to prevent damage to fisheries by seals. 3 Any such authorisation may impose other conditions on the exercise by the person authorised of the power of entry or the manner of giving effect to the authorisation. 4 The Secretary of State shall give not less than 48 hours' notice, or in the case of an authorisation to enter upon land for the purpose of killing or taking seals not less than 28 days' notice, to the occupier of any land of his intention to issue an authorisation and of the purpose of the authorisation; and in the case of an authorisation to enter upon land for the purpose of killing or taking seals the Secretary of State shall have regard to any representations that might be made by the occupier and shall not issue the authorisation if before the expiration of the notice the occupier satisfies the Secretary of State that he has killed or taken the number of seals which the Secretary of State proposes to specify in the authorisation. 5 Any seals killed or taken by a person authorised under this section to enter upon land shall belong to the Secretary of State and may be disposed of as the Secretary of State thinks fit. 6 Any person authorised under this section to enter upon any land shall, if required by the occupier of that land, produce his authority and may take with him upon that land such other persons as may be necessary. 7 If any person wilfully obstructs any person authorised by the Secretary of State exercising a power of entry under this section, he shall be guilty of an offence. 8 Any reference in this section to the Secretary of State shall, in relation to England and Wales, be deemed to include a reference to the Minister of Agriculture, Fisheries and Food and any reference to land shall include land covered by water. Giving of notice 12 1 Any notice required by this Act to be given to any person shall be duly given if it is delivered to him, or left at his proper address, or sent to him by post. 2 Any such notice required to be given to an incorporated company or body shall be duly given if given to the secretary or clerk of the company or body. 3 For the purposes of this section and of section 26 of the Interpretation Act 1889 the proper address of any person to whom any such notice is to be given shall, in the case of the secretary or clerk of any incorporated company or body, be that of the registered or principal office of the company or body, and in any other case be the last-known address of the person in question. 4 Where any such notice is to be given to a person as being the person having any interest in land, and it is not practicable after reasonable enquiry to ascertain his name or address, the notice may be given by addressing it to him by the description of the person having that interest in the land (naming it), and delivering the notice to some responsible person on the land or by affixing it, or a copy of it, to some conspicuous object on the land. Duty of the Council 13 The Council shall provide the Secretary of State with scientific advice on matters related to the management of seal populations. Orders 14 1 The power of the Secretary of State to make orders under this Act shall be exercisable by statutory instrument; and any statutory instrument made by virtue of this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament. 2 Any order made under this Act may be varied or revoked by a subsequent order made in the like manner. Interpretation 15 In this Act unless the context otherwise requires — " ammunition " has the same meaning as in the Firearms Act 1968; " the Council " means the Natural Environment Research Council; " firearm " has the same meaning as in the Firearms Act 1968. Repeal 16 1 The Grey Seals Protection Act 1932 and the reference to section 2(1) of that Act in Schedule 3 to the Criminal Justice Act 1967 are hereby repealed. 2 Notwithstanding the repeal of the Grey Seals Protection Act 1932 all prosecutions and proceedings in respect of offences under that Act committed before the coming into force of this Act may be continued, commenced, taken or prosecuted as if this Act had not been passed. Short title, area of application, extent and commencement 17 1 This Act may be cited as the Conservation of Seals Act 1970. 2 Nothing done outside the seaward limits of the territorial waters adjacent to Great Britain shall constitute an offence under this Act. 3 This Act shall not extend to Northern Ireland. 4 This Act shall come into force at the expiry of 3 months beginning with the date of its passing.

The Transport Act 1968 (Commencement No. 6) Order 1970 The Minister of Transport hereby makes this Order in exercise of his powers under section 166 of the Transport Act 1968 and of all other enabling powers: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 6) Order 1970. 2 Section 64(5), section 71(8) (except the definition of “pallet”), section 82(6) (except in so far as it relates to any special authorisation under Part V, any record or other document required to be made under section 76 or 81 or any means of identification required to be carried on, or by the driver of, a vehicle in pursuance of the provisions of Part V relating to special authorisations), section 82(7), (8) and (9), subsections (1) to (9) and (11) of section 96 (except in so far as they relate to passenger vehicles), subsections (1) to (9) of section 99 (except in so far as they relate to the entry and inspection of any vehicle or to any equipment installed on any vehicle for the purposes of section 97 or any such record as is mentioned in that section), section 100, section 103(8) and Schedule 11 and section 165 (in so far as it relates to the provisions of Part III of Schedule 18 which refer to sections 73 (as respects goods vehicles only), 186 and 234 of the Road Traffic Act 1960 and to sections 20 and 21 of the Road Traffic Act 1962 of the Transport Act 1968 shall come into force on the 1st March 1970. Sealed with the Official Seal of the Minister of Transport the 20th February 1970. S.M.A. Banister An Under Secretary of the Ministry of Transport

The Superannuation (Hovercraft Development Limited and Civil Service) Transfer Rules 1970 The Minister for the Civil Service, in exercise of the powers conferred on him by section 33 of the Superannuation Act 1965 and article 2(1)(c) of the Minister for the Civil Service Order 1968 , and of all other powers enabling him in that behalf, hereby makes the following Rules: — 1 These Rules may be cited as the Superannuation (Hovercraft Development Limited and Civil Service) Transfer Rules 1970, and shall come into operation on 17th September 1970. 2 1 In these Rules — “ the N.R.D.C. pension scheme ” means the Pension and Life Assurance Schemes for Subsidiary Companies of the National Research Development Corporation; “ unestablished capacity ” has the meaning assigned to it by section 99(1) of the Superannuation Act 1965. 2 The Interpretation Act 1889 shall apply for the interpretation of these Rules as it applies for the interpretation of an Act of Parliament. 3 1 Where a person was taken into the civil service of the State on 1st October 1967 as an officer of the Ministry of Technology after having been employed by Hovercraft Development Limited, and his employment by Hovercraft Development Limited was, in the opinion of the Minister for the Civil Service, of the same nature and for the same purpose as his employment in the civil service of the State, his service in employment by Hovercraft Development Limited, not being service before he attained the age of 18 years, shall be reckoned for the purposes of the Superannuation Acts 1965 and 1967 as employment in an unestablished capacity. 2 Where a person to whom the last foregoing paragraph applies was, before he was taken into the civil service of the State, a contributor to the N.R.D.C. pension scheme, and he has received a payment by way of return of contributions under that scheme, it shall be a condition of the making of any payment under the Superannuation Acts 1965 and 1967 in respect of that person's service, so far as that payment is dependent on the provisions of the last foregoing paragraph, that there has been paid into the Consolidated Fund, not later than the expiration of three months after his ceasing to be a member of the N.R.D.C. pension scheme, or after the coming into operation of these Rules, whichever is the later, or within such longer period as the Minister for the Civil Service may allow in any particular case — a a sum equal to so much of the amount paid to him by way of return of contributions as is attributable to his service with Hovercraft Development Limited, together with compound interest thereon calculated from the date on which he received the payment at the rate of 3 per cent. per annum with yearly rests; and b a sum equal to the amount refunded by the trustees of the N.R.D.C. pension scheme in respect of the contributions paid in his case by Hovercraft Development Limited under that scheme. 3 Where a person to whom paragraph (1) of this Rule applies was, before he was taken into the civil service of the State, a contributor to the N.R.D.C. pension scheme, and on ceasing to be a contributor to that scheme he did not cease to be eligible for benefits under the scheme (other than a return of contributions), it shall be a condition of the making of any payment under the Superannuation Acts 1965 and 1967 in respect of that person's service, so far as that payment is dependent on the provisions of paragraph (1) of this Rule, that, not later than the expiration of three months after his ceasing to be a contributor to the N.R.D.C. pension scheme, or after the coming into operation of these Rules, whichever is the later, or within such longer period as the Minister for the Civil Service may allow in any particular case, he has surrendered his right to receive any benefits under the N.R.D.C. pension scheme, so far as they are attributable to his service with Hovercraft Development Limited, and there has been paid into the Consolidated Fund a sum which, in the opinion of the Minister for the Civil Service, is equivalent to the actuarial value, at the date of the payment, of the said benefits, so far as they are attributable to his service with Hovercraft Development Limited, less any amount which may become payable by way of income tax in respect of the sum so paid. Given under the official seal of the Minister for the Civil Service on 7th September 1970. K.H. McNeill Authorised by the Minister for the Civil Service

The Consular Relations (Privileges and Immunities) (Republic of Austria) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) : Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Republic of Austria) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer or a consular employee of the Republic of Austria of which the Republic of Austria or any person acting on its behalf is the owner or lessee. 4 A consular bag exchanged between a consular officer of the Republic of Austria in the United Kingdom and the Government, a diplomatic mission or another consular post of the Republic of Austria shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964. W.G. Agnew

The Secretary of State for Trade and Industry Order 1970 At the Court at Buckingham Palace, the 19th day of October 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, in pursuance of sections 1 and 2 of the Ministers of the Crown (Transfer of Functions) Act 1946 and section 4 of the Ministers of the Crown Act 1964, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — Citation, interpretation and commencement 1 1 This Order may be cited as the Secretary of State for Trade and Industry Order 1970. 2 The Interpretation Act 1889 applies for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 This Order shall come into operation on 20th October 1970. Transfer of functions to Secretary of State 2 1 There are hereby transferred to the Secretary of State — a so as to be exercisable concurrently with the Board of Trade, all the functions of the Board; and b so as to be exercisable concurrently with the President of the Board, all the functions of the President other than his functions in the Board and any power to act for the Board. 2 There are hereby also transferred to the Secretary of State the functions of the Minister of Technology other than functions conferred on him by the enactments mentioned in Part I of Schedule 1 to this Order, but so that this transfer shall not be taken either — a except as mentioned in Part II of the Schedule, to extend to the powers exercisable by the Minister of Technology under the enactments and instruments there listed or to affect any reference to him (or reference which has effect as such a reference) in those enactments and instruments; or b to affect the exercise by the Minister of Technology of powers belonging generally to Ministers of the Crown (whether conferred by statute or otherwise). 3 In section 9(11) of the Agriculture Act 1967 (which, as originally enacted, required the President of the Board of Trade to be consulted before certain agreements were excepted from Part I of the Restrictive Trade Practices Act 1956) for the words “the President of the Board of Trade” there shall be substituted the words “the Secretary of State for Trade and Industry” , in place of the words “the Secretary of State for Employment and Productivity” substituted by the Transfer of Functions (Monopolies, Mergers and Restrictive Trade Practices) Order 1969 . Restyling of Secretary of State for Employment and Productivity and of Minister of Technology 3 1 The Secretary of State for Employment and Productivity and the Minister of Technology shall hereafter be known respectively as the Secretary of State for Employment and the Minister of Aviation Supply, and their departments as the Department of Employment and the Ministry of Aviation Supply. 2 Subject to the provisions of this Order, the new style and title of the Secretary of State and the Minister and of their departments shall be substituted for the previous style and title in all enactments relating to them (including in the case of the Minister the enactments mentioned in Schedule 1 to this Order) and in all instruments, contracts and legal proceedings made or commenced before the coming into operation of this Order. Style, seal and acts of Secretary of State for Trade and Industry 4 1 The person who at the coming into operation of this Order is Secretary of State for Trade and Industry and his successors shall be, by that name, a corporation sole (with a corporate seal), but so that anything done by or in relation to any other Secretary of State for the Secretary of State for Trade and Industry as a corporation sole shall have effect as if done by or in relation to the Secretary of State for Trade and Industry. 2 The corporate seal of the Secretary of State for Trade and Industry shall be authenticated by the signature of a Secretary of State, or of a Secretary to the Department of Trade and Industry, or of a person authorised by a Secretary of State to act in that behalf. 3 The corporate seal of the Secretary of State for Trade and Industry shall be officially and judicially noticed, and every document purporting to be an instrument made or issued by the Secretary of State for Trade and Industry and to be sealed with that seal authenticated in the manner provided by paragraph (2) above, or to be signed or executed by a Secretary to the Department of Trade and Industry or a person authorised as aforesaid, shall be received in evidence and be deemed to be so made or issued without further proof, unless the contrary is shown. 4 A certificate signed by the Secretary of State for Trade and Industry that any instrument purporting to be made or issued by him was so made or issued shall be conclusive evidence of that fact. 5 In Schedule 2 to the Parliamentary Commissioner Act 1967 after the entry for the Board of Trade there shall be inserted the entry “Department of Trade and Industry” , and in note 5 (which extends the reference to the Board of Trade so as to include certain bodies exercising delegated functions) after the words “the Board of Trade” there shall be inserted the words “or the Department of Trade and Industry” . Supplemental 6 1 The enactments mentioned in Schedule 2 to this Order shall have effect subject to the modifications provided for by that Schedule. 2 Subject to the provisions of Schedule 2 to this Order, where in connection with any functions transferred by this Order any enactment or instrument provides for anything to be done by or in relation to both the Minister of Technology and a Secretary of State, it shall be read as providing for it to be done by or in relation to both the Secretary of State for the time being discharging those functions and such other Secretary of State (if any) as may be concerned; and similarly with things to be done by or in relation to both the Board of Trade or the President of the Board and a Secretary of State, in so far as they are done by or in relation to a Secretary of State instead of the Board or President. 7 1 All property, rights and liabilities to which immediately before the coming into operation of this Order the Minister of Technology is entitled or subject in connection with the functions of the Minister transferred to the Secretary of State by Article 2(2) above are hereby transferred to the Secretary of State for Trade and Industry; and this provision shall apply to property, rights and liabilities to which the Minister is then entitled or subject in connection with functions transferred by Article 2(2), notwithstanding that he is entitled or subject thereto by reason of the exercise of powers that are to be retained by him in accordance with Article 2(2)(a) and (b). 2 This Order shall not affect the validity of anything done by or in relation to the Minister of Technology before the coming into operation of this Order; and anything which at the coming into operation of this Order is in process of being done by or in relation to the Board of Trade, the President of the Board of Trade or the Minister of Technology (including in particular any legal proceedings to which any of them is a party) may, if it relates to any functions, property, rights or liabilities transferred by this Order, be continued by or in relation to the Secretary of State for Trade and Industry. 3 Any authorisation given (by way of approval or otherwise), requirement imposed or appointment made by the Minister of Technology in connection with functions transferred by this Order, or having effect as if so given, imposed or made, shall, if in force at the coming into operation of this Order, have effect as if given, imposed or made by the Secretary of State for Trade and Industry in so far as that is required for continuing its effect after the coming into operation of this Order. 4 Subject to Article 6 above, any enactment, instrument or contract passed or made before the coming into operation of this Order shall have effect, so far as may be necessary for the purpose or in consequence of the transfers effected by this Order, as if any reference to the Board of Trade, the President of the Board of Trade or the Minister of Technology or to the department or an officer of the Board or of that Minister (including any reference which is to be construed as such a reference) were or included a reference to the Secretary of State or to his Department or an officer of his, as the context may require. 5 Documents or forms printed or duplicated for use in connection with any functions of the Minister of Technology transferred by this Order may be so used notwithstanding that they contain references to that Minister or, in connection with functions previously transferred to him from the Board of Trade, to the Board, and those references shall be construed as references to the Secretary of State for Trade and Industry; and similarly with references to the department or an officer of that Minister or of the Board. W.G. Agnew SCHEDULE 1 ENACTMENTS CONTINUING TO APPLY TO MINISTER OF AVIATION SUPPLY PART I ENACTMENTS CONFERRING PRINCIPAL FUNCTIONS 1 The Ministry of Supply Act 1939 and the enactments amending it. 2 The Civil Aviation Act 1949, together with sections 8 and 12 of the Industrial Expansion Act 1968. PART II OTHER ENACTMENTS CONFERRING POWERS ON OR RELATING TO MINISTER 3 The Statistics of Trade Act 1947. 4 The Industrial Organisation and Development Act 1947, except as regards orders made under that Act before the coming into operation of this Order. 5 Section 18 of the Patents Act 1949 and sections 2 to 6 of the Defence Contracts Act 1958. 6 Section 7 to 11 of the Land Powers (Defence) Act 1958. 7 Except as, at the coming into operation of this Order, they apply in connection with the functions of the Minister of Technology under the Atomic Energy Act 1946 and the Atomic Energy Authority Act 1954, — a paragraph 1 of Schedule 2 to the Emergency Laws (Miscellaneous Provisions) Act 1947 ; and b paragraph 8 of Schedule 1 to the Emergency Laws (Miscellaneous Provisions) Act 1953; and c any Orders in Council made under the Ministry of Supply Act 1939. 8 Section 2(2) proviso of the Atomic Energy Authority Act 1954. 9 Section 2 of the Shipping Contracts and Commercial Documents Act 1964. 10 Section 5 of the Science and Technology Act 1965, except that the reference in subsection (1)(b) to the Minister of Technology shall extend to the Secretary of State for Trade and Industry. 11 The Military Aircraft (Loans) Act 1966. SCHEDULE 2 CONSEQUENTIAL MODIFICATIONS OF ENACTMENTS 1 The Coastguard Act 1925 shall have effect as if in sections 1(1) and 2 references (as originally enacted) to the Board of Trade and to the Admiralty, except in section 1(1) the last reference but one to the Board of Trade, were respectively references to the Board of Trade or the Secretary of State for Trade and Industry and to the Secretary of State for Defence. 2 In the Harbours, Piers and Ferries (Scotland) Act 1937 references to the Secretary of State and to the Board of Trade shall have effect respectively as references to the Secretary of State for Scotland and to the Board of Trade or the Secretary of State for Trade and Industry. 3 1 Anything which, by the enactments mentioned in sub-paragraph (2) below, is required or authorised to be done jointly by the Minister within the meaning of the Electricity Act 1947 and the Secretary of State shall be done jointly by the Secretary of State for the time being discharging the functions expressed to be conferred on the Minister by that Act and the Secretary of State for Scotland. 2 The enactments referred to in sub-paragraph (1) above are: — a sections 54 and 55 of the Electricity Act 1947; and a section 1(3) of the Electricity Reorganisation (Scotland) Act 1954 and Part 2 of Schedule 1 to that Act as it amends sections 2, 4, 19 and 60 of the Electricity Act 1947. 4 In the Civil Aviation Act 1949 section 16(1) proviso shall be omitted. 5 In section 184 of the Mines and Quarries Act 1954 “ the Ministers ” shall mean the Secretary of State for the time being discharging the functions expressed to be conferred by that Act on the Minister and the Secretary of State for Employment, and section 174 shall apply accordingly. 6 In the Pipe-lines Act 1962, in section 39(2), the reference (as originally enacted) to the Minister and the Minister of Transport jointly shall have effect as a reference to the Secretary of State. 7 In section 26(1) of the Nuclear Installations Act 1965 the reference (as originally enacted) in the definition of “prescribed” to the Minister of Power and the Secretary of State acting jointly shall have effect as a reference to those Secretaries of State acting jointly who for the time being discharge in relation to England and Wales and in relation to Scotland the functions expressed to be conferred by that Act on the Minister. 8 In section 58 of the Land Commission Act 1967 any reference (as originally enacted) to the Minister of Power shall have effect as a reference to the Secretary of State for Trade and Industry. 9 In the Development of Inventions Act 1967, in section 11(3), the references to the Minister of Technology shall have effect as references to the Secretary of State having for the time being general responsibility under that Act in relation to the National Research Development Corporation. 10 In the Sea Fish (Conservation) Act 1967, in sections 6 and 8, references to the Board of Trade shall have effect as references to the Secretary of State for Trade and Industry. 11 In the Gas and Electricity Act 1968, in section 5, the references to the Minister and to the Secretary of State shall have effect respectively as references to the Secretary of State for the time being discharging the functions expressed to be conferred on the Minister by that Act and to the Secretary of State for Scotland. 12 In the Development of Tourism Act 1969 references to the Board of Trade shall have effect as references to the Board of Trade or the Secretary of State for Trade and Industry.

The Registered Designs Appeal Tribunal (Amendment) Rules 1970 The Appeal Tribunal constituted under section 28(2) of the Registered Designs Act 1949, as amended by section 24 of the Administration of Justice Act 1969, in exercise of the powers conferred upon it by section 28(8) and (8A) of the Registered Designs Act 1949, as amended by section 24 of the Administration of Justice Act 1969 and section 10 of the Administration of Justice Act 1970, hereby makes the following Rules: — 1 1 These Rules may be cited as the Registered Designs Appeal Tribunal (Amendment) Rules 1970 and shall come into operation on 1st October 1970. 2 The Interpretation Act 1889 shall apply to the interpretation of these Rules as it applies to the interpretation of an Act of Parliament. 3 In these Rules a rule referred to by number means the rule so numbered in the Registered Designs Appeal Tribunal Rules 1950 , and “ the schedule ” means the schedule to those Rules. 2 For rule 1 there shall be substituted the following rule: — 1 1 Any person who desires to appeal to the Registered Designs Appeal Tribunal from a decision of the Comptroller-General of Patents, Designs and Trade Marks (in these Rules referred to as “ the Registrar ”) in any case in which a right of appeal is given by the Registered Designs Act 1949 (in these Rules referred to as “ the Act ”) shall file with the registrar of the Appeal Tribunal at the Royal Courts of Justice, London, a notice of appeal in the form set out in the schedule to these Rules. 2 The notice of appeal shall be filed — a in the case of a decision on a matter of procedure, within 14 days after the date of the decision; and b in any other case, within six weeks after the date of the decision. 3 The Registrar may determine whether any decision is on a matter of procedure and any such determination shall itself be a decision on a matter of procedure. 3 In rule 2 for the words “send a copy of the notice of appeal” there shall be substituted the words “within two days of filing the notice of appeal send a copy thereof” . 4 For rule 4 there shall be substituted the following rule: — 4 Except by leave of the Appeal Tribunal, no appeal shall be entertained unless notice of appeal has been given within the period specified in rule 1(2) or within such further time as the Registrar may allow upon request made to him prior to the expiry of that period. 5 After rule 5 there shall be inserted the following rule: — 5A 1 A party to an appeal before the Appeal Tribunal may appear and be heard either in person or by a patent agent, a solicitor, or counsel. 2 In this Rule — “ counsel ” means a member of the Bar of England and Wales or of Northern Ireland or a member of the Faculty of Advocates in Scotland; and “ patent agent ” has the same meaning as it has in the Patents Act 1949 . 6 For the Note at the end of the schedule there shall be substituted the following: — NOTE: — This notice must be sent to the Registrar of the Registered Designs Appeal Tribunal, Royal Courts of Justice, London, WC2A 2LL and must bear an impressed judicature fee stamp for £6. An unstamped copy of the notice must be sent to the Comptroller-General of Patents, Designs and Trade Marks at the Patent Office, 25 Southampton Buildings, London, W.C.2, and to any person who appeared or gave notice of opposition on the proceedings from which the appeal is brought, within the period prescribed by the Registered Designs Appeal Tribunal Rules. Patrick Graham, J Senior Judge of the Appeal Tribunal Dated 16th July 1970

The Fiji (Procedure in Appeals to Privy Council) Order 1970 At the Court at Balmoral, the 30th day of September 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in the exercise of the powers in that behalf by section 1 of the Judicial Committee Act 1844 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — Citation and commencement 1 This Order may be cited as the Fiji (Procedure in Appeals to Privy Council) Order 1970 and shall come into operation on the appointed day. Interpretation 2 1 In this Order, unless the context otherwise requires — “ appeal ” means appeal from a decision of the Court to Her Majesty in Council; “ the appointed day ” means the 10th October 1970; “ Court ” means the Court of Appeal of Fiji; “ decision ” means a decision in any proceedings originating in Fiji and includes any such decision given before the appointed day; “ record ” means the aggregate of papers relating to an appeal (including pleadings, proceedings, evidence and decisions) proper to be laid before Her Majesty in Council on the hearing of an appeal; “ Registrar ” means the Registrar of the Court or other proper officer having custody of the records of the Court. 2 The Interpretation Act 1889 shall apply, with the necessary adaptations, for the purpose of interpreting this Order and otherwise in relation thereto as it applies for the purposes of interpreting, and in relation to, Acts of Parliament. Applications for leave to appeal 3 Applications to the Court for leave to appeal shall be made by motion or petition within twenty-one days of the date of the decision to be appealed from, and the applicant shall give all other parties concerned notice of his intended application. Conditional leave to appeal 4 Leave to appeal to Her Majesty in Council in pursuance of the provisions of any law relating to such appeals shall, in the first instance, be granted by the Court only — a upon condition of the appellant, within a period to be fixed by the Court but not exceeding ninety days from the date of the hearing of the application for leave to appeal, entering into good and sufficient security to the satisfaction of the Court in a sum not exceeding 1,000 dollars for the due prosecution of the appeal and the payment of all such costs as may become payable by the applicant in the event of his not obtaining an order granting him final leave to appeal, or of the appeal being dismissed for non-prosecution, or of the Judicial Committee ordering the appellant to pay the costs of the appeal (as the case may be); and b upon such other conditions (if any) as to the time or times within which the appellant shall take the necessary steps for the purposes of procuring the preparation of the record and the despatch thereof to England as the Court, having regard to all the circumstances of the case, may think it reasonable to impose. Powers of a single judge 5 A single judge of the Court shall have power and jurisdiction — a to determine any application to the Court for leave to appeal in any case where under any provision of law an appeal lies as of right from a decision of the Court; b generally in respect of any appeal pending before Her Majesty in Council, to make such order and to give such other directions as he shall consider the interests of justice or circumstances of the case require: Provided that any order, directions or decisions made or given in pursuance of this section may be varied, discharged or reversed by the Court when consisting of three judges which may include the judge who made or gave the order, directions or decision. Stay of execution 6 Where the decision appealed from requires the appellant to pay money or do any act, the Court shall have power, when granting leave to appeal, either to direct that the said decision shall be carried into execution or that the execution thereof shall be suspended pending the appeal, as to the Court shall seem just, and in case the Court shall direct the said decision to be carried into execution, the person in whose favour it was given shall, before the execution thereof, enter into good and sufficient security to the satisfaction of the Court for the due performance of such Order as Her Majesty in Council shall think fit to make thereon. Manner of providing security 7 For the purposes of sections 4 and 6 of this Order, a person may provide security in any manner that the Court may approve in his case, and for the avoidance of doubts it is declared that such security may with the approval of the Court consist in whole or in part of a deposit of money. Preparation of record 8 1 The preparation of the record shall be subject to the supervision of the Court, and the parties may submit any disputed question arising in connection therewith to the decision of the Court, and the Court shall give such directions thereon as the justice of the case may require. 2 The Registrar, as well as the parties and their legal agents, shall endeavour to exclude from the record all documents (more particularly such as are merely formal) that are not relevant to the subject matter of the appeal and, generally, to reduce the bulk of the record as far as practicable, taking special care to avoid the duplication of documents and the unnecessary repetition of headings and other merely formal parts of documents; but the documents omitted to be copied or printed shall be enumerated in a list to be placed after the index or at the end of the record. 3 Where in the course of the preparation of a record one party objects to the inclusion of a document on the ground that it is unnecessary or irrelevant and the other party nevertheless insists upon its being included, the record, as finally printed (whether in Fiji or in England) shall, with a view to the subsequent adjustment of the costs of and incidental to such document, indicate in the index of papers or otherwise the fact that, and the party by whom, the inclusion of the documents was objected to. 4 The reasons given by judges of the Court for or against any decision pronounced in the course of the proceedings out of which the appeal arises shall be communicated by them in writing to the Registrar, and shall be included in the record. Printing of the record 9 1 The record may be printed in Fiji or may be printed in England if the parties agree to its being printed, but in the absence of such agreement shall be duplicated by process approved by the Registrar of the Privy Council. If the record is to be printed it shall be printed in accordance with the Rules set forth in the Schedule to this Order. 2 Where the record is printed in Fiji the Registrar shall, at the expense of the appellant, transmit to the Registrar of the Privy Council forty copies of such record, one of which copies he shall certify to be correct by signing his name on, or initialling, every eighth page thereof and by affixing thereto the seal of the Court. 3 Where the record is to be printed or duplicated in England, the Registrar shall, at the expense of the appellant, transmit to the Registrar of the Privy Council one certified copy of such record, together with an index of all the papers and exhibits in the case. No other certified copies of the record shall be transmitted to the agents in England by or on behalf of the parties to the appeal. 4 Where part of the record is printed in Fiji and part is to be printed or duplicated in England, subsections (2) and (3) of this section shall, as far as possible, apply to such parts as are printed in Fiji and such as are to be printed or duplicated in England respectively. Consolidation of appeals 10 Where there are two or more applications for leave to appeal arising out of the same matter, and the Court is of opinion that it would be for the convenience of the Lords of the Judicial Committee and all parties concerned that the appeals should be consolidated, the Court may direct the appeals to be consolidated and grant leave to appeal by a single order. Failure to prosecute appeal 11 Where an appellant, having obtained an order granting him conditional leave to appeal, and having complied with the conditions imposed on him by such order, fails thereafter to apply with due diligence to the Court for an order granting him final leave to appeal, the Court may, on an application in that behalf made by the respondent, rescind the order granting conditional leave to appeal notwithstanding the appellant's compliance with the conditions imposed by such an order, and may give such directions as to the costs of the appeal and security entered into by the appellant as the Court shall think fit, or make such further or other order in the premises as, in the opinion of the Court, the justice of the case requires. Notice to other parties 12 1 On an application for final leave to appeal, the Court may enquire whether notice or sufficient notice of the application has been given by the appellant to parties concerned and, if not satisfied as to the notices given, may defer the granting of the final leave to appeal, or may give such other directions in the matter as, in the opinion of the Court, the justice of the case requires. 2 The Registrar shall, with all convenient speed, transmit to the Registrar of the Privy Council a certificate to the effect that the respondent has received notice, or is otherwise aware, of the order of the Court granting final leave to appeal and of the transmission of the record to England. Prosecution of appeal 13 An appellant who has obtained final leave to appeal shall prosecute his appeal in accordance with the Rules for the time being regulating the general practice and procedure in appeals to Her Majesty in Council. Withdrawal of appeal 14 1 An appellant who has obtained an order granting him conditional leave to appeal may at any time prior to the making of an order granting him final leave to appeal withdraw his appeal on such terms as to costs and otherwise as the Court may direct. 2 Where an appellant, having obtained final leave to appeal, desires, prior to the despatch of the record to England, to withdraw his appeal, the Court may, upon an application in that behalf made by the appellant, grant him a certificate to the effect that the appeal has been withdrawn, and the appeal shall thereupon be deemed, as from the date of such certificate, to stand dismissed without express Order of Her Majesty in Council, and the costs of the appeal and the security entered into by the appellant shall be dealt with in such manner as the Court may think fit to direct. Dismissal for non-prosecution 15 Where an appellant, having obtained final leave to appeal, fails to show due diligence in taking all necessary steps for the purpose of procuring the despatch of the record to England, any respondent may, after giving the appellant due notice of his intended application, apply to the Court for a certificate that the appeal has not been effectually prosecuted by the appellant, and if the Court sees fit to grant such a certificate the appeal shall be deemed, as from the date of such certificate, to stand dismissed for non-prosecution without express Order of Her Majesty in Council, and the costs of the appeal and the security entered into by the appellant shall be dealt with in such manner as the Court may think fit to direct. Substituting parties 16 1 Where at any time between the order granting final leave to appeal and the despatch of the record to England, the record becomes defective by reason of the death or change of status of a party to the appeal, the Court may, notwithstanding the order granting final leave to appeal, on an application in that behalf made by any person interested, grant a certificate showing who, in the opinion of the Court, is the proper person to be substituted or entered on the record in place of or in addition to the party who has died or undergone a change of status, and the name of such person shall thereupon be deemed to be so substituted or entered on the record as aforesaid without express Order of Her Majesty in Council. 2 Where the record subsequently to its despatch to England becomes defective by reason of the death or change of status of a party to the appeal, the Court shall, upon an application in that behalf made by any person interested, cause a certificate to be transmitted to the Registrar of the Privy Council showing who, in the opinion of the Court, is the proper person to be substituted, or entered on the record, in place of, or in addition to, the party who has died or undergone a change of status. Printing of case 17 The case of each party to the appeal may be printed in Fiji or printed or duplicated in England and shall, if it is to be printed, be printed in accordance with the Rules set forth in the Schedule to this Order; and it shall be signed by at least one of the counsel who attends at the hearing of the appeal, or by the party himself if he conducts his appeal in person. Form of case 18 The case shall consist of paragraphs numbered consecutively and shall state, as concisely as possible, the circumstances out of which the appeal arises, the contentions to be urged by the party lodging the case and the reasons of appeal. Reference by page and line to the relevant portions of the record as printed shall, as far as practicable, be printed in the margin, and care should be taken to avoid, as far as possible, the reprinting in the case of long extracts from the record. The taxing officer, in taxing the costs of the appeal, shall, either of his own motion or at the instance of any party, inquire into any unnecessary prolixity in the case and shall disallow the costs occasioned thereby. Costs in Fiji 19 Where the Judicial Committee directs a party to bear the costs of an appeal incurred in Fiji, such costs shall be taxed by the proper officer of the Court in accordance with the rules for the time being regulating taxation in the Court. Enforcing Order 20 Any Order made by Her Majesty in Council on an appeal from a decision of the Court may be enforced in like manner as any decision of the Court should or might have been executed. Revocation 21 1 — The Order in Council dated 31st May 1910 regulating appeals from the Supreme Court of Fiji to Her Majesty in Council and the Fiji (Appeal to Privy Council) Order in Council 1950 are revoked. 2 Anything done under any provision of the Orders revoked by the preceding subsection corresponding to a provision of this Order shall have effect on and after the appointed day as if it had been done under that provision of this Order. W.G. Agnew THE SCHEDULE Sections 9(1) and 17 I Records and cases in appeals to Her Majesty in Council shall be printed in the form known as demy quarto. II The size of the paper used shall be such that the sheet, when folded and trimmed, will be 11 inches in height and 8½ inches in width. III The type to be used in the text shall be pica type, but long primer shall be used in printing accounts, tabular matter and notes. IV The number of lines on each page of pica type shall be 47 or thereabouts, and every tenth line shall be numbered in the margin.

The Local Government Superannuation (England and Scotland) (Amendment) Regulations 1970 The Minister of Housing and Local Government and the Secretary of State, acting jointly, in exercise of their powers under section 38 of the Local Government Superannuation Act 1937 and section 36 of the Local Government Superannuation (Scotland) Act 1937, and of all other powers enabling them in that behalf, hereby make the following regulations: — Citation and commencement 1 1 These regulations may be cited as the Local Government Superannuation (England and Scotland) (Amendment) Regulations 1970 and shall come into operation on 1st September 1970. 2 The Local Government Superannuation (England and Scotland) Regulations 1948 to 1954 and these regulations may be cited together as the Local Government Superannuation (England and Scotland) Regulations 1948 to 1970. Interpretation 2 The Interpretation Act 1889 shall apply for the interpretation of these regulations as it applies for the interpretation of an Act of Parliament. Amendment of the Local Government Superannuation (England and Scotland) Regulations 1948 3 The Local Government Superannuation (England and Scotland) Regulations 1948 as amended shall be further amended as follows: — a after paragraph (3) of regulation 2 (which relates to interpretation) there shall be added the following paragraph: — 4 In these regulations, unless the context otherwise requires, references to any enactment shall be construed as references to that enactment as amended, modified, extended or applied by any other enactment; and the expression “ enactment ” includes any instrument made under an enactment . ; b in regulation 8 (which relates to Scottish contributory employees who are entitled to reckon English teaching service, and modifies the application of section 15 of the Scottish Act) — i for paragraph (b) there shall be substituted the following — b there were substituted for the words “if any period which, in order to avoid duplicate pensions, has not been reckoned as service for the purpose of calculating his retiring allowance, had been so reckoned” the words “but for any deduction made by the Secretary of State for Education and Science under section 7 of the Teachers (Superannuation) Act 1925 or any reduction made under regulation 52 of the Teachers' Superannuation Regulations 1967 ” ; ; ii at the end of the regulation there shall be added the words — and paragraphs (2) to (6) of regulation 52 of the Teachers' Superannuation Regulations 1967 shall not apply in relation to an annual superannuation allowance granted under Part I of the Scottish Act or the Scottish benefits regulations to a Scottish contributory employee who before becoming such an employee had been a person entitled to the benefit of section 17(1) of the English Act ; c in regulation 19 (which relates to English contributory employees who are entitled to reckon Scottish teaching service, and modifies the application of section 17 of the English Act) — i for paragraph (b) there shall be substituted the following — b there were substituted for the words “but for any deduction made by the Secretary of State for Education and Science under section 7 of the Teachers (Superannuation) Act 1925” the words “but for any reduction made under regulation 51 of the Teachers Superannuation (Scotland) Regulations 1969 ” ; ; ii at the end of the regulation there shall be added the words — and paragraphs (2) to (6) of regulation 51 of the Teachers Superannuation (Scotland) Regulations 1969 shall not apply in relation to an annual superannuation allowance granted under Part I of the English Act or the English benefits regulations to an English contributory employee who before becoming such an employee had been a person entitled to the benefit of section 15 of the Scottish Act . Given under the official seal of the Minister of Housing and Local Government on 28th July 1970. Peter Walker Minister of Housing and Local Government Given under the seal of the Secretary of State for Scotland on 28th July 1970. Gordon Campbell Secretary of State for Scotland

The Consular Relations (Privileges and Immunities) (United States of America) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) : Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (United States of America) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a consular officer, consular employee, consular guard, messenger or driver of the United States of America of which the United States of America or any person acting on its behalf is the owner or lessee. 4 Paragraph 1 of Article 49 in Schedule 1 to the Act (exemption from taxation) shall be extended to members of the service staff of any consular post of the United States of America who are consular guards, messengers or divers, provided that the member concerned of the service staff satisfies the conditions set out in Article 6 of this Order. 5 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to members of consular posts of the United States of America as if the reference to consular employees included consular guards, messengers and drivers, and as if the words “in respect of articles imported at the time of first installation” were omitted, provided that the member concerned of the consular post satisfies the conditions set out in Article 6 of this Order. 6 The conditions referred to in Articles 4 and 5 of this Order are that the person concerned– a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. 7 A consular bag exchanged between a consular officer of the United States of America in the United Kingdom and the Government, a diplomatic mission or another consular post of the United States of America or the authorities of any territory subject to the sovereignty or authority of the United States of America shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964, provided that the consular bag is certified by a responsible officer of the United States of America to contain nothing but official communications and documents. W. G. Agnew

The Eurocontrol (Immunities and Privileges) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before Parliament in accordance with section 10 of the International Organisations Act 1968 (hereinafter referred to as the Act) and has been approved by a resolution of each House of Parliament: Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 1 of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 1 This Order may be cited as the Eurocontrol (Immunities and Privileges) Order 1970. 2 This Order shall come into operation on the day on which the Additional Protocol to the “Eurocontrol” International Convention relating to Co-operation for the Safety of Air Navigation signed in Brussels on 6th July 1970 enters into force. This date shall be notified in the London, Edinburgh and Belfast Gazettes. 2 1 In this Order “ the 1961 Convention Articles ” means the Articles (being certain Articles of the Vienna Convention on Diplomatic Relations signed in 1961) which are set out in Schedule 1 to the Diplomatic Privileges Act 1964. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The European Organisation for the Safety of Air Navigation (Euro-control) (hereinafter referred to as the Organisation) is an Organisation of which Her Majesty's Government in the United Kingdom and the governments of foreign sovereign Powers are members. 4 The Organisation shall have relief, under arrangements made either by the Secretary of State or by the Commissioners of Customs and Excise, by way of refund of customs duty paid on any hydrocarbon oils (within the meaning of the Customs and Excise Act 1952) which are bought in the United Kingdom and used for the official purposes of the Organisation, such relief to be subject to compliance with such conditions as may be imposed in accordance with the arrangements. 5 The Organisation shall have relief, under arrangements made by the Secretary of State, by way of refund of purchase tax paid on any goods which are used for the official purposes of the Organisation, such relief to be subject to compliance with such conditions as may be imposed in accordance with the arrangements. 6 1 Subject to the provisions of paragraph (2) of this Article, all officers and servants of the Organisation shall enjoy the like exemption from customs duties and taxes on the importation of articles which — i at or about the time when the officer or servant first enters the United Kingdom as an officer or servant of the Organisation are imported for his personal use or that of members of his family forming part of his household, including articles intended for his establishment, and ii are articles which were in his ownership or possession or that of such a member of his family immediately before he so entered the United Kingdom, as in accordance with paragraph 1 of Article 36 of the 1961 Convention Articles is accorded to a diplomatic agent. 2 The provisions of paragraph (1) of this Article shall not apply to any person who is a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948. W.G. Agnew

The Transport Act 1968 (Commencement No. 8) Order 1970 The Minister of Transport and the Secretary of State, acting jointly, hereby make this Order in exercise of their powers under section 166 of the Transport Act 1968 and of all other enabling powers: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 8) Order 1970. 2 The provisions of the Transport Act 1968 (hereinafter referred to as “ the Act ”) specified in the Schedule to this Order shall come into force on the 1st January 1971. Sealed with the Official Seal of the Minister of Transport the 28th July 1970. John Peyton Minister of Transport Given under the Seal of the Secretary of State for Scotland on 28th July 1970. Gordon Campbell One of Her Majesty's Principal Secretaries of State Peter Thomas One of Her Majesty's Principal Secretaries of State Dated the 28th July 1970 SCHEDULE PROVISIONS COMING INTO FORCE ON THE 1ST JANUARY 1971 In Part VIII of the Act Section 116 in so far as it applies to any highway carried by a bridge over an inland waterway of the British Waterways Board or any other installation or land used by that Board in connection with an inland waterway. Section 117 in so far as it applies to any bridge which carries a highway over an inland waterway of the British Waterways Board or any other installation or land used by that Board in connection with an inland waterway.

The Consular Relations (Merchant Shipping) (Socialist Federal Republic of Yugoslavia) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by section 4, 5, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (Socialist Federal Republic of Yugoslavia) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Articles 3 and 4 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 5 of this Order a ship shall be treated as belonging to the Socialist Federal Republic of Yugoslavia if it is a ship flying the flag of Yugoslavia. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the Socialist Federal Republic of Yugoslavia shall not be entertained by any court in the United Kingdom unless a consular officer of the Socialist Federal Republic of Yugoslavia has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 Where an offence is alleged to have been committed on board any ship belonging to the Socialist Federal Republic of Yugoslavia by the master or a member of the crew, proceedings for the offence instituted otherwise than at the request or with the consent of a consular officer of the Socialist Federal Republic of Yugoslavia shall not be entertained by any court in the United Kingdom, unless — a the offence is alleged to have been committed — i by or against a person who is a citizen of the United Kingdom and Colonies, a citizen of Southern Rhodesia, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948; or ii against a person other than the master or a member of the crew; or b the offence is one involving the tranquillity or safety of a port, or the law relating to safety of life at sea, public health, oil pollution, wireless telegraphy, immigration or customs; or c the offence is one punishable (on a first conviction) with imprisonment for a term that may extend to five years or with a more severe sentence. 5 The Socialist Federal Republic of Yugoslavia is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The Isles of Scilly (Land) Order 1970 The Minister of Housing and Local Government, after consultation with the Council of the Isles of Scilly, in exercise of his powers under section 11 of the Local Authorities (Land) Act 1963 and of all other powers enabling him in that behalf, hereby makes the following order: — 1 This order may be cited as the Isles of Scilly (Land) Order 1970. 2 The Interpretation Act 1889 applies to the interpretation of this order as it applies to the interpretation of an Act of Parliament. 3 The Local Authorities (Land) Act 1963 (except sections 6 to 8 thereof) shall apply to the Isles of Scilly with the modifications set out in the Schedule to this order. Given under the official seal of the Minister of Housing and Local Government on 26th June 1970. James W. Vernon Under Secretary Ministry of Housing and Local Government SCHEDULE For section 13 there shall be substituted — 13 Section 159(1) of the Local Government Act 1933 (which as applied to the Isles of Scilly by the Isles of Scilly Order 1943 provides that the Council of the Isles of Scilly may be authorised to purchase land for the purposes of any of their functions under any public general Act) shall not apply in relation to any function conferred on the said Council by any provision of this Act which is applied to the Isles of Scilly by the Isles of Scilly (Land) Order 1970. . In section 14(1), for the definition of “local authority” there shall be substituted “ local authority ” includes the Council of the Isles of Scilly;

Income and Corporation Taxes Act 1970 PART I Charge of Income Tax, and General Provisions relating only to income tax CHAPTER I The Charge, and Dates for Payment The charge 1 Where any Act enacts that income tax shall be charged for any year at any rates, then, subject to the provisions of the Income Tax Acts, the tax at those rates shall be charged for that year in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the following sections of this Act — Schedule A — Section 67(1), Schedule B — Section 91, Schedule C — Section 93, Schedule D — Section 108, Schedule E — Section 181(1), and Schedule F — Section 232(1), and in accordance with the provisions of the Income Tax Acts respectively applicable to those Schedules. Fractions of a pound, and yearly assessments 2 1 The due proportion of income tax shall be charged for every fractional part of one pound, but no tax shall be charged of a lower denomination than one penny. 2 Every assessment and charge to income tax shall be made for a year commencing on the 6th April and ending on the following 5th April. Effect of charging at a standard rate, and at higher rates for larger incomes 3 1 Where any Act provides that income tax shall be charged for any year at a standard rate and, in the case of an individual whose total income exceeds a stated amount, at a rate or rates exceeding the standard rate in respect of any part or parts of his income in excess of that amount, then, subject to the provisions of the Income Tax Acts — a the Income Tax Acts, in so far as they relate to the tax at the standard rate, shall have effect as if income tax were charged for that year at the standard rate only, and, in the case of an individual whose total income exceeds the stated amount, the amount of the income tax charged at the standard rate shall, so far as that income tax is borne by him in respect of his income, be deemed to be an instalment at the standard rate of the amount of income tax for which he is chargeable for that year, and b where the amount of income tax payable by an individual for that year in respect of his total income is greater than the amount which would have been payable by him in respect thereof if income tax had been chargeable at the standard rate only, the difference between those two amounts (in the Income Tax Acts referred to as " surtax ") shall be computed, assessed, charged, collected and paid as a deferred instalment of income tax according to the provisions of the Income Tax Acts relating to surtax. 2 Where, for a year for which income tax is charged in the manner specified in subsection (1) above, a person is required to be assessed and charged with income tax in respect of any property, profits or gains out of which he makes any payment in respect of — a any annuity or other annual payment (not being interest), or b any royalty or other sum in respect of the user of a patent, or c any rent, royalty or other payment which, by section 156 or 157 of this Act (mining etc. rents and royalties) is declared to be subject to deduction of tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent, he shall, in respect of so much of the property, profits or gains as is equal to the said payment, and may be deducted in computing his total income, be charged at the standard rate only. 3 All the provisions of the Income Tax Acts relating to persons who are to be chargeable to income tax at the standard rate, and to assessments to, and the collection and recovery of, such tax shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of surtax. Dates for payment 4 1 Subject to the provisions of the Income Tax Acts, and, in particular, to subsection (2) below and section 204 of this Act (pay as you earn), income tax, other than surtax, contained in an assessment for any year shall be payable on or before the 1st January in that year, except that tax included in an assessment for any year which is made on or after the 1st January shall be deemed to be due and payable on the day next after the day on which the assessment is made. 2 Income tax under Schedule D charged for any year on any individual or firm in respect of the profits or gains of any trade, profession or vocation shall, instead of being payable on or before the 1st January in that year or on such other date as is specified in subsection (1) above, be payable in two equal instalments, the first on or before the 1st January in that year or on such other day as aforesaid, and the second on or before the following 1st July, and the provisions of the Income Tax Acts as to the recovery of income tax shall apply to each instalment of the tax in the same manner as they apply to the whole amount of the tax: Provided that, where the assessment is not made until after the said following 1st July, this subsection shall not have effect, and the tax shall be due and payable as provided in subsection (1) above. 3 Surtax shall be due and payable as a deferred instalment of income tax on or before the 1st January next after the end of the year of assessment for which it is payable, except that surtax, or any part of any surtax, included in an assessment which is made on or after the said 1st January shall be deemed to be due and payable on the day next following the day on which the assessment is made. CHAPTER II Personal Reliefs The reliefs General 5 An individual who makes a claim in that behalf shall be entitled to such relief as is specified in sections 6 to 22 below, subject however to the provisions of sections 23 to 27. Relief for small incomes 6 1 Subject to subsection (3) below, the claimant, if he proves that his total income for the year of assessment does not exceed £450, shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on two-ninths of the amount of that income. 2 Subject as aforesaid, a claimant not entitled to relief under subsection (1) above, if he proves that his total income does not exceed £710, shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the income tax which would have been payable if his total income had amounted to, but had not exceeded, £450 and one-half of the amount by which his total income exceeds £450. 3 A claimant shall not be entitled to relief under this section if he is entitled to relief under subsection (2) of section 9 below, and any relief under this section shall be in substitution for, and not in addition to, relief under subsection (1) of that section. Relief for persons over sixty-five with small incomes 7 The claimant, if he proves that at any time within the year of assessment either he or his wife living with him was of the age of sixty-five years or upwards — a shall be entitled to exemption from income tax if he also proves either — i that his total income for that year does not exceed £425, or ii that he would be entitled to the higher (or married person's) relief under section 8(1) below, and his total income for the year does not exceed £680, and b shall be entitled, if he is not exempt under paragraph (a) above by reason only of his total income for the year exceeding £425 or £680, as the case may be, and the excess is less than £265, to have the income tax payable in respect of his total income reduced, where necessary, to an amount equal to nine-twentieths of that excess. Personal relief 8 1 Subject to the provisions of this section and to section 15 below, the claimant shall be entitled — a if he proves — i that for the year of assessment he has his wife living with him, or ii that his wife is wholly maintained by him during the year of assessment, and that he is not entitled in computing the amount of his income for that year for income tax purposes to make any deduction in respect of the sums paid for the maintenance of his wife, to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £375 ; b in any other case, to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £255. 2 If the total income of the claimant includes any earned income of his wife, the deduction to be allowed under this section shall be increased by an amount equal to income tax at the standard rate on seven-ninths of the amount of that earned income or on £255, whichever is the less. For the purposes of this subsection — a any earned income of the claimant's wife arising in respect of any pension, superannuation or other allowance, deferred pay or compensation for loss of office, given in respect of his past services in any office or employment, shall be deemed not to be earned income of his wife, and b no payment on account of an allowance under the Family Allowances Act 1965 or the Family Allowances Act (Northern Ireland) 1966, and, except in the case of a retirement pension payable to the wife by virtue of her own insurance, no payment of benefit under the National Insurance Act 1965 or the National Insurance Act (Northern Ireland) 1966, shall be treated as earned income. 3 Subsection (1) above shall have effect in relation to any claim by a man who becomes married in the year of assessment for which the claim is made, and has not previously in that year been entitled to relief under paragraph (a) of that subsection, as if the sum specified in that paragraph were reduced by £10 for each month of the year ending before the date of the marriage. In this subsection "month" means a month beginning with the 6th day of a month of the calendar year. Earned income and old age reliefs 9 1 The claimant shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on — a two-ninths of the amount (up to a maximum of £4,005) of the claimant's earned income, plus b one-ninth of the amount (up to a maximum of £5,940) of any excess of his earned income over £4,005. 2 The claimant, if he proves that at any time within the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards, and that his total income for the year of assessment does not exceed £1,000, shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on two-ninths of the amount of that income. 3 If the claimant would be entitled to relief under subsection (2) above but for the fact that his total income exceeds £1,000, he shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, SO as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the income tax which would have been payable if his total income had amounted to, but had not exceeded, £1,000 and eleven-twentieths of the amount by which his total income exceeds £1,000. 4 Any relief under subsection (2) or subsection (3) above shall be in substitution for, and not in addition to, the relief under subsection (1) above. Children 10 1 If the claimant proves — a that there is living at any time within the year of assessment a child of his with respect to whom one of the conditions in subsection (2) below is fulfilled, or b that for the year of assessment he has the custody of, and maintains at his own expense, a child (other than a child of his) with respect to whom one of those conditions is fulfilled, he shall, subject to the provisions of this section and section 11 below, be entitled in respect of each such child to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on the appropriate amount for the child. In this provision "child" includes a stepchild and an illegitimate child whose parents have married each other after his birth. 2 The conditions referred to in subsection (1) above are — a that the child is born in, or is under the age of sixteen years at the commencement of, the year of assessment referred to in that subsection, or b that the child is over the age of sixteen years at the commencement of that year of assessment, but is receiving full-time instruction at any university, college, school or other educational establishment. 3 The appropriate amount for the child shall vary according to the age of the child at the commencement of the year of assessment, and, subject to subsection (5) below — a for a child shown by the claimant to have been then over the age of sixteen, shall be £165, and b for a child not so shown, but shown by the claimant to have been then over the age of eleven, shall be £140, and c in any other case shall be £115. 4 The reference in subsection (2)(b) above to a child receiving full-time instruction at an educational establishment shall include a reference to a child undergoing training by any person (hereinafter referred to as " the employer ") for any trade, profession or vocation in such circumstances that the child is required to devote the whole of his time to the training for a period of not less than two years. For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Board. 5 In the case of a child who is entitled in his own right to an income exceeding £115 a year, the appropriate amount for the child shall be reduced by the amount of the excess, and accordingly no relief shall be allowed under this section where the excess is equal to or greater than the amount which apart from this subsection would be the appropriate amount for the child: Provided that, in calculating the income of the child for the purpose of this subsection, no account shall be taken of any income falling under Chapter V of this Part of this Act to be treated as income of a parent of the child, or of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment. 6 If any question arises as to whether any person is entitled to relief under this section in respect of a child who is over the age of sixteen years, as being a child who is receiving full-time instruction at an educational establishment, the Board may consult the Secretary of State for Education and Science. In the application of this subsection to Scotland and Northern Ireland, the Secretary of State and the Ministry of Education for Northern Ireland shall respectively be substituted for the Secretary of State for Education and Science. 7 Notwithstanding anything in section 9 of the Family Law Reform Act 1969 or any corresponding enactment of the Parliament of Northern Ireland or any rule of law in Scotland, for the purposes of this section a child whose birthday falls on 6th April shall be taken to be over the age of eleven at the commencement of the year which begins with his eleventh birthday, and over the age of sixteen at the commencement of the year which begins with his sixteenth birthday. Double claim for children 11 1 The provisions of this section shall have effect where, for any year of assessment, two or more individuals are, or would but for the provisions of this section be, entitled to relief under section 10 above in respect of the same child. 2 The relief to be granted to each of the individuals shall be computed as if the reference in subsection (1) of that section to the appropriate amount for the child were a reference to the part of the appropriate amount for the child which is apportioned to that individual under subsection (3) below. 3 The appropriate amount for the child shall be apportioned between the individuals in question in such proportion as they agree, or, in default of agreement, in proportion to the amount or value of the provision made by them respectively (otherwise than by way of payments deductible in computing their respective total incomes) for the child's maintenance and education for the year of assessment. 4 Any apportionment under this section shall be made by such body of General Commissioners, being the General Commissioners for a division in which one of the individuals resides, as the Board may direct, or, if none of the individuals resides in Great Britain, by the Special Commissioners. 5 Where a claim is made under the said section 10, and it appears that, if the claim is allowed, an apportionment will be necessary under this section, the Board may if they think fit direct that the claim itself shall be dealt with by any specified body of Commissioners which could under this section be directed to make the apportionment, and that the same Commissioners shall also make any apportionment which proves to be necessary; and where a direction is given under this subsection no other body of Commissioners shall have jurisdiction to determine the claim. 6 The Commissioners making any apportionment under this section shall hear and determine the case in like manner as an appeal, but any individual who is, or but for the provisions of this section would be, entitled to relief in respect of the child shall be entitled to appear and be heard by the Commissioners, or to make representations to them in writing. Widower's or widow's housekeeper 12 1 If the claimant proves that he is a widower and that for the year of assessment a person, being a female relative of his or of his deceased wife, is resident with him in the capacity of a housekeeper, or that he has no female relative of his own or of his deceased wife who is able and willing to act in such capacity and that he has employed some other female person to reside with him for the purpose, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £75 in respect of that female relative or female person: Provided that — i no relief shall be allowed under this section unless the claimant proves that no other individual is entitled to relief in respect of the female relative under the provisions of this Chapter, or, if any other individual is so entitled, that the other individual has relinquished his claim thereto, and ii no relief shall be allowed under this section where the female relative is a married woman living with her husband, and the husband has claimed and been allowed the higher relief under section 8(1) above, and iii not more than one deduction of tax shall be allowed under this section to any claimant for any year. 2 This section shall apply to a claimant being a widow as it applies to a claimant being a widower, with the substitution of " her deceased husband " for " his deceased wife ". Relative taking charge of unmarried person's young brother or sister 13 If the claimant proves — a that he is unmarried, and that he has living with him either his mother, being a widow or a person living apart from her husband, or some other female relative, for the purpose of having the charge and care of any brother or sister of his, being a child in respect of whom relief is allowed under this Chapter, and that he maintains the mother or other relative at his own expense, and b that neither he nor any other individual is entitled to relief in respect of the same person under any of the other provisions of this Chapter, or, if any other individual is entitled to any such relief, that the other individual has relinquished his claim thereto, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £75. Additional relief for widows and others in respect of children 14 1 This section applies — a to widows, widowers and other persons who are not entitled for the year of assessment to the higher (married persons) relief under section 8(1) above, except that it does not apply to a woman who is not a widow unless throughout the year of assessment she was either in full-time employment or engaged full-time in some trade, profession or vocation or totally incapacitated by physical or mental infirmity, and b to any married man who is entitled for the year of assessment to the higher relief aforesaid but whose wife was throughout that year totally incapacitated by physical or mental infirmity. 2 Subject to subsection (3) below, if the claimant, being a person to whom this section applies, proves in the case of a year of assessment — a that he is entitled to relief under section 10 above in respect of a child resident with him, and b that he is not entitled to any relief under section 13 above, and either that no other individual is entitled to such relief in respect of the charge and care of that child or that his claim thereto has been relinquished, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £100. 3 Where more than one individual is entitled to relief under this section in connection with the same child, the £100 mentioned in subsection (2) above shall be apportioned between them in such proportions as may be agreed between them, or, in default of agreement, in accordance with such apportionment as may be adopted in relation to that child under section 11 above. Claims under ss. 12 to 14 for year of marriage 15 A man who becomes married during a year of assessment may by notice in writing to the inspector elect that his marriage be disregarded for the purposes of any claim for that year under section 12, 13 or 14 above, and, in that case, the marriage shall also be disregarded for the purpose of any claim for that year under section 8 above. Dependent relatives 16 1 If the claimant proves that he maintains at his own expense — a any relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or b his or his wife's mother who, whether or not in capacitated, is either widowed, or living apart from her husband, or a single woman in consequence of dissolution or annulment of marriage, being (whether falling under paragraph (a) or paragraph (b) above) a person whose total income does not exceed £320 a year, he shall be entitled in respect of each such person whom he so maintains to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £75: Provided that, in the case of any person so maintained whose total income exceeds £245 a year, this subsection shall have effect with the substitution for the reference to £75 of a reference to £75 diminished by the amount of the excess. 2 Where the claimant under subsection (1) above is a woman — a the references in that subsection to the claimant's wife shall be construed as references to the claimant's husband, and b unless she is a married woman living with hex husband, for the reference in that subsection to £320 there shall be substituted a reference to £355, and for references to £75 references to £110. 3 Subject to subsection (4) below, where two or more persons jointly maintain any such person as is mentioned in subsection (1) above, the £75 mentioned in that subsection, or, as the case may be, the lesser amount mentioned in the proviso to that subsection, shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that person. The apportionment under this subsection may be effected as the persons entitled to claim the relief agree, and, subject to any such agreement, subsections (4) and (5) of section 11 above shall apply to an apportionment under this subsection, and as if, in the said subsection (5), the reference to a claim under section 10 above were a reference to a claim under this section. 4 Where, without subsection (2)(b) above, the claimant's relief would fall to be reduced by any proportion under subsection (3) above, any increase in the claimant's relief attributable to the said subsection (2)(b) shall be reduced by the same proportion ; and accordingly, subsection (3) above shall be read without reference to the modifications made by the said subsection (2)(b). 5 No person shall be entitled to less relief under the Income Tax Acts than he would be entitled to if no relief were available under subsection (1) above in respect of the maintenance of a person whose total income exceeds £50 a year, and if that subsection did not include a reference to the mother living apart from her husband or being a single woman in consequence of dissolution or annulment of marriage. Claimant depending on services of a daughter 17 If the claimant, by reason of old age or infirmity, is compelled to depend upon the services of a daughter resident with and maintained by him, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on £40. Relief for blind persons 18 1 Subject to subsection (5) below, if the claimant proves — a that he is a married man who for the year of assessment has his wife living with him, and that one of them was, and the other was not, throughout the year a registered blind person, or b that, not being such a married man, he was throughout the year a registered blind person, and also proves that the amounts of any tax-free disability payments receivable in the year by him, or, as the case may be, by his wife living with him, are such that seven-ninths of the aggregate thereof is less than £100, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on an amount equal to £100 reduced by seven-ninths of the aggregate of any such payments so receivable. 2 Subject to subsection (5) below, if the claimant proves — a that he is a married man who for the year of assessment has his wife living with him, and b that throughout the year both he and his wife were registered blind persons, and c that the amounts of any tax-free disability payments receivable in the year (whether by him or his wife) are such that seven-ninths of the aggregate thereof is less than £200, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the standard rate on an amount equal to £200 reduced by seven-ninths of the aggregate of any such payments so receivable. 3 Where a person is a registered blind person during part only of the year of assessment, that person, or as the case may be that person's husband, shall be entitled to relief under subsection (1) or (2) above in any case in which he would have been entitled to such relief if that person had been such a registered blind person throughout the year, but the amount of relief granted by virtue of this subsection shall be calculated in accordance with subsection (4) below. 4 For the purpose of calculating the amount of relief for the purposes of subsection (3) above, this section shall have effect as if — a for references in subsections (1) and (2) above to the amounts of any tax-free disability payments receivable by a person in the year of assessment there were substituted references to the amounts of any such payments receivable by him in the part of the year during which he was a registered blind person, and b for references in subsection (1) above to £100 there were substituted references to that proportion of £100 which the period in the year of assessment during' which the person in question was a registered blind person bears to one year, and c for references in subsection (2) above to £200 there were substituted references to that proportion of £200 which the sum of the periods in the year of assessment during which each of the persons in question was such a registered blind person bears to two years. 5 Unless a claimant who is entitled to relief for the year of assessment under section 17 above in respect of the services of a daughter relinquishes his claim to that relief, he shall not be allowed relief under this section for that year. 6 In this section — " registered blind person " means a person registered as a blind person in a register compiled under section 29 of the National Assistance Act 1948 or under any corresponding enactment for the time being in force in Northern Ireland; " tax-free disability payment " means a periodical payment receivable by a person on account of his blindness and not falling to be treated as income for the purposes of income tax. Premiums under post-1916 life policies etc. 19 1 Subject to the provisions of this section and of section 21 below, and subject also to section 227(11) of this Act (retirement annuity premiums), if the claimant has paid any such premium as is specified in subsection (2) below, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at two-fifths of the standard rate on the amount of the premium: Provided that if, in any year of assessment, the total premiums in respect of which relief falls to be granted under this section do not exceed £25, the relief under this section shall be a deduction equal to income tax at the standard rate on £10 or on the full amount of the premiums, whichever is the less. 2 The premiums referred to in subsection (1) above are any premiums paid by the claimant under a policy of insurance or contract for a deferred annuity where — a the insurance or contract was made after 22nd June 1916 — i with any insurance company legally established within Her Majesty's dominions, any other country mentioned in section 1(3) of the British Nationality Act 1948 or the Republic of Ireland, or lawfully carrying on business in the United Kingdom, or ii with underwriters, being members of Lloyd's or of any other association of underwriters approved by the Board of Trade or the Ministry of Commerce for Northern Ireland, who comply with the requirements set forth in Schedule 1 to the Insurance Companies Act 1958 or, as the case may be, Schedule 1 to the Insurance Companies Act (Northern Ireland) 1968, or iii with a registered friendly society, or iv in the case of a deferred annuity, with the National Debt Commissioners, and b the insurance or, as the case may be, the deferred annuity is on the life of the claimant or on the life of his wife, and c the insurance or contract was made by him. 3 No relief under this section shall — a be given except in respect of premiums payable under policies for securing a capital sum on death, whether in conjunction with any other benefit or not, or b be given in respect of premiums payable during the period of deferment in respect of a policy of deferred assurance: Provided that this subsection shall not affect premiums payable — i under policies or contracts made in connection with any superannuation or bona fide pension scheme for the benefit of the employees of any employer, or of persons engaged in any particular trade, profession, vocation or business, or for the benefit of the wife or widow of any such employee or person or of his children or other dependants, or ii under policies taken out by teachers in the schools known in the year 1918 as secondary schools, pending the establishment of a superannuation or pension scheme for those teachers. 4 Relief shall not be granted under this section in respect of premiums payable under any policy of life insurance issued in respect of an insurance made after 19th March 1968 unless the policy is a qualifying policy within the meaning of Part I of Schedule 1 to this Act: Provided that this subsection shall not apply — a to any policy of life insurance having as its sole object the provision on an individual's death or disability of a sum substantially the same as any amount then outstanding under a mortgage of his residence, or of any premises occupied by him for the purposes of a business, being a mortgage the principal amount secured by which is repayable by instalments payable annually or at shorter regular intervals, or b to any policy of life insurance issued in connection with a sponsored superannuation scheme as defined in section 226(11) of this Act, if one-half at least of the cost of the scheme is borne by the person or persons under whom the relevant offices or employments are held. In the application of the above proviso to Scotland, for any reference to a mortgage there shall be substituted a reference to a heritable security within the meaning of the Conveyancing (Scotland) Act 1924 (but including a security constituted by ex facie absolute disposition or assignation). 5 A policy of life insurance issued in respect of an insurance made on or before 19th March 1968 shall be treated for the purposes of subsection (4) above as issued in respect of one made after that date if varied after that date so as to increase the benefits secured, or to extend the term of the insurance: Provided that a variation effected before the end of the year 1968 shall be disregarded for the purposes of this subsection if its only effect was to bring into conformity with paragraph 2 of Schedule 1 to this Act (qualifying conditions for endowment policies) a policy previously conforming therewith except as respects the amount guaranteed on death, and no increase was made in the premiums payable under the policy. 6 The provisions of Part II of Schedule 1 to this Act shall have effect with respect to the certification of policies which are qualifying policies within the meaning of Part I of that Schedule. 7 Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband, or a contract for any deferred annuity on her own life or the life of her husband, the same relief shall be given as if the premium were a premium paid by her husband for an insurance on his own life, or for a contract for a deferred annuity on his own life, and this section shall apply accordingly. 8 Any reference in any provision of the Income Tax Acts (and, in particular, in section 22 below) to an amount income tax on which falls to be deducted under this or the preceding sections of this Chapter shall, in relation to a premium on which, by virtue of this section, a deduction falls to be made at two-fifths of the standard rate, be construed as a reference to two-fifths of the amount of that premium. Premiums under pre-1916 life policies etc., and certain other payments 20 1 Subject to the provisions of this section and of section 21 below, and subject also to sections 210, 219(3) and 227(11) of this Act (retirement annuity premiums, and contributions under Superannuation Acts, National Insurance Acts etc.), if the claimant — a has paid any such premium as is specified in subsection (2) below, or b is under any Act of Parliament, or under the terms or conditions of his employment, liable to the payment of any sum, or to the deduction from his salary or stipend of any sum, for the purpose of securing, a deferred annuity to his widow or provision for his children after his death, he shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to income tax at the appropriate rate on the amount of the premium paid by him or on the amount of the sum paid by him or deducted from his salary or stipend. 2 The premiums referred to in subsection (1)(a) above are any premiums paid by a person under a policy of insurance or contract for a deferred annuity where — a the insurance or contract was made on or before 22nd June 1916 — i with any insurance company legally established within the Crown's dominions, or lawfully carrying on business in the United Kingdom, or ii with a registered friendly society, or iii in the case of a deferred annuity, with the National Debt Commissioners, and b the insurance or, as the case may be, the deferred annuity is on the life of that person or on the life of his wife, and c the insurance or contract was made by him. 3 For the purposes of this section, " the appropriate rate " means — a where the total income of the claimant does not exceed £1,000, half the standard rate of income tax, b where the total income of the claimant exceeds £1,000 but does not exceed £2,000, three-fourths of the standard rate of income tax, c where the total income of the claimant exceeds £2,000, the standard rate of income tax: Provided that, in relation to the premiums referred to in subsection (1)(a) above, this subsection shall, as respects any year for which the standard rate exceeds 35 per cent. have effect as if the standard rate were 35 per cent. 4 No relief under subsection (1) above shall be given in respect of the amount, if any, by which the premiums or other sums in respect of which relief is claimed exceed the claimant's taxable income, that is to say, his total income less any amount on which he is entitled to relief by virtue of sections 6(1), 8, 9(1), 9(2) or 10 to 19 above. 5 Where the income tax ultimately payable by any person after deducting the relief under this section is greater than the amount of income tax at the standard rate which would be payable if the total income of that person exceeded £1,000 or £2,000, as the case may be, the relief under this section shall be increased by a sum representing the amount by which income tax at one-fourth of the standard rate on the amount of the premiums or payment in respect of which the relief is given exceeds the amount of the income tax at the standard rate on the amount by which the total income falls short of £1,000 or £2,000, as the case may be: Provided that, in relation to the premiums referred to in subsection (1)(a) above, this subsection shall, as respects a year for which the standard rate of income tax exceeds 35 per cent., have effect as if the two last references therein to the standard rate were references to a rate of 35 per cent. 6 Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband, or a contract for any deferred annuity on her own life or the life of her husband, the same relief shall be given as if the premium were a premium paid by her husband for an insurance on his own life, or for a contract for a deferred annuity on his own life, and this section shall apply accordingly. Limits on relief under ss. 19 and 20 21 1 The aggregate of the premiums or other sums in respect of which relief is given to any person under sections 19 and 20 above shall not exceed one-sixth of that person's total income. 2 No relief under either of the said sections in respect of a premium or other payment payable on a policy for securing a capital sum on death (whether in conjunction with any other benefit or not) shall exceed the amount of the income tax calculated at the appropriate rate on an amount equal to 7 per cent. of the actual capital sum assured, and, in calculating any such capital sum, no account shall be taken of any sum payable on the happening of any other contingency, or of the value of any premiums agreed to be returned, or of any benefit by way of bonus or otherwise which is to be or may be received either before or after death, either by the person paying the premium or by any other person, and which is not the sum actually assured. 3 The aggregate of the relief given under the said sections in respect of premiums or sums payable for securing any benefits other than those mentioned in subsection (2) above shall not exceed the amount of the income tax calculated at the appropriate rate on £100. 4 In subsections (2) and (3) above, " the appropriate rate " — a in relation to premiums to which the said section 19 applies, means two-fifths of the standard rate, and b in relation to other premiums or payments, has the same meaning as in the said section 20, and the said subsections (2) and (3) shall not apply to premiums falling within the proviso to subsection (1) of the said section 19. 5 War insurance premiums shall not be taken into account in calculating the limits of one-sixth of total income or of 7 per cent. or of £100 mentioned in this section. In this subsection " war insurance premiums " means any additional premium or other sum paid in order to extend an existing life insurance policy to risks arising from war or war service abroad, and any part of any premium or other sum paid in respect of a life insurance policy covering those risks, or either of them, which appears to the inspector to be attributable to those risks, or either of them. Reduced rate relief 22 1 Subject to the provisions of this section, the claimant shall be entitled to have the amount of the income tax which remains chargeable on him in respect of his total income after making any deductions to which he is entitled under sections 6(1), 8, 9(1), 9(2) and 10 to 19 above reduced by a further deduction of the amount shown in the following Table, in which " the relevant amount" means the amount of the total income less the aggregate of the amounts income tax on which falls to be deducted under the provisions aforesaid. TABLE Where the relevant amount does not exceed £260 a deduction equal to 11-25 per cent, of the relevant amount; exceeds £260 the same deduction as if the relevant amount were £260. 2 Where the income of an individual includes both earned income of his wife and other income available for relief under subsection (1) above, the further deduction under the said subsection (1) shall (where necessary) be increased so as to equal the sum of — a the deduction which would be made if the relevant amount referred to in the above Table were equal to the amount of the earned income of the wife available for relief under the said subsection (1), and b the deduction which would be made if the relevant amount so referred to were equal to the other income available for relief under the said subsection (1). 3 References in this section to the earned income of the wife available for relief under subsection (1) above shall be construed as references to her earned income less — a so much of any amount which falls to be deducted under any of the provisions of the Income Tax Acts as could not have been deducted but for the existence of the earned income of the wife, and b so much of the amounts income tax on which falls to be deducted under the provisions mentioned in the said subsection (1) as could not have been taken into account but for the existence of the earned income of the wife. 4 References in this section to the income available for relief under subsection (1) above, other than earned income of the wife, shall be construed as references to the man's total income other than earned income of the wife, less the total of the amounts income tax on which falls to be deducted under the provisions mentioned in the said subsection (1), other than so much of those amounts as falls to be deducted from the earned income of the wife in ascertaining the earned income of the wife available for relief under that subsection. 5 For the purposes of ibis section — a any earned income of an individual's wife arising in respect of any pension, superannuation or other allowance, deferred pay or compensation for loss of office, given in respect of his past services in any office or employment shall be deemed not to be earned income of his wife, and b no payment on account of an allowance under the Family Allowances Act 1965 or the Family Allowances Act (Northern Ireland) 1966, and, except in the case of a retirement pension payable to the wife by virtue of her own insurance, no payment of benefit under the National Insurance Act 1965 or the National Insurance Act (Northern Ireland) 1966, shall be treated as earned income of an individual's wife. Supplemental Meaning of " relative " 23 In this Chapter " relative " includes any person of whom the person claiming a relief had the custody and whom he maintained at his own expense while that person was under the age of sixteen years. Reduction in reliefs on account of family allowances 24 1 Where for any year of assessment an individual is assessable to income tax in respect of payments on account of an allowance or allowances under the Family Allowances Act 1965 or the Family Allowances Act (Northern Ireland) 1966, the total deductions from tax to which, apart from this section, the individual (or, if the individual is a wife assessable in respect of the payments by virtue of an application for separate assessment under section 38(1) below, she and her husband together) would be entitled for the year under sections 8 and 10 to 19 above shall be reduced, for each allowance if more than one, by an amount equal to income tax at the standard rate on £42 or, if the payments in question are payments for a part only of the year, by a proportionate part of that amount. 2 The allowances referred to in subsection (1) above shall be treated as including any allowance payable to an individual in the service of the Crown in lieu of an allowance under either of the enactments there specified. 3 The said subsection (1) shall not apply in the case of any payments if the individual assessable in respect thereof is entitled in the year — a to a widow's allowance, widowed mother's allowance, retirement pension or child's special allowance under the National Insurance Act 1965 or the National Insurance Act (Northern Ireland) 1966, or b to an allowance under section 21 of the National Insurance (Industrial Injuries) Act 1965 or section 21 of the National Insurance (Industrial Injuries) Act (Northern Ireland) 1966 (allowances in respect of children of deceased), or c to an allowance granted by the Secretary of State for Social Services under a Royal Warrant, Order in Council or order administered by him to widows of members of the armed forces. 4 The said subsection (1) shall not affect the construction of any reference in the Income Tax Acts to the deduction allowable under any particular provision of those referred to in that subsection. No relief to be given in respect of charges on income 25 A claimant shall not be entitled to relief under sections 5 to 19 and 22 of this Chapter in respect of any income the income tax on which he is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he is liable to make to any other person. Partners 26 The following persons having joint interests, that is to say — a coparceners, joint tenants, or tenants in common of the profits of any property, and b joint tenants, or tenants of land or tenements in partnership, being in the actual and joint occupation thereof in partnership, who are entitled to the profits thereof in shares, and c partners carrying on a trade, profession or vocationtogether who are entitled to the profits thereof in shares, may claim any relief under sections 5 to 19 and 22 of this Chapter according to their respective shares and interests, and any such claims which are proved may be dealt with in the same manner as in the case of several interests: Provided that the income of a partner from a partnership carrying on any trade, profession or vocation shall be deemed to be the share to which he is entitled during the year to which the claim relates in the partnership profits, such profits being estimated according to the provisions of the Income Tax Acts. Non-residents 27 1 Subject to the provisions of this section, no relief under this Chapter shall be given in the case of any individual who is not resident in the United Kingdom. 2 Subsection (1) above shall not apply in the case of any individual who satisfies the Board that he or she — a is a British subject or a citizen of the Republic of Ireland, or b is a person who is or has been employed in the service of the Crown, or who is employed in the service of any missionary society or in the service of any territory under Her Majesty's protection, or c is resident in the Isle of Man or the Channel Islands, or d has previously resided within the United Kingdom, and is resident abroad for the sake of his or her health, or the health of a member of his or her family resident with him or her, or e is a widow whose late husband was in the service of the Crown: Provided that no such relief as aforesaid shall be given so as to reduce the amount of the income tax other than surtax payable by that individual below the amount which results from applying the fraction A B to the amount which would be payable by him by way of income tax other than surtax if the tax were chargeable on his total income from all sources (including income which is not subject to income tax charged in the United Kingdom), where — A is the amount of his income subject to income tax charged in the United Kingdom, and B is the amount of his total income. 3 For the purposes of the proviso to subsection (2) above as it applies to an individual whose income includes income eligible for double taxation relief — a in computing the amount of the income tax payable by the individual, the tax chargeable in respect of the income eligible for double taxation relief shall be disregarded, b in computing the amount of his income subject to income tax charged in the United Kingdom, the income eligible for double taxation relief shall be disregarded, and c in computing his total income from all sources, including income which is not subject to income tax charged in the United Kingdom, income eligible for double taxation relief shall be included, and the income tax which would be chargeable on that total income shall be computed without regard to the double taxation relief available in respect of the income eligible for double taxation relief, and accordingly, where this subsection applies, the amount of the tax chargeable in respect of the income eligible for double taxation relief shall not be affected by subsection (2) above: Provided that this subsection shall not operate so as to make the tax payable by an individual for a year of assessment higher than it would have been if the double taxation relief had not been available. 4 In subsection (3) above " income eligible for double taxation relief" means any dividends, interest, royalties or other profits which are chargeable to income tax but in respect of which relief (other than credit) is available under an Order in Council under section 497 of this Act (double taxation agreements), or under section 31 of the Finance Act 1966 (transitory provisions for company dividends paid to non-residents), so as to limit the rate of income tax so chargeable (but not so as to confer an exemption and make it income which is not subject to income tax charged in the United Kingdom). 5 Any claim which an individual is entitled to make by virtue of subsection (2) above shall be made to the Board. CHAPTER III Surtax General reliefs Earned income and other personal reliefs 28 1 Subject to subsection (2) below, for the purpose of charging surtax for any year of assessment there shall be deducted from an individual's total income — a the amount income tax on which at the standard rate for that year is equal to the deduction which he is entitled to be allowed for that year under section 9(1) above (earned income relief), and b where a deduction falls to be made under paragraph (a) above and the earned income of the individual in question, reduced by the amount of that deduction, exceeds £2,000, whichever is the less of the following amounts, that is to say, the amount of the excess and £2,000, and c the amount income tax on which at the standard rate for the year is equal to the deductions which he is entitled to be allowed for that year from income tax other than surtax under sections 8(1), 10 and 12 to 18 above, after subtracting from those deductions the amount of the deduction which a single person may be allowed for that year under the said section 8(1). 2 Where an individual not resident in the United Kingdom is entitled to a deduction for any year under subsection (1) above, the deduction shall be reduced in the proportion in which the proviso to section 27(2) above reduces any relief given him for that year under Chapter II of this Part of this Act. Relief on death in year for which rates increased 29 The amount of surtax payable in respect of the total income of an individual for the year of assessment in which he dies shall not exceed the amount of surtax which would have been payable if income tax had been chargeable for that year at the same rates as for the year preceding that year, and all such adjustments and repayments of tax shall be made as may be required in order to give effect to the provisions of this section. Special provisions as to accrual of income Provisions for preventing avoidance of surtax by sales cum dividend, etc. 30 1 Any individual upon whom notice is served by the Board requiring him to furnish a statement of and particulars relating to any assets in which, at any time during the period specified in the notice, he has had any beneficial interest, and in respect of which, within such period, either no income was received by him or the income received by him was less than the sum to which the income would have amounted if the income from such assets had accrued from day to day and been apportioned accordingly, shall, whether an assessment to surtax in respect of his total income has or has not been made for the relevant year or years of assessment, furnish such a statement and such particulars in the form and within the time (not being less than twenty-eight days) required by the notice. 2 The Board may serve further notices whenever they consider it necessary for the purposes of this section until complete particulars have been furnished to their satisfaction. 3 If it appears to the Board by reference to all the circumstances in relation to the assets of any such individual (including circumstances with respect to sales, purchases, dealings, contracts, arrangements, transfers or any other transactions relating to such assets) that the individual has thereby avoided, or would avoid, more than 10 per cent. of the amount of the surtax for any year which would have been payable in his case if the income from those assets had been deemed to accrue from day to day and had been apportioned accordingly and the income so deemed to have been apportioned to him had been treated as part of his total income for the purposes of surtax, then those assets shall be deemed to be assets to which subsection (4) below applies. 4 For the purposes of assessment to surtax in the case of any such individual, the income from any assets to which this subsection applies shall be deemed to accrue from day to day and, in the case of the sale or transfer of any such assets by or to him, shall be deemed to have been received as and when it is deemed to have accrued: Provided that an individual shall not be liable to be assessed to surtax under this section in respect of any such income if he proves to the satisfaction of the Board that the avoidance of surtax was exceptional and not systematic, and that there was not in his case in any of the three next preceding years any such avoidance of surtax as is described in the provisions of subsection (3) above. 5 If any individual fails to furnish any statement or particulars required under this section, or if the Board are not satisfied with any statement or particulars furnished under this section, they may make an estimate of the amount of the income which, under the preceding provisions of this section, is to be deemed to form part of his total income for the purposes of surtax. 6 For the purposes of this section " assets " means — a stocks or securities entitled to interest or dividend at a fixed rate only, not being stocks or securities the interest or dividend on which is dependent on the earnings of a company, and b any other stocks or securities and any shares, if transactions in relation thereto have been effected by the individual otherwise than through a stock exchange in the United Kingdom and by a transfer on which ad valorem duty has been paid under the heading " Conveyance or Transfer on Sale " in Schedule 1 to the Stamp Act 1891. Relief where income attributable to a period exceeding a year is received in a year 31 If any individual, on a claim made to the Board under this section, proves to the satisfaction of the Board — a that, as respects any assets, in consequence of the operation of the provisions of the Income Tax Acts which require that for the purposes of surtax any income which is chargeable with income tax by way of deduction shall be deemed to be income of the year in which it is receivable, the income from those assets, as estimated for the purposes of surtax for any year of assessment, represents more than the income which would be attributable to a period of one full year if the income were deemed to have accrued from day to day, and b that, in consequence, the amount of surtax payable by him for that year exceeds by more than 5 per cent. the amount of the surtax which would have been payable by him for that year if the amount of his income from those assets had not exceeded the amount which would be attributable to a period of one full year if the income from those assets were deemed to have accrued from day to day, the Board shall charge him to surtax, or adjust his liability to surtax, for that year and any succeeding year so as to give such relief as may be just, having regard to all the circumstances and, in particular, to the amount of any liability or additional liability to surtax which would have arisen for any preceding year or years if — i the income from such assets as aforesaid were deemed to have accrued from day to day and to have been apportioned accordingly, and ii the income so deemed to have been apportioned to him had been treated as part of his total income for the purposes of surtax. Relief in case of purchases cum dividend 32 If any individual, on a claim made to the Board under this section, proves to the satisfaction of the Board that, in consequence of the sale or transfer to him of any assets, the amount of surtax payable by him for any year of assessment exceeds by more than 10 per cent. the amount of the surtax which would have been payable by him for that year if the income from those assets and from any assets sold or transferred by him were deemed to have accrued from day to day, then, for the purposes of surtax in the case of that individual for that year, the income from all such assets as aforesaid shall be deemed to have accrued from day to day and to have been received by him as and when it is deemed to have accrued. Supplemental 33 1 Any income arising in respect of any assets which, for any of the purposes of sections 30 to 32 above, is deemed to have accrued from day to day, or which is to be computed as if it were income that accrued from day to day, shall — a if payable in respect of any stated period, be deemed to have accrued from day to day during that period, and b if not payable in respect of any stated period, be deemed to have accrued from day to day during the period of twelve months next preceding the date on which that income was declared payable, or during the period between the last previous declaration of a dividend (not being a dividend expressed to be an interim dividend in respect of a stated period), payment of interest, or other yield or produce of such asset and the date aforesaid, whichever period is the less. 2 The jurisdiction of the Special Commissioners on any appeal shall include jurisdiction to review any relevant decision taken by the Board in the exercise of their functions under the said sections 30 to 32. Other special provisions Surtax to be charged on consideration for certain restrictive covenants etc. 34 1 Where — a an individual who holds, has held, or is about to hold, an office or employment gives in connection with his holding thereof an undertaking (whether absolute or qualified, and whether legally valid or not) the tenor or effect of which is to restrict him as to his conduct or activities, and b in respect of the giving of that undertaking by him, or of the total or partial fulfilment of that undertaking by him, any sum is paid either to him or to any other person, and c apart from this section, the sum paid would neither fall to be treated as income of any person for the purposes of income tax for any year of assessment nor fall to be taken into account as a receipt in computing, for the purposes of income tax for any year of assessment, the amount of any income of, or loss incurred by, any person, the same results shall follow in relation to surtax for the year of assessment in which the said sum is paid as would have followed if the said sum had been paid to the said individual (and not to any other person) as and for the net amount of an annual payment to which the said individual was entitled, being an annual payment chargeable to income tax from the gross amount of which income tax at the standard rate for that year had been duly deducted under section 52 or 53 of this Act: Provided that, where the individual has died before the payment of the said sum, so much of the preceding provisions of this subsection as relates to the results which are to follow from the matters specified in paragraphs (a) to (c) thereof shall have effect as if the said sum had been paid immediately before the death. 2 Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, subsection (1) above shall apply as if a sum had instead been paid equal to the value of that consideration. 3 Subsections (1) and (2) above shall not apply to any sum paid or consideration given if either — a the undertaking in question was given on or before 6th April 1948, or b the sum or consideration is or was paid or given at or after the time of the retirement of the individual in question from the service of the person under whom the office or employment in question was held, and is or was so paid or given in pursuance of a provision in that behalf which expressly provides for the payment or giving thereof at or after that time and is embodied in a contract made in writing on or before 18th April 1950, or reduced to writing on or before that date, or c the sum or consideration is or was paid or given in pursuance of an express provision in that behalf embodied in a contract made in writing on or before the said 18th April, or reduced to writing on or before that date, being a contract the main purpose of which was to provide for the transfer of a trade or part of a trade, or for the transfer of the controlling interest in any body corporate. For the purposes of this subsection, a director of a company shall be deemed to be in the service of that company and to hold his office as such under that company. 4 Where any sum is paid or valuable consideration given to any person in any year of assessment in respect of the giving of, or of the total or partial fulfilment of, an undertaking given after 6th April 1948 and satisfying the conditions specified in subsection (1)(a) above (not being a sum from which income tax is duly deducted under any provision of the Income Tax Acts), it shall be the duty of the person paying over the sum or giving the consideration to deliver particulars thereof in writing to the inspector not later than one month after the end of that year, identifying the recipient of the payment or consideration, the undertaking in connection with which it was made or given and the individual who gave that undertaking. 5 In this section " office or employment" means any office or employment whatsoever such that the emoluments thereof, if any, are or would be chargeable to income tax under Case I or II of Schedule E ; and references in this section to the giving of valuable consideration do not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but do include references to the doing of anything in or towards the discharge of such an obligation. Expenses of Crown servants abroad 35 For the purpose of charging surtax, there shall be deducted from the total income of an individual in the service of the Crown abroad any such sum as the Minister for the Civil Service may allow for expenses which, in the Minister's opinion, are necessarily incidental to the discharge of the functions of the individual's office and for which an allowance has not already been made. Recovery of surtax due from beneficiary under discretionary trust 36 1 The provisions of this section shall have effect in relation to surtax due from any person (in this section referred to as "the beneficiary") to whom, or for whose benefit, any income or any capital may in the discretion of some other person be paid or applied under a trust. 2 If any surtax charged in respect of the income of the beneficiary is not paid before the expiry of six months from the date when it became due and payable, the Board may at any time thereafter, so long as the said surtax remains unpaid, cause to be served on the trustees of the trust a notice in writing that the said surtax remains unpaid. 3 Where such a notice as aforesaid is served in accordance with the provisions of this section on the trustees of the trust, it shall be the duty of the trustees, as soon as may be, and if necessary from time to time, to pay to the Board in or towards satisfaction of the said surtax from time to time remaining unpaid any income or capital which, by virtue of any exercise of the discretion under the trust, the beneficiary may become entitled to receive or to have applied for his benefit. 4 Any payments made out of income by trustees on account of surtax in respect of which a notice under this section has been served shall be deemed for all the purposes of the Income Tax Acts to represent income paid to the beneficiary. 5 Any sum which the trustees are liable to pay by virtue of the provisions of this section shall be recoverable from them as a debt due to the Crown. 6 Where there are two or more trustees under the trust, a notice under this section shall be deemed to have been validly served upon the trustees if served upon any one of them, but nothing in this section shall render a trustee personally liable for anything done by him in good faith and in ignorance of the fact that such a notice has been served. CHAPTER IV Aggregation of Income — Husband and Wife General rule for aggregation of wife's income 37 1 Subject to the provisions of this Chapter, a woman's income chargeable to income tax shall, so far as it is income for a year of assessment or part of a year of assessment during which she is a married woman living with her husband, be deemed for income tax purposes to be his income and not to be her income: Provided that the question whether there is any income of hers chargeable to income tax for any year of assessment and, if so, what is to be taken to be the amount thereof for income tax purposes shall not be affected by the provisions of this subsection. 2 Any tax falling to be assessed in respect of any income which, under subsection (1) above, is to be deemed to be the income of a woman's husband shall, instead of being assessed on her, or on her trustee, guardian, curator, receiver or committee, or on her executors or administrators, be assessable on him or, in the appropriate cases, on his trustee, guardian, curator, receiver or committee, or on his executors or administrators: Provided that nothing in this subsection shall affect the operation of section 152 of this Act (assessment of partnership income). 3 The personal reliefs allowed in the case of a man for any year of assessment shall be so allowed that an amount not less than the total of the following — a any deduction falling to be made under section 8(2) of this Act (special relief where a man's income includes earned income of his wife), and b so much of any deduction falling to be made under section 9(1) of this Act (earned income relief) as could not have been made but for the existence of earned income of his wife, and c any deduction falling to be made by virtue of section 22(2) of this Act (increase in reduced rate relief in certain cases where a man's income includes earned income of his wife), goes to reduce the income tax chargeable on the earned income of his wife. 4 References in this section to a woman's income include references to any sum which, apart from the provisions of this section, would fall to be included in computing her total income, and this subsection has effect in relation to any such sum notwithstanding that some enactment (including, except so far as the contrary is expressly provided, an enactment passed after the passing of this Act) requires that that sum should not be treated as income of any person other than her. 5 In this section " personal relief " means any relief under Chapter II of this Part of this Act. Options for separate assessment 38 1 If, within six months before the 6th July in any year of assessment, a husband or a wife makes an application for the purpose in such manner and form as the Board may prescribe, income tax other than surtax for that year shall be assessed, charged and recovered on the income of the husband and on the income of the wife as if they were not married, and all the provisions of the Income Tax Acts with respect to the assessment, charge and recovery of income tax other than surtax shall, save as otherwise provided by those Acts, apply as if they were not married: Provided that, in the case of persons married during the course of a year of assessment, an application under this subsection may be made as regards that year at any time before the 6th July in the following year. 2 If, before the 6th July in the year next following the year of assessment, a husband or a wife makes an application for the purpose in such manner and form as the Board may prescribe — a surtax for that year shall be assessed, charged and recovered on the income of the husband and on the the income of the wife as if they were not married, and all the provisions of the Income Tax Acts with respect to the assessment, charge and recovery of surtax shall apply as if they were not married, and b the income of the husband and wife shall be treated as one in estimating total income for the purposes of surtax, and, subject to section 39(4) below, the amount of surtax payable in respect of the total income shall be divided between the husband and wife in proportion to the amounts of their respective incomes and the total amount payable shall not be less than it would have been if an application had not been made under this subsection. 3 Subject to subsection (4) below, an application duly made by a husband or wife under subsection (1) or (2) above shall have effect, not only as respects the year of assessment for which it is made, but also for any subsequent year of assessment. 4 A person who has made any such application for any year of assessment may give, for any subsequent year of assessment, a notice to withdraw that application; and where such a notice is given the application shall not have effect with respect to the year for which the notice is given or any subsequent year. 5 A notice of withdrawal under subsection (4) above shall be in such form, and be given in such manner, as may be prescribed by the Board, and shall not be valid unless it is given within the period allowed by law for making, for the year for which the notice is given, applications similar to that to which the notice relates. Effect of separate assessment on personal reliefs (including those running for surtax) 39 1 Where, by virtue of an application under section 38(1) above, income tax other than surtax for any year of assessment is to be assessable and chargeable on the incomes of a husband and wife as if they were not married, the total relief given to the husband and the wife by way of personal reliefs (meaning, in this subsection, the reliefs provided for by Chapter II of this Part of this Act) shall be the same as if the application had not had effect with respect to the year and, subject to the proviso to this subsection and to subsection (2) below, the reduction of tax flowing from the personal reliefs shall be allocated to the husband and the wife — a so far as it flows from relief under section 9(1) in the said Chapter II (earned income relief), in proportion to the amounts of their respective earned incomes, b so far as it flows from relief under section 6 or 9(2) (relief for small incomes, and old age relief), in proportion to the amounts of their respective total incomes, c so far as it flows from relief under section 19 or 20 (relief for life insurance premiums and other payments), to the husband or the wife according as he or she made the payment giving rise to the relief, d so far as it flows from relief in respect of a child under section 10(1)(b), or relief in respect of a dependent relative under section 16, or relief in respect of a daughter under section 17, to the husband or the wife according as he or she maintains the child, relative or daughter, and e as to the balance, in proportion to the amounts of tax which would have been payable by them respectively if the only personal reliefs allowable had been the .reliefs referred to in paragraphs (a) and (b) above: Provided that, subject to subsection (2) below, the amount of reduction of tax allocated to the wife by virtue of paragraphs (a) to (e) above shall not be less than the minimum amount which, if no application under the said section 38(1) had had effect for that year, would under section 37(3) above have had to go to reduce the tax chargeable in respect of her earned income, and the amount of reduction of tax allocated to the husband shall be correspondingly reduced. 2 Where the amount of reduction of tax allocated to the husband under subsection (1) above exceeds the tax (other than surtax) chargeable on the income of the husband for the year of assessment, the balance shall be applied to reduce the tax chargeable on the income of the wife for that year; and where the amount of reduction of tax allocated to the wife under that subsection exceeds the tax (other than surtax) chargeable on her income for the year of assessment, the balance shall be applied to reduce the tax chargeable on the income of the husband for that year. 3 Returns of the total incomes of the husband and the wife may be made for the purposes of subsections (1) and (2) above either by the husband or by the wife, but, if the Board are not satisfied with any such return, they may obtain a return from the wife or the husband, as the case may be. 4 Where for any year of assessment a husband and wife are separately assessed by virtue of an application under section 38(1) or 38(2) above — a whether or not they are separately assessed to surtax, the total relief resulting from section 28 above (surtax reliefs) shall be the same as if there were no separate assessment, and b if they are separately assessed to surtax, the relief resulting from paragraphs (a) and (b) of section 28(1) above (earned income) shall be allocated between them by apportioning the aggregate deduction under those paragraphs from total income in proportion to their respective earned incomes, and c if they are separately assessed to surtax, the relief resulting from paragraph (c) of section 28(1) above shall be allocated between them as follows — i the amount (if any) added to the deduction from their total income under that paragraph in respect of relief under section 10(1)(b), 16 or 17 of this Act shall be treated as reducing the income of the husband or the wife according to whether he or she maintains the child, relative or daughter in respect of whom that relief is given, and ii subject to sub-paragraph (i) above, the said deduction shall be treated as reducing their respective incomes rateably, or, where relief is given under paragraph (a) or (b) of the said section 28(1), as reducing rateably those incomes as first reduced in accordance with paragraph (b) of this subsection, and d in so far as any deduction to which paragraph (b) or (c) of this subsection applies cannot be applied for the benefit of the one for whose benefit it would be applicable under the paragraph in question, it shall be applied for the benefit of the other. Collection from wife of tax assessed on husband but attributable to her income 40 1 Where — a an assessment to income tax (hereafter in this section referred to as " the original assessment") is made on a man, or on a man's trustee, guardian, curator, receiver or committee, or on a man's executors or administrators, and b the Board are of opinion that, if an application for separate assessment under section 38(1) or 38(2) of this Act had been in force with respect to the year for which the assessment is made, an assessment in respect of, or of part of, the same income would have fallen to be made on, or on the trustee, guardian, curator, receiver or committee of, or on the executors or administrators of, a woman who is the said man's wife, or was his wife in that year of assessment, and c the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of twenty-eight days from the time when it became due, the Board may serve on her, or, if she is dead, on her executors or administrators, or, if such an assessment as is referred to in paragraph (b) above could in the event therein referred to have been made on her trustee, guardian, curator, receiver or committee, on her or on her trustee, guardian, curator, receiver or committee, a notice — i giving particulars of the original assessment and of the amount remaining unpaid thereunder, and ii giving particulars, to the best of their judgment, of the assessment which would have fallen to be made as aforesaid, and requiring the person on whom the notice is served to pay the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, or the amount remaining unpaid under the original assessment, whichever is the less. 2 The same consequences as respects — a the imposition of a liability to pay, and the recovery of, the tax, with or without interest, and b priority for the tax in bankruptcy, or in the administration of the estate of a deceased person, and c appeals to the General or Special Commissioners, and the stating of cases for the opinion of the High Court, and d the ultimate incidence of the liability imposed, shall follow on the service of a notice under subsection (1) above on a woman, or on her trustee, guardian, curator, receiver or committee, or on her executors or administrators, as would have followed on the making on her, or on her trustee, guardian, curator, receiver or committee, or on her executors or administrators, as the case may be, of such an assessment as is referred to in paragraph (b) of that subsection, being an assessment which — i was made on the day of the service of the notice, and ii charged the same amount of income tax as is required to be paid by the notice, and iii fell to be made, and was made, by the authority who made the original assessment, and iv was made by that authority to the best of their judgment, and the provisions of the Income Tax Acts relating to the matters specified in paragraphs (a) to (d) of this subsection shall, with the necessary adaptations, have effect accordingly: Provided that, where an appeal against the original assessment has been heard in whole or in part by the Special Commissioners, any appeal from the notice shall be an appeal to the Special Commissioners, and where an appeal against the original assessment has been heard in whole or in part by the General Commissioners for any division, any appeal from the notice shall be an appeal to the General Commissioners for that division. 3 Where a notice is given under subsection (1) above, income tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment, and, where the tax charged by the original assessment carried interest under section 86 of the Taxes Management Act 1970, such adjustment shall be made of the amount payable under that section in relation to that assessment, and such repayment shall be made of any amounts previously paid under that section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that assessment is the same as it would have been if the amount which ceases to be recoverable had never been charged. 4 Where the amount payable under a notice given under subsection (1) above is reduced as the result of an appeal, or of the stating of a case for the opinion of the High Court — a the Board shall, if in the light of that result they are satisfied that the original assessment was excessive, cause such relief to be given by way of repayment or otherwise as appears to them to be just, but b subject to any relief so given, a sum equal to the reduction in the amount payable under the notice shall again become recoverable under the original assessment. 5 The Board and the inspector shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) above as they would have had with a view to the making of, and otherwise in connection with, such an assessment as is referred to in paragraph (b) of that subsection if the necessary conditions had been fulfilled for the making of such an assessment. Right of husband to disclaim liability for tax on deceased wife's income 41 1 Where a woman dies who, at any time before her death, was a married woman living with her husband, he or, if he is dead, his executors or administrators, may, not later than two months from the date of the grant of probate or letters of administration in respect of her estate or, with the consent of her executors or administrators, at any later date, serve on her executors or administrators and on the inspector a notice in writing declaring that, to the extent permitted by this section, he or they disclaims or disclaim responsibility for unpaid income tax in respect of all income of hers for any year of assessment or part of a year of assessment during which he was her husband and she was living with him: Provided that a notice under this section shall not be deemed to be validly served on the inspector unless it specifies the names and addresses of the woman's executors or administrators. 2 Where such a notice has been duly served on a woman's executors or administrators and on the inspector — a it shall be the duty of the Board to exercise such powers as they may then or thereafter be entitled to exercise under section 40 above in connection with any assessment made on or before the date when the service of the notice is completed, being an assessment in respect of any of the income to which the notice relates, and b the assessments (if any), whether to income tax other than surtax or to surtax, which may be made after that date shall in all respects, and in particular as respects the persons assessable and the tax payable, be the assessments which would have fallen to be made if — i an application for separate assessment under section 38(1) or 38(2) above, as the case may be, had been in force in respect of the year of assessment in question, and ii all assessments previously made had been made accordingly. 3 In the application of this section to Scotland, the reference to the date of the grant of probate or letters of administration shall be construed as a reference to the date of confirmation. Construction of references to married women living with their husbands, etc. 42 1 A married woman shall be treated for income tax purposes as living with her husband unless — a they are separated under an order of a court of competent jurisdiction, or by deed of separation, or b they are in fact separated in such circumstances that the separation is likely to be permanent. 2 Where a married woman is living with her husband and either — a one of them is, and one of them is not, resident in the United Kingdom for a year of assessment, or b both of them are resident in the United Kingdom for a year of assessment, but one of them is, and one of them is not, absent from the United Kingdom throughout that year, the same consequences shall follow for income tax purposes as would have followed if, throughout that year of assessment, they had been in fact separated in such circumstances that the separation was likely to be permanent: Provided that, where this subsection applies and the net aggregate amount of income tax (including surtax) falling to be borne by the husband and the wife for the year is greater than it would have been but for the provisions of this subsection, the Board shall cause such relief to be given (by the reduction of such assessments on the husband or the wife or the repayment of such tax paid (by deduction or otherwise) by the husband or the wife as the Board may direct) as will reduce the said net aggregate amount by the amount of the excess. CHAPTER V Aggregation of Income — Parent and Child General rule for aggregation of investment etc. income of unmarried infants not regularly working 43 1 Subject to the following provisions of this section, an infant's income, so far as it is income for a year of assessment or part of a year of assessment during which he or she is unmarried and not regularly working, shall, in the circumstances specified in section 44 below, be treated in accordance with that section as income of his or her parent or parents. An infant is to be treated for the purposes of this subsection as working regularly if, and only if, he or she — a is engaged in a full-time occupation, not being one entered into during an interval not exceeding fifteen months between two periods of full-time education, and b intends to be regularly engaged in that or another such occupation, and in this provision " occupation " means any office, employment, trade, profession or vocation. 2 Subsection (1) above does not apply to — a earned income, or b income derived from any sum, or from assets representing any sum, paid by way of, or in satisfaction of a claim for, damages in respect of personal injury to the infant (including any disease, and any impairment of his or her physical or mental condition) or paid in respect of any such personal injury by a body established for charitable purposes only, or by the Criminal Injuries Compensation Board or under any enactment of the Parliament of Northern Ireland providing for compensation in respect of criminal injuries, or c income consisting of payments made to a female infant by the putative father of a child of the infant and for the benefit, maintenance or education of that child, but, subject to those exclusions and to subsection (3) below, applies to all such amounts as would fall to be included in computing the infant's total income apart therefrom, and so applies notwithstanding anything in any other enactment (including, except so far as the contrary is expressly provided, any enactment passed after this Act) requiring any amount not to be treated as income of anyone other than the infant. 3 Subsection (1) above shall not have effect in relation to an infant for any year of assessment for which his or her aggregate income, so far as it would fall within that subsection or within section 437(1) of this Act (settlements on children: treatment of income as settlor's) but for this exception and the corresponding exception in subsection (3) of the said section 437, does not exceed £5. 4 Income of an infant falling to be treated as income of a parent by virtue of the provisions of this Chapter shall be so treated for all income tax purposes, or for the purposes of income tax other than surtax, or for the purposes of surtax only, according to the purposes for which it would have constituted income of the infant but for those provisions. 5 Any tax falling to be assessed in respect of income which is to be treated by virtue of this Chapter as income of an infant's parent shall, instead of being assessed on the infant, or on the infant's trustee, guardian, curator, receiver or committee, or on the infant's executors or administrators, be assessable on the parent, or, in the appropriate cases, on the parent's trustee, guardian, curator, receiver or committee, or on the parent's executors or administrators. 6 This section shall be disregarded for the purposes of section 21 of the Finance Act 1965 (calculation of capital gains tax by reference to liability to income tax). Detailed rules 44 1 Subject to the following provisions of this section, income to which section 43(1) above applies shall be treated as follows — a so far as it is income for a year of assessment, or part of a year of assessment, during which both parents of the infant are alive and are married to and living with each other, as income for that year of the father, b so far as it is income for a year or part during which both parents are alive, but are either not married to each other or not living with each other, as income for that year of the father or, for any period during which the mother has actual custody of the infant, as income for that year of the mother, and c so far as it is income for a year or part during which one only of the parents is alive, as income for the year of that parent. 2 So far as any income to which the said section 43(1) applies is income for a year of assessment, or part of a year of assessment, of an infant who is illegitimate and has not been adopted, subsection (1) above shall not apply to the income, but it shall be treated instead as income for that year of the mother, or, for any period during which the father has actual custody of the infant, as income for that year of the father. 3 Subsection (1) above shall not apply to any income so far as it is income for a year of assessment, or part of a year of assessment, during which the infant was in law in the custody of a person or persons other than a parent, and was not in the actual custody of a parent. 4 Where, in the case of any income falling within subsection (1)(a) above, one of the infant's parents is, and one is not, resident for the year in the United Kingdom, the said subsection (1)(a) shall have effect in relation thereto as if, instead of specifying the infant's father, it specified the parent resident for the year in the United Kingdom if the infant is so resident, and the other parent if the infant is not so resident. 5 Nothing in this section shall have effect so as to treat income of an infant resident in the United Kingdom for any year of assessment as income of a parent not so resident for that year, or income of an infant not so resident for any year as income of a parent so resident for that year. Consequences of aggregation as respects certain payments involving tax reliefs 45 1 Where income of an infant for any period is treated by virtue of this Chapter as income of a parent, and the infant has made payments of either of the following descriptions — a annual payments in respect of which a deduction is permitted in computing for that period total income for the purposes of income tax or surtax, or b payments in that period of interest in respect of which income tax at the standard rate is repayable, the said payments shall, to the extent of that income, be treated as having been made thereout by the parent instead of by the infant, and in the order in which they are described above. 2 Where income of an infant for any period is so treated, and the infant has during that period made payments qualifying for relief under section 19 of this Act (life policy and annuity contract premiums), the deductions from tax to which the infant would apart from this subsection be entitled by reason of those payments shall, to the extent that the payments could have been made out of the income so treated (or, where subsection (1) above has effect, out of that income reduced by the payments falling within that subsection), be made instead from the tax with which the parent is chargeable. Right of parent to recover tax on aggregated income 46 1 Where income of an infant is treated by virtue of this Chapter as income of a parent for any year of assessment, the parent shall be entitled to recover from the infant an amount equal to that by which the tax chargeable on and payable by the parent for the year exceeds that which would have been so chargeable and payable if the income had not been so treated: Provided that, so far as the excess is attributable to trust income which has not been distributed, the right conferred by this subsection shall be exercisable against that income instead of against the infant. 2 A parent may require from the Board a certificate specifying in relation to any income the amount of tax which he or she is entitled to recover under subsection (1) above from trustees, and any such certificate shall be conclusive evidence of that amount. Accountability of parent for tax repayments attributable to aggregation 47 Where income of an infant is treated as income of a parent by virtue of this Chapter, and, by reason thereof, the parent obtains in respect of any allowance or relief a repayment of tax in excess of that to which he or she would have been entitled if the income had not been so treated, the parent shall pay an amount equal to the excess to the infant, or, if the income arose under a trust, to the trustees. Supplemental 48 1 For the purposes of this Chapter, an infant's parents are to be treated as living with each other unless — a they are separated under an order of a court of competent jurisdiction, or by deed of separation, or b they are in fact separated in such circumstances that the separation is likely to be permanent. 2 Where a parent appeals against any assessment or decision on a claim on the grounds that an infant was not, or was, in his or her actual custody for any period, or was or was not for any period in the actual custody of the other parent, the other parent shall be entitled to appear and be heard on that question by the Commissioners hearing the appeal; and, as respects that question — a if the other parent does so appear, the determination of the Commissioners shall for the purposes of income tax be final and conclusive against him or her, save that he or she shall have the same right as the appellant to require the statement of a case for the opinion of the High Court, and b the determination of the Commissioners shall also be final and conclusive against the other parent if he or she fails without reasonable cause to appear. 3 A trustee shall, on being so required in writing by a parent of any beneficiary under the trust, give to the parent details of the trust income arising to the beneficiary for any year of assessment during or for any part of which the beneficiary is an infant. 4 In this Chapter — " infant " means a person who has not attained the age of eighteen, " parent " means, in relation to an infant who has been adopted, a parent by adoption (with references to the father and the mother of an infant construed accordingly), and references to adoption include references to adoption under the law of any territory outside the United Kingdom. CHAPTER VI Residence British subjects etc. temporarily abroad 49 Every British subject or citizen of the Republic of Ireland shall, if his ordinary residence has been in the United Kingdom, be assessed and charged to income tax notwithstanding that at the time the assessment or charge is made he may have left the United Kingdom, if he has so left the United Kingdom for the purpose only of occasional residence abroad, and shall be charged as a person actually residing in the United Kingdom upon the whole amount of his profits or gains, whether they arise from property in the United Kingdom or elsewhere, or from any allowance, annuity or stipend, or from any trade, profession, employment or vocation in the United Kingdom or elsewhere. Residence of persons working abroad 50 1 Where a person works full-time in one or more of the following, that is to say, a trade, profession, vocation, office or employment, and the condition mentioned in subsection (2) below is satisfied, the question whether he is resident in the United Kingdom shall be decided without regard to any place of abode maintained in the United Kingdom for his use. 2 The said condition is that no part of the trade, profession or vocation is carried on in the United Kingdom and all the duties of the office or employment are performed outside the United Kingdom. 3 Where an office or employment is in substance one of which the duties fall in the year of assessment to be performed outside the United Kingdom there shall be treated for the purposes of this section as so performed any duties performed in the United Kingdom the performance of which is merely incidental to the performance of the other duties outside the United Kingdom. Temporary residents in United Kingdom 51 1 A person shall not be charged to income tax under Schedule D as a person residing in the United Kingdom, in respect of profits or gains received in respect of possessions or securities out of the United Kingdom, who is in the United Kingdom for some temporary purpose only and not with any view or intent of establishing his residence therein, and who has not actually resided in the United Kingdom at one time os several times for a period equal in the whole to six months in any year of assessment, but if any such person resides in the United Kingdom for the aforesaid period he shall be so chargeable for that year. 2 For the purposes of Cases I, II and III of Schedule E, a person who is in the United Kingdom for some temporary purpose only and not with the intention of establishing his residence there shall not be treated as resident in the United Kingdom if he has not in the aggregate spent at least six months in the United Kingdom in the year of assessment, but shall be treated as resident there if he has. PART II Annual Payments and Interest Deduction of income tax at standard rate Payments out of profits or gains brought into charge to income tax 52 1 Where any annuity or other annual payment charged with tax under Case III of Schedule D, not being interest, is payable wholly out of profits or gains brought into charge to income tax — a no assessment to income tax (other than surtax) shall be made on the person entitled to the annuity or other annual payment, and b the whole of the profits or gains shall be assessed and charged with income tax on the person liable to the annuity or other annual payment, without distinguishing the annuity or other annual payment, and c the person liable to make the payment, whether out of the profits or gains charged with income tax or out of any annual payment liable to deduction, or from which a deduction has been made, shall be entitled on making the payment to deduct and retain out of it a sum representing the amount of income tax thereon at the standard rate for the year in which the amount payable becomes due, and d the person to whom the payment is made shall allow the deduction on receipt of the residue of the payment, and the person making the deduction shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid. 2 Where — a any royalty or other sum paid in respect of the user of a patent, or b any rent, royalty or other payment which, by section 156 or 157 of this Act (mining etc. rents and royalties), is declared to be subject to deduction of income tax under this Part of this Act as if it were a royalty or other sum paid in respect of the user of a patent, is paid wholly out of profits or gains brought into charge to income tax, the person making the payment shall be entitled on making the payment to deduct and retain out of it a sum representing the amount of the income tax thereon at the standard rate for the year in which the amount payable becomes due. Payments not out of profits or gains brought into charge to income tax 53 1 Where — a any annuity or other annual payment charged with tax under Case III of Schedule D, not being interest, or b any royalty or other sum paid in respect of the user of a patent, or c any rent, royalty or other payment which, by section 156 or 157 of this Act (mining etc. rents and royalties), is declared to be subject to deduction of income tax under this Part of this Act as if it were a royalty or other sum paid in respect of the user of a patent, is not payable, or not wholly payable, out of profits or gains brought into charge to income tax, the person by or through whom any payment thereof is made shall, on making the payment, deduct out of it a sum representing the amount of income tax thereon at the standard rate in force at the time of the payment. 2 Where any such payment as is mentioned in subsection (1) above is made by or through any person, that person shall forthwith deliver to the inspector an account of the payment, and shall be assessable and chargeable with income tax at the standard rate on the payment, or on so much thereof as is not made out of profits or gains brought into charge to income tax. 3 All the provisions of the Income Tax Acts relating to persons who are to be chargeable with income tax, to income tax assessments, and to the collection and recovery of income tax, shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this section. 4 Subsections (2) and (3) above have effect subject to the provisions of Schedule 9 to this Act with respect to the time and manner in which companies resident in the United Kingdom are to account for and pay income tax in respect of payments from which tax is deductible. Annual interest 54 1 Subject to subsections (2) and (3) below, where any yearly interest of money chargeable to tax under Case III of Schedule D is paid — a otherwise than in a fiduciary or representative capacity, by a company or local authority, or b by or on behalf of a partnership of which a company is a member, or c by any person to another person whose usual place of abode is outside the United Kingdom. the person by or through whom the payment is made shall, on making the payment, deduct out of it a sum representing the amount of income tax thereon at the standard rate in force at the time of the payment. 2 Subsection (1) above does not apply — a to interest payable in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom, or b to interest paid by such a bank in the ordinary course of that business. 3 Subsections (2) to (4) of section 53 above shall apply to payments within subsection (1) of this section as they apply to payments within subsection (1) of that section. Certificates of deduction 55 1 A person making any payment which is subject to deduction of income tax by virtue of section 52, 53 or 54 above shall, if the recipient so requests in writing, furnish him with a statement in writing showing the gross amount of the payment, the amount of tax deducted, and the actual amount paid. 2 The duty imposed by subsection (1) above shall be enforceable at the suit or instance of the person requesting the statement. Construction of references to payments not out of profits or gains brought into charge 56 In section 53 above, any reference to a payment or sum as being not payable, or not wholly payable, out of profits or gains brought into charge to income tax shall be construed as a reference to it as being payable wholly or in part out of a source other than profits or gains brought into charge; and any such reference elsewhere in the Tax Acts shall be construed accordingly. Interest paid: relief from income tax Loans for purchase or improvement of land 57 1 Subject to the following provisions of this Part of this Act, interest is eligible for relief under this section if it is paid by a person for the time being owning an estate or interest in land in the United Kingdom or the Republic of Ireland on a loan to defray money applied — a in purchasing the estate or interest, or one absorbed into, or given up to obtain, the estate or interest, or b in improving or developing the land, or buildings on the land, or c in paying off another loan, where the claimant could have obtained relief under this section for interest on that other loan if it had not been paid off (and, if free of interest, assuming it carried interest). 2 Subsection (1) above shall not apply to a loan unless made in connection with the application of the money, and either on the occasion of its application or within what is in the circumstances a reasonable time from the application of the money ; and that subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in that subsection. 3 If and so far as a loan made by allowing the debtor to overdraw an account is applied in improving land or buildings (otherwise than by the construction of a building or part of a building), no relief shall be given in respect of interest on the loan falling due more than three years after the end of the year of assessment in which the loan is so applied. 4 References in this section to money applied in improving or developing land or buildings include references to payments in respect of maintenance or repairs incurred by reason of dilapidation attributable to a period before the estate or interest was acquired, but otherwise do not include references to payments in respect of maintenance or repairs, or any of the other payments mentioned in section 72(1) of this Act (payments deductible from rent). 5 References in this section to money applied in improving or developing land include references to expenditure incurred or defrayed directly or indirectly in respect of street works, other than works of maintenance or repair, for any highway or road, or in Scotland any right of way, adjoining or serving the land. 6 References in this section to an estate or interest in land include references to the property in any caravan but, unless it is a large caravan, no relief shall be given by virtue of this subsection in respect of the payment of any interest unless — a the caravan, taken with the land on which it stands, is for the time being a rateable hereditament for the purposes of the General Rate Act 1967 or any corresponding enactment in force in Scotland, Northern Ireland or the Republic of Ireland, and b the owner, or his wife or her husband, has, as occupier of the caravan, duly paid rates under that Act or any such enactment for the period in which the interest was paid. In this subsection "hereditament", in relation to Scotland, means lands and heritages. 7 References in this section to an estate or interest do not include references — a to a rentcharge or, in Scotland, a superiority or the interest of a creditor in a contract of ground annual; or b to the interest of a chargee or mortgagee, or, in Scotland, the interest of a creditor in a charge or security of any kind over land. 8 Where interest is payable by the tenant occupier of any property to the landlord in pursuance of arrangements whereby money advanced at interest by the landlord is applied by the tenant in purchasing the landlord's estate or interest, but that estate or interest is not to pass to the tenant until some time after the interest begins to be payable, this section shall have effect in relation to the tenant as if he were the owner of the landlord's estate or interest. 9 Interest eligible for relief under this section shall be deducted from or set off against the income of the person paying it for the year of assessment in which it is paid, and income tax shall be discharged or repaid accordingly. 10 Where relief for any year of assessment is given under this section in respect of interest on any debt, then interest on that debt shall not be allowable as a deduction for any other purpose of the Income Tax Acts for that year or any subsequent year of assessment if and so far as this section applies to that interest; and where interest on any debt is allowed as a deduction in computing profits or gains or losses for the purposes of income tax for any year of assessment, then this section shall not apply to interest on that debt in relation to that or any subsequent year of assessment. In this subsection references to relief having been given or a deduction being allowed are references to its being given or allowed in a claim or assessment which has been finally determined. 11 Subsection (1)(a) above shall not apply — a where the seller and purchaser are a husband and his wife, and either sells to the other, or b where the purchaser, or the wife or husband of the purchaser, has since 15th April 1969 disposed of an estate or interest in the land in question, and it appears that the main purpose of the disposal and purchase was to obtain relief in respect of interest on the loan, or c where the purchasers are the trustees of a settlement, and the seller is the settlor, or the wife or husband of the settlor, and it appears that the main purpose of the purchase is to obtain relief in respect of interest on the loan, or d where the purchaser is directly or indirectly purchasing from a person who is within the terms of section 533 of this Act connected with him, and the price substantially exceeds the value of what is acquired; and subsection (1)(b) above shall not apply where the person spending the money is within the terms of the said section 533 connected with the person who, directly or indirectly, receives the money, and the money substantially exceeds the value of the work done. For the purposes of this subsection, references to a husband and wife are references to a husband and his wife living with him. 12 In this section, as it applies throughout the United Kingdom and in relation to the Republic of Ireland — " caravan " has the meaning given by section 29(1) of the Caravan Sites and Control of Development Act 1960, " large caravan " means one which has either or both of the following dimensions — an overall length (excluding any drawbar) exceeding 22 feet, an overall width exceeding 7 feet 6 inches, where " overall length " and " overall width " have the meanings given in Regulation 3 of the Motor Vehicles (Construction and Use) Regulations 1966, " street works " means any works for the sewering, levelling, paving, metalling, flagging, channelling and making good of a road, and includes the provision of proper means for lighting a road. Loan applied in acquiring interest in close company 58 1 This section applies to a loan to an individual to defray money applied — a in acquiring any part of the ordinary share capital of a close company within subsection (2) below, or b in lending money to such a close company which is used wholly and exclusively for the purposes of the business of the company or of any associated company (being a close company within subsection (2) below) of the company, or c in paying off another loan where relief could have been obtained under this section for interest on that other loan if it had not been paid off (and, if free of interest, assuming it carried interest). 2 Subsection (1) above applies to a close company — a if it is a trading company, or b if it is a member of a trading group, or c if the whole, or substantially the whole, of its income is of one or more of the following descriptions, that is — i estate or trading income, ii interest, and dividends or other distributions, received from a 51 per cent subsidiary of it (both companies being bodies corporate) if the subsidiary is itself within any of paragraphs (a), (b) and (c) of this subsection. 3 Relief shall be given in respect of any payment of the interest by the individual on the loan — a if when the interest is paid he has a material interest in the company, and b if, taking the period from the application of the proceeds of the loan until the interest was paid as a whole, he has worked for the greater part of his time in the actual management or conduct of the business of the company, or of any associated company of the company, and c if he shows that in that period he has not recovered any capital from the close company, apart from any amount taken into account under subsection (4) below. 4 If at any time after the application of the proceeds of the loan the individual has recovered any amount of capital from the close company without using that amount in repayment of the loan, he shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If under section 64(4) below this section applies to a loan part only of which fulfils the conditions in this section, so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part. 5 The individual shall be treated as having recovered an amount of capital from the close company if — a he receives consideration of that amount or value for the sale of any part of the ordinary share capital of the company, or any consideration of that amount or value by way of repayment of any part of that ordinary share capital, or b the close company repays that amount of a loan or advance from him, or c he receives consideration of that amount or value for assigning any debt due to him from the close company. In the case of a sale or assignment otherwise than by way of a bargain made at arm's length, the sale or assignment shall be deemed to be for consideration of an amount equal to the market value of what is disposed of. 6 Subsections (3), (4) and (5) above shall apply to a loan within subsection (1)(c) above as if it, and any loan it replaces, were one loan, and so that — a references to the application of the proceeds of the loan are references to the application of the proceeds of the original loan, and b any restriction under subsection (4) above which applied to any loan which has been replaced shall apply also to the loan which replaces it. 7 Subsection (1) above shall not apply to a loan unless made in connection with the application of the money, and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and that subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in that subsection. 8 Interest eligible for relief under this section shall be deducted from or set off against the income of the individual for the year of assessment in which the interest is paid, and income tax shall be discharged or repaid accordingly. 9 " Distribution " has in this section the meaning given by Part X of this Act with sections 284 and 285, and expressions used in this section to which a meaning is given by Chapter III of Part XI of this Act have the same meaning in this section; and — a in determining for the purposes of subsection (2)(c)(ii) above whether one body corporate is a 51 per cent subsidiary of another, that other shall be treated as not being the owner — i of any share capital which it owns directly or indirectly in a body corporate not resident in the United Kingdom, or ii of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt, b for the purposes of subsection (3) (a) above, an individual has a material interest in a company — i if he, either on his own or with any one or more of his associates, or if any associate of his with or without any other such associates, is the beneficial owner of, or able, directly or through the medium of other companies or by any other indirect means, to control, more than 5 per cent of the ordinary share capital of the company, or ii if, on an amount equal to the whole distributable income of the company falling under Chapter III of Part XI of this Act to be apportioned for the purposes of surtax, more than 5 per cent of that amount could be apportioned to him together with his associates (if any), or to any associate of his, or any such associates taken together. Loan applied in acquiring interest in a partnership 59 1 This section applies to a loan to an individual to defray money applied — a in purchasing a share in a partnership, or b in contributing money to a partnership by way of capital or a premium, or in advancing money to the partnership, where the money contributed or advanced is used wholly and exclusively for the purposes of the trade, profession or vocation carried on by the partnership, or c in paying off another loan where relief could have been obtained under this section for interest on that other loan if it had not been paid off (and, if free of interest, assuming it carried interest). 2 Relief shall be given in respect of any payment of interest by the individual on the loan — a if throughout the period from the application of the proceeds of the loan until the interest was paid he has personally acted in the conduct of the trade, profession or vocation carried on by the partnership, and b if he shows that in that period he has not recovered any capital from the partnership, apart from any amount taken into account under the next following subsection. 3 If at any time after the application of the proceeds of the loan the individual has recovered any amount of capital from the partnership without using that amount in repayment of the loan, he shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If under section 64(4) below this section applies to a loan part only of which fulfils the conditions in this section, so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part. 4 The individual shall be treated as having recovered an amount of capital from the partnership if — a he receives a consideration of that amount or value for the sale of any part of his interest in the partnership, or b the partnership returns any amount of capital to him or repays any amount advanced by him, or c he receives consideration of that amount or value for assigning any debt due to him from the partnership. In the case of a sale or assignment otherwise than by way of a bargain made at arm's length, the sale or assignment shall be deemed to be for consideration of an amount equal to the market value of what is disposed of. 5 Subsections (2), (3) and (4) above shall apply to a loan within subsection (1)(c) above as if it, and any loan it replaces, were one loan, and so that — a references to the application of the proceeds of the loan are references to the application of the proceeds of the original loan, and b any restriction under subsection (3) above which applied to any loan which has been replaced shall apply also as respects the loan which replaces it. 6 Subsection (1) above shall not apply to a loan unless made in connection with the application of the money, and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and that subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in that subsection. 7 Interest eligible for relief under this section shall be deducted from or set off against the income of the individual for the year of assessment in which the interest is paid, and income tax shall be discharged or repaid accordingly. Loan to purchase machinery or plant used by a partnership 60 1 Where an individual is a member of a partnership which, under section 44 of the Capital Allowances Act 1968, is entitled to a capital allowance or liable to a balancing charge for any year of assessment in respect of machinery or plant belonging to the individual, he shall be entitled to relief on any interest paid by him in that year on a loan to defray money applied as capital expenditure on the provision of that machinery or plant. 2 No relief shall be given under this section in respect of interest falling due and payable more than three years after the end of the year of assessment in which the debt was incurred. 3 Where the machinery or plant is in use partly for the purposes of the trade, profession or vocation carried on by the partnership and partly for other purposes, section 28 of the said Act of 1968 (part-time use) shall apply in relation to relief under this section as it applies in relation to writing-down allowances. 4 Interest eligible for relief under this section shall be deducted from or set off against the income of the individual for the year of assessment in which the interest is paid, and income tax shall be discharged or repaid accordingly. Loan to pay estate duty 61 1 This section applies to any loan to the personal representatives of a deceased person the proceeds of which are applied — a in paying, before the grant of representation, estate duty in accordance with section 6(2) of the Finance Act 1894, being estate duty in respect of personal property of which the deceased was competent to dispose at his death payable on delivery of the Inland Revenue affidavit, or b in paying off another loan where relief could have been obtained under this section for interest on that other loan if it had not been paid off. 2 Interest paid on the loan in respect of any period ending within one year from the making of the loan within subsection (1)(a) above shall be deducted from or set off against the income of the personal representatives as such for the year in which the interest is paid : Provided that in relation to estate duty on property the principal value of which falls to be ascertained under section 55 of the Finance Act 1940 (shares and debentures of certain companies) this subsection shall have effect with the substitution for " one year " of " three years ". 3 No relief shall be given under this section in respect of interest on so much of any loan as is applied in paying estate duty in respect of property situate in Great Britain which did not pass to the personal representatives as such, or in respect of property which, even if it had been situate in Great Britain, would not have passed to the personal representatives as such. 4 Sufficient evidence of the amount of estate duty paid in accordance with the said section 6(2) in respect of any particular description of property, and of any statements relevant to its computation in the Inland Revenue affidavit, may be given by the production of a document purporting to be a certificate from the Board. 5 For the purposes of this section — a " estate duty" means estate duty leviable under the law in force in Great Britain or the law in force in Northern Ireland, together with any interest payable on the duty, b references to interest in respect of a period ending within a given time apply whether or not interest continues to run after that time. 6 This section shall apply to estate duty leviable under the law of Northern Ireland with the substitution for the estate duty enactments mentioned in this section of the corresponding enactments forming part of the law of Northern Ireland, and with the substitution of " Northern Ireland " for " Great Britain " in subsection (3) above, and the reference to the Board shall include a reference to the Ministry of Finance for Northern Ireland. Certain pre-1970 loans 62 1 Relief shall be given in respect of any payment of interest falling due before 6th April 1975 on a debt incurred on or before 15th April 1969, being annual interest — a on which the recipient is chargeable to tax under Case III of Schedule D, and b which is not interest on a debt incurred by overdrawing an account with the creditor, where both the date when the payment fell due and its amount were fixed by or under arrangements made when the debt was incurred, or subsequent arrangements in force on 15th April 1969. 2 Relief shall be given in respect of any interest paid without deduction of tax in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom, or from a person bona fide carrying on business as a member of a stock exchange in the United Kingdom or bona fide carrying on the business of a discount house in the United Kingdom, if, assuming that it had been paid without deduction of tax when it became due and payable, relief could have been given in respect of it under section 200 of the Income Tax Act 1952 (which was repealed by section 18(2) of the Finance Act 1969, but not so as to affect relief for interest paid before 6th April 1970 in respect of a period before 1st July 1969). 3 Interest eligible for relief under this section shall be deducted from or set off against the income of the person paying the interest for the year of assessment in which the interest is paid, and income tax shall be discharged or repaid accordingly. Supplemental: overdrafts 63 1 This section has effect for the purposes of sections 57 to 61 above. 2 If a person draws money from a bank account or other running account, and applies it, or any part of it, so as to fulfil the conditions in any of those sections, he shall be regarded as obtaining a loan of that money up to the amount of the highest debit balance in the account in the six months beginning with the date on which the money is drawn: Provided that if the date fell before 6th April 1968, it shall be assumed that the said highest debit balance was not less than the amount of money drawn from the account. 3 If the account has been in credit throughout a year of assessment (excluding any year before the year 1968-69), any loan so obtained before the year in which the account has been in credit shall be treated as having been repaid at the beginning of that year. 4 The whole of the interest on debit balances in the account in any year of assessment shall be available for attribution to any outstanding loans so obtained: Provided that the amount of interest attributable to a loan, or to the aggregate of any loans, made before the beginning of the year 1968-69 shall not exceed the amount of interest on debit balances in the account in the year 1968-69 with which the said person has been charged. 5 A loan so obtained shall be regarded as carrying interest in any year of assessment at the rate chargeable on the account on the last day of that year on which the account was in debit, but only so far as interest is available for attribution under subsection (4) above, and. where part only of a loan is eligible for relief under the said sections 57 to 61, that interest is to be attributed rateably to the eligible and ineligible parts of the loan. 6 Where the amount of interest paid on a loan for part only of a year of assessment is to be ascertained, this section shall be applied to ascertain the amount of interest paid for the whole of the year, and that amount shall be apportioned between that part of the year and the remainder according to their respective lengths. Other supplemental provisions 64 1 The following provisions have effect as respects relief under sections 57 to 62 above. 2 Where credit is given for any money due from the purchaser under any sale, that shall be treated for the purposes of those sections as the making of a loan to defray money applied by the purchaser in making the purchase. 3 If interest is paid at a rate in excess of a reasonable commercial rate, so much of any payment as represents such an excess shall not be eligible for relief under any of those sections. 4 Where the whole of a debt does not fulfil the conditions required by any one of those sections, relief shall be given under the section only in respect of the proportion of any payment of interest equal to the proportion of the debt fulfilling those conditions at the time of the application of the money in question. 5 If relief is given in respect of any interest under any of those sections, the interest shall not be allowable as a deduction for any other purpose of the Income Tax Acts. 6 No relief shall be given against income chargeable to corporation tax, or any other income of a company. 7 The relief shall be given only on the making of a claim therefor. 8 Subject to subsection (10) below, a person who claims relief in respect of any payment of interest shall furnish to the inspector a statement in writing by the person to whom the payment is made showing — a the date when the debt was incurred, b the amount of the debt when incurred, c the interest paid in the year of assessment for which the claim is made, and d the name and address of the debtor: Provided that if the claim relates to interest on an overdraft the statement shall show, instead of the particulars in paragraphs (a) to (d) above — i the date when the money was drawn out of the account, and, unless that date fell before 6th April 1968, the highest debit balance in the account in the six months beginning with that date, ii the rate of interest chargeable on the account for the last day of the year of assessment to which the claim relates on which the account was in debit, iii the amount of interest on debit balances in the account in the year of assessment, and iv the name and address of the claimant. 9 Subject to the said subsection (10), a person to whom any interest is paid by another person shall, if that other person so requests in writing, furnish that other person with a statement in writing conforming with subsection (8) above and dealing with that payment of interest. The duty imposed by this subsection shall be enforceable at the suit or instance of the person making the request. 10 Subsections (8) and (9) above shall not apply to interest paid to a building society as denned in section 343(8) of this Act, to a company within section 343(9) of this Act, or to a local authority. Special types of payment Small maintenance payments 65 1 In this section " small maintenance payments" means payments under an order made by a court in the United Kingdom — a by one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or tor the benefit of the other party to that marriage for that other party's maintenance, or b to any person for the benefit of, or for the maintenance or education of, a person under 21 years of age, not being such a payment as is mentioned in paragraph (a) above, being (subject to subsection (5) below) payments which — i are for the time being required by the order (whether as originally made or as varied) to be made — (A) weekly at a rate not exceeding £7 10s. Od. per week, or (B) monthly at a rate not exceeding £32 10s. Od. per month, and ii would, apart from this section, fall within section 52 or 53 above (deduction of income tax from annual payments), and " small maintenance order " means an order providing for the making of small maintenance payments. 2 Notwithstanding anything in the said section 52 or 53, small maintenance payments shall be made without deduction of income tax. 3 Any sums paid in or towards the discharge of a small maintenance payment shall be chargeable under Case III of Schedule D, but the tax shall (notwithstanding anything in sections 119 to 121 of this Act) be computed in all cases on the payments falling due in the year of assessment, so far as paid in that or in any other year. 4 A person making a claim in that behalf shall be entitled, in computing his total income for any year of assessment for any of the purposes of the Income Tax Acts, to deduct sums paid by him in or towards the discharge of any small maintenance payments which fall due in that year; and, for the purposes of section 25 of this Act (personal reliefs not to be given in respect of charges on income), any amount which can be deducted under this subsection in computing the total income of a person shall be treated as if it were income the tax on which that person is entitled to charge against another person. 5 The Treasury may from time to time, by order made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons, increase the amount of £7 10s. Od. and the amount of £32 10s. Od. in subsection (1)(i) above, either as respects payments within paragraph (a) of that subsection, or as respects payments within paragraph (b) thereof, or as respects both. 6 An order under subsection (5) above which increases, or further increases, the said amount of £7 10s. Od. for a class of payments shall increase, or further increase, the amount of £32 10s. Od. for that class of payments so that it is 52 twelfths of the weekly amount or, if that does not give a convenient round sum, such other amount as appears to the Treasury to be the nearest convenient round sum; and an order under that subsection may contain provision whereby it — a does not in general affect payments falling due in the year of assessment in which it comes into force under small maintenance orders made before its coming into force, but b in the case of a small maintenance order which was made before that time but is varied or revived after that time, does apply in relation to payments falling due under that order at any time after the variation or revival. 7 Where a court — a make or revive a small maintenance order, or b vary or revive an order so that it becomes, or ceases to be, a small maintenance order, or c change the persons who are entitled to small maintenance payments, the court shall furnish to the Board, in such form as the Board may prescribe, particulars of the order or variation, as the case may be, the names of the persons affected by the order, and, so far as known to the court, the addresses of those persons. In this subsection — " the persons affected ", in relation to a small maintenance order, means the person liable to make the payments under the order and any person for the time being entitled to the payments, and references to the variation of an order include references to the making of an order changing the persons entitled to the payments thereunder. Tithe annuities 66 1 No deduction in respect of income tax shall be made from any instalment of any annuity within the meaning of the Tithe Acts 1936 and 1951. 2 Five-sixths, but no more, of the amount of any payment made as such an instalment, or as part of such an instalment, shall for income tax purposes be deducted from, or set off against, the income of the person making the payment for the year of assessment in which the instalment becomes payable, and income tax shall be discharged or repaid accordingly. PART III Schedule A, and Associated Charges under Schedule D The Schedule A charge Schedule A 67 1 The Schedule referred to as Schedule A is as follows: — SCHEDULE A 1 Tax under this Schedule shall be charged on the annual profits or gains arising in respect of any such rents or receipts as follow, that is to say — a rents under leases of land in the United Kingdom, b rentcharges, ground annuals and feu duties, and any other annual payments reserved in respect of, or charged on or issuing out of, such land, and c other receipts arising to a person from, or by virtue of, his ownership of an estate or interest in or right over such land or any incorporeal hereditament or incorporeal heritable subject in the United Kingdom. 2 Tax under this Schedule shall be charged by reference to the rents or receipts to which a person becomes entitled in the chargeable period. Exceptions 3 Paragraph 1 above does not apply — a to any yearly interest, or b to any profits or gains charged to tax under Schedule D by virtue of section 112 of this Act (mines, quarries and other concerns), or c to any payment so charged by virtue of section 156 or 157 of this Act (mining etc. rents and royalties); and the said paragraph has effect subject also to the provisions of section 140 of this Act with respect to tied premises. 4 Where rent is payable under a lease under which the tenant is entitled to the use of furniture, and tax in respect of the payment for its use is chargeable under Case VI of Schedule D, tax in respect of the rent shall be charged under the said Case VI instead of under this Schedule unless the landlord elects that this paragraph shall not apply. 2 An election that paragraph 4 of Schedule A shall not apply shall be made by notice in writing to the inspector given within two years after the end of the chargeable period; and where such notice is given, any adjustment of the liability to tax of the person giving it which is required in consequence thereof may be made by an assessment, or by repayment or otherwise, as the case may require. 3 Profits or gains arising in any chargeable period from payments for any easement over or right to use any land made to the person who occupies the land shall not be excluded from the charge to tax under Schedule A by reason only that he is chargeable with respect to the land under Schedule B, but shall be treated for the purposes of Schedule A as limited to the amount (if any) by which they exceed the assessable value for the purposes of Schedule B of his occupation of the land in that period. Persons chargeable 68 1 Income tax under Schedule A shall be charged on and paid by the persons receiving or entitled to the profits or gains in respect of which tax under that Schedule is directed by the Income Tax Acts to be charged. 2 For the purposes of corporation tax, the provisions of Chapter I of Part XI of this Act have effect to the exclusion of subsection (1) above. Assessment 69 1 The profits or gains arising to a person for any chargeable period which are assessable to tax under Schedule A may, if they arise from more than one source, be assessed in one or more assessments, and, in the latter case, each assessment may relate to profits or gains from one or more sources. 2 Where an assessment to income tax under Schedule A for any year of assessment is made in that year — a it shall be made on the basis that all sources of income and all amounts relevant in computing profits or gains are the same as for the last preceding year of assessment, and b tax shall be leviable accordingly, but any necessary adjustments shall be made after the end of the year, whether by way of assessment, repayment of tax or otherwise, to secure that tax is charged by reference to the rents or receipts to which the person assessed becomes entitled in the year of assessment: Provided that if before the 1st January in any year a person delivers a statement in writing to the inspector — i showing that since the beginning of the last preceding year of assessment he has ceased to possess one or more sources of income chargeable under Schedule A, and ii giving the aggregate of the rents and receipts relevant for the purposes of Schedule A to which he has become or is likely to become entitled in the current year, and iii showing that that aggregate is less than the aggregate of such rents and receipts to which he became entitled in the last preceding year, and that it would not have been less if he had not ceased to possess the said source or sources, then, if the inspector is satisfied as to the correctness of the declaration, an assessment made on that person in the current year shall be made on an amount which bears to the amount arrived at under paragraph (a) above the same proportion as the said aggregate for the current year bears to the said aggregate for the last preceding year, and paragraph (b) above shall apply accordingly. Collection from lessees and agents 70 1 Where any tax under Schedule A is charged in respect of profits or gains arising from any land to a person who is not the occupier of the land, but the tax is not paid by that person (in this subsection referred to as " the person in default"), it may be recovered in accordance with the following provisions: — a subject to paragraph (b) below, the collector may from time to time by notice in writing, in such form as may be prescribed by the Board, require any lessee of the land or any part thereof whose interest is derived (directly or indirectly) from that held by the person in default (in this subsection referred to as " a derivative lessee ") to make to him payment, on the date or dates specified in the notice, of such sum or sums as may be required to satisfy the tax ; b the sum demanded from a derivative lessee to be paid during any period shall not exceed the amount of the rent or other payments arising out of the land which becomes due from him at the end of the period and payable to the person in default or to another derivative lessee; c in default of payment by a derivative lessee of any amount duly demanded of him under this subsection, that amount may be recovered from him in like manner as if he had been charged with tax of that amount; d where any sum on account of tax has been collected from a derivative lessee in pursuance of this subsection, he may deduct that sum from any subsequent payment arising as aforesaid and payable to the person in default or to another derivative lessee, and shall be acquitted and discharged of the amount so deducted; e where under paragraph (d) above, or under that paragraph as applied by this paragraph, a sum is deducted from an amount payable to another derivative lessee, that paragraph shall apply as if the sum had been collected from him under a demand made under this subsection by the collector, and, where the amounts from which under that paragraph he is entitled to make deductions in respect of that sum during the following twelve months are less than that sum, he shall be entitled to recover from the Board an amount equal to the difference, which shall be treated as reducing the tax recovered under this subsection. 2 Where any person (hereinafter referred to as " the agent") is in receipt of rents or receipts from land on behalf of another person (hereinafter referred to as " the principal"), and any tax under Schedule A charged on the principal has not been paid, the collector may by notice in writing, in such form as may be prescribed by the Board, require the agent to pay to the collector in or towards the satisfaction of the tax any sums from time to time received by the agent on behalf of the principal on account of rents or receipts from any land (including any sums so received which are in his hands when the notice is given) until the liability in respect of the tax has been satisfied; and the agent shall pay all such sums over to the collector accordingly, and the payment shall acquit and discharge him as against the person on whose behalf he received them. If the agent fails to comply with the requirements of a notice duly served on him, he shall be liable to a penalty not exceeding £50 for each failure, non-compliance as respects sums in his hands when the notice is given, or as respects any one payment subsequently received by him, being treated as a separate failure. Deductions and allowances Deductions: introductory 71 1 In computing for the purposes of Schedule A the profits or gains arising to a person in any chargeable period, such deductions shall be made from any rents or receipts to which he becomes entitled in the period as are provided for by sections 72 to 77 below, subject however to the provisions of Schedule 2 to this Act. 2 In those sections and that 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, " 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 the said sections and 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. Deductions from rents: general rules 72 1 The deductions which, by virtue of section 71(1) above, may be made from rent to which a person (hereinafter referred to as " the person chargeable ") becomes entitled under a lease shall be such deductions as are provided by subsections (2) to (6) below of the amounts of payments made by him — a in respect of maintenance, repairs, insurance or management, b in respect of any services provided by him otherwise than by way of maintenance or repairs, being services which he was obliged to provide but in respect of which he received no separate consideration, c in respect of rates or other charges on the occupier which the person chargeable was obliged to defray, d in respect of any rent, rentcharge, ground annual, feu duty or other periodical payment reserved in respect of, or charged on or issuing out of, land: Provided that this subsection shall not apply to any pa3mient of interest. 2 From rent to which the person chargeable becomes entitled in a chargeable period, there may be deducted the amount of any such payment as aforesaid which became due in that period, or at an earlier time falling within the currency of the lease, in so far as the payment — a was made in respect of the premises comprised in the lease, and b in the case of a payment for maintenance or repairs, was incurred by reason of dilapidation attributable to a period falling within the currency of the lease or, in the case of any other payment, was incurred in respect of such a period : Provided that where the person chargeable became the landlord after the lease began, references in this subsection to the currency of the lease shall not include any time before he became the landlord. 3 In the case of a lease at a full rent, subsection (2) above shall apply as if references to the currency of the lease included any period (hereinafter referred to as " a previous qualifying period ") — a during which the person chargeable was the landlord in relation to a previous lease of the premises, being a lease at a full rent, or b which was a void period beginning either with the termination of a previous such lease as aforesaid or with the acquisition by the person chargeable of the interest in the premises giving him the right to possession thereof, so however that a period shall not be a previous qualifying period if it preceded a period ending before the beginning of the lease which was not itself a previous qualifying period. Where during any period the conditions necessary for the period to be a previous qualifying period were fulfilled as respects part of the premises, but not the whole, the period shall be treated as a previous qualifying period as respects that part of the premises only, and this subsection shall apply accordingly, any necessary apportionment being made of rent, payments or other matters. 4 In the case of a lease at a full rent, not being a tenant's repairing lease, there may also be deducted the amount of any payment made in respect of other premises by the person chargeable — a in so far as that amount could be deducted under subsections (2) and (3) above from rent to which he became entitled in the chargeable period under a lease of those other premises, being a lease at a full rent, or could be so deducted if that rent were not insufficient, or b if any part of the chargeable period is, in respect of those other premises, a void period beginning with the termination of a lease at a full rent, in so far as the amount could be deducted as aforesaid if the lease had continued until the end of that period. 5 Where by reason of any change of circumstances a lease ceases to be, or becomes, a tenant's repairing lease, or ceases to be, or becomes, a lease at a full rent, subsections (3) and (4) above shall apply in relation to the lease as it subsists after the change of circumstances as if it were a new lease granted when the change occurred. 6 Where the person chargeable retains possession of a part of any premises and that part is used in common by persons respectively occupying other parts of the premises, subsections (1) to (5) above shall apply as if a payment made in respect of the part used in common had been made in respect of those other parts. 7 In subsections (3) and (4) above "void period " means a period during which the person chargeable was not in occupation of the premises or any part thereof, but was entitled to possession thereof. Deductions from rents: land managed as one estate 73 1 Where this section applies to an estate for a chargeable period, the owner shall be treated — a in relation to a part of the estate which for any portion of that period is not comprised in a lease under which he is the landlord, as if he were entitled under a lease of that part at a full rent (not being a tenant's repairing lease) to rent for the said portion, becoming due from day to day, at a rate per annum equal to the annual value of that part ascertained in accordance with section 531 of this Act, and b in relation to a part of the estate which for any portion of the said period is comprised in a lease under which he is the landlord, not being a lease at a full rent, as if the lease were at a full rent, and as if the rent so far as it relates to that part were at a rate per annum not less than the annual value of that part ascertained as aforesaid, and section 72 above shall apply accordingly: Provided that — i a payment relating to premises comprised in the estate shall not be deductible from rent in respect of premises not so comprised, and ii paragraph (a) above shall not apply to premises occupied by the owner wholly and exclusively for purposes connected with the management of the estate or for the purposes of a trade, profession or vocation. 2 This section shall apply to an estate if, at the end of the year 1962-63, the land then comprised therein was managed as one estate and the owner for the time being of the estate by notice in writing to the inspector so elects, but such an election — a must be made within twelve months after the end of the first chargeable period for which the person making it became entitled to make it or such further time as the Board may allow, b except in the case of the first election that can be made under this subsection, shall not have effect unless the like election has had effect as respects the immediately preceding ownership, and c shall apply in relation to the estate throughout the ownership of the person making it. 3 Where in any chargeable period the estate comprises premises not included in it at the end of the year 1962-63, subsection (1) above (except the proviso) shall apply in relation to the chargeable period as if the premises were not included in the estate in that period: Provided that where at the end of the year 1962-63 the owner of the remainder of the estate, as then subsisting, was entitled under trusts arising under a settlement or on an intestacy, or was entitled (in Scotland) under a disposition by way of liferent and feu, to an interest such that, on the occurrence of some future event or events, he might become the owner of the said premises, this subsection shall not apply to the premises if at any time before the end of that year the premises and the remainder of the estate, as then subsisting, were together managed as one estate. 4 In this section " estate" means land in one ownership managed as one estate. Deductions from receipts other than rent 74 1 Where a person becomes entitled in a chargeable period to a sum other than rent payable under a lease, the deductions to be made from that sum by virtue of section 71(1) above shall be such amounts (if any) as are expressed to be deductible under subsection (2) below. 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 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, and d where, in or before the chargeable period, that person entered into any like transaction, any amount which, under paragraphs (a) to (c) above, is deductible from a sum to which he is entitled under that like transaction in the period, or was deductible from a sum to which he was so entitled in a previous chargeable period but has not been deducted. Sporting rights 75 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 section 74 above from payments receivable by him in respect of the grant shall be treated for the purposes of section 72(4) above as a deduction which, by virtue of subsection (2) of the said section 72, 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 — i by that person, or ii by any other person at his invitation, or iii where the first-mentioned person is a close company, by a person who is, within the meaning of Chapter III of Part XI of this Act, a director of, or a participator in, that company, 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 subsection (1) above, an exercise of sporting rights shall be disregarded if it gives rise to a charge to tax under Schedule E by virtue of section 196 of this Act (benefits to directors etc). 3 Where the person first-mentioned in subsection (1) above is a company, section 250(1) of this Act shall not have effect so as to require references therein to a year of assessment to be read as references to an accounting period, but any deduction thereby authorised shall be apportioned between the accounting periods (if more than one) comprising the year of assessment. 4 In this section " sporting rights " means rights of fowling, shooting or fishing, or of taking or killing game, deer or rabbits. Expenditure on making sea walls 76 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 sections 72 and 74 above and section 77 below 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 — 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 — i where the interest transferred is in the whole of the premises, as having made the whole of the payment for that year, and ii 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. 3 For the purposes of subsection (2) above, 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 — a if an incoming lessee makes any payment to the outgoing lessee in respect of the embankment in question, to the incoming lessee, and b 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. 4 In relation to a company, section 250(1) of this Act shall not have effect so as to require references in this section to a year of assessment to be read as references to an accounting period, but any deduction authorised by this section shall be apportioned between the accounting periods (if more than one) comprising the year of assessment, other than any such period ended before the expenditure is incurred, or transfer takes place, by virtue of which the company is entitled to the deduction. 5 This section shall not apply in relation to any expenditure in respect of which a capital allowance has been made. Deductions: supplemental 77 1 Subject to subsections (2) to (5) below, where a sum or part of a sum deductible under the provisions of sections 72 to 76 above and Schedule 2 to this Act can be deducted for the chargeable period in which the sum is paid, it shall be so deducted, and, where it cannot, it shall be deducted for the earliest chargeable period for which it can be deducted. 2 Where for any chargeable period the amount from which deductions can be made under the said provisions 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 period 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 the said provisions in respect of — a a payment made by any person, to the extent to which the payment has been, or will be — i balanced by the receipt of insurance moneys, or ii 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 Schedule A, or b a payment made by a person other than a company, if payable under deduction of income tax. 4 An amount, or part of an amount, shall not be deducted under the said provisions 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 tax purposes. 5 Where, on account of a payment made in any chargeable period, a deduction falls to be made under the said provisions from any rents or receipts to which the person making the payment became entitled in a previous period, all such adjustments of liability to tax shall be made, by repayment or otherwise, as may be necessary to give effect to the deduction. Capital allowances for machinery and plant used in estate management 78 1 Subject to the provisions of this section, Chapter II of Part I of the Capital Allowances Act 1968, and such other provisions of the Tax Acts as relate to allowances or charges under that Chapter, shall apply with any necessary adaptations in relation to machinery or plant provided for use or used by a person entitled to rents or receipts falling within Schedule A for the maintenance, repair or management of premises in respect of which those rents or receipts arise as they apply in relation to machinery or plant provided for use or used for the purposes of a trade; and, except as provided by subsection (2) below, in relation to any allowances and balancing charges which fail to be made by virtue of this section, the Tax Acts shall apply as if they were to be made in taxing a trade. 2 Allowances and balancing charges which by virtue of this section fall to be made to or on a person for any chargeable period shall be made by — a adding the amount of any such allowances to the expenditure on maintenance, repairs and management of the premises which is deductible under section 72 or 74 above in computing his profits or gains for the purposes of Schedule A, and b deducting the amount on which any such charge is to be made from that expenditure (or from the sum of that expenditure and any addition made to it under this subsection); and section 46 of the Capital Allowances Act 1968 (manner of making allowances and charges under Chapter II) shall not apply: Provided that any charge shall be made under Case VI of Schedule D if or in so far as a deduction cannot be made for it under paragraph (b) above. 3 No allowance, other than an investment allowance, and no balancing charge shall be made by virtue of this section for any chargeable period in respect of expenditure incurred by any person on machinery or plant, except in pursuance of an election made by him for that period; but an election for any chargeable period shall have effect as an election for that and all subsequent chargeable periods. 4 An election under subsection (3) above shall be made by notice in writing to the inspector, either for all machinery or plant provided for use or used for the maintenance, repair or management of the relevant premises or for any class of machinery or plant so provided or used ; but an election for machinery or plant of any class shall not be made for any chargeable period after payments made in that or a subsequent chargeable period 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. 5 Corresponding allowances or charges in the case of the same machinery or plant shall not be made under Chapter II of Part I of the Capital Allowances Act 1968 (whether for the same chargeable period or for different chargeable periods) both in computing profits or gains for the purposes of Schedule A and in some other way; and, on any assessment to tax, expenditure to which an election under this section applies shall not be taken into account otherwise than under the said Chapter II. 6 The Tax Acts shall have effect as if this section were contained in Chapter II of Part I of the Capital Allowances Act 1968. Agricultural land: allowance for excess maintenance etc expenditure 79 1 Where in the case of an estate which consists of or includes agricultural land — a provision is made in sections 71 to 78 above for the deduction of a sum in respect of payments in the chargeable period 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, and b owing to the insufficiency of rents and receipts to which the owner of the estate becomes entitled in the period, whether from the estate or from other property, the sum in question cannot be deducted (other amounts deductible under Schedule A being treated as deductible in priority thereto), the said sum shall be treated as if it were the amount of an allowance falling to be made under the Capital Allowances Act 1968 by way of discharge or repayment of tax, and available primarily against agricultural income as defined in section 69 of that Act; and sections 71 and 74 of the said Act of 1968 shall apply as if this section were contained in Part I of that Act: Provided that the sum to be so treated shall not exceed the sum which would have fallen to be so treated if — i the estate had not included such parts thereof as were used wholly for purposes other than purposes of husbandry, and ii payments or allowances in respect of parts thereof which were used partly for purposes of husbandry and partly for other purposes were reduced to an extent corresponding to the extent to which those parts were used for other purposes. 2 In this section — " agricultural land " means land, houses or other buildings in the United Kingdom occupied wholly or mainly for the purpose of husbandry, and " estate " means any land (including any houses or other buildings) managed as one estate. Premiums, leases at undervalue etc. (Schedules A and D) Treatment of premiums etc. as rent or Schedule D profits 80 1 Where the payment of any premium is required under a lease, or otherwise under the terms subject to which a lease is granted, and the duration of the lease does not exceed fifty years, the landlord shall be treated for the purposes of the Tax Acts as becoming entitled when the lease is granted to an amount by way of rent (in addition to any actual rent) equal to the amount of the premium reduced by one-fiftieth of that amount for each complete period of twelve months (other than the first) comprised in the duration of the lease. 2 Where the terms subject to which a lease is granted impose on the tenant an obligation to carry out any work on the premises, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the landlord (in addition to any other premium) of an amount equal to the amount by which the value of the landlord's estate or interest immediately after the commencement of the lease exceeds what its then value would have been if the said terms did not impose that obligation on the tenant: Provided that this subsection shall not apply in so far as the obligation requires the carrying out of work payment for which would, if the landlord and not the tenant were obliged to carry it out, be deductible from the rent under sections 72 to 76 above. 3 Where, under the terms subject to which a lease is granted, a sum becomes payable by the tenant in lieu of the whole or a part of the rent for any period, or as consideration for the surrender of the lease, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the landlord (in addition to any other premium) of the amount of that sum; but — a in computing tax chargeable by virtue of this subsection in respect of a sum payable in lieu of rent, the duration of the lease shall be treated as not including any period other than that in relation to which the sum is payable, and b notwithstanding anything in subsection (1) above, rent treated as arising by virtue of this subsection shall be deemed to become due when the sum in question becomes payable by the tenant. 4 Where, as consideration for the variation or waiver of any of the terms of a lease, a sum becomes payable by the tenant otherwise than by way of rent, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the landlord (in addition to any other premium) of the amount of that sum ; but — a in computing tax chargeable by virtue of this subsection, the duration of the lease shall be treated as not including any period which precedes the time at which the variation or waiver takes effect, or falls after the time at which it ceases to have effect, and b notwithstanding anything in subsection (1) above, rent treated as arising by virtue of this subsection shall be deemed to become due when the contract providing for the variation or waiver is entered into. 5 Where a payment falling within subsection (1), (3) or (4) above is due to a person other than the landlord, no charge to tax shall arise under that subsection, but any amount which would otherwise fall to be treated as rent shall be treated as profits or gains of that other person chargeable under Case VI of Schedule D: Provided that where the amount relates to a payment falling within subsection (4) above, it shall not be so treated unless the payment is due to a person who is, within the terms of section 533 of this Act, connected with the landlord. 6 Where an amount by reference to which a person is chargeable to tax by virtue of this section is payable by instalments, the tax chargeable by reference to that amount shall, if he makes a claim in that behalf by notice in writing not later than one year after the chargeable period in which he becomes entitled to the first such instalment, instead of being computed in accordance with the preceding provisions of this section, be computed as if each instalment were rent payable under the lease, or, in the case of instalments payable to a person other than the landlord or to a person after he has ceased to be the landlord, were profits or gains chargeable to tax under Case VI of Schedule D; and where a claim is so made, all such assessments, alterations of assessments and repayments of tax shall be made as may be necessary. 7 Section 69(2) above shall not apply in relation to amounts which, in computing profits or gains for the purposes of Schedule A, are relevant only by virtue of this section. Schedule D charge on assignment of lease granted at undervalue 81 1 Where the terms subject to which a lease of a duration not exceeding fifty years was granted are such that the grantor, having regard to values prevailing at the time it was granted, and on the assumption that the negotiations for the lease were at arm's length, could have required the payment of an additional sum (hereinafter referred to as " the amount foregone ") by way of premium, or additional premium, for the grant of the lease, then, on any assignment of the lease for a consideration — a where the lease has not previously been assigned, exceeding the premium (if any) for which it was granted, or b where the lease has been previously assigned, exceeding the consideration for which it was last assigned, the amount of the excess, in so far as it is not greater than the amount foregone reduced by the amount of any such excess arising on a previous assignment of the lease, shall, in the same proportion as the amount foregone would under section 80(1) above have fallen to be treated as rent if it had been a premium under the lease, be treated as profits or gains of the assignor chargeable to tax under Case VI of Schedule D. 2 If there is submitted to the inspector, by the grantor or any assignor or assignee of the lease, a statement showing whether or not a charge to tax arises or may arise under this section and, if so, the amount on which the charge arises or may arise, then, if the inspector is satisfied as to the accuracy of the statement, he shall certify the accuracy thereof. Schedule D charge on sale of land with right to reconveyance 82 1 Where the terms subject to which an estate or interest in land is sold provide that it shall be, or may be required to be, reconveyed at a future date to the vendor or a person who is, within the terms of section 533 of this Act, connected with him, the vendor shall be chargeable to tax under Case VI of Schedule D on any amount by which the price at which the estate or interest is sold exceeds the price at which it is to be reconveyed, or, if the earliest date at which in accordance with those terms it would fall to be reconveyed is a date two years or more after the sale, on that excess reduced by one-fiftieth thereof for each complete year (other than the first) in the period between the sale and that date. 2 Where under the terms of the sale the date of the reconveyance is not fixed, then — a if the price on reconveyance varies with the date, the price shall be taken for the purposes of this section to be the lowest possible under the terms of the sale, and b there shall be repaid to the vendor, on a claim made before the expiry of six years after the date on which the reconveyance takes place, any amount by which tax assessed on him by virtue of this section exceeded the amount which would have been so assessed if that date had been treated for the purposes of this section as the date fixed by the terms of the sale. 3 Where the terms of the sale provide for the grant of a lease directly or indirectly out of the estate or interest to the vendor or a person who is, within the terms of section 533 of this Act, connected with him, this section shall apply as if the grant of the lease were a reconveyance of the estate or interest at a price equal to the sum of the amount of the premium (if any) for the lease and the value at the date of the sale of the right to receive a conveyance of the reversion immediately after the lease begins to run: Provided that this subsection shall not apply if the lease is granted, and begins to run, within one month after the sale. Premiums paid etc.: deduction from premiums and rents received 83 1 Where in relation to any premises — a tax has become chargeable under the provisions of section 80 (except subsection (6)), 81 or 82 above on any amount (disregarding any reduction in that amount under this subsection), or b tax would have become so chargeable on that amount but for the operation of the said section 80(6) or this subsection, or but for any exemption from tax, and, in respect of a lease granted out of, or a disposition of, the lease, estate or interest in respect of which tax so became or would have become chargeable on the said amount (hereinafter referred to as " the amount chargeable on the superior interest"), a person would apart from this subsection be chargeable under the said provisions on any amount (hereinafter referred to as " the later chargeable amount"), the amount on which he is so chargeable shall, where no claim is or can be made by him under the said section 80(6), be the excess (if any) of the later chargeable amount over the appropriate fraction of the amount chargeable on the superior interest. Provided that where a person would, apart from this subsection, be so chargeable in respect of a lease or disposition which extends to a part only of the said premises, the amount on which he is so chargeable shall, where no claim is or can be made by him under the said section 80(6), be the excess (if any) of the later chargeable amount over so much of the appropriate fraction of the amount chargeable on the superior interest as, on a just apportionment, is attributable to that part of the premises. 2 Where in relation to any premises tax has or would have become chargeable as mentioned in subsection (1)(a) or (b) above in respect of a lease, estate or interest, then, subject to subsection (3) below, the person for the time being entitled to the lease, estate or interest shall be treated for the purpose of deductions under sections 72 and 73 above 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. 3 Where subsection (1) above has effect in relation to a lease granted out of, or a disposition of, the lease, estate or interest in respect of which tax has or would have become so chargeable, subsection (2) 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, the said subsection (2) and this subsection 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. 4 For the purposes of this section — a the appropriate fraction of the amount chargeable on the superior interest is the fraction A B of that amount, where — A is the period in respect of which the later chargeable amount arose, and B is the period in respect of which the amount chargeable on the superior interest arose ; and b the period in respect of which an amount arose — i where it arose under section 80 above, shall be the period treated in computing the amount as being the duration of the lease ; ii where it arose under section 81 above, shall be the period treated in computing the amount as being the duration of the lease remaining at the date of the assignment; iii where it arose under section 82 above, 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. 5 Where the amount chargeable on the superior interest arose under section 80(2) above by reason of an obligation which included the carrying out of work in respect of which any capital allowance has fallen or will fall to be made, subsections (1) to (3) above shall apply as if the obligation had not included the carrying out of that work and the said amount had been calculated accordingly. 6 Where an amount relevant for the purposes of subsection (1), (2) or (3) above arose under section 82 above, 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 subsection shall be deemed to have had effect (for all relevant chargeable periods) 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 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 chargeable period in which the reconveyance or grant takes place. 7 An amount, or part of an amount, shall not be deducted under this section 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 tax purposes. Rules for ascertaining duration of leases 84 1 The following provisions shall have effect in ascertaining the duration of a lease for the purposes of sections 80 to 82 above — a where the terms of the lease include provision for the determination of the lease by notice given by the landlord, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice so given, b where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiry of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date, and c where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the tenant, account may be taken of any circumstances making it likely that the lease will be so extended. 2 Subsection (1)(b) above shall be applied by reference to the facts which were known or ascertainable at the time of the grant of the lease, or, in relation to tax under section 80(4) above, at the time when the contract providing for the variation or waiver is entered into; and it shall be assumed in applying the said subsection (1)(b) that all parties concerned, whatever their relationship, act as they would act if they were at arm's length. 3 In relation to Scotland, the expression " term " in subsection (1) above, where referring to the duration of a lease, means " period ". 4 The above provisions have effect subject to paragraph 3 of Schedule 14 to this Act (which confines them, except for certain specified purposes, to leases granted after 12th June 1969 and, in relation to section 80(4) above, variations or waivers under contracts entered into after that date); and where the above provisions do not have effect, the rules to be applied for the purpose mentioned in subsection (1) above are those set out in paragraph 4 of the said Schedule 14. Saving for pre-1963 leases, and special relief for individuals 85 1 Nothing in sections 80 to 82 above shall apply in relation to a lease granted, or an estate or interest in land sold, before the beginning of the year 1963-64, or in pursuance of a contract entered into before 4th April 1963: Provided that section 80(4) above shall apply to the variation or waiver of any terms of a lease (not being a variation or waiver made in pursuance of a contract entered into before 4th April 1963) notwithstanding that the lease was granted before the beginning of the year 1963-64. 2 Schedule 3 to this Act shall have effect for giving relief, on a claim being made by him in that behalf, from any increase in an individual's liability to income tax which is attributable to amounts being treated by virtue of section 80 (except subsection (6)), 81 or 82 above as receipts for a single year of assessment rather than as receipts for the period in relation to which they are chargeable. Supplemental (Schedules A and D) Tax treatment of receipts and outgoings on sale of land 86 1 Where by virtue of a contract for the sale of an estate or interest in land there falls to be apportioned between the parties a receipt or outgoing in respect of the estate or interest which becomes due after the making of the contract but before the time to which the apportionment falls to be made, and a part of the receipt is therefore receivable by the vendor in trust for the purchaser or, as the case may be, a part of the outgoing is paid by the vendor as trustee for the purchaser, the purchaser shall be treated for the purposes of tax under Schedule A as if that part had become receivable or payable on his behalf immediately after the time to which the apportionment falls to be made. 2 Where by virtue of such a contract there falls to be apportioned between the parties a receipt or outgoing in respect of the estate or interest which became due before the making of the contract, the parties shall be treated for the purposes of tax under Schedule A as if the contract had been entered into before the receipt or outgoing became due, and subsection (1) above shall apply accordingly. 3 Where on the sale of an estate or interest in land there is apportioned to the vendor a part of a receipt or outgoing in respect of the estate or interest which is to become receivable or be paid by the purchaser after the making of the apportionment, then, for the purposes of tax under Schedule A — a when the receipt becomes due or, as the case may be, the outgoing is paid, the amount of it shall be treated as reduced by so much thereof as was apportioned to the vendor, and b the part apportioned to the vendor shall be treated as if it were of the same nature as the receipt or outgoing and had become receivable, or had been paid, directly by him immediately before the time to which the apportionment is made and, where it is part of an outgoing, had become due immediately before that time. 4 Any reference in subsection (1) or (2) above to a party to a contract shall include a person to whom the rights and obligations of that party under the contract have passed by assignment or otherwise. 5 This section shall apply as respects tax under Case VI of Schedule D in a case falling within paragraph 4 of Schedule A (furnished lettings) as it applies as respects tax under Schedule A in other cases. Relief for rent etc. not paid 87 1 Where on a claim in that behalf a person proves — a that he has not received an amount which he was entitled to receive in respect of any rents or receipts on the profits or gains arising from which he would be chargeable under Schedule A, and b if the non-receipt of the said amount was attributable to the default of the person by whom it was payable, that the claimant has taken any reasonable steps available to him to enforce payment, c if the claimant waived payment of the said amount, that the waiver was made without consideration, and was reasonably made in order to avoid hardship, the claimant shall be treated for tax purposes for all relevant chargeable periods as if he had not been entitled to the said amount, and such adjustment shall be made, by repayment or otherwise, as the case may require; but if all or any of the said amount is subsequently received, the claimant or, if he is dead, his executors or administrators shall, not later than six months thereafter, give notice in writing of its receipt to the inspector, and such re-adjustment of liability to tax (for all relevant chargeable periods) shall be made as may be necessary, and may be made at any time at which it could be made if it related only to tax for the chargeable period in which the amount, or the part of the amount, is received. 2 Subsection (1) above shall apply in relation to sums chargeable to tax under Case VI of Schedule D by virtue of any provision of sections 80 to 82 above as it applies to profits or gains chargeable to tax under Schedule A. Allowances for betterment levy 88 Schedule 4 to this Act (effect of charges to betterment levy on charges to tax under Schedules A and D) shall have effect. Non-residents 89 1 Section 78 of the Taxes Management Act 1970 (taxation of non-residents in name of agent) shall not apply to tax on profits or gains chargeable to tax under Schedule A, or on any of the profits or gains chargeable under Case VI of Schedule D — a in a case falling within paragraph 4 of Schedule A, or b which arise under the terms of a lease, but to a person other than the landlord, or otherwise arise out of any disposition or contract such that if they arose to the person making it they would be chargeable under Schedule A, where payment is made (whether in the United Kingdom or elsewhere) directly to a person whose usual place of abode is outside the United Kingdom, but section 53 of this Act shall apply in relation to the payment as it applies to annual payments charged with tax under Case III of Schedule D and not payable out of profits or gains brought into charge to income tax. 2 Subsection (1) above shall apply in relation to sums chargeable to tax under Case VI of Schedule D by virtue of any provision of sections 80 to 82 above as it applies to profits or gains chargeable to tax under Schedule A. 3 Where by virtue of subsection (1) above the income tax chargeable for any year of assessment on a person's profits or gains chargeable to tax under Schedule A or Case VI of Schedule D or both would, apart from this subsection, be greater than the tax which would be chargeable thereon apart from section 69(2) of this Act, then, on a claim in that behalf being made, relief shall be given from the excess, whether by repayment or otherwise. Interpretation 90 1 In this Part of this Act, except where the context otherwise requires — " assignment ", in relation to Scotland, means an assignation ; " lease " includes an agreement for a lease, and any tenancy, but does not include a mortgage or heritable security, and " lessee ", " lessor " and " letting " shall be construed accordingly, and " lessee " and " lessor " include respectively the successors in title of a lessee or a lessor; " premises " includes any land ; " premium " includes any like sum, whether payable to the immediate or a superior landlord ; " reversion ", in relation to Scotland, means the interest of the landlord in the property subject to the lease. 2 For the purposes of this Part of this Act any sum (other than rent) paid on or in connection with the granting of a tenancy shall be presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment is shown to have been given. 3 In the application of this Part of this Act to Scotland " premium" includes in particular a grassum payable to any landlord or intermediate landlord on the creation of a sublease; and in this subsection "intermediate landlord" means, where an occupying lessee is a sub-lessee, any person for the time being holding the interest of landlord under a sub-lease which comprises the property of which the occupying lessee is sub-lessee, but does not include the immediate landlord. PART IV Schedule B Schedule B 91 The Schedule referred to as Schedule B is as follows: — SCHEDULE B 1 Tax under this Schedule shall be charged in respect of the occupation of woodlands in the United Kingdom managed on a commercial basis and with a view to the realisation of profits. 2 Paragraph 1 above has effect subject to the right given by section 111 of this Act to elect for assessment under Schedule D. Supplemental 92 1 Tax under Schedule B shall be charged on the occupier of the woodlands on the assessable value of his occupation in the chargeable period, and the amount on which he is chargeable shall be deemed for all tax purposes to be income arising from that occupation. 2 For the purposes of tax under Schedule B — a the assessable value of a person's occupation of woodlands is an amount equal to one-third of the woodlands' annual value, or a proportionate part of that amount if the period in respect of which he is chargeable is less than one year, and b the annual value of any woodlands shall be determined in accordance with section 531 of this Act, but as if the land, instead of being woodlands, were let in its natural and unimproved state. 3 For the purposes of Schedule B and of subsections (1) and (2) above, every person having the use of lands shall be deemed to be the occupier thereof, and references to occupation shall be construed accordingly. PART V Schedule C, and General Provisions about Government Securities The Schedule C charge Schedule C 93 The Schedule referred to as Schedule C is as follows: — SCHEDULE C 1 Tax under this Schedule shall be charged in respect of all profits arising from public revenue dividends payable in the United Kingdom in any chargeable period. 2 Tax under this Schedule shall also be charged in respect of profits arising from public revenue dividends payable in the Republic of Ireland in any chargeable period, being dividends on securities of the United Kingdom Government entered in the register of the Bank of Ireland in Dublin. 3 Where a banker or any other person in the United Kingdom obtains payment of any overseas public revenue dividends by means of coupons received from any other person or otherwise on his behalf, tax under this Schedule shall be charged in respect of the dividends. 4 Where — a any banker in the United Kingdom sells or otherwise realises coupons for any overseas public revenue dividends, and pays over the proceeds to any person or carries them to his account, or b any dealer in coupons in the United Kingdom purchases any such coupons as aforesaid otherwise than from a banker or another dealer in coupons, tax under this Schedule shall be charged in respect of the proceeds of the sale or other realisation. 5 Notwithstanding anything in paragraphs 1 to 4 above, where any half-yearly payment in respect of any dividend entrusted to the Bank of England or the Bank of Ireland for payment and distribution, or which is payable by the National Debt Commissioners or of which they have the distribution, does not exceed 50 shillings, it shall not be charged under this Schedule, but shall be assessed and charged under Case III of Schedule D: Provided that this paragraph does not apply to any payment obtained by means of a coupon in respect of a bond to bearer or stock certificate. Income tax: mode of charge 94 1 Income tax under Schedule C shall be charged by the Board, and shall be paid on behalf of the persons entitled to the profits, dividends or proceeds which are the subject of the tax — a in the case of tax charged under paragraph 1 of that Schedule, by the persons and bodies of persons respectively entrusted with payment, b in the case of tax charged under paragraph 2 of that Schedule, by the Bank of England, and c in the case of tax charged under paragraph 3 or 4 of that Schedule, by the banker or other person, or by the banker or dealer in coupons, as the case may be. 2 Schedule 5 to this Act shall have effect in relation to the assessment, charge and payment of income tax under Schedule C. Government securities: exemptions from tax United Kingdom savings certificates 95 1 The accumulated interest payable in respect of any national or war savings certificate issued by the Treasury through the Post Office or under the auspices of the Director of Savings, being a certificate under which the purchaser, by virtue of an immediate payment, becomes entitled after the expiry of a specified period to receive some greater sum, shall not be liable to tax so long as the amount of the certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which an individual is for the time being authorised to hold under regulations made by the Treasury. 2 Where the currency of any national or war savings certificate has been extended under any Act, subsection (1) above shall apply with respect to any interest payable in respect of the certificate for the period after the expiry of the period referred to in that subsection up to the date on which it is repaid or redeemed as it applies to the said accumulated interest. Ulster savings certificates held by persons resident and domiciled in Northern Ireland 96 1 The provisions of section 95 above giving relief from tax in respect of the accumulated interest payable in respect of national savings certificates shall extend to the accumulated interest payable in respect of any Ulster savings certificates issued by the Government of Northern Ireland and held by persons resident and domiciled in Northern Ireland, whether issued for the same price, and whether maturing for payment on the expiry of the same period, as national savings certificates or not, and whether the sum payable on maturity is the same as in the case of national savings certificates or not. 2 A claim under this section shall be made to the Board. Ulster savings certificates issued to persons resident in Northern Ireland 97 1 Subject to subsections (2) and (3) below, there shall be exempt from tax the accumulated interest payable in respect of any such savings certificates issued by the Government of Northern Ireland as are declared by regulations made by the Treasury to be certificates the proceeds of the sale of which have been made available to Her Majesty's Government in the United Kingdom. 2 The exemption conferred by subsection (1) above shall not extend to the interest on any certificate unless the person beneficially entitled to the certificate when it was issued was then resident in Northern Ireland. 3 If, at the date of the encashment of any certificates to which subsection (1) above applies, the total savings certificate holding of the person beneficially entitled to the certificates encashed, computed in the prescribed manner, exceeds the prescribed limit, the said exemption — a shall not extend to the interest on the encashed certificates unless the encashment thereof brings the total savings certificate holding of that person, computed as aforesaid, below the prescribed limit, and b shall then extend only to the interest on so much of the encashed certificates as is equal to the amount by which the said total holding, so computed, is brought by the encashment below the prescribed limit. In this subsection " the total savings certificate holding" means, in relation to a person, his total holding of certificates to which subsection (1) above applies and savings certificates issued by the Treasury through the Post Office or under the auspices of the Director of Savings, and " prescribed " means prescribed by regulations made by the Treasury. 4 A claim under this section shall be made to the Board. 5 Nothing in this section shall deprive any person of any exemption from tax under section 96 above. 6 Any power conferred by this section to make regulations shall be exercisable by statutory instrument. Tax reserve certificates 98 Tax shall not be chargeable in respect of the interest on tax reserve certificates issued by the Treasury, United Kingdom government securities held by nonresidents 99 1 Where the Treasury (whether before or after the passing of this Act) issue any securities which they have power to issue for the purpose of raising any money or any loan with a condition that the interest thereon shall not be liable to income tax so long as it is shown that the securities are in the beneficial ownership of persons who are not ordinarily resident in the United Kingdom, the interest on securities issued with such a condition shall, subject to subsection (3) below, be exempt from tax accordingly. 2 A claim under this section shall be made to the Board. 3 Where any income of any person is, by virtue of any provision of the Tax Acts (and in particular, but without prejudice to the generality of the preceding words, by virtue of Chapter III of Part XVII of this Act) to be deemed to be income of any other person, that income is not exempt from tax as being derived from a security issued by the Treasury with any condition regulating the treatment of the interest thereon for tax purposes by reason of the first-mentioned person not being ordinarily resident, or being neither domiciled nor ordinarily resident, in the United Kingdom. Securities of foreign states held by non-residents 100 1 Subject to subsection (3) below, no tax shall be chargeable in respect of dividends payable in the United Kingdom on the securities of any state or territory outside the United Kingdom, or in respect of any dividends or proceeds chargeable apart from this subsection under paragraph 3 or 4 of Schedule C, if it is proved, on a claim in that behalf made to the Board, that the person owning the securities and entitled to the dividends or proceeds is not resident in the United Kingdom. 2 Where securities are held under a trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call upon the trustees at any time to transfer the securities to him absolutely free from any trust, that person shall, for the purposes of subsection (1) above, be deemed to be the person owning the securities. 3 Where any income of any person is, by virtue of any provision of the Tax Acts (and in particular, but without prejudice to the generality of the preceding words, by virtue of Chapter III of Part XVII of this Act) to be deemed to be income of any other person, that income is not exempt from tax by virtue of this section by reason of the first-mentioned person not being resident in the United Kingdom. Government securities: payment of interest without deduction of income tax, and other provisions United Kingdom securities: Treasury directions for payment without deduction 101 1 The Treasury may direct that any of the following securities, that is to say — a any securities issued under the War Loan Acts 1914 to 1919, or under section 60 of the Finance Act 1916, and b any securities issued, or deemed to be issued, under the National Loans Act 1939, or issued under the National Loans Act 1968, c any Government stock issued under section 1 of the Bank of England Act 1946, section 1 of the Cable and Wireless Act 1946, section 65(1) of the Town and Country Planning Act 1947, or section 62(1) of the Town and Country Planning (Scotland) Act 1947, and d any such stock as is mentioned in section 33(1) of the Coal Industry Nationalisation Act 1946, or section 26(1) of the Iron and Steel Act 1967, shall be issued, or shall be deemed to have been issued, subject to the condition that the interest thereon shall be paid without deduction of income tax; and, subject to the provisions of this section, the interest shall be so paid accordingly, but shall be chargeable under Case III of Schedule D. 2 The holder of any registered securities the interest on which is, by virtue of directions given under subsection (1) above, payable without deduction of tax may make an application to the Bank under this subsection requesting that income tax shall be deducted from the interest on those securities before payment thereof; and where any such application is made, income tax in respect of the interest on those securities shall, so long as they remain registered in the name of the person making the application and subject to the withdrawal of the application under subsection (4) below, be deducted and charged in the same manner as if they were not securities to which the said subsection (1) applied. 3 An application under subsection (2) above shall be in such form as the Bank with the approval of the Treasury may prescribe, and any application made less than two months before the date on which any interest is payable shall only have effect as regards any payment of interest subsequent to the payment falling due on that date. 4 An application made under the said subsection (2) may at any time be withdrawn by notice to the Bank in such form as the Bank with the approval of the Treasury may prescribe, but an application so withdrawn shall, notwithstanding the withdrawal, continue to have effect as regards any interest payable less than two months after the date on which the notice is received at the Bank. 5 Where any securities to which subsection (2) above applies are held upon trust, the holders of the securities may make an application under that subsection in respect thereof without the consent of any other person, notwithstanding anything in the instrument creating the trust. 6 In this section " the Bank " means the Bank of England or the Bank of Ireland as the case requires, and " registered " means entered in the register of the Bank. Treasury directions as respects Northern Ireland securities 102 1 The Treasury on the application of the Ministry of Finance for Northern Ireland may, as respects any securities to which this section applies, direct that the securities specified in the direction shall be issued, or shall be deemed to have been issued, subject to the condition that the interest thereon shall be paid without deduction of income tax; and, in relation to any securities so specified and the interest thereon, section 101 above shall have effect as if — a the securities were securities in respect of which a direction had been given by the Treasury under subsection (1) of that section, b references in that section to " the Bank " were (notwithstanding subsection (6) thereof) references to the bank in the books of which the securities are registered or inscribed, and c the references in subsections (3) and (4) of that section to the Treasury were references to the said Ministry of Finance. 2 The securities to which this section applies are securities issued under section l1(1)(c) of the Exchequer and Financial Provisions Act (Northern Ireland) 1950 for money borrowed by the said Ministry of Finance for the purposes of making issues from the Consolidated Fund of Northern Ireland. Information to be given where interest paid without deduction 103 Where interest on any securities issued subject to the condition that interest is payable without deduction of tax is paid without deduction of tax, any person by whom such interest is paid, and any person who receives on behalf of any other person, being a registered or inscribed holder of any such security, any interest so paid without deduction of tax, and any person who has acted as intermediary in the purchase of any securities on which the interest is payable without deduction of tax, shall, on being so required by the Board, furnish to them — a the names and addresses of the persons to whom such interest has been paid, or on whose behalf such interest has been received, or on whose behalf such securities have been purchased, and b the amount of the interest so paid or received, or the amount of the securities so purchased. Taxation of interest on converted government securities, and interest which becomes subject to deduction 104 1 Where the income which any individual is required under the Income Tax Acts to include in a statement of his total income for any year includes both — a interest received without deduction of income tax in respect of government securities (in this section referred to as " original securities") which have been exchanged for any other government securities (in this section referred to as " substituted securities "), and b interest taxed by deduction in respect of such substituted securities, and the amount of the interest so included exceeds the full amount of the interest for a complete year on the original securities, then, if that individual so requires, the excess — i shall not be taken into account in ascertaining his total income for that year for the purposes of income tax, but ii shall nevertheless be chargeable to income tax for that year at such rate or rates, and subject to such reliefs, if any, as would be applicable if the excess constituted the highest part of an income equal, subject to section 529 of this Act, to the amount of his total income exclusive of the excess. 2 Where an application is made under section 101(2) of this Act with respect to any securities, subsection (1) above shall have effect as if, during the period in which the interest on those securities was paid without deduction of income tax, those securities were original securities within the meaning of the said subsection (1), and as if thereafter they were substituted securities within the meaning of that subsection. Subscriptions by banks to war loans 105 Any bank carrying on a bona fide banking business in the United Kingdom shall be relieved, by repayment or otherwise, from tax under Schedule C in respect of the interest on any securities which the bank proves to represent subscriptions by the bank to any government loan issued for the purposes of the war which was being carried on at the time of the passing of the Income Tax Act 1918, and the bank shall include the amount of any such interest in the computation of its profits or gains for the purpose of assessment under Case I of Schedule D. Miscellaneous and supplemental Exemption for stock and dividends in name of Treasury etc. 106 1 No tax shall be chargeable in respect of the stock or dividends transferred to accounts in the books of the Bank of England in the name of the Treasury or the National Debt Commissioners in pursuance of any Act of Parliament, but the Bank of England shall transmit to the Board an account of the total amount thereof. 2 No tax shall be chargeable in respect of the stock or dividends belonging to the Crown, in whatever name they may stand in the books of the Bank of England. 3 Gains shall not be chargeable gains if accruing on the disposal of stock to which subsection (1) or (2) above applies. Interpretation 107 In this Part of this Act — " dividends " means any interest, public annuities, dividends or shares of annuities, " public revenue ", except where the context otherwise requires, includes the public revenue of any government whatsoever, and the revenue of any public authority or institution in any country outside the United Kingdom, " public revenue dividends " means dividends payable out of any public revenue, " overseas public revenue dividends " means public revenue dividends payable elsewhere than in the United Kingdom (whether they are also payable in the United Kingdom or not) out of any public revenue other than the public revenue of the United Kingdom, " banker " includes a person acting as a banker, and " coupons ", and " coupons for any overseas public revenue dividends ", include warrants for or bills of exchange purporting to be drawn or made in payment of any overseas public revenue dividends. PART VI Schedule D CHAPTER I The Charge The Schedule, and the seven Cases Schedule D 108 The Schedule referred to as Schedule D is as follows: — SCHEDULE D 1 Tax under this Schedule shall be charged in respect of — a the annual profits or gains arising or accruing — i to any person residing in the United Kingdom from any kind of property whatever, whether situated in the United Kingdom or elsewhere, and ii to any person residing in the United Kingdom from any trade, profession or vocation, whether carried on in the United Kingdom or elsewhere, and iii to any person, whether a British subject or not, although not resident in the United Kingdom, from any property whatever in the United Kingdom, or from any trade, profession or vocation exercised within the United Kingdom, and b all interest of money, annuities and other annual profits or gains not charged under Schedule A, B, C or E, and not specially exempted from tax. 2 There shall also be charged under this Schedule, to the extent provided in Chapter VIII of this Part of this Act, income tax (but not corporation tax) in respect of the gains accruing to any person resident and ordinarily resident in the United Kingdom from his acquisition and disposal of assets. 3 The provisions of paragraphs 1 and 2 above are without prejudice to any other provision of the Tax Acts directing tax to be charged under this Schedule, and the tax so directed to be charged shall be charged accordingly. Tax to be charged under seven Cases 109 1 Tax under Schedule D shall be charged under the Cases set out in subsection (2) below, and subject to and in accordance with the provisions of the Tax Acts applicable to those Cases respectively. 2 The Cases are — Case I — tax in respect of any trade carried on in the United Kingdom or elsewhere ; Case II — tax in respect of any profession or vocation not contained in any other Schedule ; Case III — tax in respect of — any interest of money, whether yearly or otherwise, or any annuity or other annual payment, whether such payment is payable within or out of the United Kingdom, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation out of it, or as a personal debt or obligation by virtue of any contract, or whether the same is received and payable half-yearly or at any shorter or more distant periods, but not including any payment chargeable under Schedule A, and all discounts, and income, except income charged under Schedule C, from securities bearing interest payable out of the public revenue; Case IV — tax in respect of income arising from securities out of the United Kingdom, except such income as is charged under Schedule C ; Case V — tax in respect of income arising from possessions out of the United Kingdom, not being income consisting of emoluments of any office or employment; Case VI — tax in respect of any annual profits or gains not falling under any other Case of Schedule D, and not charged by virtue of Schedule A, B, C or E; and Case VII — income tax chargeable by virtue of Chapter VIII of this Part of this Act in respect of gains accruing from the acquisition and disposal of assets. 3 The provisions of subsection (1) above are without prejudice to any other provision of the Tax Acts directing tax to be charged under one or other of the said Cases, and the tax so directed to be charged shall be charged accordingly. Supplementary charging provisions Farming, and other commercial occupation of land (except woodlands) 110 1 All farming and market gardening in the United Kingdom shall be treated as the carrying on of a trade or, as the case may be, of a part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly. 2 All the farming carried on by any particular person or partnership or body of persons shall be treated as one trade. 3 The occupation of land in the United Kingdom for any purpose other than farming or market gardening shall, if the land is managed on a commercial basis and with a view to the realisation of profits, be treated as the carrying on of a trade or, as the case may be, of a part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly: Provided that nothing in this subsection shall affect the taxation of woodlands which are managed on a commercial basis and with a view to the realisation of profits. Woodlands managed on a commercial basis 111 1 Any person occupying woodlands which are managed by him on a commercial basis and with a view to the realisation of profits may elect to be assessed and charged to tax in respect of those woodlands under Schedule D instead of under Schedule B. 2 The election of any such person shall be signified by notice in writing to the inspector not later than two years after the end of the chargeable period, and, from and after the receipt of the notice, the charge upon him for that period shall be under Schedule D, and the profits or gains arising to him from the occupation of the woodlands shall for all purposes be deemed to be profits or gains of a trade chargeable under that Schedule. 3 Any such election shall extend to all woodlands so managed on the same estate: Provided that woodlands shall be treated for this purpose as being woodlands on a separate estate if the person occupying them gives notice to the inspector within ten years after the time when they are planted or replanted. 4 An election under this section shall have effect not only as respects the chargeable period, but also as respects all future chargeable periods so long as the woodlands are occupied by the person making the election. Mines, quarries and other concerns 112 1 Profits or gains arising out of land in the case of any concern specified in subsection (2) below shall be charged to tax under Case I of Schedule D. 2 The said concerns are — a mines and quarries (including gravel pits, sand pits and brickfields), b ironworks, gasworks, salt springs or works, alum mines or works (not being mines falling within the preceding paragraph), and waterworks and streams of water, c canals, inland navigations, docks, and drains or levels, d fishings, e rights of markets and fairs, tolls, bridges and ferries, f railways and other ways, and g other concerns of the like nature as any of the concerns specified in paragraphs (b) to (e) above. Foreign pensions 113 1 A pension which — a is paid by or on behalf of a person outside the United Kingdom, and b is not charged under paragraph 4 of Schedule E, shall be charged to tax under Case V of Schedule D. 2 Where — a a person has ceased to hold any office or employment, and b a pension or annual payment is paid to him, or to his widow or child, or to any relative or dependant of his, by the person under whom he held the office or by whom he was employed, or by the successors of that person, and c that pension or annual payment is paid by or on behalf of a person outside the United Kingdom, then, notwithstanding that the pension or payment is paid voluntarily, or is capable of being discontinued, it shall be deemed to be income for the purposes of assessment to tax, and shall be assessed and charged under Case V of Schedule D as income from a pension. Persons chargeable 114 1 Subject to subsections (2) and (3) below, income tax under Schedule D shall be charged on and paid by the persons receiving or entitled to the income in respect of which the tax is directed by the Income Tax Acts to be charged. 2 Income tax to be charged under Schedule D in respect of any of the concerns mentioned in section 112 above shall be assessed and charged on the person carrying on the concern, or on the agents or other officers who have the direction or management of the concern or receive the profits thereof. 3 Where, in accordance with that section, income tax is charged under Schedule D on the profits of markets or fairs, or on tolls, fisheries or any other annual or casual profits not distrainable, the owner or occupier or receiver of the profits thereof shall be answerable for the tax so charged, and may retain and deduct the same out of any such profits. 4 For the purposes of corporation tax, the provisions of Chapter I of Part XI of this Act have effect to the exclusion of subsections (1) to (3) above. CHAPTER II Cases I to VI: Income Tax: Basis of Assessment etc. Cases I and II Assessment on preceding year basis 115 1 Subject to the provisions of this section and sections 116 to 118 below, income tax shall be charged under Cases I and II of Schedule D on the full amount of the profits or gains of the year preceding the year of assessment. 2 Where, in the case of the trade, profession or vocation, an account has, or accounts have, been made up to a date or dates within the period of three years immediately preceding the year of assessment, then — a if an account was made up to a date within the year preceding the year of assessment, and that account was the only account made up to a date in that year, and was for a period of one year beginning either at the commencement of the trade, profession or vocation or at the end of the period on the profits or gains of which the assessment for the last preceding year of assessment was to be computed, the profits or gains of the year ending on that date shall be taken to be the profits or gains of the year preceding the year of assessment, and b in any other case, the Board shall decide what period of twelve months ending on a date within the year preceding the year of assessment shall be deemed to be the year the profits or gains of which are to be taken to be the profits or gains of the year preceding the year of assessment. 3 Where the Board have given a decision under subsection (2)(b) above and it appears to them that, in consequence thereof, income tax for the last preceding year of assessment in respect of the profits or gains from the same source should be computed on the profits or gains of a corresponding period, they may give a direction to that effect, and an assessment or, on a claim therefor, repayment of tax shall be made accordingly. 4 The decision whether or not to give a direction under subsection (3) above shall be subject to an appeal, which shall lie to the General Commissioners unless the appellant elects (in accordance with section 46(1) of the Taxes Management Act 1970) to bring it before the Special Commissioners, and the Commissioners hearing the appeal shall grant such relief, if any, as is just. 5 An appeal under subsection (4) above shall be brought within thirty days of receipt of notice of the decision, save that, if the decision is to give a direction and an assessment is made in accordance with the direction, the appeal against the decision shall be by way of an appeal against the assessment. 6 In the case of the death of a person who, if he had not died, would under the provisions of subsections (2) and (3) above have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged on his executors or administrators, and shall be a debt due from and payable out of his estate. Special basis at commencement of trade, profession or vocation 116 1 Where the trade, profession or vocation has been set up and commenced within the year of assessment, the computation of the profits or gains chargeable to income tax under Case I or Case II of Schedule D shall be made either on the full amount of the profits or gains arising in the year of assessment or according to the average of such period, not being greater than one year, as the case may require and as may be directed by the inspector. On an appeal to the General or Special Commissioners, the Commissioners shall have jurisdiction to review the inspector's decision under this subsection. 2 Where the trade, profession or vocation has been set up and commenced within the year preceding the year of assessment, the computation of the profits or gains chargeable to income tax under Case I or Case II of Schedule D shall be made on the profits or gains for one year from the first setting up thereof. Special basis for two years following commencement 117 1 In this section — " charged " means charged to income tax in respect of the profits or gains of a trade, profession or vocation, and " the second year of assessment " and " the third year of assessment " mean respectively the year next after, and the year next but one after, the year of assessment in which the trade, profession or vocation was set up and commenced. 2 The person charged, or liable to be charged, shall be entitled, on giving notice in writing to the inspector within seven years after the end of the second year of assessment, to require that tax shall be charged for both the second year of assessment and the third year of assessment (but not for one or other only of those years) on the amount of the profits or gains of each such year respectively: Provided that he may by notice in writing given to the inspector within six years after the end of the third year of assessment revoke the notice, and, in that case, tax shall be charged for both the second year of assessment and the third year of assessment as if the first notice had never been given. 3 If, at any time during the second or third year of assessment, any such change as is hereinafter mentioned occurs in the persons engaged in the trade, profession or vocation, that is to say, if either — a a change occurs in a partnership of persons engaged therein, by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, in such circumstances that one or more of the persons who until that time were engaged in the trade, profession or vocation continue to be engaged therein, or b a person who until that time was engaged in the trade, profession or vocation on his own account continues to be engaged in it, but as a partner in a partnership, a notice for the purposes of subsection (2) above (including the proviso thereto) must, if given after the occurrence of the change and after notice has been given as respects the change under section 154(2) of this Act (election for change not to be treated as a discontinuance) — i in the case of a notice given within twelve months after the end of the second year of assessment, be signed by each of the individuals who were engaged in the trade, profession or vocation at any time between the commencement of the second year of assessment and the giving of the notice, or, in the case of a deceased person, by his legal representatives, and ii in the case of a notice given after the end of the third year of assessment, be signed by each of the individuals who were engaged in the trade, profession or vocation at any time during the second or third year of assessment, or, in the case of a deceased person, by his legal representatives. 4 In the case of the death of a person who, if he had not died, would under the provisions of this section have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged on his executors or administrators, and shall be a debt due from and payable out of his estate. 5 There shall be made such assessments, reductions of assessments or, on a claim in that behalf, repayments of tax as may in any case be required in order to give effect to the preceding provisions of this section. Special basis on discontinuance 118 1 Where in any year of assessment a trade, profession or vocation is permanently discontinued, then, notwithstanding anything in sections 115 to 117 above — a the person charged or chargeable with income tax in respect thereof shall be charged for that year on the amount of the profits or gains of the period beginning on the 6th April in that year and ending on the date of the discontinuance, but subject to any deduction or setoff to which he may be entitled under section 171 of this Act (carry-forward) in respect of any loss, and b if the aggregate of the profits or gains (if any) of the years ending on the 5th April in each of the two years preceding the year of assessment in which the discontinuance occurs exceeds the aggregate of the amounts on which that person has been charged for each of the said two preceding years, or the aggregate of the amounts on which he would have been so charged if no such deduction or set-off as aforesaid had been allowed, he may be charged instead, for each of the said two preceding years, but subject to any such deduction or set-off, on the amount of the profits or gains of the year ending on the 5th April in that year. 2 Where a person has been charged with income tax otherwise than in accordance with paragraph (a) or (b) of subsection (1) above, any such assessment to tax, reduction or discharge of an assessment to tax, or, on a claim therefor, repayment of tax, shall be made as may be necessary to give effect to those paragraphs. 3 In the case of the death of a person who, if he had not died, would under the provisions of this section have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged on his executors or administrators, and shall be a debt due from and payable out of his estate. 4 Subsection (1)(b) above shall not apply where a trade is permanently discontinued in consequence of the nationalisation of any property constituting the assets of the trade. For the purposes of this subsection " nationalisation " means, in relation to any property, a transfer of the property for which provision is made by any Act passed after the beginning of August 1945 and embodying a scheme for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control, being a transfer, as part of the initial putting into force of the scheme, either to the Crown or to a body corporate constituted for the purposes of the scheme or of some previous scheme for such national ownership or control as aforesaid. Case III Assessment on preceding year basis 119 Subject to sections 120 and 121 below, income tax under Case III of Schedule D shall be computed on the full amount of the income arising within the year preceding the year of assessment, and shall be paid on the actual amount of the said income, without any deduction. Special rules for fresh income 120 1 Income tax under Case III of Schedule D shall, in the following cases, be computed on the following amounts, and paid on those actual amounts without any deduction — a as respects the year of assessment in which the income first arises, on the full amount of the income arising within that year, b where the income first arose on some day in the year preceding the year of assessment other than the 6th April, on the amount of the income of the year of assessment, and c where the income first arose on the 6th April in the year preceding the year of assessment, or on some day in the year next before the year preceding the year of assessment other than the 6th April, and the person charged so requires by notice in writing given to the inspector at any time within six years after the end of the year of assessment, on the amount of the income of that year. 2 Where subsection (1)(c) above applies, and income tax charged otherwise than in accordance with that provision has been paid, any amount overpaid shall be repaid. 3 If at any time a person acquires a new source of any income in respect of which he is chargeable under Case III of Schedule D, or an addition to any source of any such income, then, for the year of assessment in which income first arises from the source or addition and the two following years of assessment, income tax in respect of the income from the source or addition shall, notwithstanding section 128 below (assessment of Case III income in one sum), be computed separately, and subsection (1) above shall apply to the computation thereof. 4 If at any time interest on a debt ceases to be payable subject to deduction of income tax, subsection (3) above shall apply as if the debt were a new source of income acquired by the creditor at that time. Special rules where source of income ceases 121 1 Subject to the provisions of this section, if in any year of assessment a person charged or chargeable to income tax in respect of any income chargeable under Case III of Schedule D ceases to possess any particular source of any such income, or any part of any such source, the following provisions shall apply to the tax in respect of the income from that source or part — a notwithstanding section 128 below (assessment of Case III income in one sum), the tax shall for that year, and (if necessary) for the preceding year, be computed separately, b subject to paragraph (c) below, the tax shall for that year be computed on the amount of the income arising within the year (instead of the income arising within the preceding year), and shall for that preceding year also be computed on the amount of the income arising within it if greater than the amount on which tax is to be computed for that preceding year apart from this provision, and c if no income arose within those two years, and the person charged or chargeable makes a claim under this section not later than two years after the end of them, then, subject to subsection (3) below — i paragraphs (a) and (b) above shall apply to the year of assessment in which income did last arise and the year preceding it as, apart from this paragraph, they would apply to the year in which he ceases to possess the source or part and the year preceding it, and ii tax shall not for the year of assessment following that in which income did last arise be chargeable on the amount of the income so arising. 2 If at any time interest on a debt begins to be payable subject to deduction of income tax, subsection (1) above shall apply as if the debt were a source of income which the creditor ceased to possess at that time. 3 A person shall not be entitled by virtue of subsection (1)(c) above to make a claim under this section in respect of any source of income, or any part of such a source, more than eight years after the end of the year of assessment in which income last arose from that source; but a person possessing a source of income chargeable to income tax under Case III of Schedule D, and having possessed it for six consecutive years of assessment without any income arising from it, shall be entitled, if income did arise from it in the year preceding those six years, to make a claim under this section not later than two years after the end of those six years, and, if he does so — a subsection (1) above shall apply as if he had ceased to possess the source of income immediately before the end of those six years, and b section 120(3) above shall apply (in relation to later years of assessment) as if he had acquired the source as a new source immediately after the end of those six years. 4 There shall be made all such adjustments, whether by way of repayment of tax, assessment or otherwise, as may be necessary to give effect to this section. 5 A person's executors or administrators may make any claim under this section which he might have made, if he had not died, in respect of any source of income, or part of such a source, which he ceased to possess before his death, and may also make a claim under this section in respect of sources of income which he ceased to possess by dying ; and after a person's death — a any tax paid by him and repayable by virtue of a claim under this section (whether made by him or by his executors or administrators) shall be repaid to his executors or administrators, and b any additional tax chargeable by virtue of such a claim shall be assessed and charged on his executors or administrators, and shall be a debt due from and payable out of his estate. Cases IV and V Assessment on preceding year basis, but, in certain cases, only on sums received in United Kingdom 122 1 Subject to the provisions of this section and sections 123 and 124 below, income tax chargeable under Case IV or Case V of Schedule D shall be computed on the full amount of the income arising in the year preceding the year of assessment, whether the income has been or will be received in the United Kingdom or not, subject in the case of income not received in the United Kingdom — a to the same deductions and allowances as if it had been so received, and b to a deduction on account of any annuity or other annual payment (not being interest) payable out of the income to a person not resident in the United Kingdom, and c to a deduction on account of any annual interest payable out of the income to a person not resident in the United Kingdom, being interest paid before 6th April 1975 on a debt incurred on or before 15th April 1969. 2 Subsection (1) above shall not apply — a to any person who satisfies the Board that he is not domiciled in the United Kingdom, or that, being a British subject or a citizen of the Republic of Ireland, he is not ordinarily resident in the United Kingdom, or b to any income which is immediately derived by a person from the carrying on by him of any trade, profession or vocation, either solely or in partnership, or c to any income which arises from any pension. Any claim under paragraph (a) above shall be made to the Board. 3 In the cases mentioned in subsection (2) above, the tax shall, subject to sections 123 and 124 below, be computed — a in the case of tax chargeable under Case IV, on the full amount, so far as the same can be computed, of the sums received in the United Kingdom in the year preceding the year of assessment, without any deduction or abatement, and b in the case of tax chargeable under Case V, on the full amount of the actual sums received in the United Kingdom in the year preceding the year of assessment from remittances payable in the United Kingdom, or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of any such remittances, property, money or value brought or to be brought into the United Kingdom, without any deduction or abatement other than is allowed under the provisions of the Income Tax Acts in respect of profits or gains charged under Case I of Schedule D. 4 For the purposes of subsection (3) above, any income arising from securities or possessions out of the United Kingdom which is applied outside the United Kingdom by a person ordinarily resident in the United Kingdom in or towards satisfaction of — a any debt for money lent to him in the United Kingdom, or for interest on money so lent, or b any debt for money lent to him outside the United Kingdom and received in or brought to the United Kingdom, or c any debt incurred for satisfying in whole or in part a debt falling within paragraph (a) or (b) above, shall be treated as received by him in the United Kingdom (and, for the purposes of paragraph (b) of the said subsection (3), as so received from remittances payable in the United Kingdom). 5 Where a person ordinarily resident in the United Kingdom receives in or brings to the United Kingdom money lent to him outside the United Kingdom, but the debt for that money is wholly or partly satisfied before he does so, subsection (4) above shall apply as if the money had been received in or brought to the United Kingdom before the debt was so satisfied, except that any sums treated by virtue of that subsection as received in the United Kingdom shall be treated as so received at the time when the money so lent is actually received in or brought to the United Kingdom. 6 Where a person is indebted for money lent to him, income applied by him in such a way that the money or property representing it is held by the lender on behalf of or to the account of the said person in such circumstances as to be available to the lender for the purpose of satisfying or reducing the debt by set-off or otherwise shall be treated as applied by the said person in or towards its satisfaction if, under any arrangement between the said person and the lender, the amount for the time being of the said person's indebtedness to the lender, or the time at which it is to be repaid in whole or in part, depends in any respect directly or indirectly on the amount or value held by the lender as aforesaid. 7 For the purposes of subsections (4) to (6) above — a a debt for money lent shall, to the extent to which that money is applied in or towards satisfying another debt, be deemed to be a debt incurred for satisfying that other debt, and a debt incurred for satisfying in whole or in part a debt falling within paragraph (c) of the said subsection (4) shall itself be treated as falling within that paragraph, and b " lender " includes, in relation to any money lent, any person for the time being entitled to repayment. Special rules for fresh income 123 1 Subject to subsection (5) below, income tax under Case IV or Case V of Schedule D shall be computed — a as respects the year of assessment in which the income first arises, on the full amount of the income arising within that year, b where the income first arose on some day in the year preceding the year of assessment other than the 6th April, on the income of the year of assessment, and c where the income first arose on the 6th April in the year preceding the year of assessment, or on some day in the year next before the year preceding the year of assessment other than the 6th April, and the person charged so requires by notice in writing given to the inspector within six years after the end of the year of assessment, on the amount of the income of that year. 2 Where subsection (1)(c) above applies, and income tax charged otherwise than in accordance with that provision has been paid, any amount overpaid shall be repaid. 3 If at any time any person acquires a new source of any income chargeable to income tax under Case IV or Case V of Schedule D, or an addition to any source of any such income, then, for the year of assessment in which income first arises from the source or addition and the two following years of assessment, income tax in respect of the income from the source or addition shall, notwithstanding section 128 below (assessment of Case IV or V income in one sum), be computed separately, and subsection (1) above shall apply. 4 Where income arising to any person from any security or possession in any place out of the United Kingdom ceases at any time to be chargeable to income tax by deduction under the provisions of section 159 below (foreign dividends etc.), subsection (3) above shall apply as if that security or possession were a new source of income acquired by that person at that time. 5 The preceding provisions of this section shall, in cases where tax is to be charged by reference to the amount of income received in the United Kingdom, have effect as if references to income which arises or arose were references to income which is or was so received. Special rules where source of income ceases 124 1 Subject to the provisions of this section, if in any year of assessment a person charged or chargeable to income tax in respect of any income chargeable under Case IV or Case V of Schedule D ceases to possess any particular source of any such income, or any part of any such source, the following provisions shall apply to the tax in respect of the income from that source or part — a notwithstanding section 128 below (assessment of Case IV or V income in one sum), the tax shall for that year, and (if necessary) for the preceding year, be computed separately, b subject to paragraph (c) below, the tax shall for that year be computed on the amount of the income arising within the year (instead of the income arising within the preceding year), and shall for that preceding year also be computed on the amount of the income arising within it if greater than the amount on which tax is to be computed for that preceding year apart from this provision, and c if no income arose within those two years, and the person charged or chargeable makes a claim under this section not later than two years after the end of them, then, subject to subsection (3) below — i paragraphs (a) and (b) above shall apply to the year of assessment in which income did last arise and the year preceding it as, apart from this paragraph, they would apply to the year in which he ceases to possess the source or part and the year preceding it, and ii tax shall not for the year of assessment following that in which income did last arise be chargeable on the amount of the income so arising. 2 Where income in respect of which a person has previously been charged or chargeable to income tax under Case IV or V of Schedule D becomes at any time chargeable to income tax by deduction under the provisions of section 159 below (foreign dividends etc.), subsection (1) above shall apply as if the security or possession in question were a source of income which he ceased to possess at that time. 3 A person shall not be entitled by virtue of subsection (1)(c) above to make a claim under this section in respect of any source of income, or any part of such a source, more than eight years after the end of the year of assessment in which income last arose from that source; but a person possessing a source of income chargeable to income tax under Case IV or Case V of Schedule D, and having possessed it for six consecutive years of assessment without any income arising from it, shall be entitled, if income did arise from it in the year preceding those six years, to make a claim under this section not later than two years after the end of those six years, and, if he does so — a subsection (1) above shall apply as if he had ceased to possess the source of income immediately before the end of those six years, and b section 123(3) above shall apply (in relation to later years of assessment) as if he had acquired the source as a new source immediately after the end of those six years. 4 References in this section to income arising shall, in cases where tax is to be computed by reference to the amount of income received in the United Kingdom, be construed as references to income being so received. 5 There shall be made all such adjustments, whether by way of repayment of tax, assessment or otherwise, as may be necessary to give effect to this section. 6 A person's executors or administrators may make any claim under this section which he might have made, if he had not died, in respect of any source of income, or part of such a source, which he ceased to possess before his death, and may also make a claim under this section in respect of sources of income which he ceased to possess by dying; and after a person's death — a any tax paid by him and repayable by virtue of a claim under this section (whether made by him or by his executors or administrators) shall be repaid to his executors or administrators, and b any additional tax chargeable by virtue of such a claim shall be assessed and charged on his executors or administrators, and shall be a debt due from and payable out of his estate. Case VI Assessment on current year basis unless otherwise directed 125 1 Income tax under Case VI of Schedule D shall be computed either on the full amount of the profits or gains arising in the year of assessment or according to an average of such period, not being greater than one year, as the case may require and as may be directed by the inspector. 2 On an appeal to the General or Special Commissioners, the Commissioners shall have jurisdiction to review the inspector's decision under this section. Miscellaneous Tax computed on profits of previous period to be charged though no profits in year of assessment 126 Where it is provided by the Income Tax Acts that income tax under Schedule D in respect of profits or gains or income from any source is to be computed by reference to the amount of the profits or gains or income of some period preceding the year of assessment, tax as so computed shall be charged for that year of assessment notwithstanding that no profits or gains or income arise from that source for or within that year. Apportionments etc. for purposes of Cases I, II and VI 127 1 Where, in the case of any profits or gains chargeable under Case I, Case II or Case VI of Schedule D, it is necessary, in order to arrive for the purposes of income tax at the profits or gains or losses of any year of assessment or other period, to divide and apportion to specific periods the profits or gains or losses for any period for which the accounts have been made up, or to aggregate any such profits or gains or losses or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation. 2 Any apportionment under this section shall be made in proportion to the number of months, or fractions of months, in the respective periods. Single assessments for purposes of Cases III, IV and V 128 Except as otherwise provided by the Income Tax Acts, all income in respect of which a person is chargeable to income tax under Case III, Case IV or Case V of Schedule D may respectively be assessed and charged in one sum. CHAPTER III Cases I to VI: Corporation Tax : Basis of Assessment etc. Basis of assessment, apportionments, single assessments, and miscellaneous special provisions 129 1 In accordance with Part XI of this Act (company taxation), for the purposes of corporation tax for any accounting period, income shall be computed under Cases I to VI of Schedule D on the full amount of the profits or gains or income arising in the period (whether or not received in or transmitted to the United Kingdom), without any other deduction than is authorised by the Corporation Tax Acts. 2 Where, in the case of any profits or gains chargeable under Case I, Case II or Case VI of Schedule D, it is necessary, in order to arrive for the purposes of corporation tax at the profits or gains or losses for any accounting period or other period, to divide and apportion to specific periods the profits or gains or losses for any period for which the accounts have been made up, or to aggregate any such profits or gains or losses or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation. 3 Except as otherwise provided by the Corporation Tax Acts, all income in respect of which a company is chargeable to corporation tax under Case III, Case IV or Case V of Schedule D may respectively be assessed and charged in one sum. 4 Where a company is chargeable to corporation tax in respect of a trade or vocation under Case V of Schedule D, the income from the trade or vocation shall be computed in accordance with the rules applicable to Case I of Schedule D. 5 Cases IV and V of Schedule D shall for the purposes of corporation tax extend to companies not resident in the United Kingdom, so far as those companies are chargeable to tax on income of descriptions which, in the case of companies resident in the United Kingdom, fall within those Cases (but without prejudice to any provision of the Tax Acts specially exempting non-residents from tax on any particular description of income). CHAPTER IV Trades, Professions and Vocations: Computational Provisions General provisions General rules as to deductions not allowable 130 Subject to the provisions of the Tax Acts, in computing the amount of the profits or gains to be charged under Case I or Case II of Schedule D, no sum shall be deducted in respect of — a any disbursements or expenses, not being money wholly and exclusively laid out or expended for the purposes of the trade, profession or vocation, b any disbursements or expenses of maintenance of the parties, their families or establishments, or any sums expended for any other domestic or private purposes distinct from the purposes of the trade, profession or vocation, c the rent of any dwelling-house or domestic offices or any part thereof, except such part thereof as is used for the purposes of the trade or profession, and where any such part is so used, the sum so deducted shall not, unless in any particular case it appears that having regard to all the circumstances some greater sum ought to be deducted, exceed two-thirds of the rent bona fide paid for the said dwelling-house or offices, d any sum expended for repairs of premises occupied, or for the supply, repairs or alterations of any implements, utensils or articles employed, for the purposes of the trade, profession or vocation, beyond the sum actually expended for those purposes, e any loss not connected with or arising out of the trade, profession or vocation, f any capital withdrawn from, or any sum employed or intended to be employed as capital in, the trade, profession or vocation, but so that this paragraph shall not be treated as disallowing the deduction of any interest, g any capital employed in improvements of premises occupied for the purposes of the trade, profession or vocation, h any interest which might have been made if any such sums as aforesaid had been laid out at interest, i any debts, except bad debts proved to be such, and doubtful debts to the extent that they are respectively estimated to be bad, and in the case of the bankruptcy or insolvency of a debtor the amount which may reasonably be expected to be received on any such debt shall be deemed to be the value thereof, j any average loss beyond the actual amount of loss after adjustment, k any sum recoverable under an insurance or contract of indemnity, l any annuity or other annual payment (other than interest) payable out of the profits or gains, m any interest paid to a person not resident in the United Kingdom if and so far as it is interest at more than a reasonable commercial rate, n any royalty or other sum paid in respect of the user of a patent, or o any rent, royalty or other payment which, by section 156 or 157 of this Act (mining etc. rents and royalties), is declared to be subject to deduction of tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent. Income tax: deduction of interest paid to non-residents 131 1 In computing the profits or gains arising from a trade, profession or vocation, no sum shall be deducted in respect of any annual interest paid to a person not resident in the United Kingdom unless — a the person making the payment has deducted income tax from the payment in accordance with section 54 of this Act, and accounts for the tax so deducted, or b the conditions set out in subsection (2) below are satisfied. 2 The conditions referred to in subsection (1)(b) above are as follows — a that the trade, profession or vocation is carried on by a person residing in the United Kingdom, and b that the liability to pay the interest was incurred exclusively for the purposes of the trade, profession or vocation, and c that either — i the liability to pay the interest was incurred wholly or mainly for the purposes of activities of the trade, profession or vocation carried on outside the United Kingdom, or ii the interest is payable in the currency of a territory outside the scheduled territories, and d that, under the terms of the contract under which the interest is payable, the interest is to be paid, or may be required to be paid, outside the United Kingdom, and e that the interest is in fact paid outside the United Kingdom. 3 Where the trade, profession or vocation is carried on by a partnership, subsection (1)(b) above shall not apply to any interest which is payable to any of the partners, or is payable in respect of the share of any partner in the partnership capital. 4 Subsection (1)(b) above shall not apply where — a the trade, profession or vocation is carried on by a body of persons over whom the person entitled to the interest has control, or b the person entitled to the interest is a body of persons over whom the person carrying on the trade, profession or vocation has control, or c the person carrying on the trade, profession or vocation, and the person entitled to the interest are both bodies of persons, and some other person has control over both of them. In this subsection, the references to a body of persons include references to a partnership, and " control" has the meaning given by section 534 of this Act. 5 If interest paid under deduction of tax in accordance with section 54 of this Act is deductible in computing the profits or gains of a trade, profession or vocation, the amount so deductible shall be the gross amount. 6 In subsection (2)(c)(ii) above " the scheduled territories " means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force. 7 This section does not apply for the purposes of corporation tax. Deduction of patent etc. fees and expenses 132 Notwithstanding anything in section 130 above, in computing the profits or gains of a trade, there may be deducted as expenses any fees paid or expenses incurred — a in obtaining, for the purposes of the trade, the grant of a patent, an extension of the term of a patent, the registration of a design or trade mark, the extension of the period of copyright in a design, or the renewal of registration of a trade mark, or b in connection with a rejected or abandoned application for a patent made for the purposes of the trade. Deduction of payments for technical education 133 1 Notwithstanding anything in section 130 above, where a person carrying on a trade makes any payment to be used for the purposes of technical education related to that trade at any university or university college, or at any such technical college or other similar institution as may for the time being be approved for the purposes of this section by the Secretary of State for Education and Science, the payment may be deducted as an expense in computing the profits or gains of the trade for the purposes of tax. 2 For the purposes of this section, technical education shall be deemed to be related to a trade if, and only if, it is technical education of a kind specially requisite for persons employed in the class of trade to which that trade belongs. 3 In relation to technical colleges or other institutions in Scotland or Northern Ireland, this section shall have effect as if, for the reference to the Secretary of State for Education and Science, there were substituted a reference, in the case of Scotland, to the Secretary of State and, in the case of Northern Ireland, to the Ministry of Education for Northern Ireland. Deductions where premiums etc. taxable 134 1 Where, in relation to any land used in connection with a trade, profession or vocation — a tax has become chargeable under section 80 (except subsection (6)), 81 or 82 of this Act on any amount (disregarding any reduction in that amount under section 83(1) of this Act), or b tax would have become so chargeable on that amount but for the operation of the said section 80(6) or the said section 83(1), or but for any exemption from tax, subsections (2) to (7) below shall have effect, in the cases there provided, for allowing deductions calculated by reference to that amount (hereinafter referred to as " the amount chargeable ") in computing the profits or gains of the trade, profession or vocation chargeable to tax under Case I or Case II of Schedule D ; and in those subsections " the relevant period " means — i where the amount chargeable arose under the said section 80, the period treated in computing that amount as being the duration of the lease, ii where that amount arose under the said section 81, the period treated in computing the amount as being the duration of the lease remaining at the date of the assignment, and iii where that amount arose under the said section 82, 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 subsections (3) to (7) below, 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 as aforesaid, 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 subsection (2) above, that subsection 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, subsections (2) and (3) above shall apply as if the land or part were occupied by him for those purposes: Provided that — a where section 83(1) of this Act has effect in relation to a lease granted out of that interest, subsection (3) of that section shall apply for modifying the operation of subsections (2) and (3) above as it applies for modifying the operation of subsection (2) of that section, and b in computing profits or gains for any chargeable period, rent shall not by virtue of this subsection be treated as paid by a person for any period in respect of land in so far as rent treated under section 83(2) of this Act as paid by him for that period in respect of the land has in any previous chargeable period been deducted, or falls in that chargeable period to be deducted, under Part III of this Act. 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 60 of the Capital Allowances Act 1968 (mineral depletion) for any chargeable period, then — a if the allowance is in respect of the whole of the expenditure, no deduction shall be allowed him under this section for that or any subsequent chargeable period, or b if the allowance is in respect of part only of the expenditure, a deduction allowed him under this section for that or any subsequent chargeable period shall be the fraction A − B A of the amount which apart from this subsection would fall to be deducted, where — A is the whole of the expenditure, and B is the said part of the expenditure. 6 Where the amount chargeable arose under section 80(2) of this Act by reason of an obligation which included the carrying out of work in respect of which any capital allowance has fallen or will fall to be made, this section 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 82 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 preceding provisions of this section shall be deemed to have had effect (for all relevant chargeable periods) 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 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 chargeable period in which the reconveyance or grant takes place. Deduction for debts proving irrecoverable after event treated as discontinuance 135 Where section 154 or 251(1) of this Act applies to treat a trade, profession or vocation as discontinued by reason of any event, then, in computing for tax purposes the profits or gains of the trade, profession or vocation in any period after the event there may be deducted a sum equal to any amount proved during that period to be irrecoverable in respect of any debts credited in computing for tax purposes the profits or gains for any period before the event (being debts the benefit of which was assigned to the persons carrying on the trade, profession or vocation after the event), in so far as the total amount proved to be irrecoverable in respect of those debts exceeds any deduction allowed in respect of them under section 130(f) above in a computation for any period before the event. Debts set off against profits and subsequently released 136 Where, in computing for tax purposes the profits or gains of a trade, profession or vocation, a deduction has been allowed for any debt incurred for the purposes of the trade, profession or vocation, then, if the whole or any part of the debt is thereafter released, the amount released shall be treated as a receipt of the trade, profession or vocation arising in the period in which the release is effected. Valuation of trading stock on discontinuance of trade 137 1 In computing for any tax purpose the profits or gains of a trade which has been discontinued, any trading stock belonging to the trade at the discontinuance shall be valued as follows — a if the stock is sold or transferred for valuable consideration to a person who carries on, or intends to carry on, a trade in the United Kingdom, and the cost thereof may be deducted by the purchaser as an expense in computing for any such purpose the profits or gains of that trade, the value thereof shall be taken to be the amount realised on the sale or the value of the consideration given for the transfer, and b if the stock does not fall to be valued under paragraph (a) above, its value shall be taken to be the amount which it would have realised if it had been sold in the open market at the discontinuance of the trade. 2 Any question arising under subsection (1)(a) above shall be determined as follows, for the purpose of computing as aforesaid the profits or gains of both the trades concerned — a in a case where the same body of General Commissioners have jurisdiction with respect to both the trades concerned, the question shall be determined by those Commissioners unless all parties concerned agree that it shall be determined by the Special Commissioners, b in any other case, the question shall be determined by the Special Commissioners, and c the General or Special Commissioners shall determine the question in like manner as an appeal. 3 Where, by virtue of section 154 or 251(1) of this Act, a trade is treated as having been discontinued for the purpose of computing tax, it shall also be so treated for the purposes of this section ; but this section shall not apply in a case where a trade carried on by a single individual is discontinued by reason of his death. 4 For the purposes of this section, " trading stock ", in relation to any trade, means property of any description, whether real or personal, being either — a property such as is sold in the ordinary course of the trade, or would be so sold if it were mature or if its manufacture, preparation or construction were complete, or b materials such as are used in the manufacture, preparation or construction of any such property as is referred to in paragraph (a) above. For the purposes of this section " trading stock ", in relation to a trade, includes also any services, article or material which would, if the trade were a profession or vocation, be treated as work in progress thereof for the purposes of section 138 below, and references to the sale or transfer of trading stock shall be construed accordingly. Valuation of work in progress at discontinuance of profession or vocation 138 1 Where, in computing for any tax purpose the profits or gains of a profession or vocation which has been discontinued a valuation is taken of the work of the profession or vocation in progress at the discontinuance, that work shall be valued as follows — a if the work is transferred for money or any other valuable consideration to a person who carries on, or intends to carry on, a profession or vocation in the United Kingdom, and the cost of the work may be deducted by that person as an expense in computing for any such, purpose the profits or gains of that profession or vocation, the value of the work shall be taken to be the amount paid or other consideration given for the transfer, and b if the work does not fall to be valued under paragraph (a) above, its value shall be taken to be the amount which would have been paid for a transfer thereof on the date of the discontinuance as between parties at arm's length. 2 Section 137(2) above shall apply to the determination of any question arising under subsection (1)(a) of this section as it applies to the determination of any question arising under subsection (1)(a) of that section, but with the substitution of references to professions and vocations for references to trades. 3 Where a profession or vocation is discontinued, and the person by whom it was carried on immediately before the discontinuance so elects by notice in writing sent to the inspector at any time within twelve months after the discontinuance, the amount (if any) by which the value of the work in progress at the discontinuance (as ascertained under subsection (1) above) exceeds the actual cost of the work shall not be brought into account in computing the profits or gains of the period immediately before the discontinuance, but the amount by which any sums received for the transfer of the work exceed the actual cost of the work shall be included in the sums chargeable to tax by virtue of section 143 below as if it were a sum to which that section applies received after the discontinuance. 4 Subsections (1) to (3) above shall apply where a profession or vocation is treated under section 154 or 251(1) of this Act as permanently discontinued as they apply in the case of an actual discontinuance, but shall not apply in a case where a profession or vocation carried on by a single individual is discontinued by reason of his death. 5 References in this section to work in progress at the discontinuance of a profession or vocation shall be construed as references to — a any services performed in the ordinary course of the profession or vocation, the performance of which was wholly or partly completed at the time of the discontinuance and for which it would be reasonable to expect that a charge would have been made on their completion if the profession or vocation had not been discontinued, and b any article produced, and any such material as is used, in the performance of any such services, and references in this section to the transfer of work in progress shall include references to the transfer of any benefits and rights which accrue, or might be reasonably expected to accrue, from the carrying out of the work. Special provisions Treatment of farm animals etc. 139 Schedule 6 to this Act shall have effect with respect to the treatment, in computing profits or gains for the purposes of Case I of Schedule D, of animals and other living creatures kept for the purposes of farming or of any other trade. Tied premises 140 1 In computing for tax purposes the profits or gains or losses of a trade carried on by a lessor of tied premises — a there shall be taken into account as a trading receipt any rent payable for the premises to him, and there shall be allowed as deduction any rent paid for the premises by him, but b no deduction shall be allowed in respect of the premises either by reference to his being entitled to a rent for the premises which is less than the rent which might have been obtained (or less than their annual value or the rent payable by him for them) or in respect of the annual value of the premises. 2 For the purposes of this section, premises shall be deemed to be tied premises in relation to any lessor thereof, and in relation to any trade carried on by him, if, but only if, in the course of that trade, he is concerned (whether as principal or agent) in the supply of goods sold or used on the premises, and accordingly deals with the premises or his interest therein as property employed for the purposes of that trade; and in this section " the relevant trade ", in relation to any tied premises and to any lessor thereof, means any trade carried on by him in relation to which they are tied premises. 3 Where part only of premises in respect of which rent Is paid by or payable to a lessor of the premises are tied premises in relation to him, the rent paid or payable for the tied premises shall for the purposes of this section be taken to be that part of the entire rent which, on a fair and just apportionment, is attributable to them. 4 Subject to subsection (5) below, a lessor of tied premises who is chargeable to tax for any chargeable period in respect of the profits or gains of the relevant trade shall not be liable for that period (or for the part of it during which he carries on the said trade) to any tax in respect of the premises under Schedule A. 5 Where, for any chargeable period or part of a chargeable period, a lessor of tied premises becomes entitled to any rent under a lease comprising the tied premises and other premises, but is by virtue of subsection (4) above relieved of liability to tax in respect of the tied premises under Schedule A, his liability in respect of the rent shall be computed in the first instance as it would be apart from this section, but his total liability (so computed) in respect thereof shall be reduced by the part which, on a fair and just apportionment, is attributable to the tied premises for the chargeable period or part thereof for which he is so relieved of liability in respect of them. 6 If the lessor of tied premises outside the United Kingdom is chargeable to tax for any chargeable period in respect of the profits or gains of the relevant trade, he shall not be liable for that period (or for the part of it during which he carries on the said trade) to tax under Case V of Schedule D in respect of any rent for the premises. 7 Where the person carrying on a trade is, in the case of any premises, entitled in equity to the interest of any lessor of those premises, then, in relation to that person, subsections (1) to (3) above shall apply as if he were the lessor of the premises, and as if any rent payable to or paid by the lessor were payable to or paid by him ; and, in relation to the lessor of the premises, subsections (4) and (5) above (or, in the case of premises outside the United Kingdom, subsection (6) above) shall apply as they would apply to the person carrying on the trade if the lessor's interest in the premises and in any other relevant land were vested in him. 8 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. Cemeteries etc.: deduction of certain capital expenditure 141 1 In computing the profits or gains or losses for any period of a trade which consists of or includes the carrying on of a cemetery, there shall be allowed as a deduction — a any capital expenditure incurred by the person engaged in carrying on the trade in providing any land in the cemetery sold during that period for the purpose of interments, and b the appropriate fraction of the residue at the end of that period of the capital expenditure defined in subsection (2) below. 2 The said expenditure is capital expenditure incurred for the purposes of the trade in question by the person engaged in carrying it on, being — a expenditure on any building or structure other than a dwelling-house, being a building or structure in the cemetery likely to have little or no value when the cemetery is full, and b expenditure incurred in providing land taken up by any such building or structure, and any other land in the cemetery not suitable or adaptable for use for interments and likely to have little or no value when the cemetery is full: Provided that it does not include expenditure incurred on buildings or structures which have been destroyed before the beginning of the first period to which subsection (1) above applies in the case of the trade, and only includes that fraction of other expenditure incurred before that time which is equal to the number of grave-spaces which at that time were or could have been made available in the cemetery for sale divided by that number plus the number already sold. 3 For the purposes of this section — a the residue of any expenditure at the end of a period is the amount incurred before that time which remains after deducting — i any amount allowed in respect of that expenditure under subsection (1)(b) above in computing the profits or gains or losses of the trade for any previous period, and ii if, after the beginning of the first period to which subsection (1) above applies in the case of the trade and before the end of the period mentioned at the beginning of this subsection, any asset representing that expenditure is sold or destroyed, the net proceeds of sale or, as the case may be, any insurance money or other compensation of any description received by the person carrying on the trade in respect of the destruction and any money received by him for the remains of the asset, and b the appropriate fraction of the residue of any expenditure at the end of any period is that represented by the number of grave-spaces in the cemetery sold in the period divided by that number added to the number of grave-spaces which at the end of the period are or could be made available in the cemetery for sale. 4 Where, in any chargeable period, there is a change in the persons engaged in carrying on a trade which consists of or includes the carrying on of a cemetery, any allowance to be made under this section to the persons carrying on the trade after the change shall, whether or not it is to be assumed for other purposes that the trade was discontinued and a new trade set up and commenced, be computed as if they had at all times been engaged in carrying on the trade, as if everything done to or by any of their predecessors in carrying on the trade had been done to or by them, and without regard to the price paid on any sale on the occasion of any such change. 5 No expenditure shall be taken into account both under paragraph (a) and paragraph (b) of subsection (1) above, whether for the same or different periods. 6 This section shall apply in relation to a trade which consists of or includes the carrying on of a crematorium and, in connection therewith, the maintenance of memorial garden plots, as it applies in relation to a trade which consists of or includes the carrying on of a cemetery, but subject to the modifications that — a references to the cemetery or land in the cemetery shall be taken as references to the land which is devoted wholly to memorial garden plots, and b references to grave-spaces shall be taken as references to memorial garden plots, and c references to the sale or use of land for interments shall be taken as references to its sale or use for memorial garden plots. 7 In this section references to the sale of land include references to the sale of a right of interment in land, and to the appropriation of part of a memorial garden in return for a dedication fee or similar payment, and references to capital expenditure incurred in providing land shall be taken as references to the cost of purchase and to any capital expenditure incurred in levelling or draining it or otherwise rendering it suitable for the purposes of a cemetery or memorial garden. 8 Section 84 of the Capital Allowances Act 1968 (which relates to expenditure which is reimbursed to a person carrying on a trade) shall apply for the purposes of this section as it applies for the purposes of Part I of that Act. Dealers in land: purchase and sale of woodlands, and special rules where premiums etc. taxable 142 1 In computing for tax purposes the profits or gains of a trade of dealing in land, there shall be disregarded — a so much of the cost of woodlands in the United Kingdom purchased in the course of the trade as is attributable to trees or saleable underwood growing on the land, and b where any amount has been disregarded under paragraph (a) above and, on a subsequent sale of the woodlands in the course of the trade, all or any of the trees or underwood to which the amount disregarded was attributable are still growing on the land, so much of the price for the land as is equal to the amount so disregarded in respect thereof: Provided that this section shall not apply where the purchase was made under a contract entered into before 1st May 1963. 2 In computing the profits or gains of a trade of dealing in land, any trading receipt falling within subsection (1), (3) or (4) of section 80 of this Act shall be treated as reduced by the amount on which tax is chargeable by virtue of that section. 3 In a case falling within subsection (6) of the said section 80 — a if no claim is made under that subsection, subsection (2) above shall have effect as if it provided that so much only of any instalment falling within subsection (1). (3) or (4) of the said section 80 shall be treated as a trading receipt as exceeds the fraction of A B the amount on which tax is chargeable by virtue of that section, where — A is the amount of the instalment, and B is the amount of the sum of which it is an instalment; b if a claim is made, subsection (2) above shall not apply, but no part of any instalment shall be treated as a trading receipt: Provided that where a claim is made under the said subsection (6), and the instalments to which it relates are reduced for the purposes of that subsection by virtue of paragraph 1(2) of Schedule 4 to this Act (allowances for betterment levy), paragraph (b) above shall apply only to such part of each instalment as is taxed under the said subsection (6). 4 In computing the profits or gains of a trade of dealing in land, any trading receipts falling within section 81 or 82 of this Act shall be treated as reduced by the amount on which tax is chargeable by virtue of that section, but where, on a claim being made under subsection (2)(b) of the said section 82, the amount on which tax was chargeable by virtue of that section is treated as reduced, this subsection shall be deemed to have applied to the amount as reduced, and any such adjustment of liability to tax shall be made (for all relevant chargeable periods) whether by means of an 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 chargeable period in which the said claim is made. CHAPTER V Trades, Professions and Vocations : Post-Cessation etc. Receipts Case VI charges on receipts after discontinuance or change in basis of computation Receipts after discontinuance: earnings basis charge, and related charge affecting conventional basis 143 1 Where any trade, profession or vocation the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D has been permanently discontinued, tax shall be charged under Case VI of that Schedule in respect of any sums; to which this section applies which are received after the discontinuance. 2 Subject to subsection (3) below, this section applies to the following sums arising from the carrying on of the trade, profession or vocation during any period before the discontinuance (not being sums otherwise chargeable to tax) — a where the profits or gains for that period were computed by reference to earnings, all such sums in so far as their value was not brought into account in computing the profits or gains for any period before the discontinuance, and b where those profits or gains were computed on a conventional basis (that is to say, were computed otherwise than by reference to earnings), any sums which, if those profits or gains had been computed by reference to earnings, would not have been brought into the computation for any period before the discontinuance because the date on which they became due, or the date on which the amount due in respect thereof was ascertained, fell after the discontinuance. 3 This section does not apply to any of the following sums — a sums received by a person beneficially entitled thereto who is not resident in the United Kingdom, or by a person acting on his behalf, which represent income arising directly or indirectly from a country or territory outside the United Kingdom, or b a lump sum paid to the personal representatives of the author of a literary, dramatic, musical or artistic work as consideration for the assignment by them, wholly or partially, of the copyright in the work, or c sums realised by the transfer of trading stock belonging to a trade at the discontinuance thereof, or by the transfer of the work of a profession or vocation in progress at the discontinuance thereof. 4 Where — a in computing for tax purposes the profits or gains of a trade, profession or vocation, a deduction has been allowed for any debt incurred for the purposes of the trade, profession or vocation, and b the whole or any part of that debt is thereafter released, and c the trade, profession or vocation has been permanently discontinued at or after the end of the period for which the deduction was allowed and before the release was effected, subsections (1) to (3) above shall apply as if the amount released were a sum received after the discontinuance. 5 For the purposes of this section, the value of any sum received in payment of a debt shall be treated as not brought into account in the computation of the profits or gains of a trade, profession or vocation to the extent that a deduction has been allowed in respect of that sum under section 130(i) above (bad and doubtful debts). Conventional basis: general charge on receipts after discontinuance or change of basis 144 1 Where any trade, profession or vocation the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D has been permanently discontinued, and the profits or gains for any period before the discontinuance were computed on a conventional basis, tax shall be charged under Case VI of that Schedule in respect of sums to which this subsection applies which are received on or after the discontinuance. This subsection applies to all sums arising from the carrying on of the trade, profession or vocation during any period before the discontinuance, not being — a sums otherwise chargeable to tax (including sums to which section 143 above applies despite the words " (not being sums otherwise chargeable to tax)" in subsection (2) of that section), or b sums to which the said section 143 would have applied but for paragraphs (a) and (b) of subsection (3) of that section, in so far as the amount or value of the sums was not brought into account in computing the profits or gains for any period before the discontinuance. 2 Where, in the case of any trade, profession or vocation the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D, there has been — a a change from a conventional basis to the earnings basis, or b a change of conventional basis which may result in receipts dropping out of computation, tax shall be charged under Case VI of that Schedule in respect of sums to which this subsection applies which are received after the change, and before the trade, profession or vocation is permanently discontinued. This subsection applies to all sums arising from the carrying on of the trade, profession or vocation during any period before the change (not being sums otherwise chargeable to tax) in so far as their amount or value was not brought into account in computing the profits or gains for any period. 3 It is hereby declared that where work in progress at the discontinuance of a profession or vocation, or the responsibility for its completion, is transferred, the sums to which subsection (1) above applies include any sums received by way of consideration for the transfer, and any sums received by way of realisation by the transferee, on behalf of the transferor, of the work in progress transferred. 4 Where, in the case of any profession or vocation, the profits or gains of which are chargeable to tax under Case I or Case II of Schedule D — a there has been a change from a conventional basis to the earnings basis, or a change of conventional basis, and b the value of the work in progress at the time of the change was debited in the accounts and allowed as a deduction in computing profits for tax purposes for a period after the change, then, in so far as no counterbalancing credit was brought into account in computing profits for tax purposes for any period ending before or with the date of the change, tax shall be charged under subsection (2) above in respect of that amount for the year of assessment in which the change occurred as if that amount were a sum to which the said subsection (2) applies, and the change of basis were a change of the kind described in that subsection. 5 Subsection (1) above shall not apply where the permanent discontinuance fell before 19th March 1968; and subsection (2) above shall not apply where the change took place before the said 19th March, and, before that date — a the decision had been taken to prepare accounts reflecting the change, or b the trade, profession or vocation had been permanently discontinued. Allowable deductions 145 1 In computing the charge to tax in respect of sums received by any person which are chargeable to tax by virtue of section 143 or 144(1) above (including amounts treated as sums received by him by virtue of subsection (4) of the said section 143), there shall be deducted from the amount which, apart from this subsection, would be chargeable to tax — a any loss, expense or debit (not being a loss, expense or debit arising directly or indirectly from the discontinuance itself) which, if the trade, profession or vocation had not been discontinued, would have been deducted in computing for tax purposes the profits or gains of the person by whom it was carried on before the discontinuance, or would have been deducted from or set off against those profits or gains as so computed, and b any capital allowance to which the person who carried on the trade, profession or vocation was entitled immediately before the discontinuance and to which effect has not been given by way of relief before the discontinuance. 2 No amount shall be deducted under subsection (1) above if that amount has been allowed under any other provision of the Tax Acts. 3 No amount shall be deducted more than once under subsection (1) above; and — a any expense or debit shall be apportioned between a sum chargeable under the said section 143 and a sum chargeable under the said section 144(1) in such manner as may be just, b as between sums chargeable, whether under the said section 143 or the said section 144(1), for one chargeable period and sums so charged for a subsequent chargeable period, any deduction in respect of a loss or capital allowance shall be made against sums chargeable for the earlier chargeable period, c subject to paragraph (b) above, as between sums chargeable for any chargeable period under the said section 143 and sums so chargeable under the said section 144(1), any deduction in respect of a loss or capital allowance shall be made against the last-mentioned sums rather than the first-mentioned, but, in the case of a loss which is to be allowed after the discontinuance, not so as to authorise its deduction from any sum chargeable for a chargeable period preceding that in which the loss is incurred. 4 In computing the charge to tax in respect of sums received by any person which are chargeable to tax by virtue of section 144(2) above, there shall be deducted any expense or debit which is not otherwise allowable and which, but for the change in basis, would have been deducted in computing for tax purposes the profits or gains of the trade, profession or vocation, but no amount shall be deducted more than once under this subsection. Application of charges on events treated as discontinuances 146 For the purposes of this Chapter, any reference to the permanent discontinuance of a trade, profession or vocation includes a reference to the occurring of any event which, under section 154 or 251(1) of this Act, is to be treated as equivalent to the permanent discontinuance of a trade, profession or vocation. Application of charges where rights to payments transferred 147 1 Subject to subsection (2) below, in the case of a transfer for value of the right to receive any sum to which section 143, 144(1) or 144(2) above applies, any tax chargeable by virtue of the said section 143 or 144 shall be charged in respect of the amount or value of the consideration (or, in the case of a transfer otherwise than at arm's length, in respect of the value of the right transferred as between parties at arm's length), and references in this Chapter to sums received shall be construed accordingly. 2 Where a trade, profession or vocation is treated as permanently discontinued by reason of a change in the persons carrying it on, and the right to receive any sum to which section 143 or 144(1) above applies is or was transferred at the time of the change to the persons carrying on the trade, profession or vocation after the change, tax shall not be charged by virtue of the said section 143 or 144, but, except where the change took place before the relevant date, any sum received by those persons by virtue of the transfer shall be treated for all purposes as a receipt to be brought into the computation of the profits or gains of the trade, profession or vocation in the period in which it is received. 3 In subsection (2) above " the relevant date " is — a in the case of a sum to which section 143 above applies, 6th April 1960, and b in the case of a sum to which section 144(1) above applies, 19th March 1968. Reliefs Treatment of receipts as earned income 148 Where an individual is chargeable to tax by virtue of section 143 or 144 above, and the profits or gains of the trade, profession or vocation to which he was entitled before the discontinuance or, as the case may be, change of basis fell to be treated as earned income for the purposes of income tax the sums in respect of whi4h he is so chargeable shall also be treated as earned income for those purposes (but, in the case of sums chargeable by virtue of the said section 144, after any reduction therein under section 150 below). Election for carry-back 149 Where any sum chargeable to tax by virtue of section 143 or 144 above is received in any year of assessment beginning not later than six years after the discontinuance or, as the case may be, change of basis by the person by whom the trade, profession or vocation was carried on before the discontinuance or change, or by his personal representatives, that person or (in either case) his personal representatives may, by notice in writing sent to the inspector within two years after that year of assessment, elect that the tax chargeable as aforesaid shall be charged as if the sum in question were received on the date on which the discontinuance took place or, as the case may be, on the last day of the period at the end of which the change of basis took place; and, in any such case, an assessment shall (notwithstanding anything in the Tax Acts) be made accordingly, and, in connection with that assessment, no further deduction or relief shall be made or given in respect of any loss or allowance deducted in pursuance of section 145 above. Charge under s. 144: relief for individuals born before 6th April 1917 150 1 If an individual born before 6th April 1917, or the personal representative of such an individual, is chargeable to tax under section 144 above, and — a the individual was engaged in carrying on the trade, profession or vocation on 18th March 1968, and b the profits or gains of the trade, profession or vocation were not computed by reference to earnings in the period in which the said 18th March fell, or in any subsequent period ending before or with the relevant date, the net amount with which he is so chargeable to tax shall be reduced by multiplying that net amount by the fraction given below. 2 Where section 144(2) above applies in relation to a change of basis taking place on a date before 19th March 1968, then, in relation to tax chargeable by reference to that change of basis, that earlier date shall be substituted for the date in subsection (1)(a) above and subsection (1)(b) above shall be omitted. 3 The said fraction is — a where on 5th April 1968 the individual had not attained the age of fifty-two, nineteen-twentieths, b where on that date he had attained the age of fifty-two, but had not attained the age of fifty-three, eighteen-twentieths, and so on reducing the fraction by one-twentieth for each year he had attained, up to the age of sixty-four, c where on that date he had attained the age of sixty-five, or any greater age, five-twentieths. 4 In this section — " the net amount " with which a person is chargeable to tax under the said section 144 means the amount with which he is so chargeable after making any deduction authorised by section 145 above, but before giving any relief under this section, and " relevant date " — in relation to tax under section 144(1) above, means the date of the permanent discontinuance, and in relation to tax under section 144(2) above, means the date of the change of basis. 5 The preceding provisions of this section shall apply as follows as respects the net amount of any sum chargeable under the said section 144 which is assessed by reference to a sum accruing to a partnership — a the part of that net amount which is apportioned to any partner (who is an individual), or the personal representative of such an individual, shall be a net amount with which that person is chargeable under the said section 144, and b if the part of the said net amount which is so apportioned is a greater proportion of that amount than is the individual's share (that is to say, the part to be included in his total income) of the total amount of the partnership profits assessed to income tax for the three years of assessment ending with the year in which the discontinuance or change of basis took place, the amount of the reduction to be given by way of relief shall not exceed the amount of relief which would have been so given if the apportionment had been made by reference to his share of that total amount. 6 For the purposes of this section, the trade, profession or vocation carried on before a permanent discontinuance shall not be treated as the same as any carried on after the discontinuance. Supplemental Interpretation etc. 151 1 The following provisions have effect for the purposes of this Chapter. 2 The profits or gains of a trade, profession or vocation in any period shall be treated as computed by reference to earnings where all credits and liabilities accruing during that period as a consequence of the carrying on of the trade, profession or vocation, are brought into account in computing those profits or gains for tax purposes, and not otherwise, and " earnings basis " shall be construed accordingly. 3 " Conventional basis" has the meaning given by section 143(2) above, so that profits or gains are computed on a conventional basis if computed otherwise than by reference to earnings. 4 There is a change from a conventional basis to the earnings basis at the end of a period the profits or gains of which were computed on a conventional basis if the profits or gains of the next succeeding period are computed by reference to earnings; and, if the profits or gains of two successive periods are computed on different conventional bases, a change of conventional basis occurs at the end of the earlier period. 5 In sections 143 and 144 — a " trading stock " has the meaning given by section 137(4) above, b references to work in progress at the discontinuance of a profession or vocation, and to the transfer of work in progress, are to be construed in accordance with section 138(5) above, and c the reference to work in progress at the time of a change of basis is also to be construed in accordance with section 138(5) above, substituting therein for this purpose references to the change of basis for references to the discontinuance. CHAPTER VI Partnerships and Successions Partnership assessments to income tax 152 Where a trade or profession is carried on by two or more persons jointly, income tax in respect thereof shall be computed and stated jointly, and in one sum, and shall be separate and distinct from any other tax chargeable on those persons or any of them, and a joint assessment shall be made in the partnership name. Partnerships controlled abroad 153 1 Where any trade or business is carried on by two or more persons in partnership, and the control and management of the trade or business is situated abroad, the trade or business shall be deemed to be carried on by persons resident outside the United Kingdom, and the partnership shall be deemed to reside outside the United Kingdom, notwithstanding the fact that some of the members of the partnership are resident in the United Kingdom and that some of its trading operations are conducted within the United Kingdom. 2 Where any part of the trade or business of a partnership firm whose management and control is situated abroad consists of trading operations within the United Kingdom, the firm shall be chargeable in respect of the profits of those trading operations within the United Kingdom to the same extent as, and no further than, a person resident abroad is chargeable in respect of trading operations by him within the United Kingdom, notwithstanding the fact that one or more members of the firm are resident in the United Kingdom: Provided that, for the purpose of charging any such firm in respect of the profits of the said trading operations within the United Kingdom, an assessment may be made on the firm in respect of those profits in the name of any partner resident in the United Kingdom. 3 Section 155(7) below has effect as respects the application of this section where the partners in a partnership include a company. Effect, for income tax, of change in ownership of trade, profession or vocation 154 1 Where there is a change in the persons engaged in carrying on any trade, profession or vocation chargeable under Case I or Case II of Schedule D, then, subject to the provisions of this section and of section 155(3)(6) below, the amount of the profits or gains thereof on which income tax is chargeable for any year of assessment, and the persons on whom it is chargeable, shall be determined as if the trade, profession or vocation had been permanently discontinued at the date of the change, and a new trade, profession or vocation had been then set up and commenced. 2 Subject to the said section 155(3)(6), where there is such a change as is mentioned in subsection (1) above, and a person engaged in carrying on the trade, profession or vocation immediately before the change continues to be so engaged immediately after it, the persons so engaged immediately before and the persons so engaged immediately after the change may, by notice signed by them and sent to the inspector at any time within twelve months after the date of the change, elect that that subsection shall not apply to treat the trade, profession or vocation as discontinued or a new trade, profession or vocation as set up and commenced. 3 Where there is in any year of assessment a change in the persons engaged in carrying on a trade, profession or vocation, and subsection (1) above does not apply by reason of a notice under subsection (2) above, then — a income tax in respect of the trade, profession or vocation for that year shall be assessed and charged separately on those so engaged before the change and on those so engaged after it, but the amount on which tax is chargeable shall be computed as if there had been no such change in that year, and shall be apportioned as may be just, and b if, after the change but before the end of the second year of assessment following that in which the change occurred, there is a permanent discontinuance of the trade, profession or vocation (including a change treated as such), then, on that discontinuance, section 118 of this Act shall apply, as respects any period before the first-mentioned change, to the persons charged or chargeable for that period as it would apply if no such change had taken place and they had been charged to tax accordingly for the subsequent period up to the discontinuance. 4 There shall be made any such assessment, reduction of an assessment or, on the making of a claim therefor, repayment of income tax as may in any case be necessary for giving effect to this section. 5 Any question which arises as to the manner in which any sum is to be apportioned under subsection (3)(a) above shall be determined, for the purposes of the tax of all of the persons as respects whose liability to tax the apportionment is material — a in a case where the same body of General Commissioners have jurisdiction with respect to all those persons, by those Commissioners, unless all those persons agree that it shall be determined by the Special Commissioners, b in a case where different bodies of Commissioners have jurisdiction with respect to those persons, by such of those bodies as the Board may direct, unless all those persons agree that it shall be determined by the , Special Commissioners, and c in any other case, by the Special Commissioners, and any such Commissioners shall determine the question in like manner as an appeal : Provided that all the said persons shall be entitled to appear and be heard by the Commissioners who are to make the determination, or to make representations to them in writing. 6 In the case of the death of a person who, if he had not died, would under the provisions of this section have become chargeable to tax for any year, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators, and shall be a debt due from and payable out of his estate ; and where under those provisions an election may be made by any person, it may in the case of his death be made by his executors or administrators instead of him. 7 For the purposes of this section, a change in the personal representatives of any person, or in the trustees of any trust, shall not be treated as a change in the persons engaged in carrying on any trade, profession or vocation carried on by those personal representatives or trustees as such. Special rules for partnerships involving companies 155 1 So long as a trade is carried on by persons in partnership, and any of those persons is a company, the profits of the trade and any loss (including a terminal loss) incurred therein shall be computed for the purposes of corporation tax in like manner, and by reference to the like accounting periods, as if the partnership were a company, and without regard to any change in the persons carrying on the trade: Provided that — a references to distributions shall not apply, and b no deduction or addition shall be made for charges on income, or for capital allowances and charges, nor in any accounting period for losses incurred in any other period, and c a change in the persons engaged in carrying on the trade shall be treated as the transfer of the trade to a different company if there continues to be a company so engaged after the change, but not a company that was so engaged before the change. 2 A company's share in the profits or loss of any accounting period, or in any matter excluded from the computation by proviso (b) to subsection (1) above, shall be determined according to the interests of the partners during that period, and corporation tax shall be chargeable as if that share derived from a trade carried on by it alone ; and the company shall be assessed and charged to tax accordingly: Provided that, for the purposes of any relief from tax which may be given against total profits, a company may claim that any profits in respect of which it is chargeable in accordance with this section, and, so far as it cannot be relieved against those profits, any matter for which relief may be given against them in accordance with this section, shall be dealt with as if they derived from a separate trade carried on by it otherwise than in partnership (any necessary apportionments being made where accounting periods of the company do not coincide with those of the partnership). 3 Where any of the persons engaged in carrying on the trade is an individual, income tax shall be chargeable in respect of his share of the profits, and he shall be entitled to relief for his share of any loss, as if all the partners had been individuals, except that — a income tax shall be chargeable, and any relief from income tax shall be given, by reference to the computations made for corporation tax, but so that the amounts so computed for an accounting period of the capital allowances and charges falling to be made in taxing the trade shall (as regards the individual's share of them) be given or made for the year or years of assessment comprising that period and, where necessary, apportioned accordingly, and b section 154 above shall not apply by reason of any change in the persons engaged in carrying on the trade unless an individual begins or ceases to be so engaged, and, where it does apply, an election under subsection (2) thereof shall be made only by the individuals so engaged, and only if an individual so engaged before the change continues to be so engaged after it, and c section 174 below (terminal loss: income tax) shall not apply except where section 178 below (terminal loss: corporation tax) applies to the partnership as a whole. 4 Section 152 above shall apply to income tax chargeable in accordance with this section, matters relevant only to corporation tax being omitted from the assessment. 5 The following provisions also have effect as respects income tax chargeable in accordance with this section for any year of assessment throughout all or any part of which one or more of the persons engaged in carrying on the trade is an individual — a notwithstanding any difference between the partners' interests during the basis period and their interests during the year of assessment, the amount of the individual's income from the partnership for the year of assessment, or the total of the amounts of the individuals' incomes from the partnership for that year, shall be deemed to be not less than the profits of the basis period, reduced, where any share was apportioned to a company under subsection (2) above, by the amount of that company's share, and b where there are two or more individuals, and, but foi paragraph (a) above, the total of the amounts of the individuals' incomes from the partnership for the year would fall short of the profits of the basis period reduced as aforesaid, that that amount shall be apportioned — i according to the individuals' interests during the year of assessment, disregarding any company's interest, and ii in so far as that does not determine, or fully determine, the apportionment, between the individuals in equal shares. 6 Where a trade or business is carried on by two or more persons in partnership, and the control and management of the trade or business is situated abroad but those persons include a company resident in the United Kingdom, then, as regards that company, this section shall have effect as if the partnership were resident in the United Kingdom, and an assessment may be made on the company accordingly. 7 Subject to subsection (6) above, where the partners in a partnership include a company, section 153 above shall apply whether for corporation tax or for income tax, and this section shall have effect accordingly. 8 In this section — " basis period ", in relation to a year of assessment, means any accounting period or part of an accounting period which is, or forms part of, the period on the profits or gains of which income tax for the year of assessment in question falls to be computed under Schedule D in respect of the trade, and " capital allowances and charges " means any allowances or charges under the Capital Allowances Act 1968 (including the enactments which under this Act are to be treated as contained in Part I of that Act), not being allowances or charges which, for income tax, are given or made by deduction or addition in the computation of profits or gains ; and references in subsection (5) of this section to an individual's income from the partnership are references to that income before deduction of capital allowances or charges on income. 9 This section shall be construed as one with Part XI of this Act, but " profits " in this section shall not be taken as including chargeable gains. CHAPTER VII Mining etc. Rents and Royalties: Foreign Dividends Rent etc. payable in connection with mines, quarries and similar concerns 156 1 Where rent is payable in respect of any land or easement, and either — a the land or easement is used, occupied or enjoyed in connection with any of the concerns specified in section 112(2) of this Act, or b the lease or other agreement under which the rent is payable provides for the recoupment of the rent by way of reduction of royalties or payments of a similar nature in the event of the land or easement being so used, occupied or enjoyed, the rent shall be charged to tax under Schedule D, and, subject to subsection (2) below, shall be subject to deduction of income tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent. 2 Where the rent is rendered in produce of the concern, it shall, instead of being treated as provided by subsection (1) above, be charged under Case III of Schedule D, and the value of the produce so rendered shall be taken to be the amount of the profits or income arising therefrom. 3 For the purposes of this section — " easement " includes any right, privilege or benefit in, over or derived from land, and " rent " includes a rent service, rentcharge, fee farm rent, feu duty or other rent, toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise. Rent etc. payable in respect of electric line wayleaves 157 1 Where rent is payable in respect of any easement enjoyed in the United Kingdom in connection with any electric, telegraphic or telephonic wire or cable (not being such an easement as is mentioned in section 156(1) above), the rent shall be charged to tax under Schedule D, and, subject to the following provisions of this section, shall be subject to deduction of income tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent. 2 Any payment of rent to which subsection (1) above applies which does not exceed £2 10s. Od. per year may, if the payer so elects, be treated as not affected by so much of that subsection as provides that the rent shall be subject to deduction of income tax, and shall in that event be made without deduction of income tax accordingly. 3 Any payment of rent to which subsection (1) above applies which is made without deduction of income tax, whether by virtue of subsection (2) above or otherwise, shall, unless income tax is assessed thereon under section 53 of this Act (payments not out of profits or gains brought into charge to income tax), be chargeable to tax under Case III of Schedule D. 4 Any payment of rent to which subsection (1) above applies which is made subject to deduction of income tax shall, if it is paid by a person carrying on a trade which consists of or includes the provision of a radio relay service and the wire or cable in question is used by that person for the purposes of that service — a be deductible (notwithstanding anything in section 130(o) of this Act) in computing the amount of the profits or gains of the trade to be charged under Case I of Schedule D, and b be deemed for the purposes of sections 52 and 53 of this Act not to be payable out of profits or gains brought into charge to income tax. 5 In this section — " easement " and " rent " have the same meanings as in section 156 above, and the reference to easements enjoyed in connection with any electric, telegraphic or telephonic wire or cable includes (without prejudice to the generality of that expression) references to easements enjoyed in connection with any pole or pylon supporting any such wire or cable, or with any apparatus (including any transformer) used in connection with any such wire or cable, and " radio relay service " means the retransmission by wire to their customers of broadcast programmes (which may or may not be television programmes) which the persons carrying on the service receive either by wire or by wireless from the British Broadcasting Corporation or from the persons outside the United Kingdom who broadcast the programmes in question. Management expenses of owner of mineral rights 158 1 Where for any year of assessment rights to work minerals in the United Kingdom are let, the lessor shall be entitled, on making a claim for the purpose, to be repaid so much of the income tax paid by him by deduction or otherwise in respect of the rent or royalties for that year as is equal to the amount of the tax on any sums proved to have been wholly, exclusively and necessarily disbursed by him as expenses of management or supervision of those minerals in that year: Provided that no repayment of tax shall be made if, or to such extent as, the said expenses have been otherwise allowed as a deduction in computing income for the purposes of income tax. 2 In computing for the purposes of corporation tax the income of a company for any accounting period from the letting of rights to work minerals in the United Kingdom, there may be deducted any sums disbursed by the company wholly, exclusively and necessarily as expenses of management or supervision of those minerals in that period. 3 References in subsections (1) and (2) above to sums disbursed as expenses of management include references to sums to be treated as so disbursed by virtue of paragraph 7 of Schedule 4 to this Act (allowances for betterment levy). Foreign dividends 159 1 In this section — a " foreign dividends " means any interest, dividends or other annual payments payable out of or in respect of the stocks, funds, shares or securities of any body of persons not resident in the United Kingdom (but not including any payment to which section 52 or 53 of this Act applies), and references to dividends shall be construed accordingly. b " banker " includes a person acting as a banker, and c references to coupons include, in relation to any dividends, warrants for or bills of exchange purporting to be drawn or made in payment of those dividends. 2 Where foreign dividends are entrusted to any person in the United Kingdom for payment to any persons in the United Kingdom, they shall be assessed and charged to income tax under Schedule D by the Board, and Parts III and IV of Schedule 5 to this Act shall apply in relation to the income tax to be so assessed and charged. 3 Where — a a banker or any other person in the United Kingdom, by means of coupons received from any other person or otherwise on his behalf, obtains payment of any foreign dividends elsewhere than in the United Kingdom, or b any banker in the United Kingdom sells or otherwise realises coupons for foreign dividends, and pays over the proceeds to any person or carries them to his account, or c any dealer in coupons in the United Kingdom purchases any such coupons otherwise than from a banker or another dealer in coupons, tax under Schedule D shall extend, in the case mentioned in paragraph (a) above, to the dividends, and, in the cases mentioned in paragraphs (b) and (c) above, to the proceeds of the sale or other realisation, and income tax shall be assessed and charged and paid under this subsection in accordance with Parts III and IV of Schedule 5 to this Act. 4 In the cases mentioned in subsections (2) and (3) above, no tax shall be chargeable if it is proved, on a claim in that behalf made to the Board, that the person owning the stocks, funds, shares or securities and entitled to the dividends or proceeds is not resident in the United Kingdom. 5 Where stocks, funds, shares or securities are held under a trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call upon the trustees at any time to transfer the stocks, funds, shares or securities to him absolutely free from the trust, that person shall, for the purposes of subsection (4) above, be deemed to be the person owning the stocks, funds, shares or securities. 6 Where any income of any person is, by virtue of any provision of the Tax Acts (and in particular, but without prejudice to the generality of the preceding words, by virtue of Chapter III of Part XVII of this Act) to be deemed to be income of any other person, that income is not exempt from tax by virtue of subsection (4) above by reason of the first mentioned person not being resident in the United Kingdom. CHAPTER VIII Case VII: Income Tax on Short Term Capital Gains Scope of charge under Case VII 160 1 The charge to tax under Case VII of Schedule D (in this Chapter referred to as "Case VII") is a charge to income tax only, and income tax under that Case for any year of assessment shall be charged, subject to and in accordance with the rules contained in this Chapter, in respect of all gains accruing to any person resident and ordinarily resident for the year in the United Kingdom from his acquisition and disposal of any chargeable assets, not being gains which accrue as profits of a trade, profession, vocation, office or employment: Provided that there shall be no acquisition and disposal within the meaning of this Chapter where the disposal occurs more than twelve months after the acquisition. 2 The tax with which a person is chargeable under Case VII for any year of assessment shall be computed on the gains accruing to him in that year after deducting any losses allowable under that Case against those gains, and the amount or net amount on which tax is charged in accordance with this subsection shall be deemed for income tax purposes to be income for the year of assessment of the person chargeable. 3 Subject to subsection (6) below, a gain on the acquisition and disposal of an asset shall for the purposes of Case VII be treated as accruing at the time of the disposal or, if that precedes the acquisition, the time of the acquisition. 4 Subject to the provisions of this Chapter, the losses allowable under Case VII against gains accruing to a person in any year of assessment shall consist of any losses accruing to him in that or any previous year from any chargeable acquisition and disposal, that is to say, from his acquisition and disposal of assets in such circumstances that a gain accruing from it would have been chargeable under that Case; and a loss shall be treated as accruing at the same time, and be computed in the same manner, as a gain would be. 5 The preceding provisions of this section with respect to losses allowable under Case VII shall not prejudice any right to relief in respect of other losses from tax chargeable under that Case, or otherwise affect any other provision of the Income Tax Acts with respect to losses; but no deduction shall be made under that Case of a loss, or part of a loss, in respect of which relief from tax has already been allowed by such a deduction or otherwise, and, where such a deduction is made, no relief from tax in respect of the loss or that part of it shall be allowed under any other provision of the Income Tax Acts. 6 In the case of individuals resident and ordinarily resident, but not domiciled, in the United Kingdom, tax under Case VII shall not be charged in respect of gains arising to them out of the United Kingdom, except that tax shall be charged on the amounts (if any) received in the United Kingdom in respect of those gains, any such amounts being treated as gains accruing when they are received in the United Kingdom; and accordingly losses arising out of the United Kingdom to any such individual shall not be allowable under Case VII. For the purposes of this subsection, there shall be treated as received in the United Kingdom in respect of any gain all amounts paid, used or enjoyed in, or in any manner or form transmitted or brought to, the United Kingdom, and subsections (4) to (7) of section 122 of this Act (under which income applied outside the United Kingdom in payment of debts is, in certain cases, treated for the purposes of Cases IV and V of Schedule D as received in the United Kingdom) shall apply as they would apply for the purposes of subsection (3) of that section if the gain were income arising from possessions out of the United Kingdom. Chargeable assets 161 1 Subject to the provisions of this section, all forms of property, whether situated in the United Kingdom or not, (including options, debts and incorporeal property generally) shall be chargeable assets for the purposes of Case VII. 2 The dwelling-house, or part of a dwelling-house, which is an individual's only or main residence shall not be a chargeable asset in relation to any acquisition and disposal of it by him, nor shall land which he has for his own occupation and enjoyment with that residence as its garden or grounds up to an area (inclusive of the site of the dwelling-house) of one acre, or such larger area as the Commissioners concerned may in any particular case determine on being satisfied that, regard being had to the size and character of the dwelling-house, the larger area is required for the reasonable enjoyment of it, or of the part in question, as a residence. This subsection shall not apply by reason of a person's use of any dwelling-house, part of a dwelling-house or land for a purpose within the subsection unless his acquisition of it was made for that purpose, and not wholly or partly for the purpose of realising a gain from the disposal of it; but where a person acquires land as a site for a dwelling-house, and disposes of it after the erection of the dwelling-house, this subsection shall not be prevented from applying by reason of his not having acquired the land with the dwelling-house on it. In the case where part of the land occupied with the residence is, and part is not, to be treated under this subsection as a chargeable asset, then, up to the permitted area, that part shall be taken not to be a chargeable asset which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the residence. 3 Chargeable assets shall not include any asset which is tangible movable property and is a wasting asset, or any interest in tangible movable property which is a wasting asset: Provided that this exception shall not apply to a disposal of commodities of any description by a person dealing on a terminal market, or dealing with or through a person ordinarily engaged in dealing on a terminal market. 4 Currency of any description other than sterling shall be chargeable assets, except in relation to an acquisition and disposal by an individual for the personal expenditure outside the United Kingdom of himself or his family or dependants (including expenditure on the provision or maintenance of any residence outside the United Kingdom). 5 Patent rights (that is to say, the right to do or authorise the doing of anything which would, but for that right, be an infringement of a patent) shall not be chargeable assets, nor shall rights to acquire in the future patent rights as respects any invention in respect of which the patent has not yet been granted. General operation of charge 162 1 Subject to the provisions of this section, any acquisition of an interest or right in or over assets (whether it continues after or ceases on the acquisition), or any disposal of such an interest or right (whether it subsists before or is created by the disposal), shall be deemed for the purposes of Case VII to be an acquisition or a disposal of the assets, and, except in so far as the context otherwise requires, the expressions " acquire " and " dispose of " shall be construed accordingly. 2 For the purposes of Case VII, where a contract is made to acquire or dispose of an asset (including an asset not in existence or not ascertained at the time of the contract), the contract shall be deemed to be the acquisition or disposal of the asset (for the consideration provided for by the contract), and the conveyance or transfer of an asset, or of an interest or right in or over an asset, in pursuance of a contract previously made shall not be deemed to be an acquisition or disposal of the asset. 3 The conveyance or transfer by way of security of an asset, or of an interest or right in or over an asset, or the transfer of a subsisting interest or right by way of security in or over an asset (including a retransfer on redemption of the security), shall not be treated for the purposes of Case VII as involving any acquisition or disposal of the asset. 4 Subject to subsection (5) below, and to the provisions of Schedule 7 to this Act, a person's acquisition of any asset, and the disposal of it to him, shall for the purposes of Case VII be deemed to be for a consideration equal to the market value of the asset or of the interest or right in or over it received by him — a where he acquires the asset otherwise than by way of a bargain made at arm's length, and (in particular) where he acquires it by way of gift, or by way of distribution from a company in respect of shares in the company, or b where he acquires the asset wholly or partly for a consideration that cannot be valued, or in connection with his own or another's loss of office or employment or diminution of emoluments, or otherwise in consideration for or recognition of his or another's services or past services in any office or employment or of any other services rendered or to be rendered by him or another. 5 Where, on a person's acquisition of an asset, the asset or the interest or right in or over it received by him falls to be taken into account for the purposes of tax as a receipt of an income nature (whether as his receipt or another's), or would fall to be so taken into account if he (or, as the case may be, that other) were chargeable to tax in respect of the whole of his income, his acquisition shall for the purposes of Case VII be deemed to be for a consideration equal to the amount or value attributed to the asset, or the interest or right in or over it, for that purpose. Operation in special cases (trust assets, devolution on death, enforcement of securities etc.) 163 1 In relation to assets held by a person — a as nominee for another person, or b as trustee for another person absolutely entitled as against the trustee, or for another person who would be so entitled but for being an infant or other person under disability, or for two or more persons who are or would be jointly so entitled, this Chapter shall apply as if the property were vested in, and the acts of the nominee or trustee in relation to the assets were the acts of, the person or persons for whom he is nominee or trustee (acquisitions from or disposals to him by that person or persons being disregarded accordingly). 2 In relation to settled property, the trustees of the settlement shall for the purposes of Case VII be treated as being a single and continuing body of persons (distinct from the persons who may from time to time be the trustees), and that body shall be treated as being resident and ordinarily resident in the United Kingdom unless the general administration of the trusts is ordinarily carried on outside the United Kingdom and the trustees, or a majority of them for the time being, are not resident or not ordinarily resident in the United Kingdom: Provided that a person carrying on a business which consists of or includes the management of trusts, and acting as trustee of a trust in the course of that business, shall be treated in relation to that trust as not resident in the United Kingdom if the whole of the settled property consists of or derives from property provided by a person not at the time (or, in the case of a trust arising under a testamentary disposition, or on an intestacy or partial intestacy, at his death) domiciled, resident or ordinarily resident in the United Kingdom; and, in relation to disposals of assets after 5th April 1969, if in such a case the trustees or a majority of them are, or are treated in relation to that trust as, not resident in the United Kingdom, the general administration of the trust shall be treated as ordinarily carried on outside the United Kingdom. For the purposes of this subsection, where part of the property comprised in a settlement is vested in one trustee or set of trustees and part in another (and, in particular, where settled land within the meaning of the Settled Land Act 1925 is vested in the tenant for life, and investments representing capital money are vested in the trustees of the settlement), they shall be treated as together constituting and, in so far as they act separately, as acting on behalf of a single body of trustees. 3 Subsection (2) above shall apply in relation to property forming part of the estate of a deceased person and to his personal representatives as it applies in relation to settled property and to trustees of a settlement, but personal representatives shall not be chargeable to tax in respect of an acquisition and disposal by reference to the vesting of the property of the deceased in them. 4 A person acquiring assets as legatee shall not be chargeable under Case VII in respect of any acquisition and disposal by reference to that acquisition; nor, in the case of settled property, shall a person be chargeable under that Case in respect of any acquisition and disposal of a beneficial interest under the settlement. 5 Where a person entitled to an asset by way of security, or to the benefit of a charge or incumbrance on an asset, deals with the asset for the purpose of enforcing or giving effect to the security, charge or incumbrance, his dealings with it shall be treated for the purposes of Case VII as if they were done through him as nominee by the person entitled to it subject to the security, charge or incumbrance; and this subsection shall apply to the dealings of any person appointed to enforce or give effect to the security, charge or incumbrance as receiver, receiver and manager or judicial factor as it applies to the dealings of the person entitled as aforesaid. 6 For the purposes of subsection (1) above, assets held by a person as trustee or assignee in bankruptcy, or under a deed of arrangement, shall be regarded as assets to which the bankrupt or debtor is absolutely entitled as against the trustee or assignee; and, without prejudice to the general provisions of the Income Tax Acts as to the assessment of any such trustee or assignee, tax in respect of any gain accruing on an acquisition and disposal shall be assessable on and recoverable from any such trustee or assignee not only where the acquisition and disposal were effected by him, but also where either the acquisition or the disposal was effected by him and the other was effected by the bankrupt or debtor. 7 Assets vesting in a trustee in bankruptcy after the death of the bankrupt, or held by a trustee or assignee in bankruptcy or under a deed of arrangement at the death of the bankrupt or debtor, shall for the purposes of Case VII be regarded as held by a personal representative of the deceased, and subsection (6) above shall not apply after the death. Computation of gains 164 1 Subject to the provisions of this Chapter, the gain accruing to a person from his acquisition and disposal of any asset shall be computed for the purposes of Case VII in the same way as it would fall to be computed for the purposes of Case I of Schedule D if the acquisition and disposal (together with anything done by him to or in relation to the asset in connection with the acquisition and disposal, or with a view to the disposal) had been an adventure in the nature of trade (but so that no dividend or interest in respect of which income tax has been borne by deduction or otherwise shall be brought into the computation as a receipt). 2 Subsection (1) above shall not be treated as applying for the purposes of Case VII any provision as to the period of computation of profits for the purposes of the said Case I, but the gain accruing on any disposal of an asset shall be computed in one sum as from the relevant acquisition (or first relevant acquisition). 3 No interest shall be allowable in computing the amount of a gain under Case VII. 4 Subject to the following subsections, the adventure by reference to which the gain on an acquisition and disposal is to be computed — a shall not be treated as relating to any assets not included in the disposal, or to any interest not so included in assets which are so included, whether or not the assets or interest not so included were or was included in a relevant acquisition of the assets disposed of, b shall not be treated as relating to assets included in the disposal which either are not chargeable assets or were not included in a relevant acquisition, and c subject to paragraph (b) above shall be treated as relating — i to all assets included in the same disposal, whether or not included in the same acquisition, and ii to all relevant acquisitions of those assets, and iii to the whole interest included in the disposal in any assets to which the adventure relates, whether or not the whole interest was included in any relevant acquisition; and all necessary apportionments shall be made accordingly of the consideration for any acquisition or disposal, or of any receipts or expenditure, including in particular, in the case of land, apportionments between the interest disposed of and an interest retained of receipts and expenditure in connection with the land. 5 If, in the case of any asset, the interest to which the adventure relates does not derive wholly from one or more relevant acquisitions, then the gain shall be computed as if such part of that interest as derives from any other acquisition had been first appropriated to the adventure immediately before the disposal. 6 If, in the case of land, there is included in the disposal, besides the land to which the adventure relates, any adjoining or neighbouring land, being chargeable assets and not being land acquired as legatee, so much (if any) of the consideration for the disposal as represents an enhancement due to a relevant acquisition of the first-mentioned land in the value of the adjoining or neighbouring land shall, on the apportionment of the consideration, be apportioned to the first-mentioned land. 7 If, in the case of land, the disposal is subject to an interest created by any such letting of the land as is excepted from Case VII by section 166(2) below, and the letting was made by the person disposing of the land, and made by him since a relevant acquisition, the adventure shall be treated as extending to that letting to the same extent as if the interest thereby created had been included in the disposal. 8 An asset shall be treated as having been acquired free of any interest or right by way of security subsisting at the time of any relevant acquisition of it, and as being disposed of free of any such interest or right subsisting at the time of the disposal. 9 For the purposes of this section — a " relevant acquisition " means, in relation to any disposal of an asset, an acquisition which, with that disposal, amounts to an acquisition and disposal within the meaning of this Chapter, except that it does not include an acquisition by reference to which tax is not chargeable, nor an acquisition from which no interest included in the disposal derives, and b an interest included in a disposal shall be treated as deriving from an acquisition if, without that acquisition, the whole interest could not have been so included, but so that the part of that interest which does, and the part which does not, derive from relevant acquisitions shall be determined as if any interest of temporary duration subsisting at the time of the first relevant acquisition (other than an interest of such a duration as to expire before the time of the disposal) had been of the same duration at the time of the disposal. Exemption for chattels sold for ñ,000 or less, and marginal relief 165 1 There shall be exempt from tax chargeable under Case VII a gain accruing from the acquisition and disposal of an asset which is tangible movable property if the amount or value of the consideration for the disposal does not exceed £1,000 ; and the amount of income tax (including surtax) chargeable under that Case in respect of a gain accruing from the acquisition and disposal of any such asset for a consideration exceeding £1,000 shall not exceed half the difference between that consideration and £1,000. Subject to section 529 of this Act, the amount of the gain on which income tax is so chargeable shall be deemed for the purposes of this subsection to be the highest part of the income of the person charged for the year of assessment in question. 2 Subsection (1) above shall not affect subsection (4) of section 160 of this Act (Case VII losses), but, for the purposes of the said subsection (4), the consideration for the disposal of any asset which is tangible movable property shall, if less than £1,000 be deemed to be £1,000, and losses allowable under that subsection shall be restricted accordingly. 3 If two or more assets which have formed part of a set of articles of any description all owned at one time by one person are disposed of by that person, whether on the same or different occasions — a to the same person, or b to persons who are acting in concert, or are connected persons within the terms of section 533 of this Act, those assets shall be treated for the purposes of subsections (1) and (2) above as a single asset, but with any necessary apportionments of the reductions in tax, and in allowable losses, under those subsections. 4 In applying subsections (1) and (2) above in a case where the disposal is of a right or interest in or over tangible movable property — a in the first instance, those subsections shall be applied in relation to the asset as a whole, taking the consideration as including the market value of what remains undisposed of, in addition to the actual consideration, b where the sum of the actual consideration and that market value exceeds £1,000, the limitation on the amount of income tax (including surtax) in subsection (1) shall be to half the difference between that sum and £1,000 multiplied by the fraction equal to the actual consideration divided by the said sum, and c where that sum is less than £1,000, any loss shall be restricted under subsection (2) by deeming the actual consideration to be the actual consideration plus the said fraction of the difference between the said sum and £1,000. 5 Subsections (1) and (2) above shall not apply — a in relation to a disposal of commodities of any description by a person dealing on a terminal market, or dealing with or through a person ordinarily engaged in dealing on a terminal market, or b in relation to a disposal of currency of any description. Miscellaneous exemptions and reliefs 166 1 Where an individual disposes by way of gift of an asset the market value of which at the time of the gift does not exceed £100, any gains accruing to the donor on the disposal shall be exempt from tax chargeable under Case VII, but this subsection, taken together with section 27(2) of the Finance Act 1965 (which confers a similar exemption for the purposes of capital gains tax), shall not apply to gifts made by the same individual in the same year of assessment the total market value of which exceeds £100, taking the market value of any gift at the time of the gift. 2 Except as provided by section 164(7) above, a person disposing of land by letting it for a term of less than twenty-one years shall not be chargeable under Case VII in respect of any acquisition and disposal by reference to that disposal, unless the letting is accompanied by another letting, or agreement for another letting, such that the combined terms amount to twenty-one years or over, or by an agreement to dispose of the land otherwise than by letting it. 3 If a claim is made under subsection (1) or (2) of section 33 of the Finance Act 1965 (capital gains tax relief in connection with replacement of business assets) — a that section shall apply as if references in those subsections to the purposes of Part III of that Act included references to the purposes of this Chapter, and b tax shall not be chargeable under Case VII on a gain accruing to the claimant from the acquisition and disposal of, or of the interest in, the new assets unless the period between the date when the claimant acquired the old assets, or the interest in the old assets, and the date when he disposed of the new assets, or the interest in the new assets, is twelve months or less. 4 This Chapter has effect subject to the provisions of paragraph 15 of Schedule 19 to the Finance Act 1969 (postponement of charge in respect of business assets where business transferred to company as going concern). 5 A gain shall be exempt from tax chargeable under Case VII if accruing from the acquisition and disposal by any person of a decoration awarded for valour or gallant conduct which he acquired otherwise than for consideration in money or money's worth. Interpretation, and other supplementary provisions 167 1 For the purposes of this Chapter — " control " has the meaning given by section 534 of this Act, " deed of arrangement " means a deed of arrangement to which the Deeds of Arrangement Act 1914, or any corresponding enactment forming part of the law of Scotland or Northern Ireland, applies, " legatee " includes any person taking under a testamentary disposition, or on an intestacy or partial intestacy, whether he takes beneficially or as trustee, and — a donatio mortis causa shall be treated as a testamentary disposition, and shall not be treated as a gift, and for the purposes of this definition and of any reference to a person acquiring an asset " as legatee ", property taken under a testamentary disposition or an intestacy or partial intestacy includes, in the case of a death occurring after 5th April 1969, any asset appropriated by the personal representatives in or towards satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy, " market value ", in relation to any property, means the price which that property might reasonably be expected to fetch on a sale in the open market, " personal representatives " has the meaning given by section 432(4) of this Act, " settled property " means, subject to subsection (3) below, any property held in trust other than property to which section 163(1) of this Act applies, " shares " includes stock, and shares or debentures comprised in any letter of allotment or similar instrument shall be treated as issued unless the right to the shares or debentures thereby conferred remains provisional until accepted and there has been no acceptance, and " wasting asset " means — plant and machinery, and any other asset with a predictable life not exceeding fifty years, " life ", for this purpose, meaning useful life having regard to the purpose for which the asset was acquired or provided by the person making the disposal, and the question what is the predictable life of an asset, so far as not immediately determined by the nature of the asset, being determined in relation to any disposal thereof by reference to the facts as they were known or ascertainable at the time when the asset was acquired or provided by the person making the disposal; and references in this Chapter to any asset held by a person as trustee for another person absolutely entitled as against the trustee are references to a case where that other person has the exclusive right, subject only to satisfying any outstanding charge, lien or other right of the trustees to resort to the asset for payment of duty, taxes, costs or other outgoings, to direct how that asset shall be dealt with. 2 Where two or more persons carry on a business in partnership, gains accruing to them on the disposal of any partnership assets shall, in Scotland as well as elsewhere in the United Kingdom, be assessed and charged on them under Case VII separately, and any partnership dealings shall be treated as dealings by the partners and not by the firm as such. 3 The provisions of this Chapter shall apply in relation to any unit trust scheme (as denned in section 26(1) of the Prevention of Fraud (Investments) Act 1958) as if the trustees were a company, and as if the rights of the unit holders were shares in the company; but this subsection shall not be taken as excluding from the charge under Case VII (by reason of its extending to income tax only) any unit trust scheme which is not an authorised unit trust as defined in section 358 of this Act. 4 Where it appears to the Board that a person is or may be chargeable to tax under Case VII in respect of his acquisition and disposal of assets, they may, by notice in writing served on any person, require him within such time not less than twenty-eight days as may be specified in the notice — a to state whether he has acted on behalf of the first mentioned person in connection with any acquisition or disposal of assets by that person, and b if so, to furnish information in his possession with respect to the acquisition or disposal, being information as to — i the assets comprised in the acquisition or disposal, and the consideration for the acquisition or disposal, and ii the date and manner of the acquisition or disposal, including any condition to which it was subject and the satisfaction or otherwise of any such condition. 5 Where any question arises under Case VII as to a person's residence, ordinary residence or domicile, it shall be referred to and determined by the Board; but any person who is aggrieved by their decision on the question may, by notice in writing to that effect given to them within three months from the date on which notice of the decision is given to him, make an application to have the question heard and determined by the Special Commissioners, and where an application is so made, the Special Commissioners shall hear and determine the question in like manner as an appeal. 6 The rules contained in Schedule 7 to this Act shall have effect with respect to the operation of Case VII in relation to the matters there dealt with, and with respect to matters arising out of the charge to tax under this Chapter, and the preceding provisions of this Chapter shall have effect subject to those rules. PART VII Loss Relief CHAPTER I Income Tax Trade etc. losses Set-off against general income 168 1 Where any person sustains a loss in any trade, profession, employment or vocation carried on by him either solely or in partnership, he may, by notice in writing given within two years after the year of assessment, make a claim for relief from income tax on an amount of his income equal to the amount of the loss. 2 Relief may be given under subsection (1) above in respect of a person's loss sustained in the last preceding year of assessment in any trade, profession, employment or vocation still carried on by him in the year for which the claim is made, in so far as relief in respect of that loss has not already been given under that subsection or otherwise; and where relief is claimed by virtue of this subsection, it shall be given in priority to any relief under the said subsection (1) in respect of a loss sustained in the year for which the relief is claimed. 3 A claim for relief under this section may contain either or both of the following requirements — a that the relief be given only by reference to the income of the person sustaining the loss, without extending to the income of that person's wife or husband ; b that the relief be given without any reference to income treated by virtue of Chapter V of Part I of this Act (aggregation of child's income with that of parent) as income of the person sustaining the loss or of that person's wife or husband. 4 Subject to any requirement under subsection (3) above, relief under this section shall be given in respect of a loss sustained by any person by treating the loss as reducing first his income of the corresponding class, then his other income, then the income of the corresponding class of that person's wife or husband, then the wife or husband's other income, and then income treated by virtue of the said Chapter V as income of that person or that person's wife or husband. For the purposes of this subsection, "income of the corresponding class" means earned or unearned income according as income arising during the same period as the loss to the person sustaining it from profits or gains of the same trade, profession, employment or vocation would have been that person's earned or unearned income. 5 Where relief under this section has been given to a person for any year of assessment, he shall not be entitled, in computing the amount of the assessment for any subsequent year, to a deduction of any portion of the amount in respect of which such relief has been obtained. 6 Where there is in any year of assessment a change on which a trade, profession or vocation is treated under section 154(1) of this Act as permanently discontinued, and a person engaged in carrying on the trade, profession or vocation immediately before the change continues to be so engaged immediately after it, the trade, profession or vocation carried on by him immediately before and immediately after the change shall, notwithstanding the discontinuance, be treated as the same trade, profession or vocation for the purposes of subsection (2) above, except as respects the computation of profits or gains and losses. 7 For the purposes of this section, the amount of a loss sustained in a trade shall be computed in like manner as the profits or gains arising or accruing from the trade are computed under the provisions of the Income Tax Acts applicable to Case I of Schedule D. 8 This section applies in relation to losses sustained in the occupation of woodlands in respect of which a person has elected under section 111 of this Act to be charged to income tax under Schedule D as it applies in relation to losses sustained in a trade. Extension of right of set-off, to capital allowances 169 1 Subject to the provisions of this section, any claim made under section 168 above for relief in respect of a loss sustained by the claimant in any trade in any year of assessment (hereafter referred to as " the year of loss ") may require the amount of that loss to be determined as if an amount equal to the capital allowances for the year of assessment for which the year of loss is the basis year were to be deducted in computing the profits or gains or losses of the trade in the year of loss; and a claim may be so made notwithstanding that, apart from those allowances, the claimant has not sustained a loss in the trade in the year of loss. 2 Capital allowances for any year of assessment shall be taken into account by virtue of this section only if and so far as they are not required to offset balancing charges for the year; and, for the purposes of this subsection, the capital allowances for a year of assessment shall be treated as required to offset balancing charges for the year up to the amount on which the balancing charges fall to be made after deducting from that amount the amount (if any) of capital allowances for earlier years which is carried forward to that year and would, without the balancing charges, be non-effective in that year. 3 Where the capital allowances taken into account by virtue of this section are those for the year of assessment for which the claim is made or for the preceding year (the year of loss being the basis year for that year itself, or the claim being made by way of carry-forward of the loss by virtue of section 168(2) above), relief shall not be given by reference to those allowances in respect of an amount greater than the amount non-effective in the year for which the claim is made, or, in the case of allowances for the preceding year, the amount non-effective in both years. 4 For the purposes of this section — a where the end of the basis period for a year of assessment (as defined in section 72 of the Capital Allowances Act 1968) falls in, or coincides with the end of, any year of assessment, that year is the basis year for the first-mentioned year of assessment, but so that, if a year of assessment would under the foregoing provision be the basis year both for that year itself and for another year of assessment, it shall be the basis year for the year itself and not for the other year, b any reference to the capital allowances or balancing charges for a year of assessment shall be construed as a reference to those falling to be made in taxing the trade for that year (but not including, in the case of allowances, any part of the allowances for an earlier year carried forward under section 70(4) of the said Act of 1968), c any reference to an amount of capital allowances non effective in a year shall be construed as referring to the amount to which, by reason of an insufficiency of profits or gains, effect cannot be given in taxing the trade for the year, and d effect shall be deemed to be given in taxing the trade to allowances carried forward from an earlier year before it is given to allowances arising in a later year. 5 Where, on a claim made by virtue of this section, relief is not given under section 168 above for the full amount of the loss determined as mentioned in subsection (1) of this section, the relief shall be referred as far as may be to the loss sustained by the claimant in the trade rather than to the capital allowances in respect of the trade. 6 Subject to subsection (7) below, where for any year of assessment relief is given under section 168 above by reference to any capital allowances, then, for all the purposes of the Income Tax Acts, effect shall be deemed to have been given to those allowances up to the amount in respect of which relief is so given, as if (in accordance with section 70(2) of the Capital Allowances Act 1968) a deduction in respect thereof had been allowed in taxing the trade for that year, or, in the case of allowances for the following year, in taxing the trade for that following year; and any relief previously given for a subsequent year on the basis that effect had not been given to the allowances as aforesaid shall be adjusted where necessary by an assessment. 7 Where, in any year of assessment, a trade is permanently discontinued, or is treated for the purposes of section 154 above as permanently discontinued, and, immediately before the discontinuance, the trade was being carried on in partnership, then, notwithstanding subsection (6) above, for the purposes of any claim for relief made by virtue of section 171(4)(c) or 174 below and relating to that discontinuance, effect shall not be deemed to have been given either — a to any part of the capital allowances falling to be made in taxing the trade for that year by reason of relief given under section 168 above by reference to those allowances, or b to any part of the capital allowances falling to be made in taxing the trade for the preceding year by reason of relief so given by reference to them, in so far as that relief must be referred to the part of the allowances apportionable to the part of the year within twelve months of the discontinuance on an apportionment made by reference to the comparative lengths of the two parts of the year, but where the same partner claims relief both under section 168 above and under one or other of sections 171(4) and 174 below in respect of the same allowances, the total amount for which relief is to be given to him by reference thereto shall not exceed the greater of the amounts for which, apart from any deficiency of income, relief might have been given under either section separately, and the total amount for which relief is to be given to all the partners under those sections in respect of any allowances shall not in any event exceed the amount of the allowances to which effect has not been given apart from those sections. 8 Where a person claiming relief under section 168 above has, since the end of the year for which the claim is made, carried on the trade in question in partnership, effect shall not be given to this section in relation to that claim except with the written consent of, or of the personal representatives of, every other person who has been engaged in carrying on the trade between the end of that year and the making of the claim: Provided that, where the claim is for a loss sustained before an event treated as the permanent discontinuance of the trade, this subsection shall not require the consent of any person as having been so engaged since that discontinuance, or as the personal representative of such a person. 9 Relief from tax may be given by virtue of this section by reference to capital allowances for a year of assessment before the passing of any Act granting income tax for that year, as if income tax had been granted for the year without alteration; but if relief given to a person by virtue of this section for any year of assessment is affected by a subsequent alteration of the law, or by any discontinuance of the trade or other event occurring after the end of the year, any necessary adjustment may be made, and so much of any repayment of tax as exceeded the amount repayable in the events that happened may, if not otherwise made good, be assessed under Case VI of Schedule D and recovered from that person accordingly. 10 This section applies (with any necessary adaptations) in relation to a profession, employment or vocation, and in relation to the occupation of woodlands the profits or gains of which are assessable under Schedule D by virtue of an election under section 111 of this Act, as it applies in relation to a trade. Restrictions on right of set-off 170 1 A loss (including any amount in respect of capital allowances which, by virtue of section 169 above, is to be treated as a loss) shall not be available for relief under section 168 above unless it is shown that, for the year of assessment in which the loss is claimed to have been sustained, the trade was being carried on a commercial basis and with a view to the realisation of profits in the trade or, where the carrying on of the trade formed part of a larger undertaking, in the undertaking as a whole: Provided that this subsection shall not apply — a to a loss made, or an allowance in respect of expenditure incurred, by any person in the exercise of functions conferred by or under any enactment (including an enactment contained in a local or private Act), or b to an allowance in respect of expenditure incurred before 6th April 1960. 2 Where during a year of assessment there is a change in the manner in which a trade is being carried on, it shall be treated for the purposes of this section as having been carried on throughout the year in the way in which it was being carried on by the end of the year. 3 Subject to subsection (4) below, where a trade is (or falls to be treated as being) carried on for a part only of a year of assessment by reason of its being (or falling to be treated as being) set up and commenced, or discontinued, or both, in that year, subsections (1) and (2) above shall have effect in relation to the trade as regards that part of that year as ii any reference to the manner of carrying on the trade for or by the end of that year were a reference to the manner of carrying it on for or by the end of the said part thereof. 4 Where in any year of assessment there is a change in the persons engaged in carrying on a trade, then, for the purposes of the application of subsections (1) to (3) above in the case of any person who, being engaged in carrying on the trade immediately before the change, continues to be so engaged immediately after it, the trade carried on by that person immediately before the change shall be treated as continuing to be carried on by him notwithstanding the change, whether or not it falls to be treated for any other purpose as having been discontinued on the change. 5 For the purposes of this section, the fact that a trade was being carried on at any time so as to afford a reasonable expectation of profit shall be conclusive evidence that it was then being carried on with a view to the realisation of profits. 6 This section — a applies to professions and vocations as it applies to trades, with references to a commercial basis construed accordingly, and b has effect without prejudice to section 180 below (special restrictions for farming and market gardening). Carry-forward against subsequent profits 171 1 Where a person has, in any trade, profession or vocation carried on by him either solely or in partnership, sustained a loss (to be computed in the same way as profits or gains under the provisions of the Income Tax Acts applicable to Cases I and II of Schedule D) in respect of which relief has not been wholly given either under section 168 above or under any other provision of those Acts, he may make a claim requiring that any portion of the loss for which relief has not been so given shall be carried forward and, as far as may be, deducted from or set off against the amount of profits or gains on which he is assessed to income tax under Schedule D in respect of that trade, profession or vocation for subsequent years of assessment. In the application of this section to a loss sustained by a partner in a partnership, " the amount of profits or gains on which he is assessed " shall, in respect of any year, be taken to mean such portion of the amount on which the partnership is assessed to income tax under Schedule D in respect of the trade, profession or vocation as he would be required to include in a return of his total income for that year. 2 Any relief under this section shall be given as far as possible from the first subsequent assessment, and, so far as it cannot be so given, then from the next assessment, and so on. 3 Where in any year of assessment relief cannot be given, or cannot be wholly given, in respect of a loss carried forward under this section because the amount of the profits or gains of the trade assessed under Case I of Schedule D for that year is insufficient, any interest or dividends on investments arising in that year, being interest or dividends which would fall to be taken into account as trading receipts in computing the profits or gains of the trade for the purpose of assessment under that Case but for the fact that they have been subjected to tax under other provisions of the Income Tax Acts, shall be treated for the purposes of the application of this section as if they were profits or gains on which the person carrying on the trade was assessed under the said Case I in respect of that trade for that year of assessment, and relief shall be given accordingly by repayment or otherwise. 4 Where there is in any year of assessment a change on which a trade, profession or vocation is treated under section 154 above as permanently discontinued, and a person engaged in carrying on the trade, profession or vocation immediately before the change continues to be so engaged immediately after it, then — a the trade, profession or vocation carried on by him immediately before and immediately after the change shall, notwithstanding the discontinuance, be treated as the same trade, profession or vocation for the purposes of this section, except as respects the computation of profits or gains and losses, and b in respect of a loss sustained by him in the trade, profession or vocation in the part of the said year before the change, relief shall be given under this section from the assessment relating to the part of the year after the change as if it were an assessment for a subsequent year, and c for the purposes of this section, there shall be treated as a loss so sustained in the part of the year before the change his share of the non-effective amount (if any) of any capital allowances falling to be made in taxing the trade, profession or vocation for that part of that year. For the purposes of paragraph (c) above, the persons engaged in carrying on the trade, profession or vocation immediately before the change shall be treated as entitled to capital allowances in the shares in which they are then entitled to the profits of the trade, profession or vocation, and " the non-effective amount" means, in relation to any such allowances, the amount to which, because of an insufficiency of profits or gains, effect cannot be given in taxing the trade, profession or vocation. 5 Where a loss is sustained by a person in the occupation of woodlands, and that person, if he had made a profit, would by reason of his election under section 111 of this Act have been chargeable for the following year to income tax under Schedule D computed on the amount of that profit, this section shall apply so as to give relief in respect, of that loss in the same manner, and to the same extent, as if it were a loss sustained in a trade. 6 In so far as relief in respect of any loss has been given to any person under this section, that person shall not be entitled to claim relief in respect of that loss under any other provision of the Income Tax Acts. 7 So far as a claim under this section concerns the amount of the loss for any year of assessment after the year 1964-65, it must be made within six years after the year of assessment in question; but the question whether any and, if so, how much relief on that amount should be given under this section against tax for any year of assessment may be the subject of a separate claim made not later than six years after that year of assessment. Carry-forward where business transferred to a company 172 1 Where — a a business carried on by any individual, or any individuals in partnership, has been transferred to a company in consideration solely or mainly of the allotment of shares of the company to that individual or those individuals, and b in the case of any individual to whom, or to whose nominee or nominees, shares have .been so allotted, his total income for any year of assessment throughout which he is the beneficial owner of the shares, and throughout which the company carries on the business, includes any income derived by him from the company, whether by way of dividends on those shares or otherwise, then, subject to subsection (2) below, section 171 above (except subsection (4)) shall apply as if the income so derived were profits or gains on which that individual was assessed under Schedule D in respect of that business for that year. 2 Where, under the said section 171 as applied by subsection (1) above, a loss falls to be deducted from or set off against any income for any year of assessment, the deduction or set-off shall be made in the first place against that part, if any, of the income in respect of which the individual has been, or is liable to be, assessed to tax for that year. 3 This section, in its application to the year of assessment in which a business is transferred, shall have effect as if, for the reference in subsection (1)(b) to the year of assessment throughout which the individual is the beneficial owner of the shares and the business is carried on by the company, there were substituted a reference to the period from the date of transfer to the following 5th April. 4 Where a change to which section 171(4) above applies has occurred before a transfer to which this section applies, paragraph (a), but not paragraph (c), of the said section 171(4) shall for the purposes of this section apply in relation to the earlier change as it applies for the purposes of the said section 171. Carry-forward as losses of amounts taxed under s. 53 173 1 Subject to the provisions of this section, where under section 53 of this Act (payments not out of profits or gains brought into charge to income tax) a person has been assessed to income tax in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall be treated for the purposes of sections 171 and 172 above as though it were a loss sustained in that trade, profession or vocation, and relief in respect thereof shall be allowed accordingly. 2 Relief shall not be allowed by virtue of this section in respect of any payment, or part of a payment, which is not ultimately borne by the person assessed, or which is charged to capital. 3 This section shall not apply — a to any payment to which the said section 53 applies by virtue of section 89(1) of this Act (Schedule A, and associated charges: non-residents), b to any such payment of rent as is referred to in section 157(4) of this Act (easements in connection with radio relay services), c to any capital sum paid in respect of any patent rights assessed under the said section 53 by virtue of section 380 of this Act, d to any payment of, or on account of, copyright royalties to which section 391 of this Act applies, or e to any payment to which the said section 53 applies by virtue of section 477 of this Act (manufactured dividends). Carry-back of terminal losses 174 1 Where a trade, profession or vocation is permanently discontinued, and any person then carrying it on, either solely or in partnership, has sustained therein a loss to which this section applies (hereafter referred to as a " terminal loss "), that person may, subject to the provisions of this section, make a claim requiring that the amount of the terminal loss shall, as far as may be, be deducted from or set off against the amount of profits or gains on which he has been charged to income tax under Schedule D in respect of the trade, profession or vocation for the three years of assessment last preceding that in which the discontinuance occurs; and there shall be made all such reductions of assessments or repayments of tax as may be necessary to give effect to the claim : Provided that relief shall not be given in respect of the same matter both under this section and under some other provision of the Income Tax Acts. 2 Any relief under this section shall be given as far as possible from the assessment for a later rather than an earlier year. 3 Where a claim under this section is made in respect of a terminal loss sustained in a trade, and relief cannot be given, or cannot be wholly given, against the profits or gains of the trade charged to income tax under Schedule D for any year because the amount of those profits or gains is insufficient, any interest or dividends on investments arising in that year, being interest or dividends which would fall to be taken into account as trading receipts in computing the profits or gains of the trade for the purpose of assessment under Case I of that Schedule but for the fact that they have been subjected to tax under other provisions of the Income Tax Acts, shall be treated for the purposes of the application of this section as if they were profits or gains on which the person carrying on the trade was assessed under the said Case I in respect of that trade for that year of assessment, and relief shall be given accordingly by repayment or otherwise. 4 The profits or gains on which a person or partnership has been charged to income tax for any year of assessment shall be treated for the purposes of any relief under this section from the assessment for that year as reduced by the amount of those profits or gains applied in making any payment from which income tax was deducted, but was not accounted for because the payment was made out of profits or gains brought into charge to income tax; and the like reduction shall be made in the amount of the terminal loss for which relief may be given under this section from the assessments for earlier years unless the payment was one which, if not made out of profits or gains brought into charge to income tax, could have been assessed to income tax under section 53 of this Act, and, if so assessed, could have been 'treated as a loss by virtue of section 173 above. 5 The question whether a person has sustained any and, if so, what terminal loss in a trade, profession or vocation shall be determined for the purposes of this section by taking the amounts (if any) of the following, in so far as they have not otherwise been taken into account so as to reduce or relieve any charge to tax — a the loss sustained by him in the trade, profession or vocation in the year of assessment in which it is permanently discontinued, b the relevant capital allowances for that year of assessment, c the loss sustained by him in the trade, profession or vocation in the part of the preceding year of assessment beginning twelve months before the date of the discontinuance, and d the same fraction of the relevant capital allowances for that preceding year of assessment as the part thereof beginning twelve months before the discontinuance is of a year. 6 In subsection (5) above " the relevant capital allowances " means, in relation to any year of assessment, any capital allowances falling to be made in taxing the trade, profession or vocation for that year, excluding amounts carried forward from an earlier year; and, for the purposes of paragraphs (a) and (c) of that subsection, the amount of a loss shall, subject to the provisions of this section, be computed in the same way as profits or gains under the provisions of the Income Tax Acts applicable to Cases I and II of Schedule D. 7 Section 173 above, and sections 324 and 328 of this Act (capital redemption business, non-resident banks etc.), shall apply to the computation of losses, or of profit or loss, for any purpose of this section as they apply to the computation thereof for the corresponding purposes of section 171 above. 8 Where, on the permanent discontinuance of a trade which consists of or includes the working of a mine, oil well or other source of mineral deposits within the meaning of Chapter III of Part I of the Capital Allowances Act 1968, a claim for relief is made both under this section and under section 15(1) of that Act (carry-back of balancing allowances), the balancing allowance in respect of which the claim is made under the said section 15(1) shall be left out of account for the purposes of subsection (5) above, but relief under this section shall be given in priority to relief under the said section 15(1). 9 Where a person claiming relief under this section on a discontinuance has, since the beginning of the third year of assessment preceding that in which the discontinuance occurs, carried on the trade, profession or vocation in partnership — a in subsection (1) above, " the amount of profits or gains on which he has been charged to income tax " shall be taken to mean, in respect of any year or part of a year for which the partnership was assessed in respect of the trade, profession or vocation, such portion of the amount of the profits or gains on which the partnership has been, or is treated by virtue of subsection (4) above as having been, charged to income tax in respect of it for that year or part of a year as would be required to be included in a return of his total income for that year, b any reduction in the amount of his terminal loss which falls to be made under the said subsection (4) by reason of profits or gains having been applied by the partnership in any such year or part of a year in making any payment shall be limited to the same proportion of the profits or gains brought into charge which were so applied, and c if he was carrying on the trade, profession or vocation immediately before the discontinuance, the amounts to be included in his terminal loss by virtue of subsection (5)(b) or (d) above shall be such part only of the amounts therein mentioned (in so far as they have not otherwise been taken into account so as to reduce or relieve any charge to tax) as would fall to his share on a division made according to the shares in which the partners were then entitled to the profits of the trade, profession or vocation. 10 For all the purposes of this section, a trade, profession or vocation shall be treated as discontinued, and a new trade, profession or vocation as set up and commenced, when it is so treated for the purposes of section 154 of this Act; but — a a person who continues to be engaged in carrying it on immediately after such a discontinuance shall not be entitled to relief in respect of any terminal loss on that discontinuance, and b on any discontinuance, a person not continuing to be so engaged may be given relief in respect of a terminal loss against profits or gains on which he was charged in respect of the same trade, profession or vocation for a period before a previous discontinuance, if he has been continuously engaged in carrying it on between the two discontinuances, and, in his case, if the previous discontinuance occurred within twelve months before the other — i it shall be disregarded for the purposes of paragraphs (a) and (c) of subsection (5) above, except that those paragraphs shall be taken to include any amount on which relief could have been allowed to him as for a loss sustained before the previous discontinuance by virtue of section 171(4)(c) above, so far as it is referable to a period within those twelve months, and ii paragraph (d) of the said subsection (5) shall be taken to include the whole amount of the allowances in question, instead of the fraction there mentioned. 11 Where a trade, profession or vocation is being carried on by any persons in partnership immediately before it is permanently discontinued, relief under this section given to one of them on the discontinuance shall not, in relation to a claim made by another of them by virtue of section 171(4)(c) above, be taken to affect the non-effective amount of any allowances within the meaning of the said section 171(4)(c). 12 A claim for relief under this section may require that, in so far as they have not been otherwise taken into account so as to reduce or relieve any charge to tax, capital allowances in respect of the trade, profession or vocation under Part I of the Capital Allowances Act 1968, being allowances which fall to be made to the claimant by way of discharge or repayment of tax, and to be so made for the year of assessment in which the discontinuance occurs or the preceding year of assessment, shall be added to the terminal loss sustained by him (or, if he has not sustained a terminal loss computed in accordance with the provisions of this section, shall be treated as a terminal loss so sustained) and the allowances to be taken into account for this purpose may include allowances arising before a previous discontinuance: Provided that — a there shall be taken into account such fraction only of the allowances for the said preceding year of assessment as the part of that year beginning twelve months before the discontinuance giving rise to the claim is of a year, and b the allowances for any year shall not be treated as including any amounts carried forward from an earlier year. 13 Where a person occupying woodlands has elected to be charged to income tax in respect thereof under Schedule D, this section shall apply to a terminal loss sustained by him in the occupation of the woodlands as it applies to a terminal loss sustained in a trade. Treatment of interest as a loss for purposes of carry forward and carry-back 175 1 Where a payment to which this section applies is money wholly and exclusively laid out or expended for the purposes of a trade, profession or vocation the profits of which are chargeable to tax under Case I or Case II of Schedule D, and full effect cannot be given to the relief specified in subsection (2) below as respects the payment by reason of a want or deficiency of income of the year of assessment in which the payment is made, the amount unallowed may be carried forward to succeeding years of assessment as if it were a loss carried forward under section 171 above, or may be treated for the purposes of section 174 above as a loss sustained at the date of payment. 2 This section applies to — a interest eligible for relief under section 57 of this Act (loans for purchase or improvement of land), b payments of interest eligible for relief under section 62 of this Act (certain pre-1970 loans), c payments in respect of tithe redemption annuities to which section 66(2) of this Act applies, and d payments of interest to which section 445(3)(b) of the Income Tax Act 1952 (building societies etc.) applied. 3 So far as it relates to the carrying forward of payments mentioned in paragraphs (c) and (d) of subsection (2) above, this section shall be deemed always to have had effect. Case VI losses Case VI losses 176 1 Where in any year of assessment a person sustains a loss in any transaction, whether he was engaged therein solely or in partnership, being a transaction of such a nature that, if any profits had arisen therefrom, he would have been liable to be assessed to income tax in respect thereof under Case VI of Schedule D, he may make a claim requiring that the amount of the loss sustained by him shall, as far as may be, be deducted from or set off against the amount of any profits or gains arising from any transaction in respect of which he is assessed for that year under the said Case VI, and that any portion of the loss for which relief is not so given shall, as far as may be, be carried forward and deducted from or set off against the amount of any profits or gains arising from any transaction in respect of which he is assessed to income tax under the said Case VI for any subsequent year of assessment. 2 In the application of this section to a loss sustained by a partner in a partnership, " the amount of any profits or gains arising from any transaction in respect of which he is assessed " shall be taken to mean in respect of any year such portion of the amount on which the partnership is assessed under Case VI of Schedule D in respect of any transaction as falls to be taken into account in computing his total income for that year. 3 Any relief under this section by way of the carrying forward of the loss shall be given as far as possible from the first subsequent assessment in respect of any such profits or gains as aforesaid for any year, and, so far as it cannot be so given, then from the next such assessment, and so on. 4 This section does not apply to any loss sustained in a transaction falling within section 80, 81 or 82 of this Act (premiums, leases at undervalue, etc.). 5 So far as a claim under this section concerns the amount of the loss for any year of assessment after the year 1964-65, it must be made within six years after the year of assessment in question ; but the question whether any and, if so, how much relief on that amount should be given under this section against tax for any year of assessment may be the subject of a separate claim made not later than six years after that year of assessment. CHAPTER II Corporation Tax Trade etc. losses Losses other than terminal losses 177 1 Where in any accounting period a company carrying on a trade incurs a loss in the trade, the company may make a claim requiring that the loss be set off for the purposes of corporation tax against any trading income from the trade in succeeding accounting periods; and (so long as the company continues to carry on the trade) its trading income from the trade in any succeeding accounting period shall then be treated as reduced by the amount of the loss, or by so much of that amount as cannot, on that claim or on a claim (if made) under subsection (2) below, be relieved against income or profits of an earlier accounting period. 2 Where in any accounting period a company carrying on a trade incurs a loss in the trade, then (subject to subsection (4) below) the company may make a claim requiring that the loss be set off for the purposes of corporation tax against profits (of whatever description) of that accounting period and, if the company was then carrying on the trade and the claim so requires, of preceding accounting periods ending within the time specified in subsection (3) below; and, subject to that subsection and to any relief for an earlier loss, the profits of any of those periods shall then be treated as reduced by the amount of the loss, or by so much of that amount as cannot be relieved under this subsection against profits of a later accounting period. 3 The time referred to in subsection (2) above is a time equal in length to the accounting period in which the loss is incurred; but the amount of the reduction which may be made under that subsection in the profits of an accounting period falling partly before that time shall not exceed a part of those profits proportionate to the part of the period falling within that time. 4 Subsection (2) above shall not apply to trades falling within Case V of Schedule D; and, except in so far as it represents an excess in respect of expenditure incurred before the year 1960-61 of capital allowances over balancing charges, a loss incurred in a trade in any accounting period shall not be relieved under that subsection unless the trade is one carried on in the exercise of functions conferred by or under any enactment (including an enactment contained in a local or private Act), or it is shown that for that accounting period the trade was being carried on a commercial basis and with a view to the realisation of gain in the trade or in any larger undertaking of which the trade formed part. This subsection has effect without prejudice to section 180 below (special restrictions for farming and market gardening). 5 For the purposes of subsection (4) above, the fact that a trade was being carried on at any time so as to afford a reasonable expectation of gain shall be conclusive evidence that it was then being carried on with a view to the realisation of gain; and where in an accounting period there is a change in the manner in which a trade is being carried on, it shall for those purposes be treated as having throughout the accounting period been carried on in the way in which it was being carried on by the end of that period. 6 The amount of a loss incurred in a trade in an accounting period shall be computed for the purposes of this section in the same way as trading income from the trade in that period would have been computed. 7 For the purposes of this section " trading income " means, in relation to any trade, the income which falls or would fall to be included in respect of the trade in the total profits of the company; but where in an accounting period a company incurs a loss in a trade in respect of which it is within the charge to corporation tax under Case I or Case V of Schedule D, and in any later accounting period to which the loss or any part of it is carried forward under subsection (1) above relief in respect thereof cannot be given, or cannot wholly be given, because the amount of the trading income of the trade is insufficient, any interest or dividends on investments which would fall to be taken into account as trading receipts in computing that trading income but for the fact that they have been subjected to tax under other provisions shall be treated for the purposes of subsection (1) above as if they were trading income of the trade. 8 Where in an accounting period the charges on income paid by a company — a exceed the amount of the profits against which they are deductible, and b include payments made wholly and exclusively for the purposes of a trade carried on by the company, then, up to the amount of that excess or of those payments, whichever is the less, the charges on income so paid shall in computing a loss for the purposes of subsection (1) above be deductible as if they were trading expenses of the trade. 9 In this section references to a company carrying on a trade refer to the company carrying it on so as to be within the charge to corporation tax in respect of it. 10 A claim under subsection (1) above must be made within six years after the end of the accounting period in which the loss is incurred, and must be so made notwithstanding that relief cannot be given in respect of the loss until after the end of that period of six years; and a claim under subsection (2) above must be made within two years from the end of the accounting period in which the loss is incurred. Terminal losses 178 1 Where a company ceasing to carry on a trade has in any accounting period falling wholly or partly within the previous twelve months incurred a loss in the trade, the company may make a claim requiring that the loss be set off for the purposes of corporation tax against trading income from the trade in accounting periods falling wholly or partly within the three years preceding those twelve months (or within any less period throughout which the company has carried on the trade); and, subject to subsections (2) to (5) below and to any relief for earlier losses, the trading income of any of those periods shall be then treated as reduced by the amount of the loss, or by so much of that amount as cannot be relieved under this subsection against income of a later accounting period: Provided that relief shall not be given under this subsection in respect of any loss in so far as the loss has been or can be otherwise taken into account so as to reduce or relieve any charge to tax. 2 Where a loss is incurred in an accounting period falling partly outside the twelve months mentioned in subsection (1) above, relief shall be given under that subsection in respect of a part only of that loss proportionate to the part of the period falling within those twelve months; and the amount of the reduction which may be made under that subsection in the trading income of an accounting period falling partly outside the three years there mentioned shall not exceed a part of that income proportionate to the part of the period falling within those three years. 3 A claim for relief under this section may require that capital allowances in respect of the trade, being allowances which fall to be made to the company by way of discharge or repayment of tax, and to be so made for an accounting period falling wholly or partly within the twelve months ending when the company ceases to carry on the trade, shall (so far as they cannot be otherwise taken into account so as to reduce or relieve any charge to corporation tax) be added to the loss incurred by the company in that accounting period or, if the company has not incurred a loss in the period, shall be treated as a loss so incurred: Provided that the allowances for any period shall not be treated as including amounts carried forward from an earlier period. 4 Subsections (6) to (9) of section 177 above shall apply for the purposes of this section as they apply for the purposes of subsection (1) of that section; and relief shall not be given under this section in respect of a loss incurred in a trade so as to interfere with any relief under section 248 of this Act (charges on income) in respect of payments made wholly and exclusively for the purposes of that trade. 5 A claim under this section must be made within six years from the time when the company ceases to carry on the trade. Case VI losses Case VI losses 179 1 Subject to subsection (2) below, where in any accounting period a company incurs a loss in a transaction in respect of which the company is within the charge to corporation tax under Case VI of Schedule D, the company may make a claim requiring that the loss be set off against the amount of any income arising from transactions in respect of which the company is assessed to corporation tax under that Case for the same or any subsequent accounting period ; and the company's income in any accounting period from such transactions shall then be treated as reduced by the amount of the loss, or by so much of that amount as cannot be relieved under this section against income of an earlier accounting period. 2 This section shall not apply to a loss incurred in a transaction falling within section 80, 81 or 82 of this Act (premiums, leases at under-value, etc.). 3 A claim under this section must be made within six years after the end of the accounting period in which the loss is incurred, and must be so made notwithstanding that relief cannot be given in respect of the loss until after the end of that period of six years. CHAPTER III Income Tax and Corporation Tax Restriction of relief under ss. 168 and 177 in case of farming and market gardening 180 1 Any loss incurred in a trade of farming or market gardening shall be excluded from section 168 above if in each of the prior five years a loss was incurred in carrying on that trade; and where a loss is so excluded any related capital allowance shall also be excluded from that section. 2 Any loss incurred in any accounting period by a company in carrying on a trade of farming or market gardening shall be excluded from section 177(2) above if a loss, computed without regard to capital allowances, was incurred in carrying on that trade in that accounting period, and in each of the chargeable periods wholly or partly comprised in the prior five years. 3 Subsections (1) and (2) above shall not restrict relief for any loss or for any capital allowance, if it is shown by the claimant that the whole of his farming or market gardening activities in the year next following the prior five years are of such a nature, and carried on in such a way, as would have justified a reasonable expectation of the realisation of profits in the future if they had been undertaken by a competent farmer or market gardener, but that, if that farmer or market gardener had undertaken those activities at the beginning of the prior period of loss, he could not reasonably have expected the activities to become profitable until after the end of the year next following the prior period of loss. 4 Subsections (1) and (2) above shall not restrict relief where the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking. 5 In this section — " basis year ", in relation to any capital allowance, shall be construed in accordance with section 169(4)(a) above, " chargeable period ", in relation to a company, means any accounting period, or any basis period ending before its first accounting period, " basis period " having the meaning given in section 72 of the Capital Allowances Act 1968, " prior five years " — in relation to a loss incurred in a year of assessment, means the last five years of assessment before that year, and in relation to a loss incurred in a company's accounting period, means the last five years before the beginning of the accounting period, " prior period of loss " means the prior five years, except that, if losses were incurred in the trade in successive years of assessment or chargeable periods amounting in all to a period longer than five years (and ending when the prior five years end), it means that longer period, and in applying this definition to a chargeable period of a company " losses " means losses computed without regard to capital allowances, and " farming " and " market gardening " shall be construed in accordance with the definitions of those terms under section 526(5) of this Act, but as if those definitions were not restricted to activities in the United Kingdom. 6 For the purposes of this section, a capital allowance is related to a loss incurred in a trade if it falls to be made in taxing that trade and its basis year is the year of assessment in which the loss was incurred. 7 In ascertaining for the purposes of this section whether a loss was incurred in any part of the prior five years, or earlier, the rules applicable to Case I of Schedule D shall be applied; and in this section " loss computed without regard to capital allowances " means, in relation to a chargeable period of a company, a loss so ascertained, but so that, notwithstanding section 73(2) of the Capital Allowances Act 1968, no account shall be taken of any allowance or charge under that Act (including the enactments which under this Act are to be treated as contained in Part I of that Act). 8 Subsections (1) and (2) above shall not restrict relief for any loss or capital allowance if the trade was set up and commenced within the prior five years, and, for the purposes of this subsection, a trade shall be treated as discontinued, and a new trade set up, in any event which under any of the provisions of the Tax Acts is to be treated as equivalent to the permanent discontinuance or setting up of a trade: Provided that a trade shall not be treated as discontinued if, under section 252(2) of this Act or section 17 of the Finance Act 1954 (company reconstructions) it is not to be treated as discontinued for the purpose of capital allowances and charges. 9 Where at any time there has been a change in the persons engaged in carrying on a trade, this section shall, notwithstanding subsection (8) above, apply to any person who was engaged in carrying on the trade immediately before and immediately after the change as if the trade were the same before and after without any discontinuance, and as if — a a husband and his wife were the same person, and b a husband or his wife were the same person as any company of which either the husband or the wife has control, or of which the two of them have control, and accordingly relief from income tax or from corporation tax may be restricted under this section by reference to losses some of which are incurred in years of assessment and some, computed without regard to capital allowances, are incurred in a company's chargeable periods. In this subsection " control" has the same meaning as in Chapter III of Part XI of this Act (close companies). PART VIII Schedule E CHAPTER I The Charge The Schedule Schedule E 181 1 The Schedule referred to as Schedule E is as follows: — SCHEDULE E 1 Tax under this Schedule shall be charged in respect of any office or employment on emoluments therefrom which fall under one, or more than one, of the following Cases — Case I: where the person holding the office or employment is resident and ordinarily resident in the United Kingdom, and does not perform the duties of the office or employment wholly outside the United Kingdom in the chargeable period (and the emoluments are not excepted as foreign emoluments), any emoluments for the chargeable period ; Case II: where that person is not resident or, if resident, then not ordinarily resident in the United Kingdom (and the emoluments are not excepted as foreign emoluments), any emoluments for the chargeable period in respect of duties performed in the United Kingdom; Case III: where that person is resident in the United Kingdom (whether ordinarily resident there or not), any emoluments received in the United Kingdom in the chargeable period, being emoluments either for that period or for an earlier period in which he has been resident there, and any emoluments for that period received in the United Kingdom in an earlier period; and tax shall not be chargeable in respect of emoluments of an office or employment under any other paragraph of this Schedule. The emoluments excepted from Cases I and II as foreign emoluments are emoluments of a person not domiciled in the United Kingdom from an office or employment under or with any person, body of persons or partnership resident outside, and not resident in, the United Kingdom. 2 Tax under this Schedule shall be charged in respect of every annuity, pension or stipend payable by the Crown or out of the public revenue of the United Kingdom or of Northern Ireland, other than annuities charged under Schedule C 3 Tax under this Schedule shall also be charged in respect of any pension which is paid otherwise than by or on behalf of a person outside the United Kingdom. 4 Where — a any pension or annuity is payable in the United Kingdom by or through any public department, officer or agent of the government of a territory to which this paragraph applies (but otherwise than out of the public revenue of the United Kingdom or the public revenue of Northern Ireland) to a person who has been employed in relevant service outside the United Kingdom in respect of that service, or b any pension or annuity is so payable to the widow, child, relative or dependant of any such person as aforesaid, and the person in receipt of the pension or annuity is chargeable to tax as a person resident in the United Kingdom, the pension or annuity shall be chargeable to tax under this Schedule. The territories to which this paragraph applies are — i any country forming part of Her Majesty's dominions, ii any other country for the time being mentioned in section 1(3) of the British Nationality Act 1948, and iii any territory under Her Majesty's protection, and in this paragraph " relevant service " means the service of the Crown, or service under the government of a territory to which this paragraph applies. 5 The preceding provisions of this Schedule are without prejudice to any other provision of the Tax Acts directing tax to be charged under this Schedule, and tax so directed to be charged shall be charged accordingly. 2 References in the Tax Acts to Cases I, II and III of Schedule E shall be taken as referring to the Cases under which tax is chargeable under paragraph 1 of that Schedule. Supplementary charging provisions Voluntary pensions 182 1 Where — a a person has ceased to hold any office or employment, and b a pension or annual payment is paid to him, or to his widow or child, or to any relative or dependant of his, by the person under whom he held the office or by whom he was employed, or by the successors of that person, and c that pension or annual payment is paid otherwise than by or on behalf of a person outside the United Kingdom, then, notwithstanding that the pension or payment is paid voluntarily, or is capable of being discontinued, it shall be deemed to be income for the purposes of assessment to tax, and shall be assessed and charged under Schedule E. 2 For the avoidance of doubt, it is hereby declared that the expressions " annuity" and " pension" in Schedule E include respectively an annuity and a pension which is paid voluntarily or is capable of being discontinued. Offices and employments: scope of charge 183 1 Tax under Case I, II or III of Schedule E shall, except as hereinafter mentioned, be chargeable on the full amount of the emoluments falling under that Case, subject to such deductions only as may be authorised by the Tax Acts, and the expression "emoluments" shall include all salaries, fees, wages, perquisites and profits whatsoever. 2 Tax under Case III of Schedule E shall be chargeable whether or not tax is chargeable in respect of the same office or employment under Case I or II of that Schedule, but shall not be chargeable on any emoluments falling under the said Case I or II for the same or another chargeable period (or on any emoluments charged under Schedule E for a chargeable period earlier than the year 1956-57). Offices and employments: place of performance, and meaning of emoluments received in United Kingdom 184 1 Where a person ordinarily performs the whole or part of the duties of his office or employment in the United Kingdom, then, for the purposes of Cases I and II of Schedule E his emoluments for any period of absence from the office or employment shall be treated as emoluments for duties performed in the United Kingdom, except in so far as it is shown that, but for that absence, they would have been emoluments for duties performed outside the United Kingdom. 2 Where an office or employment is in substance one the duties of which fall in the chargeable period to be performed outside the United Kingdom, then, for the purposes of Cases I and II of Schedule E, there shall be treated as so performed any duties performed in the United Kingdom the performance of which is merely incidental to the performance of the other duties outside the United Kingdom. 3 For the purposes of Cases I and II of Schedule E the following duties shall be treated as performed in the United Kingdom, namely — a the duties of any office or employment under the Crown which is of a public nature and the emoluments of which are payable out of the public revenue of the United Kingdom or of Northern Ireland, and b any duties which a person performs on a vessel engaged on a voyage not extending to a port outside the United Kingdom, or which a person resident in the United Kingdom performs on a vessel or aircraft engaged on a voyage or journey beginning or ending in the United Kingdom, or on a part beginning or ending in the United Kingdom of any other voyage or journey. 4 For the purposes of Case III of Schedule E, emoluments shall be treated as received in the United Kingdom if they are paid, used or enjoyed in, or in any manner or form transmitted or brought to, the United Kingdom, and subsections (4) to (7) of section 122 of this Act (under which income applied outside the United Kingdom in payment of debts is, in certain cases, treated for the purposes of Cases IV and V of Schedule D as received in the United Kingdom) shall apply for the purposes of this subsection as they apply for the purposes of subsection (3) of the said section 122. Accommodation occupied by holder of office or employment 185 1 Where any premises in the United Kingdom are available to the occupier by reason of his or his wife's holding an office or employment, and — a he pays no rent for the premises, or b the rent which he pays for them is less than the annual value of the premises, determined in accordance with section 531 of this Act, the holder of the office or employment shall be treated for the purpose of tax under Schedule E as being in receipt (in addition to any other emoluments) of emoluments at an annual rate equal to the annual value of the premises, determined as aforesaid, reduced by the annual amount of any rent which he pays for them: Provided that this section shall not apply if the rent is not less than might reasonably be expected to have been obtained at the time when the tenancy was granted, having regard to the terms of the tenancy, and, if at any subsequent time the landlord of the premises had the power (whether by terminating the tenancy or otherwise) to obtain a higher rent, the rent is not less than might reasonably be expected to have been obtained as aforesaid at that subsequent time. 2 Where the occupier of premises holds them under a tenancy from or by the leave of the person from whom he or his wife holds an office or employment, or any other person with whom that person is within the terms of section 533 of this Act, connected, the premises shall be conclusively presumed to be available to him by reason of his or his wife's holding the office or employment. 3 Subsection (1) above shall not apply in the case of premises provided by a local authority if the occupier proves that the terms on which he occupies are no more favourable than those on which similar premises provided by that authority are available to persons similarly circumstanced apart from the identity of the employer. 4 For the purposes of this section any person who under section 198(1) below would be a director of a body corporate shall be treated as holding an office from the body corporate. 5 This section shall apply to an occupier being a woman as it applies to an occupier being a man, with the substitution of " her husband " for " his wife ". 6 In this section " terms of the tenancy " does not include any obligation imposed on the occupier or his wife in connection with his or her office or employment. Directors and employees of companies granted rights to acquire shares 186 1 Where a person realises a gain by the exercise, or by the assignment or release, of a right to acquire shares in a body corporate obtained by that person as a director or employee of that or any other body corporate, he shall be chargeable to tax under Schedule E on an amount equal to the amount of his gain, as computed in accordance with this section. 2 Where tax may by virtue of this section become chargeable in respect of any gain which may be realised by the exercise of a right, tax shall not be chargeable under any other provision of the Tax Acts in respect of the receipt of the right. 3 Subject to subsection (8) below — a the gain realised by the exercise of any such right at any time shall be taken to be the difference between the amount that a person might reasonably expect to obtain from a sale in the open market at that time of the shares acquired and the amount or value of the consideration given whether for them or for the grant of the right, and b the gain realised by the assignment or release of any such right shall be taken to be the difference between the amount or value of the consideration for the assignment or release and the amount or value of the consideration given for the grant of the right, (a just apportionment being made of any entire consideration given for the grant of the right to acquire those shares and other shares or otherwise for the grant of the right to acquire those shares and for something besides): Provided that neither the consideration given for the grant of the right nor any such entire consideration shall be taken to include the performance of any duties in or in connection with the office or employment by reason of which the right was granted, and no part of the amount or value of the consideration given for the grant shall be deducted more than once under this subsection. 4 Subject to subsection (5) below a person shall, in the case of a right granted by reason of his office or employment, be chargeable to tax under this section in respect of a gain realised by another person — a if the right was granted to that other person, or b if the other person acquired the right otherwise than by or under an assignment made by way of a bargain at arm's length, or if the two are connected persons at the time when the gain is realised, but in a case within paragraph (b) above the gain realised shall be treated as reduced by the amount of any gain realised by a previous holder on an assignment of the right. 5 A person shall not be chargeable to tax by virtue of subsection (4)(6) above in respect of any gain realised by another person if the first mentioned person was divested of the right by operation of law on his bankruptcy or otherwise, but the other person shall be chargeable to tax in respect of the gain under Case VI of Schedule D. 6 If a right to acquire shares in a body corporate is assigned or released in whole or in part for a consideration which consists of or comprises another right to acquire shares in that or any other body corporate, that other right shall not be treated as consideration for the assignment or release, but this section shall apply in relation to it as it applies in relation to the right assigned or released and as if the consideration for its acquisition did not include the value of the right assigned or released but did include the amount or value of the consideration given for the grant of the right assigned or released so far as that has not been offset by any valuable consideration for the assignment or release other than the consideration consisting of the other right. 7 If as a result of two or more transactions a person ceases to hold a right to acquire shares in a body corporate and he or a connected person comes to hold another right to acquire shares in that or any other body corporate (whether or not acquired from the person to whom the other right was assigned) and any of those transactions was effected under arrangements to which two or more persons holding rights in respect of which tax may be chargeable under this section were parties, those transactions shall be treated for the purposes of the last preceding subsection as a single transaction whereby the one right is assigned for a consideration which consists of or comprises the other right. This subsection applies in relation to two or more transactions whether they involve an assignment preceding, coinciding with, or subsequent to, an acquisition. 8 In the case of a right to acquire shares granted before 3rd May 1966 — a the amount of the gain realised at any time by the exercise, or by the assignment or release, of the right shall not exceed the difference between the market value of those shares at that time and their market value on 3rd May 1966 (and no gain shall be treated as so realised unless the later value exceeds the earlier value), and b subsection (2) above shall not affect tax chargeable under Case I of Schedule E in respect of the receipt of the right, but the amount, if any, on which tax is so chargeable shall be taken into account under subsection (3)(a) and (b) above in relation to the gain realised by the exercise, or by the assignment or release, of the right as if that amount formed part (in addition to any other amount) of the consideration for the grant of the right. 9 For the purposes of this section a right to acquire shares is obtained by a person as a director or employee of a body corporate — a if it is granted to him by reason of his office or employment as a director or employee of the body corporate who is chargeable to tax in respect of that office or employment under Case I of Schedule E, or b if the right is assigned to him and was granted by reason of any such office or employment of his to some other person, and paragraph (a) above shall apply to a right granted by reason of a person's office or employment after he has ceased to hold it if it would apply to a right so granted in the last chargeable period in which he did hold it. 10 For the purposes of this section — a references to the release of a right include references to agreeing to the restriction of the exercise of the right, b any question whether a person is connected with another shall be determined in accordance with section 533 of this Act, c " director " and " employee " have the meanings given by section 224(1) of this Act, and d in so far as the context permits, " shares " includes stock, and this section shall apply in relation to any securities (as defined in section 237(5) of this Act) issued by a body corporate as it applies to shares in that body corporate. 11 Where in any year of assessment a body corporate grants a right in respect of which tax may become chargeable under this section, or allots or transfers any shares in pursuance of such a right, or gives any consideration for the assignment or for the release in whole or in part of such a right, or receives written notice of the assignment of such a right, it shall deliver particulars thereof in writing to the inspector not later than thirty days after the end of that year. 12 If a gain chargeable to tax under subsection (1) or subsection (4) of this section is realised by the exercise of a right to acquire shares — a paragraph 4(1)(a) of Schedule 6 to the Finance Act 1965 (computation of chargeable gains: allowable expenditure) shall apply as if a sum equal to the amount of the gain so chargeable to tax formed part of the consideration given by the person acquiring the shares for their acquisition by him, and b without prejudice to section 162(5) above (Case VII of Schedule D: acquisition of assets taken into account as receipts for tax purposes), the amount of the gain or loss accruing to that person on the acquisition and disposal of any of the shares shall be computed for the purposes of the said Case VII as if the acquisition of the shares were for a consideration equal to their market value at the time when the right is exercised. Payments on retirement or removal from office or employment 187 1 Subject to the provisions of this section and section 188 below, tax shall be charged under Schedule E in respect of any payment to which this section applies which is made to the holder or past holder of any office or employment, or to his executors or administrators, whether made by the person under whom he holds or held the office or employment or by any other person. 2 This section applies to any payment (not otherwise chargeable to tax) which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of the office or employment 01 any change in its functions or emoluments, including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have beer made as aforesaid. 3 For the purposes of this section and the said section 188. any payment made to the spouse or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given. 4 Any payment which is chargeable to tax by virtue of this section shall be treated as income received on the following date, that is to say — a in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected, and b in the case of any other payment, the date of the termination or change in respect of which the payment is made, and shall be treated as emoluments of the holder or past holder of the office or employment assessable to tax under Schedule E ; and any such payment shall be treated for all the purposes of the Income Tax Acts as earned income. 5 In the case of the death of any person who, if he had not died, would have been chargeable to tax in respect of any such payment, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate. 6 This section does not apply to any payment made in pursuance of an obligation incurred before 6th April 1960. 7 Where any payment chargeable to tax under this section is made to any person in any year of assessment, it shall be the duty of the person by whom it is made to deliver particulars thereof in writing to the inspector not later than thirty days after the end of that year. Exemptions and reliefs in respect of tax under s. 187 188 1 Tax shall not be charged by virtue of section 187 above in respect of the following payments, that is to say — a any payment made in connection with the termination of the holding of an office or employment by the death of the holder, or made on account of injury to or disability of the holder of an office or employment, b any sum chargeable to surtax under section 34 of this Act (consideration for certain restrictive covenants), c a benefit provided in pursuance of any such scheme or agreement as is referred to in section 220 of this Act (retirement benefits etc. for directors and employees of bodies corporate), where the holder of the office or employment was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit, d a benefit paid in pursuance of any such scheme or fund as is described in subsections (1) and (2) of section 221 of this Act (exemptions from charge to tax under the said section 220), e any terminal grant, gratuity or other lump sum paid under any Royal Warrant, Queen's Order, or Order in Council relating to members of Her Majesty's forces, and any payment made in commutation of annual or other periodical payments authorised by any such Warrant or Order, f a payment of benefit under any superannuation scheme administered by the government of an overseas territory within the Commonwealth, or of compensation for loss of career, interruption of service or disturbance made in connection with any change in the constitution of any such overseas territory to persons who, before the change, were employed in the public services of that territory, and references in paragraph (f) above to an overseas territory, to the government of such a territory, and to employment in the public services of such a territory shall be construed as if they occurred in the Overseas Service Act 1958, and subsections (2) and (3) of section 7 of that Act (which relate to the construction of such references) shall apply accordingly. 2 Tax shall not be charged by virtue of section 187 above in respect of a payment in the case of which any of the following conditions is satisfied, that is to say — a in any case, that on the relevant date the holder of the office or employment was domiciled elsewhere than in the United Kingdom, and that immediately before that date he held the office or employment under or with any person, body of persons or partnership then resident outside, and not resident in, the United Kingdom, or b in the case of a payment of compensation for loss of office — i that the holder of the office or employment held it under a contract which did not require him to perform any of the duties of the office or employment in the United Kingdom, or ii there being no express requirement in the contract as to the place of performance of those duties, that he did not perform any of them in the United Kingdom during the three years immediately preceding the relevant date, or c in the case of a payment in respect of an office or employment in which the holder's service included foreign service, not being a payment of compensation for loss of office, that the foreign service comprised either — i in any case, three-quarters of the whole period of service down to the relevant date, or ii where the period of service down to the relevant date exceeded ten years, the whole of the last ten years, or iii where the period of service down to the relevant date exceeded twenty years, one-half of that period, including any ten of the last twenty years ; and where an office or employment was in substance one the duties of which fell in any year to be performed outside the United Kingdom, there shall, for the purposes of paragraph (b) above, be treated as so performed any duties performed in the United Kingdom the performance of which was merely incidental to the performance of the other duties outside the United Kingdom. 3 Tax shall not be charged by virtue of section 187 above in respect of a payment of an amount not exceeding £5,000, and in the case of a payment which exceeds that amount shall be charged only in respect of the excess: Provided that, where two or more payments in respect of which tax is chargeable by virtue of that section, or would be so chargeable apart from the preceding provisions of this subsection, are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, this subsection shall apply as if those payments were a single payment of an amount equal to that aggregate amount; and the amount of any one payment chargeable to tax shall be ascertained as follows, that is to say — a where the payments are treated as income of different chargeable periods, the said sum of £5,000 shall be deducted from a payment treated as income of an earlier period before any payment treated as income of a later period, and b subject as aforesaid, the said sum shall be deducted rateably from the payments according to their respective amounts. 4 The person chargeable to tax by virtue of section 187 above in respect of any payment may make a claim for such relief in respect of the payment as is applicable thereto under Schedule 8 to this Act. 5 For the purposes of this section and the said Schedule 8 offices or employments in respect of which payments to which section 187 above applies are made shall be treated as held under associated employers if, on the date which is the relevant date in relation to any of those payments, one of those employers is under the control of the other or of a third person who controls or is under the control of the other on that or any other such date (" control" here having the meaning given by section 534 of this Act). 6 In this section " the relevant date ", " payment of compensation for loss of office " and " foreign service " have the same meaning as in the said Schedule 8, and references to an employer or to a person controlling or controlled by an employer include references to his successors. Reliefs Relief for necessary expenses 189 1 If the holder of an office or employment is necessarily obliged to incur and defray out of the emoluments thereof the expenses of travelling in the performance of the duties of the office or employment, or of keeping and maintaining a horse to enable him to perform the same, or otherwise to expend money wholly, exclusively and necessarily in the performance of the said duties, there may be deducted from the emoluments to be assessed the expenses so necessarily incurred and defrayed. 2 Subject to subsection (3) below, where the emoluments for any duties do not fall within Case I or II of Schedule E, then in relation to those or any other emoluments of the office or employment, subsection (1) above and Chapter II of Part I of the Capital Allowances Act 1968 (capital allowances in respect of machinery and plant) shall apply as if the performance of those duties did not belong to that office or employment. 3 There may be deducted from any emoluments chargeable under Case III of Schedule E the amount of any expenses defrayed out of those emoluments, and of any other expenses defrayed in the United Kingdom in the chargeable period or in an earlier chargeable period in which the holder of the office or employment has been resident in the United Kingdom, being in either case expenses for which a deduction might have been made under subsection (1) above from emoluments of the office or employment if they had been chargeable under Case I of Schedule E for the chargeable period in which the expenses were incurred ; but a deduction shall not be made twice, whether under this subsection or otherwise, in respect of the same expenses from emoluments of the office or employment. Interest on loans to purchase machinery or plant 190 1 Subject to the provisions of this section, where the holder of an office or employment — a is under Chapter II of Part I of the Capital Allowances Act 1968 entitled to a capital allowance, or liable to a balancing charge, for any year of assessment in respect of machinery or plant belonging to him and in use for the purposes of the office or employment, and b pays interest in that year on a loan to defray money applied as capital expenditure on the provision of that machinery or plant, there may be deducted from the emoluments to be assessed for that year the amount of the interest so paid. 2 No relief shall be given under this section in respect of interest falling due and payable more than three years after the end of the year of assessment in which the debt was incurred, or in respect of interest at more than a reasonable commercial rate. 3 Where the machinery or plant is in use partly for the purposes of the office or employment and partly for other purposes, section 28 of the Capital Allowances Act 1968 (part-time use) shall apply in relation to relief under this section as it applies in relation to writing-down allowances. 4 Where credit is given for any money payable to defray any capital expenditure, that shall be treated for the purposes of this section as the making of a loan to defray that capital expenditure. 5 Section 63 of this Act (overdrafts) shall have effect as if this section were included in sections 57 to 61 of this Act. Expenses necessarily incurred, and defrayed from official emoluments 191 Where the Minister for the Civil Service is satisfied with respect to any class of persons in receipt of any salary, fees or emoluments payable out of the public revenue that such persons are obliged to lay out and expend money wholly, exclusively and necessarily in the performance of the duties in respect of which such salary, fees or emoluments are payable, the Minister for the Civil Service may fix such sum as in his opinion represents a fair equivalent of the average annual amount laid out and expended as aforesaid by persons of that class, and in charging income tax on the said salary, fees or emoluments there shall be deducted from the amount thereof the sums so fixed by the Minister for the Civil Service: Provided that if any person would, but for the provisions of this section, be entitled to deduct a larger amount than the sum so fixed, that amount may be deducted instead of the sum so fixed. Fees and subscriptions to professional bodies, learned societies etc. 192 1 Subject to the following provisions of this section, the following may be deducted from the emoluments of any office or employment to be assessed to tax, if defrayed out of those emoluments, that is to say — a any fee or contribution mentioned in subsection (2) below, and b any annual subscription paid to a body of persons approved for the purposes of this section by the Board. 2 The fees and contributions referred to in subsection (1)(a) above are — a the fee payable in respect of the retention of a name in the Register of Architects, b the fee payable in respect of the retention of a name in the dentists register or in a roll or record kept for a class of ancillary dental workers, c the fee payable in respect of the retention of a name in either of the registers of ophthalmic opticians or in the register of dispensing opticians, d the annual fee payable by a registered patent agent, e the fee payable in respect of the retention of a name in the register of pharmaceutical chemists, f the fee and contribution to the Compensation Fund or Guarantee Fund payable on the issue of a solicitor's practising certificate, and g the annual fee payable by a registered veterinary surgeon or by a person registered in the Supplementary Veterinary Register. 3 The Board may, on the application of the body, approve for the purposes of this section any body of persons not of a mainly local character whose activities are carried on otherwise than for profit and are solely or mainly directed to all or any of the following objects — a the advancement or spreading of knowledge (whether generally or among persons belonging to the same or similar professions or occupying the same or similar positions), b the maintenance or improvement of standards of conduct and competence among the members of any profession, c the indemnification or protection of members of any profession against claims in respect of liabilities incurred by them in the exercise of their profession. 4 If the activities of a body approved for the purposes of this section are to a significant extent directed to objects other than those mentioned in subsection (3) above, the Board may determine that such specified part only of any annual subscription paid to the body may be deducted under this section as corresponds to the extent to which its activities are directed to objects mentioned in that subsection ; and in doing so the Board shall have regard to all relevant circumstances and, in particular, to the proportions of the body's expenditure attributable to the furtherance of objects so mentioned and other objects respectively. 5 A fee, contribution or subscription shall not be deducted under this section from the emoluments of any office or employment unless — a the fee is payable in respect of a registration (or retention of a name in a roll or record) or certificate which is a condition, or one of alternative conditions, of the performance of the duties of the office or employment or, as the case may be, the contribution is payable on the issue of such a certificate, or b the subscription is paid to a body the activities of which, so far as they are directed to the objects mentioned in subsection (3) above, are relevant to the office or employment, that is to say, the performance of the duties of the office or employment is directly affected by the knowledge concerned or involves the exercise of the profession concerned. 6 Any approval given and any determination made under this section may be withdrawn, and any such determination varied, so as to take account of any change of circumstances; and where a body is approved for the purposes of this section in pursuance of an application made before the end of any year of assessment, a deduction may be made under this section in respect of a subscription paid to the body in that year, whether the approval is given before or after the end of the year. 7 Any body aggrieved by the failure of the Board to approve the body for the purposes of this section, or by their withdrawal of the approval, or by any determination made by them under this section or the variation of or refusal to withdraw or vary such a determination may, by notice in writing given to the Board within thirty days from the date on which the body is notified of their decision, require the matter to be determined by the Special Commissioners, and the Special Commissioners shall thereupon hear and determine the matter in like manner as an appeal. Travelling expenses due to war of 1939 193 If it is shown in the case of a person assessed to income tax under Schedule E in respect of any office or employment — a that his place of work or his residence has changed through circumstances connected with the war which began in the year 1939, and b that in consequence he is obliged to incur, and defray out of the salary, fees, wages, perquisites or profits or gains arising from the office or employment, additional expense in travelling between his residence and his work, the additional expense so incurred and defrayed shall be allowed as a deduction from the salary, fees, wages, perquisites or profits or gains of the office or employment in computing the amount of the assessment, so, however, that not more than £10 shall be allowed in the case of any person in any year. Expenditure and houses of ministers of religion 194 1 For the purposes of section 185 of this Act, any premises an interest in which belongs to a charity or any ecclesiastical corporation, and in which (in right of that interest) — a the persons from time to time holding any full-time office as clergyman or minister of any religious denomination, or b any particular person holding such an office, have or has a residence from which to perform the duties of the office, shall be treated as occupied otherwise than by the holder of the office, whether apart from this section they would be so treated for those purposes or not. 2 Where a clergyman or minister of any religious denomination has such a residence as aforesaid in any premises, and has it in right of such an interest as aforesaid, then, for the purposes of income tax with which he may be chargeable under Schedule E, there shall be disregarded — a the making good to him, in consequence of his being the holder of his office, of statutory amounts payable in connection with the premises or statutory deductions falling to be made in connection therewith, except in so far as an amount or deduction is properly attributable to a part of the premises in respect of which he receives rent, b the payment on his behalf, except as aforesaid, of such a statutory amount, and c the value to him of any expenses incurred in connection with the provision in the premises of living accommodation for him, being expenses incurred in consequence of his being the holder of his office. 3 In assessing the income tax chargeable (whether under Schedule E or any other Schedule) upon a clergyman or minister of any religious denomination, the following deductions may be made from any profits, fees, or emoluments of his profession or vocation — a any sums of money paid or expenses incurred by him wholly, exclusively and necessarily in the performance of his duty as a clergyman or minister, b such part of the rent (not exceeding one-quarter) as the inspector by whom the assessment is made may allow, paid by him in respect of a dwelling-house any part of which is used mainly and substantially for the purposes of his duty as such clergyman or minister, and c in respect of expenses borne by him in the maintenance, repairs, insurance or management of any premises in which, in right of such an interest as is mentioned in subsection (1) above, he has such a residence as is therein mentioned, such part of the expenses as, together with any deduction allowable in respect of such expenses under paragraph (a) above, is equal to one-quarter of the amount of the expenses. On an appeal to the General Commissioners or the Special Commissioners, the Commissioners shall have jurisdiction to review the inspector's decision under paragraph (b) above. 4 In this section, "statutory amount" and " statutory deduction" mean an amount paid and a deduction made in pursuance of any provision contained in or having the force of an Act. CHAPTER II Expenses Allowances to Directors and Others Expenses allowances, etc. 195 1 Subject to the provisions of this Chapter, any sum paid in respect of expenses by a body corporate to any of its directors, or to any person employed by it in an employment to which this Chapter applies, shall, if not otherwise chargeable to tax as income of that director or employee, be treated for the purposes of section 183 above as a perquisite of the office or employment of that director or employee and included in the emoluments thereof assessable to tax accordingly: Provided that nothing in this subsection shall prevent a claim for a deduction being made under section 189 above in respect of any money expended wholly, exclusively and necessarily in performing the duties of the office or employment, or under section 192 above in respect of any such fee, contribution or subscription as is mentioned in that section. 2 In this section, and, in relation to any director or person employed in an employment to which this Chapter applies, in so much of section 15 of the Taxes Management Act 1970 as requires employers in certain cases to give particulars of payments to directors and employees in respect of expenses, any reference to a sum paid in respect of expenses includes a reference to any sum put by a body corporate at the disposal of a director or employee and paid away by him. Benefits in kind to be taken into account 196 1 Subject to the following provisions of this Chapter, where a body corporate incurs expense in or in connection with the provision, for any of its directors or for any person employed by it in an employment to which this Chapter applies, of living or other accommodation, of entertainment, of domestic or other services or of other benefits or facilities of whatsoever nature, and, apart from this section, the expense would not be chargeable to tax as income of the director or employee, section 195 above, and section 15 of the Taxes Management Act 1970, shall have effect in relation to so much of the said expense as is not made good to the body corporate by the director or employee as if the expense had been incurred by the director or employee and the amount thereof had been refunded to him by the body corporate by means of a payment in respect of expenses: Provided that, where in the case of any premises any amount falls under section 185(1) of this Act to be treated as a person's emoluments, then, if this subsection applies to expense incurred in the provision of accommodation for him in the premises, the expense shall be treated for the purposes of this section as reduced by that amount (or, if that amount is greater than the expense, shall be treated as not having been incurred). 2 The provisions of subsection (1) above shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, in any of its business premises, of any accommodation, supplies or services provided for the director or employee himself and used by him solely in performing the duties of his office or employment. 3 The provisions of subsection (1) above shall not apply to expense incurred by the body corporate in or in connection with the provision of living accommodation for an employee in part of any of its business premises which include living accommodation if the employee is, for the purpose of enabling him properly to perform his duties, required by the terms of his employment to reside in the accommodation and either — a the accommodation is provided in accordance with a practice which since before 30th July 1928 has commonly prevailed in trades of the class in question as respects employees of the class in question, or b it is necessary, in the case of trades of the class in question, that employees of the class in question should reside on premises of the class in question: Provided that this subsection shall not apply where the employee is a director of the body corporate in question or of any other body corporate over which that body corporate has control or which has control over that body corporate or which is under the control of a person who also has control over that body corporate. 4 The provisions of subsection (1) above shall not apply to expense incurred by the body corporate in or in connection with the provision of meals in any canteen in which meals are provided for the staff generally. 5 The provisions of subsection (1) above shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee himself, or for his spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on his death or retirement. 6 Any reference in this section to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter. Valuation of benefits in kind 197 1 Any expense incurred by a body corporate in the acquisition or production of an asset which remains its own property shall be left out of account for the purposes of section 196 above. 2 Where the making of any such provision as is mentioned in subsection (1) of the said section 196 takes the form of a transfer of the property in any asset of the body corporate, and, since the acquisition or production thereof by the body corporate, the asset has been used or has depreciated, the body corporate shall be deemed to have incurred in the making of the said provision expense equal to the value of the asset at the time of the transfer. 3 Where an asset which continues to belong to the body corporate is used wholly or partly in the making of any such provision as is mentioned in subsection (1) of the said section 196, the body corporate shall be deemed for the purposes of that section to incur (in addition to any other expense incurred by it in connection with the asset, not being expense to which subsection (1) of this section applies) annual expense in connection therewith of an amount equal to the annual value of the use of the asset: Provided that, where any sum by way of rent or hire is payable by the body corporate in respect of the asset — a if the annual amount of the rent or hire is equal to or greater than the annual value of the use of the asset, this subsection shall not apply, and b if the annual amount of the rent or hire is less than the annual value of the use of the asset, the rent or hire shall be left out of account for the purposes of the said section 196. 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 section 531 of this Act. Meaning of " director ", " employment ", and " employment to which this Chapter applies " 198 1 In this Chapter " director " means — a in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body, b in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person, c in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate, and includes any person in accordance with whose directions or instructions the directors of the body corporate, defined in accordance with the preceding provisions of this subsection, are accustomed to act: Provided that a person shall not, within the meaning of this subsection, be deemed to be a person in accordance with whose directions or instructions the directors of a body corporate are accustomed to act by reason only that the said directors act on advice given by him in a professional capacity. 2 In this Chapter "employment" means an employment such that any emoluments thereof would fall to be assessed under Schedule E, and references to persons employed by, or employees of, a body corporate include any person who takes part in the management of the affairs of the body corporate and is not a director thereof. 3 Subject to the proviso to this subsection and to subsections (4) and (5) below the employments to which this Chapter applies are employments the emoluments of which, calculated on the basis that they are employments to which this Chapter applies, and without any deduction being made under section 189 of this Act in respect of money expended in performing the duties thereof, or under section 192 of this Act in respect of any fee, contribution or subscription, are at the rate of £2,000 a year or more: Provided that — a where a person is employed in several employments by the same body corporate, and the total of the emoluments of those employments, calculated as aforesaid, is at the rate of £2,000 a year or more, all those employments shall be treated as employments to which this Chapter applies, and b where a person is a director of a body corporate, all employments in which he is employed by the body corporate shall be treated as employments to which this Chapter applies. 4 All the directors of, and persons employed by, a body corporate over which another body corporate has control, shall be treated for the purposes of the proviso to subsection (3) above (but not for any other purpose) as if they were directors of, or, as the case may be, as if the employment were an employment by, that other body corporate. 5 Notwithstanding anything in the preceding provisions of this section, no employment of a person by a body corporate at a school or other educational establishment carried on by that body corporate shall be an employment to which this Chapter applies, or be taken into account in determining whether any other employment is an employment to which this Chapter applies. Saving for certain payments and expenses 199 If a body corporate furnishes to the inspector a statement of the cases and the circumstances in which payments of a particular nature are made, or things of a particular nature are provided, for any of its directors or employees, and the inspector is satisfied that no additional tax would fall to be paid if this Chapter were to apply in relation to payments made or things provided by the body corporate in accordance with the statement, he shall notify the body corporate accordingly and, where such a notification is given, this Chapter shall not apply in relation to payments made or things provided by the body corporate in accordance with the statement: Provided that the inspector may, if in his opinion there is reason so to do, by notice in writing served on the body corporate revoke any such notification, either as from the date of the making of the notification or as from such later date as may be specified in the notice, and thereupon all such tax shall become chargeable, and all such returns shall be made by the body corporate and by the directors or employees in question, as would have been chargeable or would have had to be made in the first instance if the notification had never been given or, as the case may be, if it had ceased to have effect on the specified date. Additional information 200 Where, for the purposes of a return under section 15 of the Taxes Management Act 1970 (payments to directors and other employees), a body corporate apportions expenses incurred partly in or in connection with a particular matter and partly in or in connection with other matters, the return shall contain a statement that the sum included in the return is the result of such an apportionment, and the body corporate, if required so to do by notice from the inspector, shall prepare and deliver to the inspector, within the time limited by the notice, a return containing full particulars as to the amount apportioned and the manner in which and the grounds on which the apportionment has been made. Charities and non-trading bodies 201 This Chapter shall not apply in relation to any body corporate established for charitable purposes only, or to any other body corporate unless it carries on a trade or its functions consist wholly or mainly in the holding of investments or other property, or, except in relation to persons employed by it in an employment to which this Chapter applies wholly or mainly for the purposes of a trade carried on by it, to any local authority. Interpretation 202 1 In this Chapter " business premises ", in relation to a body corporate, includes all premises occupied by that body for the purposes of any trade carried on by it: Provided that, except where the reference is expressly to premises which include living accommodation, the said expression does not include so much of any such premises as aforesaid as is used wholly or mainly as living accommodation for any of the directors of the body corporate or for any persons employed by the body corporate in any employment to which this Chapter applies. 2 Any reference in this Chapter to anything provided for a director or employee shall, unless the reference is expressly to something provided for the director or employee himself, be construed as including a reference to anything provided for the spouse, family, servants, dependants or guests of that director or employee, and the reference in the proviso to subsection (1) above to living accommodation for directors or employees shall be construed accordingly. 3 In this Chapter " control ", in relation to a body corporate, has the meaning given by section 534 of this Act. Unincorporated bodies and partnerships 203 1 The provisions of this Chapter shall apply in relation to unincorporated societies and other bodies as they apply in relation to bodies corporate, and, in connection with those provisions, the definition of " control" in section 534 of this Act shall, with the necessary adaptations, also so apply. 2 The said provisions shall apply in relation to any partnership carrying on any trade, profession or vocation as they would apply in relation to a body corporate carrying on a trade if so much thereof as relates to directors of the body corporate or persons taking part in the management of the affairs of the body corporate were omitted: Provided that — a " control " has, in relation to a partnership, the meaning assigned to it by section 534 of this Act in relation to a partnership, and b where such a partnership as aforesaid has control over a body corporate to which this Chapter applies — i any employment of any director of the body corporate by the partnership shall be an employment to which this Chapter applies, and ii all the employments of any person who is employed both by the partnership and by the body corporate (being employments by the partnership or the body corporate) shall, for the purpose of seeing whether those employments or any of them are employments to which this Chapter applies, be treated as if they were employments by the body corporate. 3 Subsection (2) above shall apply in relation to individuals as it applies in relation to partnerships: Provided that nothing in this subsection shall be construed as requiring an individual to be treated in any circumstances as under the control of another person. CHAPTER III Assessment, Collection, Recovery and Appeals Pay as you earn 204 1 On the making of any payment of, or on account of, any income assessable to income tax under Schedule E, income tax shall, subject to and in accordance with regulations made by the Board under this section, be deducted or repaid by the person making the payment, notwithstanding that when the payment is made no assessment has been made in respect of the income and notwithstanding that the income is in whole or in part income for some year of assessment other than the year during which the payment is made. 2 The Board shall make regulations with respect to the assessment, charge, collection and recovery of income tax in respect of all income assessable thereto under Schedule E, and those regulations may, in particular, include provision — a for requiring any person making any payment of, or on account of, any such income, when he makes the payment, to make a deduction or repayment of income tax calculated by reference to tax tables prepared by the Board, and for rendering persons who are required to make any such deduction or repayment accountable to, or, as the case may be, entitled to repayment from, the Board, b for the production to and inspection by persons authorised by the Board of wages sheets and other documents and records for the purpose of satisfying themselves that income tax has been and is being deducted, repaid and accounted for in accordance with the regulations, c for the collection and recovery, whether by deduction from any such income paid in any later year or otherwise, of income tax in respect of any such income which has not been deducted or otherwise recovered during the year, d for the assessment and charge of income tax by the inspector in respect of income to which this section applies, and e for appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal, and any such regulations shall have effect notwithstanding anything in the Income Tax Acts: Provided that — i the deductions of income tax required to be made under paragraph (d) above may be required to be made at the standard rate in such cases or classes of cases as may be provided for by the regulations, and ii the regulations shall not affect any right of appeal to the General or Special Commissioners which a person would have apart from the regulations. 3 The said tax tables shall be constructed with a view to securing that, so far as possible — a the total income tax payable in respect of any income assessable under Schedule E for any year of assessment is deducted from such income paid during that year, and b the income tax deductible or repayable on the occasion of any payment of, or on account of, any such income is such that the total net income tax deducted since the beginning of the year of assessment bears to the total income tax payable for the year the same proportion that the part of the year which ends with the date of the payment bears to the whole year. In this subsection references to the total income tax payable for the year shall be construed as references to the total income tax, other than surtax, estimated to be payable for the year in respect of the income in question, subject to a provisional deduction for allowances and reliefs, and subject also, if necessary, to an adjustment for amounts overpaid or remaining unpaid on account of income tax in respect of income assessable under Schedule E for any previous year. For the purpose of estimating the total income tax payable as aforesaid, it may be assumed in relation to any payment of, or on account of, income assessable under Schedule E that the income paid in the part of the year of assessment which ends with the making of the payment will bear to the income for the whole of that year the same proportion as that part of the year bears to the whole year. 4 The powers conferred by this section to make regulations shall be exercisable by statutory instrument, and all regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons. Formal assessments to be unnecessary in certain cases 205 1 Subject to the provisions of this section, no assessment under Schedule E need be made on a person in respect of income of his assessable to income tax under that Schedule for any year of assessment if the total net tax deducted in the year in question from that income is the same as it would have been if all the relevant circumstances had been known to all parties throughout the year, and deductions and repayments had throughout the year been made accordingly, and had been so made bv reference to cumulative tax tables. In this subsection — a "cumulative tax tables" means tax tables prepared under section 204 above which are so framed as to require the tax which is to be deducted or repaid on the occasion of each payment made in the year to be ascertained by reference to a total of emoluments paid in the year up to the time of making that payment, and b references to the total net tax deducted shall be construed as references to the total income tax deducted during the year by virtue of regulations made under the said section 204, less any income tax repaid by virtue of any such regulations. 2 Nothing in this section shall be construed as preventing an assessment being made on a person in respect of his income assessable under Schedule E, and, without prejudice to the generality of the preceding provisions of this subsection, an assessment shall be made in respect of the income of a person so assessable for any year of assessment if the person assessable requires an assessment to be made by notice in writing given to the inspector within five years from the end of the year of assessment. Additional provision for certain Schedule E assessments 206 Where an assessment to income tax under Schedule E is made as respects income which — a has been taken into account in the making of deductions or repayments of tax under section 204 above, and b was received not less than twelve months before the beginning of the year of assessment in which the assessment is made, then, if the assessment is made after the expiration of the period of twelve months immediately following the year of assessment for which it is made, it shall be made in accordance with the practice generally prevailing at the expiration of that period. Disputes as to domicile or ordinary residence 207 Where a dispute arises under paragraph 1 of Schedule E whether a person is or has been ordinarily resident or domiciled in the United Kingdom or under section 188 above as to the domicile of any person, the question shall be referred to and determined by the Board; but any person who is aggrieved by their decision on the question may, by notice in writing to that effect given to them within three months from the date on which notice of the decision is given to him, make an application to have the question heard and determined by the Special Commissioners, and where an application is so made, the Special Commissioners shall hear and determine the question in like manner as an appeal. PART IX Pension Schemes, Life Annuities Etc CHAPTER I Pension Schemes Generally, and Social Security Benefits and Contributions Approved superannuation funds 208 1 Subject to the provisions of this section and to any regulations made thereunder, exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of income derived from investments or deposits of a superannuation fund ; and subject as aforesaid, any sum paid by an employer or employed person by way of contribution towards a superannuation fund shall, in computing profits or gains for the purpose of an assessment to tax under Case I or II of Schedule D or under Schedule E, be allowed to be deducted as an expense incurred in the chargeable period in which the sum is paid: Provided that — a no allowance shall be made under the preceding provision in respect of any contribution by an employed person which is not an ordinary annual contribution, and, where a contribution by an employer is not an ordinary annual contribution, it shall, for the purpose of the preceding provision, be treated, as the Board may direct, either as an expense incurred in the chargeable period in which the sum is paid, or as an expense to be spread over such period of years as the Board think proper, and b no allowance shall be made under this section in respect of any payments in respect of which relief can be given under section 19 or 20 of this Act (relief for life insurance premiums and certain other payments). 2 There shall be exempt from tax chargeable under Case VII of Schedule D any gain accruing to a person from his acquisition and disposal of investments or deposits held by him as part of a superannuation fund, and for the purposes of capital gains tax a gain shall not be a chargeable gain if accruing to a person from his disposal of investments held by him as part of a superannuation fund: Provided that where part only of a fund is approved as a superannuation fund under this section the gain in question shall be exempt from tax or from being a chargeable gain to the same extent only as income derived from the assets would be exempt under subsection (1) above. 3 Income tax chargeable in respect of an annuity paid out of a superannuation fund to a person residing in the United Kingdom shall, if the Board so direct, be assessed and charged on the annuitant under Schedule E instead of being deducted and accounted for under section 53 of this Act (payments not out of profits or gains brought into charge); and where such a direction has been given, the annuity shall be deemed for all the purposes of the Income Tax Acts to be income assessable under that Schedule. 4 For the purposes of this section, " superannuation fund " means, unless the context otherwise requires, a fund which is approved for those purposes by the Board, and, subject as hereinafter provided, the Board shall not approve any fund unless it is shown to their satisfaction that — a the fund is a fund bona fide established under irrevocable trusts in connection with some trade or undertaking carried on in the United Kingdom by a person residing therein, and b the fund has for its sole purpose the provision of annuities for all or any of the following persons in the events respectively specified, that is to say, for persons employed in the trade or undertaking, either on retirement at a specified age or on becoming incapacitated at some earlier age, or for the widows, children or dependants of persons who are or have been so employed, on the death of those persons, and c the employer in the trade or undertaking is a contributor to the fund, and d the fund is recognised by the employer and employed persons in the trade or undertaking: Provided that the Board may, if they think fit, and subject to such conditions, if any, as they think proper to attach to the approval, approve a fund, or any part of a fund, as a superannuation fund for the purposes of this section — i notwithstanding that the rules of the fund provide for the return in certain contingencies of contributions paid to the fund, or ii if the main purpose of the fund is the provision of such annuities as aforesaid, notwithstanding that such provision is not its sole purpose, or iii notwithstanding that the trade or undertaking in connection with which the fund is established is carried on only partly in the United Kingdom and by a person not residing therein. 5 The Board may make regulations generally for the purpose of carrying this section into effect and, in particular, and without prejudice to the generality of the preceding provision, may by such regulations — a provide for the charging of and accounting for tax in respect of contributions (including interest) repaid to a contributor to a superannuation fund and on lump sums paid in commutation of or in lieu of annuities payable out of a superannuation fund as if any sums so repaid or paid were income of the chargeable period in which they are repaid or paid, b require the trustees or other persons having the management of a superannuation fund, or an employer whose employees contribute to a superannuation fund, to deliver to the Board such information and particulars as the Board may reasonably require for the purposes of this section, c prescribe the manner in which applications for the approval of a superannuation fund are to be made, d provide for the withdrawal of approval in the case of a fund which ceases to satisfy the requirements of this section, e provide for determining what contributions to a superannuation fund are to be treated as ordinary annual contributions for the purposes of this section. 6 The power conferred by subsection (5) above to make regulations shall be exercisable by statutory instrument. Contributions under statutory pension schemes 209 1 Where, in pursuance of any public general Act of Parliament, superannuation allowances or gratuities are payable to individuals holding an office or employment on their retirement, or to their legal personal representatives on their death, and such individuals are by any such Act required to make contributions towards the expenses of providing the allowances and gratuities, the sums so contributed by any such individual for any year may be deducted from the amount of his emoluments to be assessed to income tax for that year. 2 Where any such sums as are mentioned in subsection (1) above are to be repaid to any individual under the authority of any such Act as is therein mentioned, the person by or through whom the sums are to be repaid shall deduct from those sums an amount equal to the total amount of the income tax which would have been paid in respect of those sums if they had not been allowed as deductions under the authority of this section, and, if those sums are repaid with any interest thereon, shall also deduct therefrom an amount equal to the total amount of the income tax which would have been paid in respect of that interest if it had actually been paid to the individual in the several years in respect of which it is paid, and the provisions of subsections (2) and (3) of section 53 of this Act (payments not out of profits or gains brought into charge) shall apply in regard to the accounting for and recovery of the amounts so deducted. 3 Any person having the custody of the books containing the assessments to income tax on any individual for the several years in respect of which sums are repayable to him as aforesaid shall, notwithstanding anything contained in any declaration made by that person in pursuance of section 6 of the Taxes Management Act 1970, on application by the person by or through whom the sums are repayable, furnish to him such particulars as may be necessary to enable him to compute the appropriate amount of income tax to be deducted and paid over by him as aforesaid. Disallowance of contributions for widows' and other pensions 210 Relief from income tax shall not be allowed under any provision of the Income Tax Acts to any person in respect of — a any contributions made by him under Part III or IV of the Superannuation Act 1965, or b any contributions made by him under any enactments of the Parliament of Northern Ireland corresponding to the said Parts III and IV, and, in particular, under Parts II and III of the Superannuation Act (Northern Ireland) 1967, or c any contribution under section 8 or 9 of the Administration of Justice (Pensions) Act 1950. Parliamentary pension funds 211 1 The salary of a Member of the House of Commons shall, for all the purposes of the Income Tax Acts, be treated as reduced by the amounts deducted in pursuance of section 1 of the House of Commons Members' Fund Act 1939 ; but a Member shall not by reason of any such deduction be entitled to relief under any other provision of the Income Tax Acts. In this subsection the reference to salary shall be construed as mentioned in subsection (3) of the said section 1, the reference to amounts deducted includes a reference to amounts required to be set aside under that subsection, and " deduction " shall be construed accordingly. 2 The respective trustees of — a the House of Commons Members' Fund established under section 1 of the said Act of 1939, b the Members' Contributory Pension Fund constituted under section 4(2) of the Ministerial Salaries and Members' Pensions Act 1965, and c the Members' Contributory Pension (Northern Ireland) Fund constituted under section 3(2) of the Ministerial Salaries and Members' Pensions Act (Northern Ireland) 1965, shall be entitled to exemption from income tax in respect of all income derived from the said Funds or any investment thereof. A claim under this subsection shall be made to the Board. 3 A gain accruing to a person from his acquisition and disposal of assets held by him as part of any Fund mentioned in subsection (2) above shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 4 Periodical payments granted out of the House of Commons Members' Fund (including periodical payments granted out of sums appropriated from that Fund or out of the income from those sums) shall be charged to income tax under Schedule 5 Any sum payable out of the Members' Contributory Pension Fund or the Members' Contributory Pension (Northern Ireland) Fund under section 13(1) of the Ministerial Salaries and Members' Pensions Act 1965 or, as the case may be, section 12(1) of the Ministerial Salaries and Members' Pensions Act (Northern Ireland) 1965 (transfer to other pension schemes of sums representing accrued pension rights) shall be treated for the purposes of the Income Tax Acts as having been paid in commutation of an annuity payable by a superannuation fund within the meaning of section 208 of this Act; and each such Fund shall be treated as such a superannuation fund for the purposes of any regulations made under the said section 208. National insurance supplementary schemes etc. 212 1 All income receivable from any source whatsoever for the purposes of any supplementary scheme under section 46 of the National Insurance Act 1965, under section 45 of the National Insurance Act (Northern Ireland) 1966, under section 82 of the National Insurance (Industrial Injuries) Act 1965 or under section 77 of the National Insurance (Industrial Injuries) Act (Northern Ireland) 1966 by the body charged with the administration of the scheme shall be exempt from income tax. 2 The body incorporated by Royal Charter under the name of the Royal Seamen's Pension Fund or other the persons in whom the seamen's special fund is for the time being vested shall, in respect of the income derived from that Fund, be entitled to exemption from income tax. In this subsection " the seamen's special fund " means the fund referred to as such in paragraph 19(c) of Schedule 11 to the National Insurance Act 1965. 3 A claim under subsection (1) or (2) above shall be made to the Board. 4 A gain accruing to a person from his acquisition and disposal of assets held by him as part of a fund of which income is exempt from tax under subsection (1) or (2) above shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. Indian family pension funds 213 1 Any interest or dividends received by the Commissioners in whom is vested any of the Family Pension Funds mentioned in section 273 of the Government of India Act 1935 on sums forming part of that fund shall be exempt from income tax. 2 A gain accruing to the Commissioners from their acquisition and disposal of assets held by them as part of any such fund shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. Indian, Pakistan and colonial pensions and pension funds 214 1 A pension of any of the following descriptions — a a pension paid under the authority of the Pensions (India, Pakistan and Burma) Act 1955, b a pension paid out of any fund established in the United Kingdom by the government of any country which is, or forms part of, a country mentioned in section 1(3) of the British Nationality Act 1948 by virtue of any enactment passed after 1956, an associated state, a colony, a protectorate, a protected state or a United Kingdom trust territory, or by a government constituted for two or more such countries, if the fund was established for the sole purpose of providing pensions, whether contributory or not, payable in respect of service under that government, c a pension paid out of the fund formed under the Overseas Superannuation Scheme (formerly known as the Colonial Superannuation Scheme), shall not be liable to charge to income tax if it is the income of a person who satisfies the Board that he is not resident in the United Kingdom: Provided that this subsection shall not apply to so much of any pension falling within paragraph (a) thereof as is paid by virtue of the application to the pension of the Pensions (Increase) Acts. 2 Income derived from investments or deposits of any fund referred to in paragraph (b) or (c) of subsection (1) above shall not be charged to income tax, and any income tax deducted from any such income shall be repaid by the Board to the persons entitled to receive the income. 3 A claim under subsection (1) or (2) above shall be made to the Board. 4 A gain accruing to a person from his acquisition and disposal of assets held by him as part of a fund referred to in paragraph (b) or (c) of subsection (1) above shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 5 In this section — " pension " includes a gratuity or any sum payable on or in respect of death, and a return of contributions with or without interest thereon or any other addition thereto, " Pensions (Increase) Acts " means the Pensions (Increase) Acts 1944 and 1947, the Pensions (Increase) Act 1952, the Pensions (Increase) Act 1954, the Pensions (Increase) Act 1956, the Pensions (Increase) Act 1959, the Pensions (Increase) Act 1962, the Pensions (Increase) Act 1965 and any Act passed after 3rd August 1966 for purposes corresponding to the purposes of the said Act of 1965, " United Kingdom trust territory " means a territory administered by the government of the United Kingdom under the trusteeship system of the United Nations, and references to a government constituted for two or more countries include references to any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more countries. Pensions under Overseas Service Act 1958 215 1 So much of any pension paid to or in respect of any person — a under an order made under section 2 of the Overseas Service Act 1958, or under a pension scheme provided and maintained under such an order, or b under section 4(2) of that Act, as may be certified by the Secretary of State to be attributable to the employment of that person in the public services of an overseas territory shall not be liable to charge to income tax if it is the income of a person who satisfies the Board that he is not resident in the United Kingdom. 2 A claim under subsection (1) above shall be made to the Board. 3 In subsection (1) above — " pension " includes a gratuity or any sum payable on or in respect of death, and a return of contributions with or without interest thereon or any addition thereto, " overseas territory " means any territory or country outside the United Kingdom, and the reference in that subsection to employment in the public services of an overseas territory shall be construed as if it occurred in the said Act of 1958, and subsections (2) and (3) of section 7 of that Act shall apply accordingly. Central African Pension Fund 216 1 A pension paid out of the Central African Pension Fund shall not be liable to charge to income tax if it is the income of a person who, on a claim to the Board for relief under this subsection, satisfies the Board that he is not resident in the United Kingdom. 2 Income derived from investments or deposits of that Fund shall not be charged to income tax, and any income tax deducted from any such income shall be repaid by the Board to the persons entitled to receive the income. 3 A gain accruing to a person from his acquisition and disposal of assets held by him as part of that Fund shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 4 In this section " the Central African Pension Fund " means the fund established under that name by section 24 of the Federation of Rhodesia and Nyasaland (Dissolution) Order in Council 1963, and " pension " includes a gratuity or any sum payable on or in respect of death, and a return of contributions with or without interest thereon or any other addition thereto. Overseas Service Pensions Fund 217 1 A pension paid out of the Overseas Service Pensions Fund shall not be liable to charge to income tax if it is the income of a person who, on a claim to the Board for relief under this subsection, satisfies the Board that he is not resident in the United Kingdom. 2 In respect of income derived from investments or deposits of that Fund, the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled, ordinarily resident or resident in the United Kingdom. 3 A gain accruing to a person from his acquisition and disposal of assets held by him as part of that Fund shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 4 In this section " the Overseas Service Pensions Fund " means the Fund established under that name pursuant to section 7(1) of the Overseas Aid Act 1966, and "pension" includes a gratuity or any sum payable on or in respect of death or ill-health, and a return of contributions with or without interest thereon or any other addition thereto. Pension funds for overseas employees 218 1 In respect of dividends and other income derived from investments, deposits or other property of a superannuation fund to which this section applies, the Board shall, on a claim being made to them for the purpose, give by way of repayment such relief from income tax as is necessary to secure that they are exempt to the like extent (if any) as if they were income of a person not domiciled, ordinarily resident or resident in the United Kingdom. 2 A gain accruing to a person from his acquisition and disposal of assets held by him as part of a fund to which this section applies shall be exempt from tax chargeable under case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 3 Where an annuity is paid from a superannuation fund to which this section applies to a person who is not resident in the United Kingdom, income tax shall not be deducted from any payment of the annuity or accounted for under section 53 of dais Act (payments not out of profits or gains brought into charge) by the trustees or other persons having the control of the fund. 4 This section applies to any superannuation fund which — a is bona fide established under irrevocable trusts in connection with some trade or undertaking carried on wholly or partly outside the United Kingdom, b has for its sole purpose the provision of superannuation benefits in respect of persons' employment in the trade or undertaking wholly outside the United Kingdom, and c is recognised by the employer and employed persons in the trade or undertaking; and for the purposes of this subsection duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom. Social security benefits and contributions 219 1 The following payments shall be charged to income tax under Schedule E — a payments of benefit under the National Insurance Act 1965, or the National Insurance Act (Northern Ireland) 1966, except (within the meaning of those Acts) unemployment benefit, sickness benefit, maternity benefit and death grant, and b payments on account of allowances under the Family Allowances Act 1965 or the Family Allowances Act (Northern Ireland) 1966. 2 Payments of benefit under the Ministry of Social Security Act 1966, or the Supplementary Benefits &c. Act (Northern Ireland) 1966, shall not be treated as income for any purpose of the Income Tax Acts. 3 No relief or deduction shall be given or allowed in respect of any contribution paid by any person under the National Insurance Act 1965 or the National Insurance Act (Northern Ireland) 1966: Provided that nothing in this subsection shall apply to any employer's contribution within the meaning of the said Acts of 1965 and 1966 which is allowable as a deduction in computing profits or gains, in computing expenses of management under section 304 of this Act (investment companies) or that section as applied by section 305 of this Act (insurance companies), or in computing expenses of management or supervision under section 158 of this Act (owners of mineral rights). CHAPTER II Pension Rights of Directors and Employees Taxation of provision for retirement benefits etc. for directors and employees of bodies corporate 220 1 Subject to section 221 below, where, pursuant to a scheme for the provision of future retirement or other benefits for persons consisting of or including directors or employees of a body corporate (in this Chapter referred to as " a retirement benefits scheme "), the (body corporate in any year of assessment pays a sum with a view to the provision of any such benefits for any director or employee thereof, then (whether or not the accrual of the benefits is dependent on any contingency) — a the sum paid, if not otherwise chargeable to income tax as income of the director or employee, shall be deemed for all the purposes of the Income Tax Acts to be income of that director or employee for that year of assessment and assessable to tax under Schedule E, and b where the payment is made under such an insurance or contract as is mentioned in section 19 or 20 of this Act (relief for life insurance premiums and certain other payments) relief, if not otherwise allowable, shall be given to him under the said section 19 or 20, as the case may be, in respect of the payment to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him. 2 Subject to section 221 below, where — a an agreement is in force between a body corporate and a director or employee of that body for the provision for the director or employee of any future retirement or other benefits afforded by a retirement benefits scheme, or a person is serving as a director or employee of a body corporate in connection with which there is a retirement benefits scheme relating to persons of the class within which he falls under which any such benefits will be provided for him, and b the body corporate does not, or does not fully, secure the provision of the benefits by the payment of such sums as are mentioned in subsection (1) above, and c the circumstances in which the benefits are to accrue are not such as will render the benefits assessable to income tax under Schedule E as emoluments of his office as a director or of his employment, then (whether or not the accrual of the benefits is dependent on any contingency), in each year of asssessment in which the agreement is in force or the director or employee is serving as aforesaid, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, a sum equal to the annual sum which the body corporate would have had to pay in that year under a contract with a third person which secured the provision by that third person of those benefits or, as the case may be, of those benefits so far as not already secured by the payment of such sums as are mentioned in subsection (1) above, shall be deemed for all the purposes of the Income Tax Acts to be income of the director or employee for that year and assessable to income tax under Schedule E. 3 Where the body corporate pays any sum as mentioned in subsection (1) above in relation to several directors or employees, the sum so paid shall, for the purpose of that subsection, be apportioned among them by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them. Exemptions from charge to tax under s. 220 221 1 The following payments shall be exempted from the operation of section 220(1) above — a payments made pursuant to a statutory superannuation scheme, or made to a superannuation fund approved (whether in whole or in part) by the Board for the purposes of section 208 above, b payments made pursuant to an excepted provident fund or staff assurance scheme or other similar scheme (as defined in section 224 below), and c payments made by way of premium pursuant to a scheme the benefits whereunder are secured by premiums payable by the body corporate, with or without contributions by the directors or employees affected, under life or endowment assurance or life annuity contracts, being a scheme which was in operation before 6th April 1947, and which is not confined, or substantially confined, to directors and persons who, not being directors, are remunerated at a rate exceeding £2,000 a year, or to directors or to such persons. 2 Neither subsection (1) nor subsection (2) of section 220 above shall apply so as to cause any sum to be deemed to be income as therein mentioned where the retirement benefits scheme in question is one under which the main benefit afforded to each of the persons to whom the scheme relates is the provision for him of a pension or annuity for his life, and either — a that scheme was in operation before 6th April 1944, or b that scheme is for the time being approved by the Board under section 222 below. 3 Where, in respect of the provision for a director or employee of any future retirement or other benefits, a sum has been deemed to be income of his by virtue either of subsection (1) or of subsection (2) of section 220 above, and subsequently the director or employee proves to the satisfaction of the Board that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason of which no such payment will be made, and makes application for relief under this subsection within three years from the time when that event occurred, the Board shall give relief in respect of tax on that sum by repayment or otherwise as may be appropriate; and if the director or employee satisfies the Board as aforesaid in relation to some particular part of the benefits but not the whole thereof, they may give such relief as may seem to them just and reasonable. 4 Where, apart from this subsection, any sum would be deemed, by virtue either of subsection (1) or of subsection (2) of section 220 above, to be income of an employee for any year of assessment, but, by reason of his exercising his employment outside the United Kingdom, he is not assessable to tax under Case I or II of Schedule E in respect of the emoluments of his employment for that year, that subsection shall not apply so as to cause that sum to be deemed to be income of his for that year. Approval of retirement benefits schemes 222 1 Subject to section 223 below, the Board shall approve a retirement benefits scheme for the purpose of subsection (2) of section 221 above unless it appears to them that the scheme does not fall within the said subsection (2) by reason of the fact that the main benefit afforded thereby is not such as is therein mentioned, or that, although the main benefit is such as aforesaid, the scheme fails to satisfy some one or more of the following conditions, that is to say — a that that benefit will accrue only on retirement at a specified age or on earlier retirement through incapacity or on death, b that the nature of the benefits afforded by the scheme is the same in relation to all the persons to whom the scheme relates, c that the proportion between the value of the pensions or annuities provided for by the scheme, in so far as they are not commutable, and the value of all other benefits afforded thereby, including the value of so much, if any, of the said pensions or annuities as is commutable, is reasonably comparable to the proportion between the values of such benefits respectively as are usually afforded by statutory superannuation schemes, d that the aggregate value of the benefits, of whatever nature, afforded by the scheme is reasonably comparable to the aggregate value of the benefits usually afforded by statutory superannuation schemes in like circumstances, e that the pensions or annuities provided for by the scheme are not assignable, either in whole or in part, and f that no service of a person, in whatever capacity, rendered by him while he is a controlling director of the body corporate is taken into account for any of the purposes of the scheme: Provided that the Board may, if they think fit, having regard to the facts of the particular case, approve a scheme, the main benefit afforded whereby is such as is mentioned in subsection (2) of section 221 above notwithstanding that it may not, in one or more respects, satisfy the whole of the aforesaid conditions. 2 Where the Board have given their approval to a scheme, they may at any time, by notice in writing to the body corporate in question, withdraw their approval on such grounds, and as from such date, as may be specified in the notice. Aggregation and severance of schemes 223 1 References in this Chapter to a retirement benefits scheme shall be construed in accordance with the following provisions, that is to say — a references to such a scheme shall, in relation to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons of two or more classes, be construed as references to so much thereof as relates to persons of a single class, and accordingly a deed, agreement, series of agreements, or other arrangements so providing shall be treated for the purposes of this Chapter as constituting two or more retirement benefits schemes relating respectively to the different classes, and b references to such a scheme include references to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons consisting of or including a director or employee, or directors or employees, of a body corporate (or, in a case falling within paragraph (a) above, to so much thereof as relates to a person or persons of any one class), notwithstanding that it or they relates or relate only to a small number of directors or employees, or to a single director or employee. 2 For the purpose — a of determining, in the case of a retirement benefits scheme which was in operation before 6th April 1944, whether the scheme falls within subsection (2) of section 221 above as respects the nature of the main benefit afforded thereby, and b of determining, in the case of a retirement benefits scheme submitted for the approval of the Board, whether the scheme so falls, and whether the conditions specified in subsection (1) of section 222 above are satisfied, the scheme shall be considered in conjunction with any other retirement benefits scheme or schemes subsisting in connection with the body corporate and relating to persons of the class to which the scheme in question relates, and — i if the main benefit afforded by all those schemes taken together is such as is mentioned in subsection (2) of the said section 221, each of them shall be taken to fall within that subsection as respects the nature of the main benefit afforded thereby, and, if it is not, none of them shall be taken so to fall, and ii if the said conditions are satisfied in the case of all of them taken together, those conditions shall be taken to be satisfied in the case of each of them, and, if not, those conditions shall be taken to be satisfied in the case of none of them. 3 The Board may, if they think fit — a approve a part of a retirement benefits scheme, or b approve such a scheme notwithstanding that, having regard to another such scheme subsisting in connection with the body corporate, the scheme in question is to be treated by virtue of subsection (2) above as not falling within subsection (2) of the said section 221 or as not satisfying the conditions aforesaid, and where, under this subsection, the Board approve a part of a scheme, neither subsection (1) nor subsection (2) of section 220 above shall apply so as to cause any sum to be deemed to be income of a director or employee by reference to the provision for him of benefits afforded by that part of the scheme or of any part of such benefits. Supplementary provisions 224 1 In this Chapter, except where the context otherwise requires — " controlling director " means a director of a company, the directors whereof have a controlling interest therein, who is the beneficial owner of, or able either directly or through the medium of other companies or by any other indirect means to control, more than 5 per cent. of the ordinary share capital of the company (" company" meaning, for the purposes of this definition, one within the Companies Act 1948 or the Companies Act (Northern Ireland) 1960); " director " means — in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body, in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person, in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate, and includes any person who is to be or has been a director; " employee ", in relation to a body corporate, includes any person taking part in the management of the affairs of the body corporate who is not a director, and includes a person who is to be or has been an employee ; " excepted provident fund or staff assurance scheme or other similar scheme " means so much as relates to persons remunerated at a rate of £2,000 a year, or at a less rate, of any retirement benefits scheme as to which the following conditions are satisfied, that is to say — that the sums paid by the body corporate pursuant to the scheme in question in respect of any person for any period do not exceed ten per cent. of his remuneration for that period, and do not exceed £100 in the case of a period of a year or a correspondingly less or greater amount in the case of a shorter or longer period, and that no other retirement benefits scheme which relates to employees of the body corporate who are of the class to which the scheme in question relates, and who are remunerated as aforesaid, is subsisting for the time being, or, if there is any such other scheme subsisting, that it (so far as it relates to persons remunerated as aforesaid) and the scheme in question taken together satisfy the requirement specified in paragraph (a) of this definition ; " retirement or other benefit " means any pension, annuity, lump sum, gratuity or other like benefit to be given on retirement, or in anticipation of retirement, or, in connection with past service, after retirement, or to be given on or in anticipation of or in connection with any change in the nature of the service of the person in question, except that it does not include any pension, annuity, lump sum, gratuity or other like benefit which is to be afforded solely by reason of the death or disability of a person occurring during his service, and for no other reason ; " service " means service as an employee or director of the body corporate in question, and "retirement" shall be construed accordingly; " statutory superannuation scheme " means a scheme set up by or approved under any enactment relating to superannuation or set up by or approved under any regulations relating to superannuation made under any enactment by any Minister or Government Department (including a Northern Ireland Minister and a Northern Ireland Government Department). 2 Where an alteration has been made in a retirement benefits scheme at any time after 5th April 1947, the scheme shall, for the purposes of this Chapter, be deemed to have become a new scheme coming into being on the date of the alteration: Provided that this subsection shall not apply to an alteration approved by the Board. 3 Any reference in this Chapter to the provision for a person of retirement or other benefits includes a reference to the provision of benefits payable to that person's spouse, children, dependants or personal representatives, and any reference therein to the provision for a person of a pension or annuity for his life includes a reference to the provision (either in addition or as an alternative to the pension or annuity payable for his life) of a pension or annuity payable to that person's spouse or to any child or dependant of that person, for the life of the spouse, child or dependant. 4 Any reference in this Chapter to the provision of retirement or other benefits, or of a pension or annuity, by a body corporate includes a reference to the provision thereof by means of a contract with a third person. 5 It shall be the duty of a body corporate — a to deliver to the inspector, within the three months beginning with the date on which the scheme comes into being, particulars of any retirement benefits scheme other than a scheme referred to in section 221(1) above, and b when required to do so by notice given by the inspector, to fumish within the rime limited by the notice such further particulars as he may require with regard to any retirement benefits scheme subsisting in connection with the body corporate or to the persons to whom it relates. Application to unincorporated societies, etc. 225 This Chapter shall apply in relation to unincorporated societies or other bodies as it applies in relation to bodies corporate : Provided that the reference in this section to unincorporated societies or other bodies shall be deemed not to include a reference to individuals in partnership. CHAPTER III Retirement Annuities Approval of retirement annuity contracts and trust schemes 226 1 Where, in any year of assessment, an individual — a is (or would but for an insufficiency of profits or gains be) chargeable to income tax in respect of relevant earnings from any trade, profession, vocation, office or employment carried on or held by him, and b pays a premium or other consideration under an annuity contract for the time being approved by the Board as having for its main object the provision for the individual of a life annuity in old age (hereafter in this Chapter referred to as " a qualifying premium "), then relief from income tax may be given in respect of the qualifying premium under section 227 below, and any annuity payable to the same or another individual shall be treated as earned income of the annuitant to the extent to which it is payable in return for any amount on which relief is so given. 2 Subject to subsection (3) below, the Board shall not approve a contract unless it appears to them to satisfy the conditions that it is made by the individual with a person lawfully carrying on in the United Kingdom the business of granting annuities on human life, and that it does not — a provide for the payment by that person during the life of the individual of any sum except sums payable by way of annuity to the individual, or b provide for the annuity payable to the individual to commence before he attains the age of sixty or after he attains the age of seventy, or c provide for the payment by that person of any other sums except sums payable by way of annuity to the individual's widow or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits, or d provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or e provide for the payment of any annuity otherwise than for the life of the annuitant, and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment. 3 The Board may, if they think fit, and subject to any conditions they think proper to impose, approve a contract otherwise satisfying the preceding conditions, notwithstanding that the contract provides for one or more of the following matters — a for the payment after the individual's death of an annuity to a dependant not the widow or widower of the individual, b for the payment to the individual of an annuity commencing before he attains the age of sixty, if the annuity is payable on his becoming incapable through infirmity of body or mind of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted, c if the individual's occupation is one in which persons customarily retire before attaining the age of sixty, for the annuity to commence before he attains that age (but not before he attains the age of fifty), d for the annuity payable to any person to continue for a term certain (not exceeding ten years), notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage (or re-marriage) or in other circumstances, e in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy, or to an appropriation of it to a legacy or to a share or interest in the estate. 4 So much of subsection (1) above as provides that an annuity shall be treated, in whole or in part, as earned income of the annuitant shall apply only in relation to the annuitant to whom the annuity is made payable by the terms of the contract. 5 The preceding provisions of this section shall apply in relation to a contribution under a trust scheme approved by the Board as they apply in relation to a premium under an annuity contract so approved, with the modification that, for the condition as to the person with whom the contract is made, there shall be substituted a condition that the scheme — a is established under the law of any part of, and administered in, the United Kingdom, and b is established for the benefit of individuals engaged in or connected with a particular occupation (or one or other of a group of occupations), and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants, and c is so established under irrevocable trusts by a body of persons comprising or representing a substantial proportion of the individuals so engaged in the United Kingdom, or of those so engaged in England, Wales, Scotland or Northern Ireland, and with the necessary adaptations of other references to the contract or the person with whom it is made. 6 Exemption from income tax shall be allowed in respect of income derived from investments or deposits of any fund maintained for the purpose mentioned in subsection (5)(b) above under a scheme for the time being approved under that subsection ; and a gain accruing to a person from his acquisition and disposal of assets held by him as part of any such fund shall be exempt from tax chargeable under Case VII of Schedule D, and shall not be a chargeable gain for the purposes of capital gains tax. 7 The Board may at any time, by notice in writing given to the persons by and to whom premiums are payable under any contract for the time being approved under this section, or to the trustees or other persons having the management of any scheme so approved, withdraw that approval on such grounds and from such date as may be specified in the notice. 8 For the purposes of this Chapter, a married woman's relevant earnings shall not be treated as her husband's relevant earnings, notwithstanding that her income chargeable to tax is treated as his income. 9 Subject to subsection (8) above, " relevant earnings", in relation to any individual, means for the purposes of this Chapter any income of his chargeable to tax for the year of assessment in question, being either — a income arising in respect of remuneration from an office or employment held by him other than a pensionable office or employment, or b income from any property which is attached to or forms part of the emoluments of any such office or employment held by him, or c income which is chargeable under Schedule A, Schedule B or Schedule D and is immediately derived by him from the carrying on or exercise by him of his trade, profession or vocation either as an individual or, in the case of a partnership, as a partner personally acting therein, or d income treated as earned income by virtue of section 383 of this Act (patent rights), but does not include any remuneration as director of a company whose income consists wholly or mainly of investment income (construed in accordance with section 292(1) of this Act), being a company of which he is a controlling director (as defined in section 224(1) above). 10 For the purposes of this Chapter, an office or employment is a pensionable office or employment if, and only if, service in it is service to which a sponsored superannuation scheme relates (not being a scheme under which the benefits provided in respect of that service are limited to a lump sum payable on the termination of the service through death or disability before the age of seventy or some lower age); but references to a pensionable office or employment apply whether or not the duties are performed wholly or partly in the United Kingdom or the holder is chargeable to tax in respect of it. Service in an office or employment shall not for the purposes of this definition be treated as service to which a sponsored superannuation scheme relates by reason only of the fact that the holder of the office or employment might (though he does not) participate in the scheme by exercising or refraining from exercising an option open to him by virtue of that service. 11 In subsection (10) above "a sponsored superannuation scheme" means a scheme or arrangement relating to service in particular offices or employments and having for its object or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, against future termination of service through death or disability, or against similar matters, being a scheme or arrangement under which any part of the cost of the provision so made is or has been borne otherwise than by those persons by reason of their service (whether it is the cost or part of the cost of the benefits provided, or of paying premiums or other sums in order to provide those benefits, or of administering or instituting the scheme or arrangement); but for this purpose a person shall be treated as bearing by reason of his service the cost of any payment made or agreed to be made in respect of his service, if that payment or the agreement to make it is treated under the Income Tax Acts as increasing his income, or would be so treated if he were chargeable to tax under Case I of Schedule E in respect of his emoluments from that service. 12 Nothing in sections 4 and 6 of the Policies of Assurance Act 1867 (which put on assurance companies certain obligations in relation to notices of assignment of policies of life assurance) shall be taken to apply to any contract approved under this section. 13 For the purposes of any provision applying this subsection " approved annuities" means annuities under contracts approved by the Board under this section, being annuities payable wholly in return for premiums or other consideration paid by a person who (when the premiums or other consideration are or is payable) is, or would but for an insufficiency of profits or gains be, chargeable to tax in respect of relevant earnings from a trade, profession, vocation, office or employment carried on or held by him. Nature and amount of relief for qualifying premiums 227 1 Relief shall be given under this section in respect of a qualifying premium paid by an individual only on a claim made for the purpose, and where relief is to be so given, the amount of that premium shall be deducted from or set off against his relevant earnings for the year of assessment in which the premium is paid: Provided that the amount which may be deducted or set off in any year of assessment (whether in respect of one or more qualifying premiums) shall not be more than the sum of £750, nor more than one-tenth of his net relevant earnings for that year, and, where the condition in section 226(1)(a) above is satisfied as respects part only of that year, then for the said sum of £750 there shall be substituted the sum which bears to it the same proportion as that part bears to the whole year, but so that in the case of individuals holding a pensionable office or employment, and of individuals born in or before the year 1915, this proviso shall have effect subject to the provisions o: section 228 below. 2 If in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for an insufficiency of net relevant earnings, the amount of the reduction which would be made but for that insufficiency, less the amount of any reduction which is made in that year, shall be carried forward to the next following year, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in that following year, and so on for succeeding years (if necessary). 3 Where, on the making of an assessment for any year on an individual's relevant earnings or on the profits or gains of a partnership from which he derives relevant earnings, notice of assessment is given after or within six months before the end of the year of assessment, and the individual pays a qualifying premium after the end of that year but within the period beginning with the end of that year and ending six months after the date on which the assessment becomes final and conclusive, he may within that period elect that for the purposes of relief under this section the premium shall be treated as paid in that year and not in the year in which it is paid, and where he does so elect, any relief given in consequence of the election for the earlier year shall be given by repayment of tax: Provided that where either — a the amount of that premium, together with any qualifying premiums paid by him in the year to which the assessment relates (or treated as so paid by virtue of any previous election under this subsection), exceeds the maximum amount of the reduction which may be made under this section in his relevant earnings for that year, or b the amount of that premium itself exceeds the increase in that maximum amount which is due to taking into account the income on which the assessment is made, then the election shall have no effect as respects the excess. 4 For the purposes of relief under this section, an individual's relevant earnings are those earnings before giving effect to any capital allowances, other than deductions allowable in computing profits or gains, but after taking into account the amounts on which charges fall to be made under the Capital Allowances Act 1968 (including the enactments which under this Act are to be treated as contained in Part I of that Act); and references to income in the following provisions of this section (other than references to total income) shall be construed similarly. 5 Subject to the following provisions of this section, " net relevant earnings" means, in relation to an individual, the amount of his relevant earnings for the year of assessment in question, less the amount of any deductions falling to be made from the relevant earnings in computing for the purposes of income tax at the standard rate his total income for that year, being either — a deductions in respect of payments made by him, or b deductions in respect of losses or of capital allowances, being losses or allowances arising from activities profits or gains of which would be included in computing relevant earnings of the individual or of the individual's wife or husband for the year 1956-57 or a later year of assessment. 6 Where, in any year of assessment for which an individual claims and is allowed relief under this section, there falls to be made in computing the total income of the individual or that of the individual's wife or husband a deduction in respect of any such loss or allowance of the individual as is mentioned in subsection (5)(b) above, and the deduction or part of it falls to be so made from income other than relevant earnings, the amount of the deduction made from that other income shall be treated as reducing the individual's net relevant earnings for subsequent years of assessment (being deducted as far as may be from those of the immediately following year, whether or not he claims or is entitled to claim relief under this section for that year, and so far as it cannot be so deducted, then from those of the next year, and so on). 7 Where an individual's income for any year of assessment consists partly of relevant earnings and partly of other income, then as far as may be any deductions which fall to be made in computing his total income, and which may be treated in whole or in part either as made from relevant earnings or as made from other income, shall be treated for the purposes of this section as being made from those relevant earnings in so far as they are deductions in respect of any such loss or allowance as is mentioned in subsection (5)(b) above, and otherwise as being made from that other income. 8 An individual's net relevant earnings for any year of assessment are to be computed without regard to any relief which falls to be given for that year under this section either to the individual or to the individual's wife or husband. 9 An individual's relevant earnings, in the case of partnership profits, shall be taken to be his share of the partnership income, estimated in accordance with the Income Tax Acts, but the amount to be included in respect of those earnings in arriving at his net relevant earnings shall be his share of that income after making therefrom all such deductions (if any) in respect of payments made by the partnership, or in respect of capital allowances falling to be made to the partnership for chargeable periods after the year 1955-56, as would be made in computing the tax payable in respect of that income. 10 Where relief under this section for any year of assessment is claimed and allowed (whether or not relief then falls to be given for that year), and afterwards there is made any assessment, alteration of an assessment, or other adjustment of the claimant's liability to tax, there shall be made also such adjustments, if any, as are consequential thereon in the relief allowed or given under this section for that or any subsequent year of assessment. 11 Where relief under this section is claimed and allowed for any year of assessment in respect of any payment, relief shall not be given in respect of it under any other provision of the Income Tax Acts for the same or a later year of assessment nor (in the case of a payment under an annuity contract) in respect of any other premium or consideration for an annuity under the same contract; and references in the Income Tax Acts to relief in respect of life assurance premiums shall not be taken to include relief under this section. 12 The allowances mentioned in subsections (5)(b) and (9) above shall not be treated as including amounts carried forward from a year of assessment earlier than the year 1956-57. 13 If any person, for the purpose of obtaining for himself or any other person any relief from or repayment of tax under this section, knowingly makes any false statement or false representation, he shall be liable to a penalty not exceeding £500. Application of the proviso to s. 227(1) to holders of pensionable offices, etc. and persons born in or before 1915 228 1 Subject to the provisions of this section, in the case of an individual who is the holder of a pensionable office or employment, the proviso to section 227(1) of this Act shall have effect with the substitution for references to £750 of references to £750 less one-tenth of his pensionable emoluments for the year of assessment. 2 Where an individual is the holder of a pensionable office or employment during part only of the year of assessment, then — a subsection (1) above shall not apply if the condition in section 226(1)(a) above is not satisfied at any time during that part of the year, but b if that condition is satisfied at such a time and is also satisfied at a time during the remainder of the year, subsection (1) above shall apply, but for one-tenth of his pensionable emoluments there shall be substituted therein such less proportion thereof as may be just. 3 For the purposes of this subsection and subsections (1) and (2) above, an individual's pensionable emoluments for any year of assessment shall be taken to be the amount, estimated in accordance with the provisions applicable to Case I of Schedule E, of any income of his for the year (but not including in the case of a married man income of his wife), being either — a income arising in respect of remuneration from any pensionable office or employment, or b income from any property which is attached to or forms part of the emoluments of any pensionable office or employment. 4 Subject to subsection (5) below, in the case of an individual born at a time specified in the first column of the Table set out below, the proviso to section 227(1) of this Act and subsections (1) and (2) above shall have effect with the substitution for references to £750 and to the fraction one-tenth of references respectively to such sum and to such percentage as are specified for his case in the second and third columns of the Table. TABLE Year of birth Sum Percentage 1914 or 1915 £825 11% 1912 or 1913 £900 12% 1910 or 1911 £975 13% 1908 or 1909 £1,050 14% 1907 or any earlier year £1,125 15% 5 Subsection (4) above shall not apply in relation to any year of assessment in which the individual, in respect of his past services in any office or employment formerly held by him (not being one in which he served part-time only), either — a receives any income in respect of a pension payable under or in pursuance of a sponsored superannuation scheme or otherwise purchased or provided for him by another person, or b has a right under a sponsored superannuation scheme to a pension which is not presently payable, whether because it is suspended or because it is to become payable only at a future time or on the happening of some contingency (but not including a right dependent also on service in an office or employment for the time being held by him). In this subsection " pension " includes any superannuation or other allowance or deferred pay. Annuity premiums of Ministers and other officers 229 1 For the purposes of this Chapter, so much of the salary of the holder of any office to which this subsection applies who is also a Member of the House of Commons as is equal to the difference between the remuneration payable under any resolution of the House of Commons to a Member who is, and the remuneration so payable to a Member who is not, the holder of such an office shall be treated as remuneration from the office of Member and not from the office to which this subsection applies, and shall accordingly be treated for the purposes of section 228(1) to (3) of this Act as pensionable emoluments from the office of Member. This subsection applies to any Ministerial office within the meaning of section 2 of the House of Commons Disqualification Act 1957, the offices of Chairman and Deputy Chairman of Ways and Means and the offices of Leader, and Chief Whip, of the Opposition in the House of Commons within the meaning of section 4 of the Ministerial Salaries Consolidation Act 1965. 2 For the purposes of this Chapter, so much of the salary of the holder of any office to which this subsection applies who is also a Member of the House of Commons of Northern Ireland as is equal to the salary to which, pursuant to any Resolution of that House relating to the remuneration of Members, he would be entitled if he did not hold that office shall be treated as remuneration from the office of Member, and not from the office to which this subsection applies, and shall accordingly be treated for the purposes of section 228(1) to (3) of this Act as pensionable emoluments from the office of Member. The offices to which this subsection applies are those of Chairman of Ways and Means of the House of Commons of Northern Ireland and Attorney General for Northern Ireland. CHAPTER IV Purchased Life Annuities Purchased life annuities, other than retirement annuities 230 1 A purchased fife annuity (not being of a description excepted by subsection (7) below) shall, for the purposes of the provisions of the Tax Acts relating to tax on annuities and other annual payments, be treated as containing a capital element and, to the extent of the capital element, as not being an annual payment or in the nature of an annual payment; but the capital element in such an annuity shall be taken into account in computing profits or gains or losses for other purposes of the Tax Acts in any circumstances in which a lump sum payment would be taken into account. 2 In the case of any purchased life annuity to which this section applies — a the capital element shall be determined by reference to the amount or value of the payments made or other consideration given for the grant of the annuity, and b the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity, and c where neither the term of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, that proportion shall be the same proportion which the total amount or value of the consideration for the grant of the annuity bears to the actuarial value of the annuity payments as determined in accordance with the next following subsection, and d where paragraph (c) above does not apply, the said proportion shall be such as may be just, having regard to that paragraph and to the contingencies affecting the annuity. 3 For the purposes of subsection (2) above — a any entire consideration given for the grant of an annuity and for some other matter shall be apportioned as appears just (but so that a right to a return of premiums or other consideration for an annuity shall not be treated for this purpose as a distinct matter from the annuity), b where it appears that the amount or value of the consideration purporting to be given for the grant of an annuity has affected, or has been affected by, the consideration given for some other matter, the aggregate amount or value of those considerations shall be treated as one entire consideration given for both and shall be apportioned under paragraph (a) above accordingly, and c the actuarial value of any annuity payments shall be taken to be their value as at the date when the first of those payments begins to accrue, that value being determined by reference to the prescribed tables of mortality and without discounting any payment for the time to elapse between that date and the date it is to be made. 4 Where a person making a payment on account of any life annuity has been notified in the prescribed manner of any decision as to its being or not being a purchased life annuity to which this section applies or as to the amount of the capital element (if any), and has not been notified of any alteration of that decision, the notice shall be conclusive as to those matters for the purpose of determining the amount of income tax which he is entitled or required to deduct from the payment, or for which he is chargeable in respect of it. 5 Where a person making a payment on account of a purchased life annuity to which this section applies has not been notified in the prescribed manner of the amount of the capital element, the amount of income tax which he is entitled or required to deduct from the payment, or for which he is chargeable in respect of it, shall be the same as if the annuity were not a purchased life annuity to which this section applies. 6 For the purposes of this section, " life annuity" means an annuity payable for a term ending with (or at a time ascertainable only by reference (a) the end of a human life, whether or not there is provision for the annuity to end during the life on the expiration of a fixed term or on the happening of any event or otherwise, or to continue after the end of the life in particular circumstances, and " purchased life annuity " means a life annuity granted for consideration in money or money's worth in the ordinary course of a business of granting annuities on human life. 7 This section shall not apply — a to any annuity which would, apart from this section, be treated for the purposes of the provisions of the Tax Acts relating to tax on annuities and other annual payments as consisting to any extent in the payment or repayment of a capital sum, or b to any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief from income tax under section 19 or 20 of this Act (relief for life insurance premiums and certain other payments) or under section 227 above (retirement annuities), or c to any annuity purchased in pursuance of any direction in a will, or to provide for an annuity payable by virtue of a will or settlement out of income of property disposed of by the will or settlement (whether with or without resort to capital), or d to any annuity purchased under or for the purposes of any sponsored superannuation scheme (as defined in section 226(11) above) or any scheme approved under that section or in pursuance of any obligation imposed, or offer or invitation made, under or in connection with any such scheme or to any other annuity purchased by any person in recognition of another's services (or past services) in any office or employment. Supplementary 231 1 Any question whether an annuity is a purchased life annuity to which section 230 above applies, or what is the capital element in such an annuity, shall be determined by the inspector; but a person aggrieved by the inspector's decision on any such question may appeal within the prescribed time to the Special Commissioners. 2 Save as otherwise provided in this Chapter, the procedure to be adopted in giving effect thereto shall be such as may be prescribed. 3 The Board may by statutory instrument make regulations for prescribing anything which is to be prescribed under this Chapter, and the regulations may apply for the purposes of this Chapter or of the regulations any provision of the Income Tax Acts, with or without modifications. 4 Regulations under subsection (3) above may in particular make provision as to the time limit for making any claim for relief from or repayment of tax under this Chapter and as to all or any of the following matters, that is to say — a as to the information to be furnished in connection with the determination of any question whether an annuity is a purchased life annuity to which section 230 above applies, or what is the capital element in an annuity, and as to the persons who may be required to furnish any such information, b as to the manner of giving effect to the decision on any such question, and (notwithstanding anything in section 52 of this Act) as to the making of assessments for the purpose on the person entitled to the annuity, c as to the extent to which the decision on any such question is to be binding, and the circumstances in which it may be reviewed. 5 If any person, for the purpose of obtaining for himself or for any other person any relief from or repayment of tax under this Chapter, knowingly makes any false statement or false representation, he shall be liable to a penalty not exceeding £500. PART X Schedule F and Company Distributions Schedule F 232 1 The Schedule referred to as Schedule F is as follows: — SCHEDULE F 1 Income tax under this Schedule shall be chargeable for any year of assessment in respect of all dividends and other distributions in that year of a company resident in the United Kingdom which are not charged under any other Schedule and are not specially exempted from income tax, and for purposes of income tax all such distributions shall be regarded as income, however they fall to be dealt with in the hands of the recipient. 2 Income tax under this Schedule for any year of assessment shall be charged in respect of any distribution made in the year on such sum as, after deduction of income tax thereon at the standard rate, equals the amount or value of the distribution after any deduction of income tax actually made; and, subject to any enactment to the contrary, the distribution shall be deemed for purposes of income tax to represent income, of an amount equal to that sum, on which income tax has been borne by deduction: Provided that in the case of preference dividends the tax chargeable and the amount of income represented by the dividends shall be determined by reference to the fixed gross rate of dividend. 2 Where, in any year of assessment, a company resident in the United Kingdom makes any distribution, not being a payment of interest other than yearly interest nor a payment in respect of which deductions or repayments of income tax may fall to be made under section 204 of this Act (pay as you earn), the company shall under this subsection, and in accordance with Schedule 9 to this Act, account for and pay income tax in respect of the distribution at the standard rate for that year. 3 Where a company is liable under subsection (2) above to account for income tax in respect of any payment made by it, and the company is not otherwise entitled to deduct income tax from the payment, the company on making the payment shall be entitled under this subsection to deduct out of it an amount equal to the income tax for which it is liable to account in respect of the payment; and as against any person entitled to the payment the company shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid. 4 Where a company makes any payment which is subject to deduction of tax by virtue of subsection (3) above, then if the recipient so requests in writing the company shall furnish the recipient with a statement in writing showing the gross amount of the payment, the amount of tax deducted and the actual amount paid. The duty imposed by this subsection shall be enforceable at the suit or instance of the person requesting the statement. Meaning of "distribution" Matters to be treated as distributions 233 1 The following provisions in this Part of this Act, together with sections 284 and 285 of this Act, shall subject to section 248(8) of this Act and to any other express exceptions, have effect with respect to the meaning in the Corporation Tax Acts of "distribution", and for determining the persons to whom certain distributions are to be treated as made, but references in the Corporation Tax Acts to distributions of a company shall not apply to distributions made in respect of share capital in a winding-up. 2 In relation to any company " distribution " means — a any dividend paid by the company, including a capital dividend; b any other distribution out of assets of the company (whether in cash or otherwise) in respect of shares in the company, except so much of the distribution, if any, as represents a repayment of capital on the shares or is, when it is made, equal in amount or value to any new consideration given for the distribution; c any redeemable share capital or any security issued by the company in respect of shares in the company otherwise than wholly for new consideration, or such part of any redeemable share capital or any security so issued as is not properly referable to new consideration ; d any interest or other distribution out of assets of the company in respect of securities of the company (except so much, if any, of any such distribution as represents the principal thereby secured), where the securities are either — i securities issued as mentioned in paragraph (c) above, but excluding securities issued before 6th April 1965 ; or ii securities convertible directly or indirectly into shares in the company and not securities quoted on a recognised stock exchange nor issued on terms which are reasonably comparable with the terms of issue of securities so quoted ; or iii securities under which the consideration given by the company for the use of the principal secured is to any extent dependent on the results of the company's business or any part of it, or under which the consideration so given represents more than a reasonable commercial return for the use of that principal; or iv securities issued by the company and held by a company not resident in the United Kingdom, where the former is a 75 per cent. subsidiary of the latter or both are 75 per cent. subsidiaries of a third company; or v securities which are connected with shares in the company, where " connected with " means that in consequence of the nature of the rights attaching to the securities or shares, and in particular of any terms or conditions attaching to the right to transfer the shares or securities, it is necessary or advantageous for a person who has, or disposes of or acquires, any of the securities also to have, or to dispose of or to acquire, a proportionate holding of the shares; e any such amount as is required to be treated as a distribution by subsection (3) below, or by section 234 below. 3 Where on a transfer of assets or liabilities by a company to its members or to a company by its members, the amount or value of the benefit received by a member (taken according to its market value) exceeds the amount or value (so taken) of any new consideration given by him, the company shall be treated as making a distribution to him of an amount equal to the difference: Provided that, where the company and the member receiving the benefit are both resident in the United Kingdom and either the former is a subsidiary of the latter or both are subsidiaries of a third company also so resident, the said amount shall not be treated as a distribution. 4 The question whether one body corporate is a subsidiary of another for the purpose of subsection (3) above shall be determined as a question whether it is a 51 per cent. subsidiary of that other, except that that other shall be treated as not being the owner — a of any share capital which it owns directly in a body corporate if a profit on a sale of the shares would be treated as a trading receipt of its trade; or b of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt; or c of any share capital which it owns directly or indirectly in a body corporate not resident in the United Kingdom. Bonus issues following repayment of share capital 234 1 Where a company — a repays any share capital, or has done so at any time after 6th April 1965 ; and b at or after the time of that repayment issues as paid up otherwise than by the receipt of new consideration any share capital, not being redeemable share capital; the amount so paid up shall be treated as a distribution made in respect of the shares on which it is paid up, except in so far as that amount exceeds the amount or aggregate amount of share capital so repaid less any amounts previously so paid up and treated by virtue of this subsection as distributions. 2 Subsection (1) above shall not apply where the repaid share capital consists of fully paid preference shares — a if those shares existed as issued and fully paid preference shares on 6th April 1965 and throughout the period from that date until the repayment those shares continued to be fully paid preference shares, or b if those shares were issued after 6th April 1965 as fully paid preference shares wholly for new consideration not derived from ordinary shares and throughout the period from their issue until the repayment those shares continued to be fully paid preference shares. 3 In this section — " ordinary shares " means shares other than preference shares; " preference shares " means shares — which do not carry any right to dividends other than dividends at a rate per cent. of the nominal value of the shares which is fixed, or fluctuates only with the standard rate of income tax, and which carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on stock exchanges in the United Kingdom, " new consideration not derived from ordinary shares " means new consideration other than consideration consisting of the surrender, transfer or cancellation of ordinary shares of the company or any other company or consisting of the variation of rights in ordinary shares of the company or any other company, and other than consideration derived from a repayment of share capital paid in respect of ordinary shares of the company or of any other company. Matters to be treated or not treated as repayments of share capital 235 1 Where — a a company issues any share capital as paid up otherwise than by the receipt of new consideration, or has done so after 6th April 1965 ; and b any amount so paid up does not fall to be treated as a distribution; then for the purposes of sections 233 and 234 above distributions afterwards made by the company in respect of shares representing that share capital shall not be treated as repayments of share capital, except to the extent to which those distributions, together with any relevant distributions previously so made, exceed the amounts so paid up (then or previously) on such shares after that date and not falling to be treated as distributions. 2 In subsection (1) above " relevant distribution " means so much of any distribution made in respect of shares representing the relevant share capital as apart from that subsection would be treated as a repayment of share capital, but by virtue of that subsection cannot be so treated. 3 For the purposes of subsection (1) above all shares of the same class shall be treated as representing the same share capital, and where shares are issued in respect of other shares, or are directly or indirectly converted into or exchanged for other shares, all such shares shall be treated as representing the same share capital. 4 Where share capital is issued at a premium representing new consideration, the amount of the premium is to be treated as forming part of that share capital for the purpose of determining under this Part of this Act whether any distribution made in respect of shares representing the share capital is to be treated as a repayment of share capital: Provided that this subsection shall not have effect in relation to any part of the premium after that part has been applied in paying up share capital. 5 Subject to subsection (4) above, premiums paid on redemption of share capital are not to be treated as repayments of capital. Stock dividend options 236 1 Any share capital, other than redeemable share capital, issued by a company in consequence of the exercise by any person of an option conferred on him on or after 19th March 1968 to receive in respect of shares in the company either a dividend in cash or additional share capital shall be treated as a distribution by the company, and the income tax chargeable in respect of it under Schedule F shall be tax on the sum on which tax would have been chargeable under Schedule F if the person in question had accepted the cash dividend instead. 2 For the purposes of sections 234(1) and 235(1) above share capital issued as mentioned in subsection (1) above shall not be treated as issued " as paid up otherwise than by the receipt of new consideration ". 3 For the purposes of this section an option to receive either a dividend in cash or additional share capital is conferred on a person not only where he is required to choose one or the other, but also where he is offered the one subject to a right, however expressed, to choose the other instead, and a person's abandonment of, or failure to exercise, such a right is to be treated for those purposes as an exercise of the option. Distributions: supplemental 237 1 In this Part of this Act " new consideration " means consideration not provided directly or indirectly out of the assets of the company, and in particular does not include amounts retained by the company by way of capitalising a distribution : Provided that where share capital has been issued at a premium representing new consideration, any part of that premium afterwards applied in paying up share capital shall be treated as new consideration also for that share capital, except in so far as the premium has been taken into account under section 235(4) above so as to enable a distribution to be treated as a repayment of share capital. 2 A distribution shall be treated under this Part of this Act as made, or consideration as provided, out of assets of a company if the cost falls on the company. 3 In this Part of this Act " share " includes stock, and any other interest of a member in a company. 4 References in this Part of this Act to issuing share capital as paid up apply also to the paying up of any issued share capital. 5 For purposes of this Part of this Act " security " includes securities not creating or evidencing a charge on assets, and interest paid by a company on money advanced without the issue of a security for the advance, or other consideration given by a company for the use of money so advanced, shall be treated as if paid or given in respect of a security issued for the advance by the company. 6 Where securities are issued at a price less than the amount repayable on them, and are not quoted on a recognised stock exchange, the principal secured shall not be taken for the purposes of this Part of this Act to exceed the issue price, unless the securities are issued on terms reasonably comparable with the terms of issue of securities so quoted. 7 For the purposes of this Part of this Act a thing is to be regarded as done in respect of a share if it is done to a person as being the holder of the share, or as having at a particular time been the holder, or is done in pursuance of a right granted or offer made in respect of a share ; and anything done in respect of shares by reference to share holdings at a particular time is to be regarded as done to the then holders of the shares or the personal representatives of any share holder then dead. This subsection shall apply in relation to securities as it applies in relation to shares. PART XI Company Taxation CHAPTER I Main Provisions General system of taxation Charge to corporation tax 238 1 Corporation tax shall be charged on profits of companies, and the Corporation Tax Acts shall apply, for any financial year for which Parliament so determines and where an Act charges corporation tax for any financial year the Corporation Tax Acts apply, without any express provision, for that year accordingly. 2 The provisions of the Income Tax Acts relating to the charge of income tax other than surtax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if — a the company is resident in the United Kingdom, or b the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax by section 246(2) below. 3 A company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax or would be so chargeable but for an exemption from corporation tax. 4 In this Part of this Act, except in so far as the context otherwise requires — a " profits " means income and chargeable gains, and b " trade " includes " vocation ", and includes also an office or employment or the occupation of woodlands in any context in which the expression is applied to that in the Income Tax Acts. U.K. company distributions not chargeable to corporation tax 239 Except as otherwise provided by the Corporation Tax Acts, corporation tax shall not be chargeable on dividends and other distributions of a company resident in the United Kingdom, nor shall any such dividends or distributions be taken into account in computing income for corporation tax. Income tax on distributions, etc., received by U.K company 240 1 Except as otherwise provided by the Corporation Tax Acts, a company resident in the United Kingdom shall not, in respect of distributions received in any year of assessment from another such company (in the Corporation Tax Acts referred to as the recipient's " franked investment income "), be entitled to repayment of income tax on any surplus in amount or value of that franked investment income over the aggregate amount or value of the distributions made by it in that year. 2 Where in any year of assessment a company has such a surplus of franked investment income, the surplus shall be carried forward to the following year and treated for purposes of this section (including any further application of this subsection) as an amount of franked investment income received in that year ; but where by virtue of this subsection income tax in respect of franked investment income received in any year of assessment becomes repayable in a later year, it shall be repaid at the rate for the year in which the income was received, and tax for an earlier year of assessment shall be repaid before tax for a later year. 3 Subsection (1) above shall not apply — a to a company which is wholly exempt from corporation tax or is only not exempt in respect of trading income, or b in respect of distributions in relation to which express exemption (otherwise than by section 239 above) is given, whether specifically or by virtue of a more general exemption from tax, under any provision of the Tax Acts. 4 No payment made by a company resident in the United Kingdom shall by virtue of this section or otherwise be treated for any purpose of the Income Tax Acts as paid out of profits or gains brought into charge to income tax ; nor shall any right or obligation under the Income Tax Acts to deduct income tax from any payment be affected by the fact that the recipient is a company not chargeable to income tax in respect of the payment. 5 Subject to the provisions of the Corporation Tax Acts, where a company resident in the United Kingdom receives any payment on which it bears income tax by deduction (not being franked investment income), the income tax thereon shall be set off against any corporation tax assessable on the company by an assessment made for the accounting period in which that payment falls to be taken into account for corporation tax (or would fall to be taken into account but for any exemption from corporation tax); and accordingly in respect of that payment the company, unless wholly exempt from corporation tax, shall not be entitled to a repayment of income tax before the assessment for that accounting period is finally determined and it appears that a repayment is due. 6 Schedule 9 to this Act shall have effect for the purpose of implementing the preceding subsections, and for regulating the time and manner in which companies resident in the United Kingdom are to account for and pay income tax in respect of distributions made by them, and in respect of payments from which tax is deductible other than distributions, or are to be repaid income tax in respect of distributions and payments received by them. 7 References in this section to distributions or payments received by a company apply to any received by another person on behalf of or in trust for the company, but not to any received by the company on behalf of or in trust for another person, and nothing in this section shall apply to distributions in respect of which the company making them is not liable (apart from any election for group income under section 256(1) below) to account for income tax under section 232(2) of this Act; and references to " franked investment income " shall be construed accordingly. Claims for repayment of income tax deducted from receipts 241 Effect shall be given — a to section 238(2) above, and to that section as modified by section 240(5) above and by section 246(3) below, and b so far as the exemptions from income tax conferred by the Corporation Tax Acts call for repayment of tax, to those exemptions, by means of a claim. Explanation of income tax deductions to be annexed to dividend warrants, etc. 242 1 Every warrant or cheque or other order drawn or made, or purporting to be drawn or made, in payment of any dividend or interest distributed by any company, being a company within the meaning of the Companies Act 1948, or the Companies Act (Northern Ireland) 1960, or a company created by letters patent or by or in pursuance of an Act of Parliament, shall have annexed thereto or be accompanied by a statement in writing showing — a the gross amount which, after deduction of the income tax appropriate thereto, corresponds to the net amount actually paid, and b the rate and the amount of income tax appropriate to such gross amount, and c the net amount actually paid. 2 If a company fails to comply with the provisions of this section, the company shall, in respect of each offence, incur a penalty of £10: Provided that the aggregate amount of any penalties imposed under this section on any company in respect of offences connected with any one distribution of dividends or interest shall not exceed £100. Corporation tax General scheme of corporation tax 243 1 Subject to any exceptions provided for by the Corporation Tax Acts, a company shall be chargeable to corporation tax on all its profits wherever arising. 2 A company shall be chargeable to corporation tax on profits accruing for its benefit under any trust, or arising under any partnership, in any case in which it would be so chargeable if the profits accrued to it directly; and a company shall be chargeable to corporation tax on profits arising in the winding up of the company, but shall not otherwise be chargeable to corporation tax on profits accruing to it in a fiduciary or representative capacity except as respects its own beneficial interest (if any) in those profits. 3 Corporation tax for any financial year shall be charged on profits arising in that year; but assessments to corporation tax shall be made on a company by reference to accounting periods, and the amount chargeable (after making all proper deductions) of the profits arising in an accounting period shall, where necessary, be apportioned between the financial years in which the accounting period falls. 4 Except as provided by section 244 below and section 344 of this Act (special provisions for building societies), corporation tax assessed for an accounting period shall be paid within nine months from the end of that period or, if it is later, within one month from the making of the assessment. 5 In any financial year assessments for accounting periods falling wholly or partly in that year or (subject to subsection (6) below) in the preceding year may, notwithstanding that corporation tax has not at the time been charged for the year in question, charge tax for so much of the period as falls within that year according to the rate of tax last fixed, but any such charge shall be subject to later adjustment, if need be, by discharge or repayment of tax or by a further assessment if for that year corporation tax is not charged by an Act passed not later than 5th August next after the end of the year or is charged otherwise than as it has been assessed. 6 Where the House of Commons passes a Resolution for fixing the rate of corporation tax for any financial year, or for altering the tax for any financial year, then any assessment to tax afterwards made by virtue of subsection (5) above may be made in accordance with the Resolution; but no assessment made by virtue of that subsection later than 5th May next after the end of any financial year shall charge tax for that year, unless a Resolution for charging corporation tax for that year has been so passed, nor shall any assessment be made by virtue of any such Resolution later than the prescribed period from the date on which the Resolution is passed. 7 In subsection (6) above " the prescribed period " means — a as respects a Resolution passed in March or April in any year, a period beginning with the passing of the Resolution and ending with 5th August in the same calendar year, b as respects any other Resolution, four months after the date on which the Resolution is passed. Time for payment of corporation tax: companies trading before financial year 1965 244 1 Where, in respect of a trade chargeable under Case I or II of Schedule D, a company was within the charge to income tax from a time before the financial year 1965, then (so long as the company continues to be within the charge to corporation tax in respect of that trade) section 243(4) above shall not apply to the company, but corporation tax assessed on the company (or on some person in its place) for any accounting period, whether or not in respect of the trade, shall be paid within the like interval from the end of the accounting period as there was between the end of the basis period of the trade for the year 1965-66 and 1st January 1966 or, if it is later, within one month from the making of the assessment: Provided that this subsection shall not apply unless the said interval is longer than nine months. 2 Where subsection (1) above applies to a company having distinct trades which had different basis periods for the year 1965-66, that one of the basis periods which ended earliest shall be taken. 3 References in this section to the basis period for the year 1965-66 are, in relation to any source of income, references to the period on the income of which the income tax (if any) chargeable for that year fell to be finally computed in respect of the source or, where by virtue of any provision of the Income Tax Acts the income of any other period was to be taken to be the income of the said period, that other period. Tax on company in liquidation 245 1 In this section references to a company's final year are references to the financial year in which the affairs of the company are completely wound up, and references to a company's penultimate year are references to the last financial year preceding its final year. 2 Corporation tax shall be charged on the profits of the company arising in the winding-up in its final year at a rate which, subject to subsection (3) below, shall be the rate of corporation tax fixed for the penultimate year. 3 If the affairs of the company are completely wound up before an Act is passed fixing the rate of corporation tax for its penultimate year, corporation tax shall be charged on the company's profits arising in the winding-up in its final year, and if the winding-up commenced before the final year, on the company's profits arising at any time in its penultimate year, at the rate of corporation tax fixed by the budget resolution for the penultimate year (and without regard to the rate fixed by any subsequent Act); and any assessment made by virtue of section 243(5) above shall be subject to any such adjustment, by discharge or repayment of tax or by a further assessment, as may be required to give effect to this subsection. 4 An assessment on the company's profits for an accounting period which falls after the commencement of the winding-up shall not be invalid because made before the end of the accounting period. 5 In making an assessment after the commencement of the winding-up of the company but before the date when its affairs are completely wound up, the inspector may, with the concurrence of the liquidator, act on an assumption as to when that date will fall, so far as it governs section 247(7) below. 6 The assumption of the wrong date shall not alter the company's final and penultimate year, and if the right date is later an accounting period shall end on the date assumed, and a new accounting period shall begin and the said section 247(7) shall thereafter apply as if that new accounting period began with the commencement of the winding-up. 7 In this paragraph "budget resolution" means a resolution of the House of Commons for fixing the rate of corporation tax for the financial year in question, and if there is more than one such resolution, means the first of them. Companies not resident in United Kingdom 246 1 A company not resident in the United Kingdom shall not be within the charge to corporation tax unless it carries on a trade in the United Kingdom through a branch or agency but, if it does so, it shall, subject to any exceptions provided for by the Corporation Tax Acts, be chargeable to corporation tax on all its chargeable profits wherever arising. 2 For purposes of corporation tax the chargeable profits of a company not resident in the United Kingdom but carrying on a trade there through a branch or agency shall be — a any trading income arising directly or indirectly through or from the branch or agency, and any income from property or rights used by, or held by or for, the branch or agency (but so that this paragraph shall not include distributions received from companies resident in the United Kingdom); and b such chargeable gains accruing on the disposal of assets situated in the United Kingdom as are by Part III of the Finance Act 1965 made chargeable to capital gains tax in the case of an individual not resident or ordinarily resident in the United Kingdom. 3 Subject to section 319 of this Act (overseas fife insurance companies), where a company not resident in the United Kingdom receives any payment on which it bears income tax by deduction, and the payment forms part of, or is to be taken into account in computing, the company's income chargeable to corporation tax, the income tax thereon shall be set off against any corporation tax assessable on that income by an assessment made for the accounting period in which the payment falls to be taken into account for corporation tax; and accordingly in respect of that payment the company shall not be entitled to a repayment of income tax before the assessment for that accounting period is finally determined and it appears that a repayment is due. Basis of, and periods for, assessment 247 1 Except as otherwise provided by the Corporation Tax Acts, corporation tax shall be assessed and charged for any accounting period of a company on the full amount of the profits arising in the period (whether or not received in or transmitted to the United Kingdom) without any other deduction than is authorised by those Acts. 2 An accounting period of a company shall begin for purposes of corporation tax whenever — a the company, not then being within the charge to corporation tax, comes within it, whether by the company becoming resident in the United Kingdom or acquiring a source of income, or otherwise; or b an accounting period of the company ends without the company then ceasing to be within the charge to corporation tax. 3 An accounting period of a company shall end for purposes of corporation tax on the first occurrence of any of the following: — a the expiration of twelve months from the beginning of the accounting period; b an accounting date of the company or, if there is a period for which the company does not make up accounts, the end of that period ; c the company beginning or ceasing to carry on any trade, or to be, in respect of a trade, within the charge to corporation tax; d the company beginning or ceasing to be resident in the United Kingdom; e the company ceasing to be within the charge to corporation tax. 4 For the purposes of this section a company resident in the United Kingdom, if not otherwise within the charge to corporation tax, shall be treated as coming within the charge to corporation tax at the time when it commences to carry on business. 5 If a company carrying on more than one trade makes up accounts of any of them to different dates, and does not make up general accounts for the whole of the company's activities, subsection (3)(b) above shall apply with reference to the accounting date of such one of the trades as the Board may determine. 6 If a chargeable gain or allowable loss accrues to a company at a time not otherwise within an accounting period of the company, an accounting period of the company shall then begin for the purposes of corporation tax, and the gain or loss shall accrue in that accounting period. 7 Notwithstanding anything in the preceding subsections, where a company is wound up, an accounting period shall end and a new one begin with the commencement of the winding up, and thereafter, subject to section 245(6) above, an accounting period shall not end otherwise than by the expiration of twelve months from its beginning or by the completion of the winding up. For this purpose a winding up is to be taken to commence on the passing by the company of a resolution for the winding up of the company, or on the presentation of a winding up petition if no such resolution has previously been passed and a winding up order is made on the petition, or on the doing of any other act for a like purpose in the case of a winding up otherwise than under the Companies Act 1948. 8 Where it appears to the inspector that the beginning or end of any accounting period of a company is uncertain, he may make an assessment on the company for such period, not exceeding twelve months, as appears to him appropriate, and that period shall be treated for all purposes as an accounting period of the company unless either the inspector on further facts coming to his knowledge sees fit to revise it or on an appeal against the assessment in respect of some other matter the company shows the true accounting periods; and if on an appeal against an assessment made by virtue of this subsection the company shows the true accounting periods, the assessment appealed against shall, as regards the period to which it relates, have effect as an assessment or assessments for the true accounting periods, and there may be made such other assessments for any such periods or any of them as might have been made at the time when the assessment appealed against was made. Allowance of charges on income 248 1 In computing the corporation tax chargeable for any accounting period of a company any charges on income paid by the company in the accounting period, so far as paid out of the company's profits brought into charge to corporation tax, shall be allowed as deductions against the total profits for the period as reduced by any other relief from tax, other than group relief. 2 Subject to the following subsections and to any other express exceptions, " charges on income " means for the purposes of corporation tax payments of any description mentioned in subsection (3) below, not being dividends or other distributions of the company; but no payment which is deductible in computing profits or any description of profits for purposes of corporation tax shall be treated as a charge on income. 3 Subject to subsections (4) to (6) below, the payments referred to in subsection (2) above are — a any yearly interest, annuity or other annual payment and any such other payments as are mentioned in section 52(2) of this Act but not including sums which are or, but for any exemption would be, chargeable under Schedule A, and b any other interest payable in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom, or from a person who in the opinion of the Board is bona fide carrying on business as a member of a stock exchange in the United Kingdom or bona fide carrying on the business of a discount house in the United Kingdom; and for the purposes of this section any interest payable by a company as mentioned in paragraph (b) above shall be treated as paid on its being debited to the company's account in the books of the person to whom it is payable. 4 No such payment as is mentioned in subsection (3) (a) above made by a company to a person not resident in the United Kingdom shall be treated as a charge on income unless the company is so resident and either — a the company deducts income tax from the payment in accordance with section 53 or section 54 of this Act, and accounts under Schedule 9 to this Act for the tax so deducted, or b the payment is a payment of interest falling within section 249 below, or c the payment is one payable out of income brought into charge to tax under Case IV or V of Schedule D. 5 No such payment made by a company as is mentioned in subsection (3) above shall be treated as a charge on income if — a the payment is charged to capital, or the payment is not ultimately borne by the company; or b the payment is not made under a liability incurred for a valuable and sufficient consideration (and, in the case of a company not resident in the United Kingdom, incurred wholly and exclusively for the purposes of a trade carried on by it in the United Kingdom through a branch or agency), and is not a covenanted donation to charity. 6 No such payment of interest as is mentioned in subsection (3) above made by a company shall be treated as a charge on income unless — a the company exists wholly or mainly for the purpose of carrying on a trade, or b the payment of interest is wholly and exclusively laid out or expended for the purposes of a trade carried on by the company, or c the company is an investment company (as defined by section 304(5) of this Act, and including an authorised unit trust scheme), or d the payment of interest would be eligible for relief under section 57 or section 62 of this Act (loans for purchase or improvement of land and certain pre-1970 loans) if it were made by an individual. 7 The deductions authorised by subsection (3)(a) above shall include five-sixths and no more of any payment made as an instalment, or part of an instalment, of an annuity within the meaning of the Tithe Acts 1936 and 1951; and subsection (5)(b) shall not apply to any such payment. 8 A covenanted donation to charity shall not be regarded for the purposes of the definition of " charges on income " in this section, or for any of the other purposes of the Corporation Tax Acts, as being, by reason of section 284(1)(a) or any other provision of this Act, a distribution. 9 In this section " covenanted donation to charity " means a payment under a disposition or covenant made by the company in favour of a body of persons or trust established for charitable purposes only, whereby the like annual payments (of which the donation is one) become payable for a period which may exceed six years and is not capable of earlier termination under any power exercisable without the consent of the persons for the time being entitled to the payments. Charges on income: interest payable to non-residents 249 1 A payment of interest by a company is one to which section 248(4)(b) above applies if the company is carrying on a trade and — a under the terms of the contract under which the interest is payable, the interest is to be paid, or may be required to be paid, outside the United Kingdom, and b the interest is in fact paid outside the United Kingdom, and c either — i the liability to pay the interest was incurred wholly or mainly for the purposes of activities of the company's trade carried on outside the United Kingdom, or ii the interest is payable in the currency of a territory outside the scheduled territories and, subject to subsection (2) below, the liability to pay the interest was incurred wholly or mainly for the purposes of activities of that trade, wherever carried on. 2 Subsection (1)(c)(ii) above does not apply where — a the trade is carried on by a body of persons over whom the person entitled to the interest has control, or b the person entitled to the interest is a body of persons over whom the person carrying on the trade has control, or c the person carrying on the trade and the person entitled to the interest are both bodies of persons, and some other person has control over both of them. In this subsection the references to a body of persons include references to a partnership and " control" has the meaning assigned to it by section 534 of this Act. 3 For the purposes of subsection (1) above the company paying the interest shall be treated as carrying on any trade carried on by a 75 per cent. subsidiary of it (both being bodies corporate), if the subsidiary (as well as the company making the payment) is resident in the United Kingdom. 4 In determining for the purposes of this section whether one company is a 75 per cent. subsidiary of another that other company shall be treated as not being the owner — a of any share capital which it owns directly in a body corporate if a profit on a sale of the shares would be treated as a trading receipt of its trade ; or b of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt; or c of any share capital which it owns directly or indirectly in a body corporate not resident in the United Kingdom. 5 In this section " the scheduled territories " means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force. Computation of income: application of income tax principles 250 1 Except as otherwise provided by this Act or any other enactment relating to income tax or corporation tax, the amount of any income shall for purposes of corporation tax be computed in accordance with income tax principles, all questions as to the amounts which are or are not to be taken into account as income, or in computing income, or charged to tax as a person's income, or as to the time when any such amount is to be treated as arising, being determined in accordance with income tax law and practice as if accounting periods were years of assessment. 2 For the purposes of this section " income tax law " means, in relation to any accounting period, the law applying, for the year of assessment in which the period ends, to the charge on individuals of income tax other than surtax, except that it does not include such of the enactments of the Income Tax Acts as make special provision for individuals in relation to matters referred to in subsection (1) above. 3 Accordingly for purposes of corporation tax income shall be computed, and the assessment shall be made, under the like Schedules and Cases as apply for purposes of income tax, and in accordance with the provisions applicable to those Schedules and Cases, but (subject to the provisions of the Corporation Tax Acts) the amounts so computed for the several sources of income, if more than one, together with any amount to be included in respect of chargeable gains, shall be aggregated to arrive at the total profits. 4 Without prejudice to the generality of subsection (1) above, any provision of the Income Tax Acts which confers an exemption from income tax, or which provides for a person to be charged to income tax on any amount (whether expressed to be income or not, and whether an actual amount or not), shall, except as otherwise provided, have the like effect for purposes of corporation tax. 5 Where, by virtue of this section or otherwise, any enactment applies both to income tax and to corporation tax, it shall not be affected in its operation by the fact that they are distinct taxes but, so far as is consistent with the Corporation Tax Acts, shall apply in relation to income tax and corporation tax as if they were one tax, so that, in particular, a matter which in a case involving two individuals is relevant for both of them in relation to income tax shall in a like case involving an individual and a company be relevant for him in relation to that tax and for it in relation to corporation tax; and for that purpose in any such enactment references to a relief from or charge to income tax, or to a specified provision of the Income Tax Acts shall, in the absence of or subject to any express adaptation, be construed as being or including a reference to any corresponding relief from or charge to corporation tax, or to any corresponding provision of the Corporation Tax Acts. 6 The provisions of the Income Tax Acts applied by this section do not include anything in — a Part I or Part II of this Act, or b Chapter II of Part VI of this Act (Schedule D basis of assessment, etc.), or c Chapter VIII of Part VI of this Act (Case VII of Schedule D), and nothing in this section shall be taken to mean that income arising in any period is to be computed by reference to any other period (except in so far as this results from apportioning to different parts of a period income of the whole period). Computation of income: special rules 251 1 Where a company begins or ceases to carry on a trade, or to be within the charge to corporation tax in respect of a trade, the company's income shall be computed as if that were the commencement or, as the case may be, discontinuance of the trade, whether or not the trade is in fact commenced or discontinued. 2 Subject to subsection (3) below and to any other provision of the Corporation Tax Acts which expressly authorises such a deduction, no deduction shall be made in computing income from any source — a in respect of dividends or other distributions ; nor b in respect of any yearly interest, annuity or other annual payment or in respect of any such other payments as are mentioned in section 52(2) of this Act, but not including sums which are, or but for any exemption would be, chargeable under Schedule A. 3 In computing income from a trade subsection (2)(b) above shall not prevent the deduction of yearly interest payable in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom. Company reconstructions without change of ownership 252 1 Where, on a company (" the predecessor ") ceasing to carry on a trade, another company (" the successor ") begins to carry it on, and — a on or at any time within two years after that event the trade or an interest amounting to not less than a three-fourths share in it belongs to the same persons as the trade or such an interest belonged to at some time within a year before that event; and b the trade is not, within the period taken for the comparison under paragraph (a) above, carried on otherwise than by a company which is within the charge to tax in respect of it; then the Corporation Tax Acts shall have effect subject to subsections (2) to (5) below. In paragraphs (a) and (b) above references to the trade shall apply also to any other trade of which the activities comprise the activities of the first mentioned trade. 2 The trade shall not be treated as permanently discontinued nor a new trade as set up and commenced for the purpose of the allowances and charges provided for by the Capital Allowances Act 1968 (including the enactments which under this Act are to be treated as contained in Part I of that Act); but there shall be made to or on the successor in accordance with that Act all such allowances and charges as would, if the predecessor had continued to carry on the trade, have fallen to be made to or on it, and the amount of any such allowance or charge shall be computed as if the successor had been carrying on the trade since the predecessor began to do so and as if everything done to or by the predecessor had been done to or by the successor (but so that no sale or transfer which on the transfer of the trade is made to the successor by the predecessor of any assets in use for the purpose of the trade shall be treated as giving rise to any such allowance or charge). 3 The predecessor shall not be entitled to relief under section 178 of this Act (terminal losses), except as provided by subsection (5) below; and, subject to any claim made by the predecessor under section 177(2) of this Act (set off of loss against total profits), the successor shall be entitled to relief under section 177(1) of this Act (carry forward of loss), as for a loss sustained by the successor in carrying on the trade, for any amount for which the predecessor would have been entitled to claim relief if it had continued to carry on the trade. 4 Any securities within the meaning of section 471 of this Act (purchase and sale of securities) which at the time when the predecessor ceases to carry on the trade form part of the trading stock belonging to the trade shall be treated for the purposes of that section as having been sold at that time in the open market by the predecessor and as having been purchased at that time in the open market by the successor. 5 On the successor ceasing to carry on the trade — a if the successor does so within four years of succeeding to it, any relief which might be given to the successor under section 178 of this Act on its ceasing to carry on the trade may, so far as it cannot be given to the successor, be given to the predecessor as if the predecessor had incurred the loss (including any amount treated as a loss under subsection (3) of that section); and b if the successor ceases to carry on the trade within one year of succeeding to it, relief may be given to the predecessor under section 178 of this Act in respect of any loss incurred by it (or amount treated as such a loss under subsection (3) of that section); but for the purposes of section 178 of this Act, as it applies by virtue of this subsection to the giving of relief to the predecessor, the predecessor shall be treated as ceasing to carry on the trade when the successor does so. 6 Where the successor ceases to carry on the trade within the period taken for the comparison under subsection (1)(a) above and on its doing so a third company begins to carry on the trade, then no relief shall be given to the predecessor by virtue of subsection (5) above by reference to that event, but subject to that subsections (2) to (5) above shall apply both in relation to that event (together with the new predecessor and successor) and to the earlier event (together with the original predecessor and successor), but so that — a in relation to the earlier event " successor" shall include the successor at either event; and b in relation to the later event " predecessor " shall include the predecessor at either event; and if the conditions of this subsection are thereafter again satisfied, it shall apply again in like manner. 7 Where, on a company ceasing to carry on a trade, another company begins to carry on the activities of the trade as part of its trade, then that part of the trade carried on by the successor shall be treated for the purposes of this section as a separate trade, if the effect of so treating it is that subsection (1) or (6) above has effect on that event in relation to that separate trade ; and where, on a company ceasing to carry on part of a trade, another company begins to carry on the activities of that part as its trade or part of its trade, the predecessor shall for purposes of this section be treated as having carried on that part of its trade as a separate trade if the effect of so treating it is that subsection (1) or (6) above has effect on that event in relation to that separate trade. 8 Where under subsection (7) above any activities of a company's trade fall, on the company ceasing or beginning to carry them on, to be treated as a separate trade, the accounting periods of the company shall be adjusted accordingly, and any necessary apportionment shall be made of receipts, expenses, allowances or charges. 9 Where, by virtue of subsection (8) above, any sum falls to be apportioned and, at the time of the apportionment, it appears that it is material as respects the liability to tax (for whatever period) of two or more companies, any question which arises as to the manner in which the sum is to be apportioned shall be determined, for the purposes of the tax of all those companies — a in a case where the same body of General Commissioners have jurisdiction with respect to all those companies, by those Commissioners, unless all the companies agree that it shall be determined by the Special Commissioners, b in a case where different bodies of Commissioners have jurisdiction with respect to those companies, by such of those bodies as the Board may direct, unless all the companies agree that it shall be determined by the Special Commissioners, and c in any other case, by the Special Commissioners, and any such Commissioners shall determine the question in like manner as if it were an appeal: Provided that all the said companies shall be entitled to appear and be heard by the Commissioners who are to make the determination or to make representations to them in writing. 10 Any relief obtainable under this section by way of discharge or repayment of tax shall be given on the making of a claim. Company reconstructions: supplemental 253 1 For the purposes of section 252 above — a a trade carried on by two or more persons shall be treated as belonging to them in the shares in which they are entitled to the profits of the trade ; b a trade or interest therein belonging to any person as trustee (otherwise than for charitable or public purposes) shall be treated as belonging to the persons for the time being entitled to the income under the trust; c a trade or interest therein belonging to a company shall, where the result of so doing is that subsection (1) or (6) of section 252 above has effect in relation to an event, be treated in any of the ways permitted by subsection (2) below. 2 For the purposes of section 252 above, a trade or interest therein which belongs to a company engaged in carrying it on may be regarded — a as belonging to the persons owning the ordinary share capital of the company and as belonging to them in proportion to the amount of their holdings of that capital, or b in the case of a company which is a subsidiary company, as belonging to a company which is its parent company, or as belonging to the persons owning the ordinary share capital of that parent company, and as belonging to them in proportion to the amount of their holdings of that capital, and any ordinary share capital owned by a company may, if any person or body of persons has the power to secure by means of the holding of shares or the possession of voting power in or in relation to any company, or by virtue of any power conferred by the articles of association or other document regulating any company, that the affairs of the company owning the share capital are conducted in accordance with his or their wishes, be regarded as owned by the person or body of persons having that power. 3 For the purposes of subsection (2) above — a references to ownership shall be construed as references to beneficial ownership; b a company shall be deemed to be a subsidiary of another company if and so long as not less than three-quarters of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies; c the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with subsections (5) to (10) of section 532 of this Act; and d where any company is a subsidiary of another company, that other company shall be considered as its parent company unless both are subsidiaries of a third company. 4 In determining, for the purposes of section 252 above, whether or to what extent a trade belongs at different times to the same persons, persons who are relatives of one another and the persons from time to time entitled to the income under any trust shall respectively be treated as a single person, and for this purpose " relative " means husband, wife, ancestor, lineal descendant, brother or sister. Franked investment income Set-off of losses etc. against surplus of franked investment income 254 1 Where a company has a surplus of franked investment income for any year of assessment, the company may on making a claim for the purpose require that the amount of the surplus shall for all or any of the purposes mentioned in subsection (2) below be treated as if it were a like amount of profits chargeable to corporation tax, and subject to subsection (4) below the provisions mentioned in subsection (2) below shall apply in accordance with this section to reduce the amount of the surplus for purposes of section 240 of this Act so that income tax shall be repayable accordingly. 2 The purposes for which a claim may be made under subsection (1) above are those of — a the setting of trading losses against total profits under section 177(2) of this Act; b the deduction of charges on income under section 248 of this Act; c the deduction of expenses of management under section 304 or 305 of this Act; d the setting of certain capital allowances against total profits under section 74(3) of the Capital Allowances Act 1968. 3 Where a company makes a claim under this section for any year of assessment, then — a the amount to which the claim relates shall for purposes of the claim be treated as profits of the accounting period or periods comprising or together comprising that year, and shall be apportioned between them (if more than one) in proportion to the parts of the year respectively comprised in them ; b the reduction falling to be made in profits of an accounting period shall be made as far as may be in profits chargeable to corporation tax rather than in the amount treated as profits so chargeable under this section. 4 Where a claim under this section relates to section 177(2) of this Act or to section 74(3) of the Capital Allowances Act 1968 and an accounting period of the company falls partly before and partly within the time mentioned in that subsection, then — a the restriction imposed by section 177(3) of this Act or by section 74(4) of the Capital Allowances Act 1968 on the amount of the relief shall be applied only to any relief to be given apart from this section, and shall be applied without regard to any amount treated as profits of the period under this section ; but b relief under this section shall be given only against so much (if any) of the amount so treated as would under subsection (3)(a) above be apportioned to the part of the period falling within the said time if that part were a separate accounting period. 5 Where — a on a claim made under this section for any year of assessment relief is given in respect of the whole or part of any loss incurred in a trade, or of any amount which could be treated as a loss under section 177(8) of this Act; and b in a later year of assessment the distributions on which the company pays the income tax under section 232(2) of this Act exceed its franked investment income ; then (unless the company has ceased to carry on the trade or to be within the charge to corporation tax in respect of it) the company shall, for purposes of section 177(1) of this Act, be treated as having, in the accounting period ending at or last before the beginning of the later year of assessment, incurred a loss equal to whichever is the lesser of — i the excess referred to in paragraph (b) above ; and ii the amount in respect of which relief was given as aforesaid, or so much of that amount as remains after deduction of any part of it dealt with under this subsection in relation to an earlier year of assessment. 6 Subsection (5) above shall apply, with the necessary adaptations. — a in relation to relief given in respect of management expenses; and b in relation to relief given in respect of capital allowances ; as it applies in relation to relief given in respect of a loss (the reference to the company ceasing to be within the charge to corporation tax in respect of the trade being construed as a reference to its ceasing to be within that charge at all): Provided that any amount which may be dealt with under subsection (5) as a loss shall be so dealt with rather than under this subsection, except in so far as the company concerned otherwise elects. 7 The time limits for claims under this section shall be as follows — a if and so far as the purpose for which the claim is made is the setting of trading losses against total profits under section 177(2) of this Act, two years from the end of the year of assessment in which falls the end of the accounting period in which the trading loss is incurred, b if and so far as the purpose for which the claim is made is the deduction of charges on income under section 248 of this Act or of expenses of management under section 304 or 305 of this Act, six years from the end of the accounting period in which the charges were paid or the expenses of management were incurred, c if and so far as the purpose for which the claim is made is the setting of capital allowances against total profits under section 74(3) of the Capital Allowances Act 1968, two years from the end of the year of assessment in, which falls the end of the accounting period for which the capital allowances fall to be made. 8 For the purposes of a claim under this section for any year of assessment the surplus of franked investment income for any year of assessment shall be calculated without regard to the part, if any, carried forward from an earlier year of assessment. Set-off of loss brought forward, or terminal loss 255 1 Where a company has a surplus of franked investment income in any year of assessment, the company, instead of or in addition to making a claim under section 254 above, may on making a claim for the purpose require that the surplus shall be taken into account for relief under section 177(1) or under section 178 of this Act, up to the amount of franked investment income for the year which, if chargeable to corporation tax, would have been so taken into account by virtue of section 177(7) of this Act; and (subject to the restriction to the said amount of franked investment income) the following subsections shall have effect where the company makes a claim under this section for any year of assessment. 2 The amount to which the claim relates shall for the purposes of the claim be treated as trading income of the accounting period or periods comprising or together comprising the year of assessment, and shall be apportioned between them (if more than one) in proportion to the parts of the year respectively comprised in them. 3 The reduction falling to be made in trading income of an accounting period shall be made as far as may be in trading income chargeable to corporation tax rather than in the amount treated as trading income so chargeable under this section. 4 If the claim relates to section 177(1) of this Act, section 254(5) above shall apply in relation to it. 5 If the claim relates to section 178 of this Act and an accounting period of the company falls partly outside the three years mentioned in subsection (1) of that section, then — a the restriction imposed by subsection (2) of that section on the amount of the reduction that may be made in the trading income of that period shall be applied only to any relief to be given apart from this section, and shall be applied without regard to any amount treated as trading income of the period by virtue of this section, but b relief under this section shall be given only against so much (if any) of the amount so treated as would under subsection (2) above be apportioned to the part of the period falling within the three years in question if that part were a separate accounting period. 6 The time limits for claims under this section shall be as follows — a if and so far as the purpose for which the claim is made is the allowance of relief under section 177(1) of this Act, six years from the end of the year of assessment for which the claim is made, b if and so far as the purpose for which the claim is made is the allowance of relief under section 178 of this Act, six years from the time when the company ceases to carry on the trade. 7 For the purposes of a claim under this section for any year of assessment the surplus of franked investment income for any year of assessment shall be calculated without regard to the part, if any, carried forward from an earlier year of assessment. Group income Group income, etc. 256 1 Where a company receives dividends from another company (both being bodies corporate resident in the United Kingdom), and the company paying the dividends is — a a 51 per cent. subsidiary of the other or of a company so resident of which the other is a 51 per cent. subsidiary; or b a trading or holding company owned by a consortium the members of which include the company receiving the dividends, then, subject to the following provisions of this section, the company receiving the dividends and the company paying them may jointly elect that this subsection shall apply to the dividends received from the latter by the former, and so long as the election is in force any such dividends shall be excluded from sections 232(2) and 240 of this Act, and are accordingly not included, unless otherwise stated, in references to the franked investment income of the company receiving them (but are in the Corporation Tax Acts referred to as " group income " of that company): Provided that an election under this subsection shall not prevent the payment of any amount of dividends under deduction of income tax, and where notwithstanding the election any amount is so paid, the Corporation Tax Acts shall have effect in relation to it as if there had been no such election. 2 Where a company receives from another company (both being bodies corporate resident in the United Kingdom) any such payments as are referred to below in this subsection, and either — a the conditions of subsection (1)(a) or (b) above would be satisfied in relation to the companies if the payments were dividends, or b the company receiving the payments is a 51 per cent. subsidiary of the other company, then, subject to the following provisions of this section, the company receiving the payments and the company paying them may jointly elect that this subsection shall apply to any such payments received from the latter by the former, and so long as the election is in force those payments may be made without deduction of income tax and neither section 53 nor section 54 of this Act shall apply thereto. The payments for which an election may be made under this subsection are any payments which are for corporation tax charges on income of the company making them. 3 Subsections (1) and (2) above shall not apply to dividends or other payments received by a company on any investments, if a profit on the sale of those investments would be treated as a trading receipt of that company. 4 Where a company purports by virtue of an election under this section to pay any dividends or other payments without deduction of income tax, and income tax ought to have been deducted, then the company receiving the dividends or other payments shall be treated for the purposes of sections 232 and 240 of this Act as if that tax had been deducted and been repaid to it under Schedule 9 to this Act, and the amount of that tax may be recovered from it accordingly by adjustment of the payments and repayments under the said Schedule 9 or otherwise. 5 In determining for the purposes of this section whether one body corporate is a 51 per cent. subsidiary of another, that other shall be treated as not being the owner — a of any share capital which it owns directly or in directly in a body corporate not resident in the United Kingdom, or b of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt. 6 For the purposes of this section — a " trading or holding company " means a trading company or a company the business of which consists wholly or mainly in the holding of shares or securities of trading companies which are its 90 per cent. subsidiaries, b " trading company " means a company whose business consists wholly or mainly of the carrying on of a trade or trades, c a company is owned by a consortium if three-quarters or more of the ordinary share capital of the company is beneficially owned between them by five or fewer companies resident in the United Kingdom of which none beneficially owns less than one-twentieth of that capital, and those companies are called the members of the consortium. 7 References in this section to dividends or payments received by a company apply to any received by another person on behalf of or in trust for the company, but not to any received by the company on behalf of or in trust for another person, and references to " group income " shall be construed accordingly. Election for group income, etc. 257 1 An election under subsection (1) or subsection (2) of section 256 above (in the following provisions of this section referred to as an " election ") shall be made by notice in writing to the inspector, and the notice shall set out the facts necessary to show that the companies are entitled to make the election. 2 An election shall not have effect in relation to dividends or other payments paid less than three months after the giving of the notice and before the inspector is satisfied that the election is validly made, and has so notified the companies concerned; but shall be of no effect if within those three months the inspector notifies the companies concerned that the validity of the election is not established to his satisfaction: Provided that the companies shall have the like right of appeal against any decision that the validity of the election is not established as the company paying the dividends or other payments would have if it were an assessment made on that company, and Part V of the Taxes Management Act 1970 shall apply accordingly. 3 An election shall cease to be in force if at any time the companies cease to be entitled to make the election, and on that happening each company shall forthwith notify the inspector. 4 Either of the companies making an election may at any time give the inspector notice in writing revoking the election; and any such notice shall have effect from the time it is given. Group relief Group relief 258 1 Relief for trading losses and other amounts eligible for relief from corporation tax may in accordance with the following provisions of this Chapter be surrendered by a company (called " the surrendering company ") which is a member of a group of companies and, on the making of a claim by another company (called " the claimant company ") which is a member of the same group, may be allowed to the claimant company by way of a relief from corporation tax called " group relief". 2 Group relief shall also be available in accordance with the said provisions — a where the surrendering company is a trading company which is owned by a consortium and which is not a 75 per cent. subsidiary of any company, and the claimant company is a member of the consortium, or b where the surrendering company is a trading company — i which is a 90 per cent. subsidiary of a holding company which is owned by a consortium, and ii which is not a 75 per cent. subsidiary of a company other than the holding company, and the claimant company is a member of the consortium, or c where the surrendering company is a holding company which is owned by a consortium and which is not a 75 per cent. subsidiary of any company, and the claimant company is a member of the consortium; Provided that no claim may be made by a member of a consortium if a profit on a sale of the share capital of the surrendering or holding company which that member owns would be treated as a trading receipt of that member. 3 Subject to the following sections of this Chapter, two or more claimant companies may make claims relating to the same surrendering company, and to the same accounting period of that surrendering company. 4 A payment for group relief — a shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and b shall not for any of the purposes of the Corporation Tax Acts be regarded as a distribution or a charge on income, and in this subsection "payment for group relief" means a payment made by the claimant company to the surrendering company in pursuance of an agreement between them as respects an amount surrendered by way of group relief, being a payment not exceeding that amount. 5 For the purpose of this section and the following sections of this Chapter — a two companies shall be deemed to be members of a group of companies if one is the 75 per cent. subsidiary of the other or both are 75 per cent. subsidiaries of a third company, b " holding company " means a company the business of which consists wholly or mainly in the holding of shares or securities of companies which are its 90 per cent. subsidiaries, and which are trading companies, c " trading company " means a company whose business consists wholly or mainly of the carrying on of a trade or trades. 6 In applying for the said purposes the definition of " 75 per cent. subsidiary " in section 532 of this Act any share capital of a registered industrial and provident society shall be treated as ordinary share capital. 7 References in this and the following sections of this Chapter to a company apply only to bodies corporate resident in the United Kingdom; and in determining for the purposes of this and the following sections of this Chapter whether one company is a 75 per cent. subsidiary of another, the other company shall be treated as not being the owner — a of any share capital which it owns directly in a body corporate if a profit on a sale of the shares would be treated as a trading receipt of its trade, or b of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt, or c of any share capital which it owns directly or in directly in a body corporate not resident in the United Kingdom. 8 For the said purposes — a a company is owned by a consortium if all of the ordinary share capital of that company is directly and beneficially owned between them by five or fewer companies, and those companies are called the members of the consortium, b a member's share in a consortium shall be the percentage of the ordinary share capital of the surrendering company, or as the case may be of the holding company through which the surrendering company is owned, which is beneficially owned by that member in the relevant accounting period of the surrendering company, and if that percentage has fluctuated in the accounting period, the average percentage over the period shall be taken. Kinds of group relief 259 1 If in any accounting period the surrendering company has incurred a loss, computed as for the purposes of subsection (2) of section 177 of this Act, in carrying on a trade, the amount of the loss may be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period: Provided that this subsection shall not apply to so much of a loss as is excluded from the said subsection (2) by subsection (4) of the said section, or by section 180 of this Act (farming and market gardening). 2 If for any accounting period any capital allowances fall to be made to the surrendering company which are to be given by discharge or repayment of tax and are to be available primarily against a specified class of income, so much of the amount of those capital allowances (exclusive of any carried forward from an earlier period) as exceeds its income of the relevant class arising in that accounting period (before deduction of any losses of any other period or of any capital allowances) may be set off for purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period. 3 If for any accounting period the surrendering company (being an investment company) may under section 304(1) of this Act deduct any amount as expenses of management disbursed for that accounting period, so much of that amount (exclusive of any amount deductible only by virtue of subsection (2) of the said section 304) as exceeds the company's profits of that accounting period may be set off for purposes of corporation tax against the total profits of the claimant company (whether an investment company or not) for its corresponding accounting period. 4 The surrendering company's profits of the period shall be determined for the purposes of subsection (3) above without any deduction under the said section 304 and without regard to any deduction falling to be made in respect of losses or allowances of any other period. 5 References in subsections (3) and (4) above to the said section 304 do not include references to that section as applied by section 305 of this Act to companies carrying on life assurance business. 6 If in any accounting period the surrendering company has paid any amount by way of charges on income, so much of that amount as exceeds its profits of the period may be set off for purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period. 7 The surrendering company's profits of the period shall be determined for the purposes of subsection (6) above without regard to any deduction falling to be made in respect of losses or allowances of any other period, or to expenses of management deductible only by virtue of subsection (2) of section 304 of this Act. 8 In applying any of the preceding subsections in the case of a claim made by a company as a member of a consortium only a fraction of the loss referred to in subsection (1) above, or of the excess referred to in subsection (2) or (3) or (6) above, as the case may be, may be set off under the subsection in question, and that fraction shall be equal to that member's share in the consortium, subject to any further reduction under section 261(2) below. Relation of group relief to other relief 260 1 Group relief for an accounting period shall be allowed as a deduction against the claimant company's total profits for the period before reduction by any relief derived from a subsequent accounting period, but as reduced by any other relief from tax (including relief in respect of charges on income under section 248(1) above). 2 The said other relief shall be determined on the assumption that the company makes all relevant claims under section 177(2) of this Act and section 74(3) of the Capital Allowances Act 1968 (set-off of trading losses and capital allowances against total profits). 3 For the purposes of this section "relief derived from a subsequent accounting period " means — a relief under section 177(2) of this Act in respect of a loss incurred in an accounting period after the accounting period the profits of which are being computed, and b relief under section 74(3) of the Capital Allowances Act 1968 in respect of capital allowances falling to be made for an accounting period after the accounting period the profits of which are being computed, and c relief under section 87 of the Finance Act 1965 (transitional relief on cessation of trade etc.) where the company ceases to possess the source of income in question at a time after the end of the accounting period the profits of which are being computed, and d relief under section 178 of this Act in respect of a loss incurred in an accounting period after the end of the accounting period the profits of which are being computed. 4 The reductions to be made in total profits of an accounting period against which any relief derived from a subsequent accounting period is to be set off shall include any group relief for that first-mentioned accounting period, and this subsection shall have effect notwithstanding that under section 87(3) of the Finance Act 1965 relief under that section is to be given in priority to any other relief. Corresponding accounting periods 261 1 For the purposes of group relief any accounting period of the claimant company which falls wholly or partly within an accounting period of the surrendering company corresponds to that accounting period. 2 If an accounting period of the surrendering company and a corresponding accounting period of the claimant company do not coincide — a the amount which may be set off against the total profits of the claimant company for the corresponding accounting period shall be reduced by applying the fraction A B (if that fraction is less than unity), and b the said profits against which the amount mentioned in paragraph (a) above (as reduced where so required) may be set off shall be reduced by applying the fraction A C (if that fraction is less than unity), where A is the length of the period common to the two accounting periods, B is the length of the accounting period of the surrendering company, and C is the length of the corresponding accounting period of the claimant company. Companies joining or leaving group or consortium 262 1 Subject to the following provisions of this section, group relief shall be given if, and only if, the surrendering company and the claimant company are members of the same group, or fulfil the conditions for relief for a consortium, throughout the whole of the surrendering company's accounting period to which the claim relates, and throughout the whole of the corresponding accounting period of the claimant company 2 Where on any occasion two companies become or cease to be members of the same group, then for the purposes specified in subsection (3) below it shall be assumed as respects each company that on that occasion (unless a true accounting period of the company begins or ends then) an accounting period of the company ends, and a new one begins, the new accounting period to end with the end of the true accounting period (unless before then there is a further break under this subsection), and — a that the losses or other amounts of the true accounting period are apportioned to the component accounting periods on a time basis according to their lengths, and b that the amount of total profits for the true accounting period of the company against which group relief may be allowed in accordance with section 260(1) above is also so apportioned to the component accounting periods. 3 Where the one company is the surrendering company and the other company is the claimant company — a references to accounting periods, to profits, and to losses, allowances, expenses of management or charges on income of the surrendering company, in section 259 above shall be construed in accordance with subsection (2) above, b references to accounting periods in section 261 above and subsection (1) of this section shall be so construed (so that if the two companies are members of the same group in the surrendering company's accounting period, they must under section 261 above also be members of the same group in any corresponding accounting period of the claimant company), c references to profits, and amounts to be set off against the profits, in section 261 above shall be so construed (so that an amount apportioned under subsection (2) above to a component accounting period may fall to be reduced under section 261(2) above). 4 Subsection (2) and (3) above shall apply with the necessary modifications where a company begins or ceases to fulfil the conditions for relief for a consortium, either as a surrendering company or as a claimant company, as it applies where two companies become or cease to be members of the same group. Exclusion of double allowances, etc. 263 1 Relief shall not be given more than once in respect of the same amount, whether by giving group relief and by giving some other relief (in any accounting period) to the surrendering company, or by giving group relief more than once. 2 In accordance with subsection (1) above, two or more claimant companies cannot, in respect of any one loss or other amount for which group relief may be given, and whatever their accounting periods corresponding to that of the surrendering company, obtain in all more relief than could be obtained by a single claimant company whose corresponding accounting period coincided with the accounting period of the surrendering company. 3 If claims for group relief are made by more than one claimant company which relate to the same accounting period of the same surrendering company, and — a all the claims so made are admissible only by virtue of subsections (2) and (3) of section 262 above, and b there is a part of the surrendering company's accounting period during which none of those claimant companies is a member of the same group as the surrendering company, those claimant companies shall not obtain in all more relief than could be obtained by a single claimant company which was not a member of the same group as the surrendering company during that part of the surrendering company's accounting period (but was a member during the remainder of that accounting period). 4 If claims for group relief are made by a claimant company as respects more than one surrendering company for group relief to be set off against its total profits for any one accounting period, and — a all the claims so made are admissible only by virtue of subsections (2) and (3) of section 262 above, and b there is a part of the claimant company's accounting period during which none of the surrendering companies by reference to which the claims are made is a member of the same group as the claimant company, the claimant company shall not obtain in all more relief to be set off against its profits for the accounting period than it could obtain on a claim as respects a single surrendering company (with unlimited losses and other amounts eligible for relief) which was not a member of the same group as the claimant company during that part of the claimant company's accounting period (but was a member during the remainder of that accounting period). 5 The provisions of this subsection have effect as respects a claim for group relief made by a company as a member of a consortium, in this subsection referred to as a " consortium claim " — a a consortium claim, and a claim other than a consortium claim, shall not both have effect as respects the loss or other amount of the same accounting period of the same surrendering company, unless each of the two claims is as respects a loss or other amount apportioned under section 262(2)(a) above to a component of that accounting period, and the two components do not overlap, b in subsections (3) and (4) above consortium claims shall be disregarded, and paragraph (a) above shall take effect according to the order in which claims are made. 6 Without prejudice to the provisions of section 87(3) of the Capital Allowances Act 1968, any reference in Part I of that Act to an allowance made includes a reference to an allowance which would be made but for the granting of group relief, or but for that and but for an insufficiency of profits or other income against which to make it. Claims and adjustments 264 1 A claim for group relief — a need not be for the full amount available, b shall require the consent of the surrendering company notified to the inspector in such form as the Board may require, and c must be made within two years from the end of the surrendering company's accounting period to which the claim relates. 2 A claim for group relief by a company as a member of a consortium shall require the consent of each other member of the consortium, notified to the inspector in such form as the Board may require, in addition to the consent of the surrendering company. 3 If the inspector discovers that any group relief which has been given is or has become excessive he may make an assessment to corporation tax under Case VI of Schedule D in the amount which ought in his opinion to be charged. 4 Subsection (3) above is without prejudice to the making of an assessment under section 29(3)(c) of the Taxes Management Act 1970, and to the making of all such other adjustments by way of discharge or repayment of tax or otherwise as may be required where a claimant company has obtained too much relief, or a surrendering company has forgone relief in respect of a corresponding amount. CHAPTER II Companies' Capital Gains General provisions Computation of chargeable gains 265 1 Subject to the provisions of this section, the amount to be included in respect of chargeable gains in a company's total profits for any accounting period shall be the total amount of chargeable gains accruing to the company in the accounting period after deducting any allowable losses accruing to the company in the period and, so far as they have not been allowed as a deduction from chargeable gains accruing in any previous accounting period, any allowable losses previously (but not earlier than the year 1965-66) accruing to the company while it has been within the charge to corporation tax. 2 Except as otherwise provided by the Corporation Tax Acts, the total amount of the chargeable gains to be so included shall for purposes of corporation tax be computed in accordance with the principles applying for capital gains tax, all questions as to the amounts which are or are not to be taken into account as chargeable gains or as allowable losses, or in computing gains or losses, or charged to tax as a person's gain, or as to the time when any such amount is to be treated as accruing, being determined in accordance with the provisions relating to capital gains tax as if accounting periods were years of assessment. 3 Subject to subsection (4) below, where the enactments relating to capital gains tax contain any reference to income tax or to the Income Tax Acts the reference shall, in relation to a company, be construed as a reference to corporation tax or to the Corporation Tax Acts ; but — a this subsection shall not affect the references to income tax in paragraph 5(2) of Schedule 6 to the Finance Act 1965 (exclusion of expenditure by reference to hypothetical income tax), b nothing in this section shall be taken as applying for corporation tax section 21 of the said Act (alternative charge to tax on capital gains accruing to an individual), and c in so far as the said provisions operate by reference to matters of any specified description, account shall for corporation tax be taken of matters of that description which are confined to companies, but not of any which are confined to individuals. 4 Part III of the Finance Act 1965 as extended by this section shall not be affected in its operation by the fact that capital gains tax and corporation tax are distinct taxes but. so far as is consistent with the Corporation Tax Acts, shall apply in relation to capital gains tax and corporation tax on chargeable gains as if they were one tax, so that, in particular, a matter which in a case involving two individuals is relevant for both of them in relation to capital gains tax shall in a like case involving an individual and a company be relevant for him in relation to that tax and for it in relation to corporation tax. 5 Where assets of a company are vested in a liquidator under section 244 of the Companies Act 1948, or section 226 of the Companies Act (Northern Ireland) 1960, or otherwise, this section and the enactments applied by this section shall apply as if the assets were vested in, and the acts of the liquidator in relation to the assets were the acts of, the company (acquisitions from or disposals to him by the company being disregarded accordingly). Corporation tax attributable to chargeable gains: recovery from shareholder 266 1 This section applies where a person who is connected with a company resident in the United Kingdom receives or becomes entitled to receive in respect of shares in the company any capital distribution from the company, other than a capital distribution representing a reduction of capital, and — a the capital so distributed derives from the disposal of assets in respect of which a chargeable gain accrues to the company; or b the distribution constitutes such a disposal of assets. 2 If the corporation tax assessed on the company for the accounting period in which the chargeable gain accrues included any amount in respect of chargeable gains, and any of the tax assessed on the company for that period is not paid within six months from the date when it becomes payable by the company, the said person may by an assessment made within two years from that date be assessed and charged (in the name of the company) to an amount of that corporation tax — a not exceeding the amount or value of the capital distribution which that person has received or become entitled to receive; and b not exceeding a proportion equal to that person's share of the capital distribution made by the company of corporation tax on the amount of that gain at the rate in force when the gain accrued. 3 A person paying any amount of tax under this section shall be entitled to recover a sum equal to that amount from the company. 4 The provisions of this section are without prejudice to any liability of the person receiving or becoming entitled to receive the capital distribution in respect of a chargeable gain accruing to him by reference to the capital distribution as constituting a disposal of an interest in shares in the company. 5 In this section " capital distribution " has the same meaning as in paragraph 3 of Schedule 7 to the Finance Act 1965 and " connected with " shall be construed in accordance with section 533 of this Act. Company reconstruction or amalgamation: transfer of assets 267 1 Subject to the provisions of this section, where — a any scheme of reconstruction or amalgamation involves the transfer of the whole or part of a company's business to another company, and b the transfer takes effect after 5th April 1970, and c at the time of the transfer both the companies are resident in the United Kingdom, and d the first-mentioned company receives no part of the consideration for the transfer (otherwise than by the other company taking over the whole or part of the liabilities of the business), then so far as relates to corporation tax on chargeable gains the two companies shall be treated as if any assets included in the transfer were acquired by the one company from the other company for a consideration of such amount as would secure that on the disposal by way of transfer neither a gain nor a loss would accrue to the company making the disposal, and for the purposes of Part II of Schedule 6 to the Finance Act 1965 (assets held on 6th April 1965) the acquiring company shall be treated as if the respective acquisitions of the assets by the other company had been the acquiring company's acquisition of them. 2 This section does not apply in relation to an asset which, until the transfer, formed part of trading stock of a trade carried on by the company making the disposal, or in relation to an asset which is acquired as trading stock for the purposes of a trade carried on by the company acquiring the asset. 3 This section does not apply in the case of a transfer of the whole or part of a company's business to a unit trust scheme to which subsection (1) or subsection (2) of section 38 of the Finance Act 1965 (unit trusts for exempt unit holders) applies. 4 In this section — " scheme of reconstruction or amalgamation " means a scheme for the reconstruction of any company or companies or the amalgamation of any two or more companies, " trading stock " has the meaning given by section 137(4) of this Act. Postponement of charge on transfer of assets to nonresident company 268 1 This section applies where a company resident in the United Kingdom which is carrying on a trade outside the United Kingdom through a branch or agency transfers the trade carried on through that branch or agency, together with the whole assets of the business used for the purposes of that trade, or together with the whole of those assets other than cash, to a company not resident in the United Kingdom, and the business is so transferred wholly or partly in exchange for shares or for shares and loan stock issued by the transferee company to the transferor company, and the shares so issued, either alone or taken together with any other shares in the transferee company already held by the transferor company, amount in all to not less than one quarter of the ordinary share capital of the transferee company. 2 For the purposes of Part III of the Finance Act 1965, the transferor company shall be treated as if a fraction of any chargeable gain accruing to it on its disposal of any asset so transferred to the transferee company did not accrue to the transferor company until — a the transferee company disposes or partly disposes of that asset, or ceases to use it, or is wound up or dissolved, or b the transferor company disposes of all or any of the shares or loan stock issued in exchange by the transferee company, or c the expiration of a period of ten years beginning with the transfer, or d the passing of a resolution or the making of an order, or any other act, for the winding up of the transferor company (unless that company is not in fact wound up or dissolved), whichever event comes first. 3 A disposal of shares or loan stock by the transferor company which, by virtue of section 273 below, is treated as giving rise to neither a gain nor a loss shall be disregarded for the purposes of subsection (2)(b) above, but on the first occasion after such a disposal that there is a disposal which is not so treated of all or any of those shares or that loan stock, that subsection shall apply as if the disposal were a disposal by the transferor company. 4 The fraction referred to in subsection (2) above is A B where — A is the market value at the time of the transfer of the shares and of any loan stock received by the transferor company in exchange for the business (including any such assets as are referred to in subsection (1) above), and B is the market value at the time of the transfer of the whole of the consideration so received by the transferor company. 5 For the purposes of this section the ordinary share capital of a company means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company; and if all or part of the ordinary share capital of the transferee company consists of shares of no par value, the proportion of one quarter shall be determined according to the market value of the ordinary share capital at the time of the transfer. 6 All such adjustments shall be made by discharge or repayment of tax as are required to give effect to the provisions of this section. 7 This section applies only in relation to a transfer of a trade and assets after 10th April 1968. Interest charged to capital 269 1 Where — a a company incurs expenditure on the construction of any building, structure or works, being expenditure allowable as a deduction under paragraph 4 of Schedule 6 to the Finance Act 1965 in computing a gain accruing to the company on the disposal of the building, structure or work, or of any asset comprising it, and b that expenditure was defrayed out of borrowed money, and c the company charged to capital all or any of the interest on that borrowed money referable to a period or part of a period ending on or before the disposal, the sums so allowable under the said paragraph 4 shall include the amount of that interest charged to capital. 2 Paragraph 3 of Schedule 14 to the Finance Act 1967 (restriction on deductions where gain computed by reference to current use value of land) shall not restrict the sums allowable under subsection (1) above. Gilt-edged securities: restrictions on exemptions Charge to tax on certain disposals of United Kingdom securities 270 1 Subsection (1) of section 41 of the Finance Act 1969 (gilt-edged securities exempt from tax on capital gains) does not apply in the case of a disposal by a company of any specified securities unless the disposal occurs more than twelve months after the acquisition of the securities, and in this section " specified securities" has the same meaning as in the said section 41. 2 For the purposes of subsection (1) above — a if in consequence of a conversion on their redemption of any specified securities, those securities and a new holding of specified securities are, under paragraph 4(2) of Schedule 7 to the Finance Act 1965, as applied by paragraph 5 of that Schedule, to be treated as the same asset acquired as the converted securities were acquired, the date of acquisition of the new holding shall be deemed to be the date of the acquisition of the converted securities ; and b the rules of identification in paragraph 8 of Schedule 7 to this Act shall apply, and c in relation to a disposal of specified securities to which, by virtue of subsection (1) above, the said section 41(1) does not apply, the expenditure allowable under paragraph 4 of Schedule 6 to the Finance Act 1965 (cost of acquisition, etc.) shall, notwithstanding the provisions as to the pooling of securities in Schedule 7 to that Act, be determined by reference to the acquisition of the securities identified in accordance with paragraph (b) above. 3 Where under section 273 below the companies disposing of and acquiring an asset are to be treated as if the consideration were of such an amount that neither a gain nor a loss accrues on the disposal, the company acquiring the asset shall be treated for the purposes of subsections (1) and (2) above (and of the enactments referred to in subsection (2) above so far as applied for the purposes of subsection (1) above) as acquiring it at the time when the other acquired it. 4 In any case where — a at 3.30 p.m. on 15th April 1969 (in the following provisions of this section referred to as " the relevant time ") or at any time thereafter (whether before or after the commencement of this Act) any specified securities were held by a company in such circumstances that any gain or loss on their disposal would, apart from section 41 of the Finance Act 1969 (and Schedule 9 to the Finance Act 1965), have been taken into account in determining the company's liability to corporation tax on chargeable gains, and b those securities are subsequently appropriated by the company in such circumstances that if they were disposed of after the appropriation, any profit accruing on their disposal would be brought into account in computing the company's income for corporation tax, then for the purposes of corporation tax any loss incurred by the company on the disposal of those securities shall not exceed the loss which would have been incurred on that disposal if the amount or value of the consideration for the acquisition of the securities had been equal to their market value at the time of the appropriation. 5 In any case where — a at the relevant time or at any time thereafter (whether before or after the commencement of this Act) any specified securities were held by a company in such circumstances that any profit accruing on their disposal would be brought into account in computing the company's income for corporation tax, and b those securities are subsequently appropriated by the company in such circumstances that any gain accruing on their disposal would, by virtue of section 41 of the Finance Act 1969, be exempt from corporation tax on chargeable gains, then for the purposes of corporation tax the company shall be treated as if, immediately before the appropriation, it had sold and repurchased the specified securities at their market value at the time of the appropriation. Charge to tax on certain disposals of Guaranteed Stock issued at a discount 271 1 Section 27(3) of the Finance Act 1965 (gains and losses on certain Guaranteed Stock disregarded for purposes of tax on chargeable gains if within the exempt price range) shall not apply in the case of a disposal by a company unless the disposal of the securities occurs more than twelve months after their acquisition. 2 Paragraph 5(2) of Schedule 7 to that Act (conversion of certain Guaranteed Stock) shall not apply to a disposal of, or of part of, the new holding unless the disposal occurs more than twelve months after the acquisition of the converted securities. 3 The rules of identification in paragraph 8 of Schedule 7 to this Act shall apply for the purposes of this section and where this section applies in relation to any disposal, paragraph 2(4) of Schedule 7 to the Finance Act 1965 (pooling of securities: exclusion of those subject to tax under Case VII of Schedule D) shall apply as if that disposal had been chargeable to income tax under Case VII of Schedule D (tax on short-term gains). 4 Where under section 273 below the companies disposing of and acquiring an asset are to be treated as if the consideration were of such amount that neither a gain nor a loss accrues on the disposal, the company acquiring the asset shall be treated for the purposes of the preceding provisions of this section as acquiring it at the time when the other acquired it. Groups of companies Groups of companies: definitions 272 1 For the purposes of this and the following sections of this Chapter — a references to a company, subject to section 280(7) below, apply only to a company, as that expression is limited by subsection (2) below, which is resident in the United Kingdom; b a principal company, and all its 75 per cent. Subsidiaries form a group, and where a principal company is a member of a group as being itself a 75 per cent. subsidiary that group shall comprise all its 75 per cent. subsidiaries; c " principal company" means a company of which another company is a 75 per cent. subsidiary; d in applying the definition of " 75 per cent. subsidiary " in section 532 of this Act any share capital of a registered industrial and provident society shall be treated as ordinary share capital; and e " group " and " subsidiary " shall be construed with any necessary modifications where applied to a company incorporated under the law of a country outside the United Kingdom. 2 For the purposes referred to in subsection (1) above references to a company apply only to — a a company within the meaning of the Companies Act 1948 or the corresponding enactment in Northern Ireland, and b a company which is constituted under any other Act or a Royal Charter or letters patent or (although resident in the United Kingdom) is formed under the law of a country or territory outside the United Kingdom, and c a registered industrial and provident society within the meaning of section 340 of this Act. 3 For the purposes referred to in subsection (1) above a group remains the same group so long as the same company remains the principal company of the group, and if at any time the principal company of a group becomes a 75 per cent. subsidiary of another company the group of which it was the principal company before that time shall be regarded as the same as the group of which that other company, or one of which it is a 75 per cent. subsidiary, is the principal company, and the question whether or not a company has ceased to be a member of a group shall be determined accordingly. 4 For the purposes referred to in subsection (1) above the passing of a resolution or the making of an order, or any other act, for the winding-up of a company shall not be regarded as the occasion of that company, or of any 75 per cent. subsidiary of that company, ceasing to be a member of a group of companies. 5 The following sections of this Chapter, except in so far as they relate to recovery of tax, shall also have effect in relation to bodies from time to time established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control as if they were companies within the meaning of those sections, and as if any such bodies charged with related functions (and in particular the Boards and Holding Company established under the Transport Act 1962 and the new authorities within the meaning of the Transport Act 1968 established under that Act of 1968) and subsidiaries of any of them formed a group, and as if also any two or more such bodies charged at different times with the same or related functions were members of a group: Provided that this subsection shall have effect subject to any enactment by virtue of which property, rights, liabilities or activities of one such body fall to be treated for corporation tax as those of another, including in particular any such enactment in Chapter V of Part XII of this Act. 6 The following sections of this Chapter, except in so far as they relate to recovery of tax, shall also have effect in relation to the Executive for a designated area within the meaning of section 9 (1) of the Transport Act 1968 as if that Executive were a company within the meaning of those sections. Transfers within a group 273 1 Notwithstanding any provision in Part III of the Finance Act 1965 fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition, where a member of a group of companies disposes of an asset to another member of the group, both members shall, except as provided by subsections (2) and (3) below, be treated, so far as relates to corporation tax on chargeable gains, as if the asset acquired by the member to whom the disposal is made were acquired for a consideration of such amount as would secure that on the other's disposal neither a gain nor a loss would accrue to that other; but where it is assumed for any purpose that a member of a group of companies has sold or acquired an asset, it shall be assumed also that it was not a sale to or acquisition from another member of the group. 2 Subsection (1) above shall not apply where the disposal is — a a disposal of a debt due from a member of a group of companies effected by satisfying the debt or part of it; or b a disposal of redeemable shares in a company on the occasion of their redemption ; and the reference in that subsection to a member of a group of companies disposing of an asset shall not apply to anything which under Schedule 7 to the Finance Act 1965 is to be treated as a disposal of an interest in shares in a company in consideration for a capital distribution (as defined in paragraph 3 of that Schedule) from that company, whether or not involving a reduction of capital. 3 For the purposes of subsection (1) above, so far as the consideration for the disposal consists of money or money's worth by way of compensation for any kind of damage or injury to assets, or for the destruction or dissipation of assets or for anything which depreciates or might depreciate an asset, the disposal shall be treated as being to the person who, whether as an insurer or otherwise, ultimately bears the burden of furnishing that consideration. Transfers within a group: trading stock 274 1 Where a member of a group of companies acquires an asset as trading stock from another member of the group, and the asset did not form part of the trading stock of any trade carried on by the other member, the member acquiring it shall be treated for purposes of paragraph 1 of Schedule 7 to the Finance Act 1965 as having acquired the asset otherwise than as trading stock and immediately appropriated it for the purposes of the trade as trading stock. 2 Where a member of a group of companies disposes of an asset to another member of the group, and the asset formed part of the trading stock of a trade carried on by the member disposing of it but is acquired by the other member otherwise than as trading stock of a trade carried on by it, the member disposing of the asset shall be treated for purposes of paragraph 1 of Schedule 7 to the Finance Act 1965 as having immediately before the disposal appropriated the asset for some purpose other than the purpose of use as trading stock. Disposal or acquisition outside a group 275 1 Where a company which is or has been a member of a group of companies disposes of an asset which it acquired from another member of the group at a time when both were members of the group, paragraph 6 of Schedule 6 to the Finance Act 1965 (restriction of losses by reference to capital allowances) shall apply in relation to any capital allowances made to the other member (so far as not taken into account in relation to a disposal of the asset by that other member), and so on as respects previous transfers of the asset between members of the group (but this shall not be taken as affecting the consideration for which an asset is deemed under section 273(1) above to be acquired). 2 Part II of Schedule 6 to the Finance Act 1965 (assets acquired before 6th April 1965) shall apply in relation to a disposal of an asset by a company which is or has been a member of a group of companies, and which acquired the asset from another member of the group at a time when both were members of the group, as if all members of the group for the time being were the same person, and as if the acquisition or provision of the asset by the group, so taken as a single person, had been the acquisition or provision of it by the member disposing of it. Replacement of business assets by members of a group 276 1 For the purposes of section 33 of the Finance Act 1965 (replacement of business assets) all the trades carried on by members of a group of companies shall be treated as a single trade (unless it is a case of one member of the group acquiring, or acquiring the interest in, the new assets from another or disposing of, or of the interest in, the old assets to another). 2 Paragraph 16(2) of Schedule 19 to the Finance Act 1969 (special rules for depreciating assets) shall apply where the company making the claim is a member of a group of companies as if all members of the group for the time being were the same person (and, in accordance with subsection (1) above, as if all trades carried on by members were the same trade) and so that the gain shall accrue to the member of the group holding the asset concerned on the occurrence of the event mentioned in the said paragraph 16(2). Tax on company recoverable from other members of group 277 1 If at any time a chargeable gain accrues to a company which at that time is a member of a group of companies and any of the corporation tax assessed on the company for the accounting period in which the chargeable gain accrues is not paid within six months from the date when it becomes payable by the company, then, if the tax so assessed included any amount in respect of chargeable gains. — a a company which was at the time when the gain accrued the principal company of the group ; and b any other company which in any part of the period of two years ending with that time was a member of the said group of companies and owned the asset disposed of or any part of it, or where that asset is an interest or right in or over another asset, owned either asset or any part of either asset; may at any time within two years from the time when the tax became payable be assessed and charged (in the name of the company to whom the chargeable gain accrued) to an amount of that corporation tax not exceeding corporation tax on the amount of that gain at the rate in force when the gain accrued. 2 A company paying any amount of tax under subsection (1) above shall be entitled to recover a sum of that amount — a from the company to which the chargeable gain accrued, or b if that company is not the company which was the principal company of the group at the time when the chargeable gain accrued, from that principal company, and a company paying any amount under paragraph (b) above shall be entitled to recover a sum of that amount from the company to which the chargeable gain accrued, and so far as it is not so recovered, to recover from any company which is for the time being a member of the group and which has while a member of the group owned the asset disposed of or any part of it (or where that asset is an interest or right in or over another asset, owned either asset or any part of it) such proportion of the amount unrecovered as is just having regard to the value of the asset at the time when the asset, or an interest or right in or over it, was disposed of by that company. Company ceasing to be member of a group 278 1 If a company (in this section called the chargeable company) ceases to be a member of a group of companies, this section shall have effect as respects any asset which the chargeable company acquired from another company which was at the time of acquisition a member of that group of companies, but only if the time of acquisition fell — a on or after 6th April 1965, and b within the period of six years ending with the time when the company ceases to be a member of the group; and references in this section to a company ceasing to be a member of a group of companies do not apply to cases where a company ceases to be a member of a group by being wound up or dissolved or in consequence of another member of the group being wound up or dissolved. 2 Where two or more associated companies cease to be members of the group at the same time, subsection (1) above shall not have effect as respects an acquisition by one from another of those associated companies. 3 If, when the chargeable company ceases to be a member of the group, the chargeable company, or an associated company also leaving the group, owns, otherwise than as trading stock — a the asset, or b property to which a chargeable gain has been carried forward from the asset on a replacement of business assets, the chargeable company shall be treated for all the purposes of Part III of the Finance Act 1965 as if immediately after its acquisition of the asset it had sold, and immediately reacquired, the asset at market value at that time. 4 For the purposes of this section — a two or more companies are associated companies if, by themselves, they would form a group of companies, b a chargeable gain is carried forward from an asset to other property on a replacement of business assets if, by one or more claims under section 33 of the Finance Act 1965, the chargeable gain accruing on a disposal of the asset is reduced, and as a result an amount falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of the other property, c an asset acquired by the chargeable company shall be treated as the same as an asset owned at a later time by that company or an associated company if the value of the second asset is derived in whole or in part from the first asset, and in particular where the second asset is a freehold, and the first asset was a leasehold and the lessee has acquired the reversion. 5 If any of the corporation tax assessed on a company in consequence of this section is not paid within six months from the date when it becomes payable then — a a company which on the said date, or immediately after the chargeable company ceased to be a member of the group, was the principal company of the group, and b a company which owned the asset on the said date, or when the chargeable company ceased to be a member of the group, may at any time within two years from the time when the tax became payable, be assessed and charged (in the name of the chargeable company) to all or any part of that tax ; and a company paying any amount of tax under this subsection shall be entitled to recover a sum of that amount from the chargeable company. 6 Notwithstanding any limitation on the time for making assessments, an assessment to corporation tax chargeable in consequence of this section may be made at any time within six years from the time when the chargeable company ceased to be a member of the group, and where under this section the chargeable company is to be treated as having disposed of, and reacquired, an asset, all such recomputations of liability in respect of other disposals, and all such adjustments of tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the provisions of this section shall be carried out. 7 The provision in subsection (3) above making the assumption that an asset is sold and re-acquired at market value shall, in accordance with paragraph 7(1) of Schedule 14 to the Finance Act 1967, have effect subject to the provisions of section 33 of that Act (current use value of land in Great Britain). 8 This section has effect, to the exclusion of the corresponding enactments repealed by this Act, where the chargeable company ceases to be a member of the group in an accounting period ending after 5th April 1970, and not only in respect of tax for such an accounting period but also in respect of tax for accounting periods ending on or before that date. Shares in subsidiary member of a group 279 1 This section has effect if a company (in this section called " the subsidiary ") ceases to be a member of a group of companies, and on an earlier occasion shares in the subsidiary were disposed of by another company (in this section called " the chargeable company") which was then a member of that group in the course of an amalgamation or reconstruction in the group, but only if that earlier occasion fell — a on or after 6th April 1965, and b within the period of six years ending with the date on which the subsidiary ceases to be a member of the group; and references in this section to a company ceasing to be a member of a group of companies do not apply to cases where a company ceases to be a member of a group by being wound up or dissolved or in consequence of another member of the group being wound up or dissolved. 2 The chargeable company shall be treated, for all the purposes of Part III of the Finance Act 1965, as if immediately before the earlier occasion it had sold, and immediately reacquired, the said shares at market value at that time. 3 If, before the subsidiary ceases to be a member of the group, the chargeable company has ceased to exist, or a resolution has been passed, or an order made, for the winding up of the company, or any other act has been done for the like purpose, any corporation tax to which, if the chargeable company had continued in existence, it would have been chargeable in consequence of this section may be assessed and charged (in the name of the chargeable company) on the company which is, at the time when the subsidiary ceases to be a member of the group, the principal company of the group. 4 If any of the corporation tax assessed on a company in consequence of this section, or in pursuance of subsection (3) above, is not paid within six months from the date when it becomes payable, then — a a company which is on the said date, or was on the earlier occasion, the principal company of the group, and b any company taking an interest in the subsidiary as part of the amalgamation or reconstruction in the group, may at any time within two years from the time when the tax became payable, be assessed and charged (in the name of the chargeable company) to all or any part of that tax; and a company paying any amount of tax under this subsection shall be entitled to recover a sum of that amount from the chargeable company, or as the case may be from the company assessed under subsection (3) above. 5 Notwithstanding any limitation on the time for making assessments, an assessment to corporation tax chargeable in consequence of this section may be made at any time within six years from the time when the subsidiary ceased to be a member of the group and, in relation to any disposal of the property after the earlier occasion, there shall be made all such adjustments of tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the provisions of this section. 6 For the purposes of this section there is a disposal of shares in the course of an amalgamation or reconstruction in a group of companies if paragraph 6 or paragraph 7 of Schedule 7 to the Finance Act 1965 (company amalgamations) applies to shares in a company so as to equate them with shares in or debentures of another company, and the companies are members of the same group, or become members of the same group as a result of the amalgamation or reconstruction. 7 Where by virtue of paragraph 7 of the said Schedule 7 shares are to be treated as cancelled and replaced by a new issue, references in this section to a disposal of shares include references to the occasion of their being so treated. 8 This section has effect, to the exclusion of the corresponding enactments repealed by this Act, where the subsidiary ceases to be a member of the group in an accounting period of the chargeable company (or, as the case may be, of the company assessable under subsection (3) above) ending after 5th April 1970, and not only in respect of tax for such an accounting period but also in respect of tax for accounting periods ending on or before that date. Losses attributable to depreciatory transactions Transactions in a group 280 1 This section has effect as respects a disposal of shares in, or securities of, a company (in this section referred to as an " ultimate disposal") if the value of the shares or securities has been materially reduced by a depreciatory transaction effected on or after 6th April 1965; and for this purpose " depreciatory transaction " means — a any disposal of assets at other than market value by one member of a group of companies to another, or b unless the ultimate disposal occurred before 30th April 1969, any other transaction satisfying the conditions of subsection (2) below: Provided that a transaction shall not be treated as a depreciatory transaction to the extent that it consists of a payment which is required to be or has been brought into account, for the purposes of corporation tax on chargeable gains, in computing a chargeable gain or allowable loss accruing to the person making the ultimate disposal. 2 The conditions referred to in subsection (1)(b) above are — a that the company, the shares in which, or securities of which, are the subject of the ultimate disposal, or any 75 per cent. subsidiary of that company, was a party to the transaction, and b that the parties to the transaction were or included two or more companies which at the time of the transaction were members of the same group of companies. 3 Without prejudice to the generality of subsection (1) above, the cancellation of any shares in or securities of one member of a group of companies under section 66 of the Companies Act 1948 shall, to the extent that immediately before the cancellation those shares or securities were the property of another member of the group, be taken to be a transaction fulfilling the conditions in subsection (2) above. 4 If the person making the ultimate disposal is, or has at any time been, a member of the group of companies referred to in subsection (1) or (2) above, any allowable loss accruing on the disposal shall be reduced to such extent as appears to the inspector, or on appeal the Commissioners concerned, to be just and reasonable having regard to the depreciatory transaction : Provided that if the person making the ultimate disposal is not a member of the said group when he disposes of the shares or securities, no reduction of the loss shall be made by reference to a depreciatory transaction which took place when that person was not a member of the said group. 5 The inspector or the Commissioners shall make the decision under subsection (4) above on the footing that the allowable loss ought not to reffect any diminution in the value of the company's assets which was attributable to a depreciatory transaction if and so far as the effect of the transaction was to increase the value of the assets of any other member of the group, but allowance may be made for any other transaction on or after 6th April 1965 which has enhanced the value of the company's assets and depreciated the value of the assets of any other member of the group. 6 If, under subsection (4) above, a reduction is made in an allowable loss, any chargeable gain accruing on a disposal of the shares or securities of any other company which was a party to the depreciatory transaction by reference to which the reduction was made, being a disposal not later than six years after the depreciatory transaction, shall be reduced to such extent as appears to the inspector, or on appeal to the Commissioners concerned, to be just and reasonable having regard to the effect of the depreciatory transaction on the value of those shares or securities at the time of their disposal: Provided that the total amount of any one or more reductions in chargeable gains made by reference to a depreciatory transaction shall not exceed the amount of the reductions in allowable losses made by reference to that depreciatory transaction. All such adjustments, whether by way of discharge or repayment of tax, or otherwise, as are required to give effect to the provisions of this subsection may be made at any time. 7 For the purposes of this section — " securities " includes any loan stock or similar security whether secured or unsecured, references to the disposal of assets include references to any method by which one company which is a member of a group appropriates the goodwill of another member of the group, a " group of companies " may consist of companies some or all of which are not resident in the United Kingdom. 8 References in this section to the disposal of shares or securities include references to the occasion of the making of a claim under section 23(4) of the Finance Act 1965 that the value of shares or securities has become negligible, and references to a person making a disposal shall be construed accordingly. Dividend stripping 281 1 The provisions of this section apply where one company (in this section referred to as " the first company ") has a holding in another company (in this section referred to as " the second company") and the following conditions are fulfilled — a that the holding amounts to, or is an ingredient in a holding amounting to, 10 per cent. of all holdings of the same class in the second company, b that the first company is not a dealing company in relation to the holding, c that a distribution is or has been made after 29th April 1969 to the first company in respect of the holding, and d that the effect of the distribution is that the value of the holding is or has been materially reduced. 2 Where this section applies in relation to a holding section 280 above shall apply in relation to any disposal of any shares or securities comprised in the holding, whether the disposal is by the first company or by any other company to which the holding is transferred by a transfer to which section 273 above applies, as if the distribution were a depreciatory transaction and, if the companies concerned are not members of a group of companies, as if they were: Provided that the distribution shall not be treated as a depreciatory transaction to the extent that it consists of a payment which is required to be or has been brought into account, for the purposes of corporation tax on chargeable gains, in computing a chargeable gain or allowable loss accruing to the person making the ultimate disposal. 3 This section shall be construed as one with section 280 above. 4 For the purposes of this section a company is " a dealing company " in relation to a holding if a profit on the sale of the holding would be taken into account in computing the company's trading profits. 5 References in this section to a holding in a company refer to a holding of shares or securities by virtue of which the holder may receive distributions made by the company, but so that — a a company's holdings of different classes in another company shall be treated as separate holdings, and b holdings of shares or securities which differ in the entitlements or obligations they confer or impose shall be regarded as holdings of different classes. 6 For the purposes of subsection (1) above — a all a company's holdings of the same class in another company are to be treated as ingredients constituting a single holding, and b a company's holding of a particular class shall be treated as an ingredient in a holding amounting to 10 per cent. of all holdings of that class if the aggregate of that holding and other holdings of that class held by connected persons amounts to 10 per cent. of all holdings of that class, and section 533 of this Act (definition of connected persons) shall have effect in relation to paragraph (b) above as if, in subsection (7) of that section, after the words " or exercise control of " in each place where they occur there were inserted the words " or to acquire a holding in ". CHAPTER III Close Companies Meaning of close company Meaning of close company 282 1 For the purposes of the Corporation Tax Acts, a " close company " is one which is under the control of five or fewer participators, or of participators who are directors, except that the expression does not apply — a to a company not resident in the United Kingdom, or b to a registered industrial and provident society within the meaning of section 340(9) of this Act, or to a building society within the meaning of section 343 of this Act or any other company to which the said section 343 applies, or c to a company controlled by or on behalf of the Crown, and not otherwise a close company, or d to a company falling within subsection (4) or section 283 below. 2 Subject to subsection (4) and section 283 below, a company resident in the United Kingdom (but not falling within subsection (1)(b) above) is also a close company if, on the assumption that it is so, or on the assumption that it and any other such company or companies are so, more than half of any amount falling under this Chapter to be apportioned for the purposes of surtax in the case of the company could be apportioned among five or fewer participators, or among participators who are directors. 3 For the purposes of this section — a a company is to be treated as controlled by or on behalf of the Crown if, but only if, it is under the control of the Crown or of persons acting on behalf of the Crown, independently of any other person, and b where a company is so controlled, it shall not be treated as being otherwise a close company unless it can be treated as a close company as being under the control of persons acting independently of the Crown. 4 A company is not to be treated as a close company in any case where — a by reason of beneficial ownership of shares in the company, the control of it is in the hands of a company which is not a close company, or of two or more companies none of which is a close company, and b it could only be treated as a close company as being under the control of five or fewer participators, and it cannot be so treated except by taking as one of the participators a company which is not a close company, but so that references in this subsection to a close company shall be treated as applying to any company which, if resident in the United Kingdom, would be a close company. Certain companies with quoted shares not to be close companies 283 1 Subject to the following provisions of this section, a company is not to be treated as being at any time a close company if — a shares in the company carrying not less than 35 per cent. of the voting power in the company (and not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) have been allotted unconditionally to, or acquired unconditionally by, and are at that time beneficially held by, the public, and b any such shares have within the preceding twelve months been the subject of dealings on a recognised stock exchange, and the shares have within those twelve months been quoted in the official list of a recognised stock exchange. 2 Subsection (1) above shall not apply to a company at any time when the total percentage of the voting power in the company possessed by all of the company's principal members exceeds 85 per cent. 3 For the purposes of subsection (1) above, shares in a company shall be deemed to be beneficially held by the public if, and only if, they — a fall within subsection (4) below, and b are not within the exceptions in subsection (5) below, and a corresponding construction shall be given to the reference to shares which have been allotted unconditionally to, or acquired unconditionally by, the public. 4 Shares fall within this subsection (as being beneficially held by the public) — a if beneficially held by a company resident in the United Kingdom which is not a close company, or by a company not so resident which would not be a close company if it were so resident, or b if held on trust for a fund or scheme approved under section 208 or section 222 (superannuation funds and retirement schemes) of this Act, or c if they are not comprised in a principal member's holding. 5 Shares shall not be deemed to be held by the public if they are held — a by any director or associate of a director of the company, or b by any company which is under the control of any such director or associate, or of two or more persons each of whom is such a director or associate, or c by any associated company of the company, or d as part of any fund the capital or income of which is applicable or applied wholly or mainly for the benefit of, or of the dependants of, the employees or directors, or past employees or directors, of the company, or of any company within paragraph (b) or (c) above. References in this subsection to shares held by any person include references to any shares the rights or powers attached to which could, for the purposes of section 302 below (definition of " control"), be attributed to that person under subsection (5) of that section (nominees). 6 For the purposes of this section — a a person is a principal member of a company if he possesses a percentage of the voting power in the company of more than 5 per cent. and, where there are more than five such persons, if he is one of the five persons who possess the greatest percentages or if, because two or more persons possess equal percentages of the voting power in the company, there are no such five persons, he is one of the six or more persons (so as to include those two or more who possess equal percentages) who possess the greatest percentages, and b a principal member's holding consists of the shares which carry the voting power possessed by him. 7 In arriving at the voting power which a person possesses, there shall be attributed to him any voting power which, for the purposes of section 302 below (definition of " control "), would be attributed to him under subsection (5) or (6) of that section (nominees, controlled companies and associates). 8 In this section " share " includes " stock ". Additional matters to be treated as distributions Payments etc. to participators and associates 284 1 Subject to such exceptions as are mentioned in section 233(1) of this Act, in the Corporation Tax Acts " distribution ", in relation to a close company, includes unless otherwise stated — a any annuity or other annual payment paid by the company to a participator, other than interest, b any rent, royalty or other consideration paid or given by the company to a participator for the use of property other than money or, in the case of tangible property or of copyright in a literary, dramatic, musical or artistic work within the meaning of the Copyright Act 1956 (or any corresponding right under the law of a country to which that Act does not extend), so much of any such consideration as represents more than a reasonable commercial consideration, and c any such amount as is required to be treated as a distribution by subsection (2) below. 2 Where a close company incurs expense in or in connection with the provision for any participator of living or other accommodation, of entertainment, of domestic or other services, or of other benefits or facilities of whatever nature, the company shall be treated as making a distribution to him of an amount equal to so much of that expense as is not made good to the company by the participator: Provided that this subsection shall not apply to expense incurred in or in connection with the provision of benefits or facilities for a person to whom section 196 of this Act applies as a director or employee of the company, or the provision for the spouse, children or dependants of any such person of any pension, annuity, lump sum, gratuity or other like benefit to be given on his death or retirement. 3 Any reference in subsection (2) above to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter; and section 197 of this Act (valuation of benefits in kind) shall apply for the purposes of that subsection as it applies for the purposes of section 196 of this Act, references to that subsection being substituted for references to section 196(1), and references to a body corporate including any company. 4 Subsection (2) above shall not apply if the company and the participator are both resident in the United Kingdom and — a one is a subsidiary of the other or both are subsidiaries of a third company also so resident, and b the benefit to the participator arises on or in connection with a transfer of assets or liabilities by the company to him, or to the company by him. 5 The question whether one body corporate is a subsidiary of another for the purpose of subsection (4) above shall be determined as a question whether it is a 51 per cent. subsidiary of that other, except that that other shall be treated as not being the owner — a of any share capital which it owns directly in a body corporate if a profit on a sale of the shares would be treated as a trading receipt of its trade; or b of any share capital which it owns indirectly, and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt; or c of any share capital which it owns directly or indirectly in a body corporate not resident in the United Kingdom. 6 Where each of two or more close companies makes a payment to a person who is not a participator in that company, but is a participator in another of those companies, and the companies are acting in concert or under arrangements made by any person, then each of those companies and any participator in it shall be treated as if the payment made to him had been made by that company. This subsection shall apply, with any necessary adaptations, in relation to the giving of any consideration, and to the provision of any facilities, as it applies in relation to the making of a payment. 7 For the purposes of this section any reference to a participator includes an associate of a participator, and any participator in a company which controls another company shall be treated as being also a participator in that other company. Interest paid to directors and directors' associates 285 1 Subject to such exceptions as are mentioned in section 233(1) of this Act, this section has effect where in any accounting period any interest is paid by a close company to, or to an associate of, a person — a who is a director of the close company, or of any company which controls, or is controlled by, the close company, and b who has a material interest — i in the close company, or ii where the close company is controlled by another company, in that other company. 2 If the total amount so paid to any person in the accounting period exceeds the limit imposed in his case, the excess shall be a distribution made by the close company to that person. 3 The limit shall be worked out in the first instance as an overall limit applying to the aggregate of all interest which is within subsection (1) above and which was paid by the close company in the accounting period, and, where there are two or more different recipients, that overall limit shall be apportioned between them according to the amounts of interest paid to them respectively. 4 The overall limit shall be a sum equal to interest at 8 per cent. per annum on whichever is the less of — a the total of the loans, advances and credits on which the interest within subsection (1) above was paid by the close company in the accounting period, or if that total was different at different times in the accounting period, the average total over the accounting period, and b the nominal amount of the issued share capital of the close company plus the amount of any share premium account (or other comparable account by whatever name called) of the company, taking both amounts as at the beginning of the accounting period. 5 In this section " interest" includes any other consideration paid or given by the close company for the use of money advanced, or credit given, by any person, and references to interest " paid " shall be construed accordingly. 6 This section has effect subject to section 284(6) above, and for the purposes of this section a person has a material interest in a company — a if he, either on his own or with any one or more of his associates, or if any associate of his with or without any such other associates, is the beneficial owner of, or able, directly or through the medium of other companies or by any other indirect means, to control, more than 5 per cent. of the ordinary share capital of the company, or b if, on an amount equal to the whole distributable income of the company falling under this Chapter to be apportioned for the purposes of surtax, more than 5 per cent. of that amount could be apportioned to him together with his associates (if any), or to any associate of his, or any such associates taken together. Charges to tax in connection with loans and covenants Loans to participators etc. 286 1 Subject to the following provisions of this section, where a close company, otherwise than in the ordinary course of a business carried on by it which includes the lending of money, makes any loan or advances any money to an individual who is a participator in the company or an associate of a participator, there shall be assessed on and recoverable from the company, as if it were an amount of income tax chargeable on the company, an amount equal to income tax on the grossed up equivalent of the loan or advance. 2 For the purposes of this section the cases in which a close company is to be regarded as making a loan to any person include a case where — a that person incurs a debt to the close company, or b a debt due from that person to a third party is assigned to the close company, and then the close company shall be regarded as making a loan of an amount equal to the debt: Provided that paragraph (a) above shall not apply to a debt incurred for the supply by the close company of goods or services in the ordinary course of its trade or business unless the credit given exceeds six months or is longer than that normally given to the company's customers. 3 This section shall not apply to a loan made to a director or employee of a close company, or of an associated company of the close company, under a bona fide scheme for assisting the purchase of houses by members of the staff of the close company, or of any associated company of the close company, if — a the loan is used for the purpose of purchasing a dwelling which is or will be the borrower's only or main residence, and b neither the amount of the loan, nor that amount when taken with any other outstanding loans made for the same purpose, by the close company or any of its associated companies to the borrower, or to the wife or husband of the borrower, exceeds £10,000, and c the borrower works full-time for the close company, or any of its associated companies, and d the borrower does not have a material interest in the close company or in any associated company of the close company. 4 Tax assessed by virtue of this section shall, subject to any appeal against the assessment, be due within fourteen days after the issue of the notice of assessment. 5 Where, after a company has paid the amount assessed on it under this section in respect of any loan or advance, the loan or advance or any part of it is repaid to the company, the amount paid by the company, or a proportionate part of it, shall be repaid. Relief under this subsection shall be given on a claim, which must be made within six years from the end of the year of assessment in which the repayment is made. 6 For the purposes of this section and section 287 below, the grossed up equivalent of an amount is such a sum as, after deduction of income tax at the standard rate, is equal to that amount, and shall be computed by reference to the standard rate for the year of assessment in which the loan or advance is made or, as the case may be, the debt is wholly or partly released or written off. 7 Where, under arrangements made by any person otherwise than in the ordinary course of a business carried on by him — a a close company makes a loan or advance which, apart from this subsection, does not give rise to any charge on the company under subsection (1) above, and b some person other than the close company makes a payment or transfers property to, or releases or satisfies (in whole or in part) a liability of, an individual who is a participator in the company or an associate of a participator, then, unless in respect of the matter referred to in paragraph (b) above there falls to be included in the total income for the purposes of surtax of the participator or associate an amount not less than the grossed up equivalent of the loan or advance, this section shall apply as if the loan or advance had been made to him. 8 In subsections (1) and (7)(b) above, the references to an individual shall apply also to a company receiving the loan or advance in a fiduciary or representative capacity, and to a company not resident in the United Kingdom. 9 For the purposes of this section any participator in a company which controls another company shall be treated as being also a participator in that other company; and section 285(6) above shall apply for the purpose of determining whether a person has, for the purpose of subsection (3) above, a material interest in a company. Effect of release, etc., of debt in respect of loan under s. 286 287 1 Subject to the following provisions of this section where a company is assessed or liable to be assessed under section 286 above in respect of a loan or advance and releases or writes off the whole or part of the debt in respect of it, the person to whom it was made shall be treated for purposes of surtax as having then received an amount of income equal to the grossed up equivalent of the amount so released or written off. 2 If the loan or advance referred to in subsection (1) above was made to a person who has since died, or to trustees of a trust which has come to an end, this section, instead of applying to the person to whom it was made, shall apply to the person from whom the debt is due at the time of release or writing off (and if it is due from him as personal representative within the meaning of Part XV of this Act, the amount treated as received by him shall accordingly be, as regards surtax, included for the purposes of that Part in the aggregate income of the estate). 3 This section shall not have effect in relation to a loan or advance made to a person if any sum falls in respect of the loan or advance to be included in his income by virtue of section 451 of this Act (sums paid to settlor otherwise than as income), except in so far as the amount released or written off exceeds the sums previously falling to be so included (without the addition for income tax provided for by subsection (5) of that section). 4 This section shall be construed as one with section 286 above. Covenants by participators 288 1 Where, in respect of any payment made or consideration given by a company, any sum falls by virtue of section 34 of this Act (charge of surtax on consideration for certain restrictive covenants etc.) to be included in an individual's total income for the purposes of surtax, and, at the time when the payment is made or the consideration is given, the company is a close company and the individual is a participator in the company or an associate of a participator, there shall be assessed on and recoverable from the company, as if it were an amount of income tax chargeable on the company, an amount equal to income tax on the sum falling to be included in the individual's income as aforesaid, at the standard rate for the year of assessment in which the payment is made or the consideration is given. 2 Tax assessed by virtue of subsection (1) above shall, subject to any appeal against the assessment, be due within fourteen days after the issue of the notice of assessment. 3 Where subsection (1) above would apply to any payment or consideration if the condition that the company is a close company and the individual a participator in it or an associate of a participator were satisfied at the time when the payment is made or the consideration is given, that subsection shall apply if either — a at that time the individual holds or is about to hold an office or employment with the company and the condition is satisfied within two years afterwards, or b at that time the individual holds or has held an office or employment with the company and the condition has been satisfied within two years previously. 4 For the purposes of this section any participator in a company which controls another company shall be treated as being also a participator in that other company. Charges to tax in respect of shortfall Shortfall in distributions 289 1 If in any accounting period of a close company there is a shortfall in the company's distributions, there shall be assessed on and recoverable from the company, as if it were an amount of income tax chargeable on the company, an amount equal to the income tax for which the company would be liable to account under section 232(2) of this Act on a distribution equal in amount (before deduction of income tax) to the shortfall and made twelve months after the end of the accounting period (income tax having been deducted). 2 Tax assessed by virtue of subsection (1) above shall, subject to any appeal against the assessment, be due within fourteen days after the issue of the notice of assessment. 3 Where a company is in respect of any year of assessment: assessed under this section in respect of a shortfall in distributions, and there is in that year a surplus of franked investment income (including any amount carried forward from an earlier year), the company may, by a claim made within two years from the end of that year of assessment, require that the shortfall shall be set off as far as may be against the surplus, and, in that event, the shortfall and the surplus shall each (as regards the company) be treated as reduced by the amount of the set-off; and the set-off shall, so far as it reduces the shortfall, be effected by discharge of the tax assessed under this section by reference to the shortfall. 4 Effect shall be given to a claim under subsection (3) above in priority to any claim for the same year under section 254 or section 255 of this Act, but the set-off shall be made as far as may be against any part of the surplus which has been carried forward from an earlier year of assessment. 5 Where a company is assessed under this section in respect of a shortfall in distributions for any accounting period, then (so long as the company remains a close company) it may for any later accounting period for which there is no such shortfall make a claim within six years from the end of the later period requiring that the shortfall of the earlier period, or so much of it as has not been dealt with under this subsection, shall, in determining the income tax payable by the company in respect of distributions for the later period or, as the case may be, in arriving at any surplus of franked investment income, be deducted rateably from the distributions made by the company for the later period : Provided that no deduction shall be made under this subsection from the distributions for any accounting period so as to reduce those distributions below the required standard. 6 Subject to subsections (4) and (5) of section 294 below, the preceding provisions of this section shall, notwithstanding the winding up of a company, or the passing of any resolution or the making of any order or anything else done for the winding up of a company, continue to apply as if the company were not being wound up. 7 So much of section 247(8) of this Act (adjustments where true accounting period is established on appeal) as extends the time within which assessments may be made shall apply to assessments to tax under this section. Determination of shortfall: required standard 290 1 For the purposes of section 289 above, the shortfall in a company's distributions for any accounting period is, subject to the following provisions of this section, the amount (if any) by which the distributions for the period fall short of the required standard; and subject to those provisions, the required standard is the distributable income for the period, less so much of that income (not exceeding, in the case of a company which is neither a trading company nor a member of a trading group, the amount of the estate or trading income) as the company shows could not be distributed without prejudice to the requirements of the company's business. 2 In no case shall the required standard exceed the company's distributable investment income for the period plus 60 per cent. of the estate or trading income for the period. 3 In arriving at the required standard for any accounting period — a regard shall be had not only to the current requirements of the company's business, but also to such other requirements as may be necessary or advisable for the maintenance and development of that business but, for this purpose, the provisions of section 293 below shall apply; b the amount of the estate or trading income shall be taken at the amount included in respect of it in the distributable income. 4 Where a company is subject to any restriction imposed by law as regards the making of distributions, any shortfall in its distributions for an accounting period shall be disregarded to the extent to which the company could not make distributions up to the required standard without contravening that restriction. 5 In the application of subsection (2) above to a trading company, the estate or trading income for an accounting period, if it is less than the relevant maximum amount shall be treated as reduced by one-fifth of the amount required to make it up to that relevant maximum amount or, if it is less than the relevant minimum amount, shall be disregarded. 6 The relevant maximum and minimum amounts referred to in subsection (5) above shall be determined as follows: — a where the company has no associated company in the accounting period, those amounts are £9,000 and £1,500 respectively; b where the company has one or more associated companies in the accounting period, the relevant maximum amount is £9,000 divided by one plus the number of those associated companies and the relevant minimum amount is £1,500 divided by one plus the number of those associated companies. 7 In applying subsections (5) and (6) above to any accounting period of a trading company, an associated company which has not carried on any trade or business at any time in that accounting period (or, if an associated company during part only of that accounting period, at any time in that part of that accounting period) shall be disregarded; and for the purposes of this section a company is to be treated as an " associated company" of another at a given time if at that time one of the two has control of the other or both are under the control of the same person or persons. 8 In determining how many associated companies a trading company has got in an accounting period or whether a trading company has an associated company in an accounting period, an associated company shall be counted even if it was an associated company for part only of the accounting period, and two or more associated companies shall be counted even if they were associated companies for different parts of the accounting period. 9 For an accounting period of less than twelve months the relevant maximum and minimum amounts determined in accordance with subsection (6) above shall be proportionately reduced. 10 The provisions of this section have effect subject to section 294 below. Distributions to be taken into account, and meaning of " distributable income " etc. 291 1 For the purposes of the provisions of this Chapter relating to shortfalls in the distributions of a close company, the distributions for an accounting period shall be taken to consist of — a any dividends which are declared in respect of the period and are paid during the period or within eighteen months after it, and b all distributions made in the period except dividends which, in relation to any previous period, would fall under paragraph (a) above: Provided that, where a period of account is not an accounting period, dividends which, if it were an accounting period, would be treated under paragraph (a) above as distributions for that accounting period shall be apportioned to any accounting period or part of an accounting period falling within the period of account in proportion to the distributable income of each such period or part. 2 For the purposes of the provisions referred to in subsection (1) above, the " distributable income " of a company for an accounting period shall be the amount of its distributable profits for the period exclusive of the part attributable to chargeable gains, and, for the purposes of this subsection — a the " distributable profits" of a company for an accounting period shall be the amount on which corporation tax falls finally to be borne, less the amount of that tax, but with additions equal to — i any franked investment income, less the amount of any relief given against it under section 254 or section 255 of this Act, and ii any group income, b the part of a company's distributable profits attributable to chargeable gains shall be taken to be the amount of the chargeable gains on which corporation tax is finally borne less the amount of that tax, and c the amount on which corporation tax falls finally to be borne (but not the amount of that tax) shall be computed as if section 254 of this Act did not include subsection (5) or subsection (6) of that section (and as if section 255 of this Act did not apply the said subsection (5)). 3 For the purposes of the provisions referred to in subsection (1) above, the "distributable investment income" of a company for an accounting period shall be the amount of the distributable income, exclusive of the part attributable to estate or trading income, and less whichever is the smaller of — a 10 per cent. of the estate or trading income, and b £200 or, if the accounting period is of less than twelve months, a proportionately reduced amount. 4 For the purposes of this Chapter, the " estate or trading income " of a company means — a income which is not investment income for the purposes of section 292(1) below, and b income which is chargeable to tax under Schedule A or Schedule B, and income (other than yearly or other interest) which is chargeable to tax under Schedule D, and which arises from the ownership or occupation of land (including any interest in or right over land) or from the letting furnished of any building or part of a building. 5 The amount for part of an accounting period of any description of income referred to in subsections (2) to (4) above shall be a proportionate part of the amount for the whole period, and, in determining the amount for any period of any description of income, any deduction from the company's profits for charges on income, expenses of management or other amounts deductible from profits of more than one description shall be treated as made from such profits, and in such proportions from those profits, as is appropriate. Meaning of "trading company" and "member of a trading group" 292 1 For the purposes of this Chapter, a " trading company " is any company which exists wholly or mainly for the purpose of carrying on a trade, and any other company whose income does not consist wholly or mainly of investment income, that is to say, income, which, if the company were an individual, would not be earned income; but for this purpose any amount which is apportioned to a company under section 296 below shall be deemed to be income of the company and to be investment income. 2 For the purposes of this Chapter, a company is to be treated as a " member of a trading group " if, but only if — a it exists wholly or mainly for the purpose of co-ordinating the administration of a group of two or more companies each of which is under its control and exists wholly or mainly for the purpose of carrying on a trade, or b it is under the control of another company resident in the United Kingdom and not itself under the control of a third company, and it exists wholly or mainly for the purpose of a trade or trades carried on by that other company or by a group which, consisting of that other company and a company or companies also under its control and resident in the United Kingdom, exists wholly or mainly for the purpose of carrying on the said trade or trades: Provided that a company shall not be treated as a member of a trading group by reason of any company having the control of another if that control is exercised through a company which is not resident in the United Kingdom or through a company whose control depends on a holding a profit on the sale of which would be treated as a trading receipt of the company. Requirements of the company's business 293 1 For the purposes of section 290(3) above there shall be regarded as income available for distribution and not as having been applied, or as being applicable, to the current requirements of a company's business, or to such other requirements as may be necessary or advisable for the maintenance and development of that business — a any sum expended or applied, or intended to be expended or applied, out of the income of the company, otherwise than in pursuance of an obligation entered into by the company before 4th August 1914 — i in or towards payment for the business, undertaking or property which the company was formed to acquire or which was the first business, undertaking or property of a substantial character in fact acquired by the company, or ii in redemption or repayment of any share or loan capital or debt (including any premium thereon) issued or incurred in or towards payment for any such business, undertaking or property, or issued or incurred for the purpose of raising money applied or to be applied in or towards payment therefor, or iii in meeting any obligations of the company in respect of the acquisition of any such business, undertaking or property, or iv in redemption or repayment of any share or loan capital or debt (including any premium thereon) issued or incurred otherwise than for adequate consideration, and b any sum expended or applied, or intended to be expended or applied, in pursuance or in consequence of any fictitious or artificial transaction, and c in the case of a company which is neither a trading company nor a member of a trading group, any sum expended or applied, or available to be expended or applied, out of the income of the company in or towards the redemption, repayment or discharge of any loan capital or debt (including any premium thereon) in respect of which any person is a loan creditor of the company. 2 For the purposes of subsection (1)(a)(iv) above, share or loan capital or debt shall be deemed to be issued or incurred otherwise than for adequate consideration if — a it is issued or incurred for consideration the value of which to the company is substantially less than the amount of the capital or debt (including any premium thereon), or b it is issued or incurred in or towards, or for the purpose of raising money applied or to be applied in or towards, the redemption or repayment of any share or loan capital or debt which itself was issued or incurred for such consideration as is mentioned in paragraph (a) of this subsection or which represents, directly or indirectly, any share or loan capital or debt which itself was issued or incurred for such consideration; and references in the preceding provisions of this section to money applied or to be applied for any purpose shall be deemed to include references to money applied or to be applied in or towards the replacement of that money. Cessations and liquidations 294 1 For the purposes of sections 289 and 290 above, where a close company ceases to carry on the trade, or the business of holding investments, in which its activities wholly or mainly consisted, then, subject to subsection (2) below, but notwithstanding any other provision limiting the required standard of distributions, the required standard for any accounting period in which that event occurs, or which ends in or with the twelve months ending with that event, shall be calculated on the whole, instead of on 60 per cent. of the estate or trading income (if any) taken into account, and without any deduction in respect of the requirements of the business. 2 Where subsection (1) above applies for an accounting period and the company shows that it could not make distributions up to the required standard without prejudice to the claims of creditors (excluding those mentioned in subsection (3) below), then, for the purposes of section 289 above so much of the shortfall as the company shows could not be avoided without prejudice to those claims shall be disregarded. 3 The creditors to be excluded for the purposes of subsection (2) above are all participators and associates of participators, and all creditors in respect of debts originally created in favour of or due to a person who was then a participator or associate of a participator: Provided that a creditor is not to be excluded in respect of any debt which either — a arose in the ordinary course of the company's trade or the company's business of holding investments and also in the ordinary course of a trade or profession of the creditor or, as the case may be, of the participator or associate who was the original creditor, or b is a debt for remuneration chargeable to income tax under Schedule E, or c is a debt for any rent or other payment due for the use of tangible property or of copyright in a literary, dramatic, musical or artistic work within the meaning of the Copyright Act 1956 (or any corresponding right under the law of a country to which that Act does not extend), and not representing more than a reasonable commercial consideration for that use. 4 Where a resolution is passed, or an order is made, for the winding up of a close company, or where any other act is done for a like purpose in the case of a winding up otherwise than under the Companies Act 1948, subsections (1) to (3) above shall apply for any accounting period ending in or with the twelve months ending with the passing of the resolution or other event, or for any later accounting period, as they apply, in a case falling within subsection (1) above, for an accounting period in which a close company ceases to carry on a trade. 5 Where an event mentioned in subsection (4) above occurs, then any assessment on the company in respect of a shortfall — a for an accounting period ending in or with the twelve months ending with the said event shall be an assessment as for a distribution made immediately before that event, b for any later accounting period shall be an assessment as for a distribution made immediately before the end of that period, and the amount due under the assessment shall be recoverable accordingly. The shortfall charge: protection by transmission of accounts 295 1 A close company may, at any time after the general meeting at which the accounts for any period of account are adopted, forward to the inspector a copy of those accounts, together with a copy of the report (if any) of the directors for that period and such further information (if any) as it may think fit, and may request the inspector to proceed under this section in relation to any accounting period comprised in that period of account: Provided that this subsection shall not apply if the company is neither a trading company nor a member of a trading group and has no estate or trading income. 2 Where the inspector receives a request made in accordance with subsection (1) above in relation to any accounting period, then, subject to subsection (3) below, he shall, within three months after receipt of the request, intimate to the company whether or not he proposes to make an assessment on the company in respect of the accounting period under section 289 above. 3 On receiving a request made in accordance with subsection (1) above, the inspector may, not later than three months after the receipt of the request, call on the company to furnish him with such further particulars as he may reasonably require; and, if the inspector does so, the time for giving the intimation required by subsection (2) above shall not expire before three months after he has been furnished with those particulars. 4 Where the inspector receives a request made in accordance with subsection (1) above in relation to any accounting period, and does not within the time limited by subsections (2) and (3) above intimate his intention to make an assessment in respect of the period, no such assessment shall be made unless either — a the information accompanying the request, and any further particulars furnished to the inspector in connection therewith, are not such as to make full and accurate disclosure of all facts and considerations which are material to be known to him, or b within twelve months of the end of the period any of the provisions of section 294 above has effect in relation to the company. Surtax apportionments Apportionment for surtax of close company's income 296 1 Subject to the provisions of this section, the income of a close company for any accounting period may, for the purposes of surtax, be apportioned by the Board among the participators, and any amount apportioned to a close company, whether originally or by one or more sub-apportionments under this provision, may be further apportioned among the participators in that company. 2 For the purposes of an apportionment under this section, there shall be added to the amount of the income to be apportioned any amounts which were deducted in respect of annual payments, not being interest, in arriving at the company's distributable income (as defined in section 291(2) above) for the accounting period and which, in the case of an individual, would not have been deductible or would have been treated as his income in computing his total income for surtax. 3 Subject to subsection (2) above and (in the case of non-trading companies) to section 298(2) below. — a an apportionment shall not be made under this section of a company's income for an accounting period unless an assessment is made on the company under section 289 above in respect of a shortfall in its distributions for that period, and b the amount apportioned shall be the amount of the shortfall taken into account in making that assessment (and for this purpose a set-off of a surplus of franked investment income under section 289(3) above shall not be taken as reducing the amount of the shortfall), and an assessment under the said section 289, when it becomes final and conclusive, shall also be final and conclusive for the purposes of this subsection. 4 Subject to subsection (5) below and (in the case of non-trading companies) to section 298 below, any apportionment under this section, including any sub-apportionment of an amount directly or indirectly apportioned to a company, shall be made according to the respective interests in the company in question of the participators. 5 In determining for the purposes of subsection (4) above the respective interests of the participators, the Board may if it seems proper to them to do so attribute to each participator an interest corresponding to his interest in the assets of the company available for distribution among the participators in the event of a winding up. 6 This section shall, notwithstanding the winding-up of a company, or the passing of any resolution or the making of any order or anything else done for the winding up of a company, continue to apply as if the company were not being wound up. 7 Notice of an apportionment under this section shall be given by serving on the company a statement showing the total amount apportioned and, as the Board think fit, either the amount apportioned to each participator or the amount apportioned to each class of shares. 8 A company which is aggrieved by any notice of apportionment under this section shall be entitled to appeal to the Special Commissioners on giving notice to an officer of the Board within thirty days after the date of the notice; and subject to that an apportionment under this section shall be final and conclusive. 9 If a company fails or refuses, on being required to do so by the Board, to furnish a statement of its income for any accounting period apportionable under this section, or renders a statement with which the Board are not satisfied, the Board may make an estimate of that income to the best of their judgment. 10 On an appeal to the Special Commissioners, the Commissioners shall have jurisdiction to review any relevant decision taken by the Board under subsection (5) or subsection (9) above. Consequences of apportionment under s. 296 297 1 Where an apportionment of income of a close company has been made under section 296 above, surtax shall be assessed and charged in respect of the sum so apportioned in accordance with the following provisions of this section. 2 Subject to subsection (4) below, and (in the case of non-trading companies) to section 298(3) below, the income apportioned to a participator in a company shall for the purposes of surtax form part of his total income, and subject to section 529 of this Act shall be deemed to be the highest part of that income and to have been received by him at the end of the accounting period to which the apportionment relates. 3 Any amount apportioned to the personal representatives of a deceased person shall be treated as included as regards surtax in the aggregate income of the estate for the purposes of Part XV of this Act. 4 No individual shall be charged to surtax by virtue of any apportionment unless the sum or, where there is a sub-apportionment, the aggregate sum on which he is so chargeable amounts either to £100 or more or to 5 per cent. or more of the amount apportioned. 5 Any surtax chargeable under this section in respect of the amount of the income of a close company apportioned to any participator shall be assessed upon that participator in the name of the company and, subject as hereinafter provided, shall be payable by the company, and all the provisions of the Income Tax Acts relating to surtax assessments and the collection and recovery of surtax shall, with any necessary modification, apply to surtax assessments and to the collection and recovery of surtax charged under this section. 6 A notice of charge to surtax under this section shall in the first instance be served on the participator on whom the tax is assessed, and if the participator does not within twenty-eight days from the date of the notice elect to pay the tax, a notice of charge shall be served on the company, and the tax shall thereupon become payable by the company: Provided that — a nothing in this subsection shall prejudice the right to recover from the company the surtax charged in respect of any participator who has elected as aforesaid but who fails to pay the tax by 1st January in the year next following the year of assessment or within twenty-eight days of the date on which he so elected, whichever is the later, and b where a notice of charge is served on a company and the tax thereupon becoming payable is not paid by the company before the expiry of three months from the date of service or before 2nd January in the year next following the year of assessment, whichever is the later, the tax shall thereupon, without prejudice to the right to recover it from the company, be recoverable from the participator on whom it was assessed. 7 Where, in consequence of a sub-apportionment, subsections (5) and (6) above apply in relation to a participator in a company other than the company whose income is apportioned, references in those subsections to the company shall be taken as references to the company whose income is apportioned. 8 Where — a any undistributed income which has been assessed and charged to surtax under this section is subsequently distributed, and b on the occasion of its distribution the distributions for the accounting period exceed the required standard, a fraction of any amount to which an individual is entitled shall be deemed not to form part of his total income for the purposes of surtax; and the said fraction is A B where — A is the said excess, and B is the whole distributions for the period. 9 Sections 34(1) and 37(1) (time limits for assessment) and section 33(1) (relief for error or mistake) of the Taxes Management Act 1970 shall apply in relation to surtax assessed under this section as if for references to six years there were substituted references to seven years. Apportionment of income of non-trading companies 298 1 The provisions of this section and section 299 below apply in relation to a close company which is not a trading company, and in those provisions such a company is referred to as a " non-trading company ". 2 There may be apportioned under section 296 above, if the Board see reason for it, the whole of a non-trading company's income for an accounting period up to the amount of the required standard (notwithstanding that there has been no shortfall in distributions for that period), together with any addition to be made under subsection (2) of that section, but with such reduction, if any, as may be just in respect of distributions made for the period to persons other than participators and associates of participators : Provided that for this purpose the required standard shall be treated as reduced by so much of any shortfall in the distributions for the period as would under section 290(4) above or, where subsection (1) of section 294 above applies, under subsection (2) of that section, be disregarded in an assessment made in respect of that shortfall. 3 Where an apportionment is made by virtue of subsection (2) above, an individual shall not be charged to surtax on an amount treated in consequence of the apportionment or any sub-apportionment as being his income except in so far as it exceeds the amount which, apart from the apportionment, falls in respect of distributions made by the company in the accounting period to be included in the statement of total income to be made by him for the purposes of surtax. 4 For the purposes of section 296(4) above, a loan creditor shall be deemed to have an interest in any company which is a non-trading company to the extent that the income to be apportioned, or assets representing it, has or have been expended or applied, or is or are available to be expended or applied, in redemption, repayment or discharge of the loan capital or debt (including any premium thereon) in respect of which he is a loan creditor. 5 In the case of a non-trading company where, by virtue or in consequence of any settlement, a loan creditor has been or could be required by some other person (in this subsection referred to as " the beneficiary ") to pay to the beneficiary the whole or a part of any sums which have been or might be paid to the loan creditor by the company in redemption, repayment or discharge of the loan capital or debt (including any premium thereon) in respect of which he is a loan creditor, or to pay or transfer to the beneficiary the whole or a part of any sums or assets representing (directly or indirectly) any such sums, then — a if the requirement related, or could relate, to the whole of the sums or assets in question, the beneficiary and not the loan creditor shall be deemed for the purposes of section 296 above to be a participator in the company and, for the purposes of subsection (4) of that section, to have the interest in the company which the loan creditor would, but for this provision, be deemed to have in respect of that loan capital or debt; and b in any other case, the beneficiary, as well as the loan creditor, shall be deemed to be a participator in the company for the purposes of section 296 above and, for the purposes of subsection (4) of that section, the interest which the loan creditor is deemed to have in the company in respect of that loan capital or debt shall be divided between them in such manner as the Board think fit. In this subsection " settlement" includes any disposition, trust, covenant, agreement, arrangement or transfer of assets. 6 On an appeal to the Special Commissioners, the Commissioners shall have jurisdiction to review any relevant decision taken by the Board in exercise of their functions under subsection (5) above. Supplementary provisions as to apportionment of income of non-trading companies 299 1 If, in the case of a non-trading company, the Board are of opinion that any person who is not a participator in the company for the purposes of section 296 above is, or is likely to be, able to secure that income or assets, whether present or future, of the company will be applied either directly or indirectly for his benefit, they may, if they think fit, treat him as a participator in the company for those purposes. 2 In apportioning the income of a non-trading company under section 296 above — a to any person who is treated as a participator in the company by virtue of subsection (1) above, or b to any person who is a participator in the company but has no relevant interests in the company, and in their opinion is, or is likely to be, able to secure that income or assets, whether present or future, of the company will be applied either directly or indirectly for his benefit, or c to any person who is a participator in the company and in their opinion is, or is likely to be, able to secure that income or assets, whether present or future, of the company will be applied either directly or indirectly for his benefit to a greater extent than is represented in the value for apportionment purposes of his relevant interests in the company considered in relation to the value for those purposes of the relevant interests of other persons therein, the Board may apportion to him such part of the income of the company as appears to them to be appropriate, and may adjust as they may consider necessary the apportionment of the remainder of the company's income. 3 Subsection (2) above applies to the sub-apportionment of an amount directly or indirectly apportioned to a non-trading company under section 296 above as it applies to an apportionment of the company's income. 4 For the purposes of this section, a person shall be deemed to be able to secure that income or assets will be applied for his benefit if he is in fact able to do so by any means whatsoever, whether he has any rights at law or in equity in that behalf or not, and the Board may draw the inference that a person is likely to be able to secure that income or assets of a company will be applied for his benefit or, as the case may be, will be so applied to a greater extent than is represented in the value for apportionment purposes of any relevant interests which he has in the company, if and only if they are satisfied — a that he has, directly or indirectly, transferred assets to the company the value of which is not represented, or is not adequately represented, in the value for apportionment purposes of any relevant interests which he has in the company, and b that the persons who, whether as directors or share holders or in any other capacity have, or will at any material time have, powers or rights affecting the disposal or application of the income or assets of the company are likely to act in accordance with his wishes, or that he is able to secure that persons who at the material times will have such powers or rights will be persons likely to act in accordance with his wishes. 5 Where the Board have, under subsection (2) above, apportioned income of a company for any accounting period, and the amount apportioned to any participator is less than the amount of income distributed to that participator by the company in respect of the said period in such manner that the amount distributed would, apart from this subsection, fall to be included in the statement of total income to be made by that participator for the purposes of surtax, the excess of the amount so distributed over the amount apportioned to that participator shall be deemed not to form part of the participator's total income for tax purposes: Provided that, where notice of appeal is given against the apportionment, the reference in this subsection to the amount apportioned to the participator shall be construed as a reference to the amount apportioned to him on the final determination of the appeal. 6 For the purposes of this section — a references to a person shall, in the case of an individual, be deemed to include the wife or husband of the individual, b " assets " includes property or rights of any kind, and " transfer ", in relation to rights, includes the creation of those rights, and c " relevant interests" means, in relation to a person connected in any way with a company, interests by reference to which income of the company could be apportioned to him under section 296 of this Act apart from this section, and " value for apportionment purposes " means, in relation to any relevant interests in any company, the value falling to be put thereon in apportioning the income of the company under the said section 296. 7 On an appeal to the Special Commissioners, the Commissioners shall have jurisdiction to review any relevant decision taken by the Board in exercise of their functions under this section. Apportionment of interest paid by certain non-trading companies 300 1 Subject to the provisions of this section, all interest paid by a close company in any accounting period shall be apportioned under section 296 above as if the interest were income of the close company for the accounting period. 2 Subsection (1) above shall not apply to a company — a if it is a trading company, or b if it is a member of a trading group, or c if the whole, or substantially the whole, of its income is of one or more of the following descriptions, that is — i estate or trading income, ii interest, and dividends or other distributions, received from a 51 per cent. subsidiary of it (both companies being bodies corporate) if the subsidiary is itself within any of paragraphs (a), (b) and (c) of this subsection. 3 Subsection (1) above shall not apply — a to interest which would be eligible for relief under section 57 or section 62 of this Act (loans for purchase or improvement of land and certain pre-1970 loans) if paid by an individual, or b to interest which is money wholly and exclusively laid out or expended for the purposes of a trade carried on by the company. 4 If any amount of interest apportionable under subsection (1) above is interest paid to a participator in the close company, the amount apportionable to that participator by virtue of subsection (1) above shall be reduced by the first-mentioned amount (and without requiring the reduction to be reflected in the amount apportioned to any other person). 5 Section 296(3) above has effect subject to the provisions of this section, and an amount apportionable by virtue of this section shall be in addition to amounts (if any) apportionable under section 296 above without this section. 6 In determining under section 296 above and the provisions applying for the purposes of that section the person to whom any amount is to be apportionable by virtue of this section, any interest which any person possesses as a loan creditor shall be disregarded (but without prejudice to the making of an apportionment to him in any other capacity). 7 In determining for the purposes of subsection (2)(c)(ii) above whether one body corporate is a 51 per cent. subsidiary of another, that other shall be treated as not being the owner — a of any share capital which it owns directly or indirectly in a body corporate not resident in the United Kingdom, or b of any share capital which it owns indirectly and which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt. Information Powers of Board and inspectors to obtain information 301 1 The Board may, by notice in writing, require any company which is, or appears to them to be, a close company to furnish them, within such time (not being less than twenty-eight days) as may be specified in the notice, with such particulars as they think necessary for the purposes of sections 296 to 300 above. 2 If for the purposes of those sections any person in whose name any shares are registered is so required by notice in writing by the Board, he shall state whether or not he is the beneficial owner of the shares and, if not the beneficial owner of the shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name. 3 Subsection (2) above shall apply in relation to loan capital as it applies in relation to shares. 4 The Board may, for the purposes of the said sections, by notice in writing require — a any company which appears to them to be a close company to furnish them with particulars of any bearer securities issued by the company, and the names and addresses of the persons to whom the securities were issued and the respective amounts issued to each person, and b any person to whom securities were issued as afore said, or to or through whom such securities were subsequently sold or transferred, to furnish them with such further information as they may require with a view to enabling them to ascertain the names and addresses of the persons beneficially interested in the securities. In this subsection "securities " includes shares, stocks, bonds, debentures and debenture stock, and also any promissory note or other instrument evidencing indebtedness issued to a loan creditor of the company. 5 Any power which the Board may exercise under this section for the purposes of sections 296 to 300 of this Act may be exercised by the inspector for the purposes of any of sections 286 to 295 of this Act. General definitions Meaning of " associated company " and " control " 302 1 For the purposes of this Chapter, other than section 290 above, a company is to be treated as another's " associated company " at a given time if, at that time or at any time within one year previously, one of the two has control of the other, or both are under the control of the same person or persons. 2 For the purposes of this Chapter, a person shall be taken to have control of a company — a if he exercises, or is able to exercise or is entitled to acquire, control, whether direct or indirect, over the company's affairs, and in particular, but without prejudice to the generality of the preceding words, if he possesses, or is entitled to acquire, the greater part of the share capital or voting power in the company, or b if he possesses, or is entitled to acquire, either — i the greater part of the issued share capital of the company, or ii such part of that capital as would, if the whole of the income of the company were in fact distributed to the members, entitle him to receive the greater part of the amount so distributed, or iii such redeemable share capital as would entitle him to receive on its redemption the greater part of the assets which, in the event of a winding up, would be available for distribution among members, or c if in the event of a winding up he would be entitled to the greater part of the assets available for distribution among members. 3 Where two or more persons together satisfy any of the conditions in paragraphs (a) to (c) of subsection (2) above, they shall be taken to have control of the company. 4 In subsection (2) above " member " includes any person having a share or interest in the capital or income of the company, and, for the purposes of that subsection, a person shall be treated as entitled to acquire anything which he is entitled to acquire at a future date, or will at a future date be entitled to acquire ; and, for the purposes of paragraphs (b) (iii) and (c) of that subsection, any loan creditor may be treated as a member (and the references to share capital as including loan capital). 5 For the purposes of subsections (2) and (3) above, there shall be attributed to any person any rights or powers of a nominee for him, that is to say, any rights or powers which another person possesses on his behalf or may be required to exercise on his direction or behalf. 6 For the purposes of subsections (2) and (3) above, there may also be attributed to any person all the rights and powers of any company of which he has, or he and associates of his have, control or any two or more such companies, or of any associate of his or of any two or more associates of his, including those attributed to a company or associate under subsection (5) above, but not those attributed to an associate under this subsection ; and such attributions shall be made under this subsection as will result in the company being treated as under the control of five or fewer participators if it can be so treated. Meaning of "participator", "associate", "director" and "loan creditor" 303 1 For the purposes of this Chapter, a " participator " is, in relation to any company, a person having a share or interest in the capital or income of the company, and, without prejudice to the generality of the preceding words, includes — a any person who possesses, or is entitled to acquire, share capital or voting rights in the company, b any loan creditor of the company, c any person who possesses, or is entitled to acquire, a right to receive or participate in distributions of the company (construing " distributions " without regard to section 284 or section 285 of this Act) or any amounts payable by the company (in cash or in kind) to loan creditors by way of premium on redemption, and d any person who is entitled to secure that income or assets (whether present or future) of the company will be applied directly or indirectly for his benefit. In this subsection references to being entitled to do anything apply where a person is presently entitled to do it at a future date, or will at a future date be entitled to do it. 2 The provisions of subsection (1) above are without prejudice to any particular provision of this Chapter requiring a participator in one company to be treated as being also a participator in another company. 3 For the purposes of this Chapter " associate " means, in relation to a participator — a any relative or partner of the participator, b the trustee or trustees of any settlement in relation to which the participator is, or any relative of his (living or dead) is or was, a settlor (" settlement" and " settlor" having here the same meaning as in section 454(3) of this Act), and c where the participator is interested in any shares or obligations of the company which are subject to any trust, or are part of the estate of a deceased person, any other person interested therein, and has a corresponding meaning in relation to a person other than a participator: Provided that paragraph (c) above shall not apply so as to make an individual an associate as being entitled or eligible to benefit under a trust — i if the trust relates exclusively to a fund or scheme approved under section 208 or section 222 (superannuation funds and retirement schemes) of this Act, or to a scheme the whole of which is an " excepted provident fund or staff assurance scheme or other similar scheme" as defined in section 224 of this Act, or ii if the trust is exclusively for the benefit of the employees, or the employees and directors, of the company or their dependants (and not wholly or mainly for the benefit of directors or their relatives), and the individual in question is not (and could not as a result of the operation of the trust become), either on his own or with his relatives, the beneficial owner of more than 5 per cent. of the ordinary share capital of the company; and in applying paragraph (ii) of this proviso, any charitable trusts which may arise on the failure or determination of other trusts shall be disregarded. 4 In subsection (3) above " relative" means husband or wife, parent or remoter forebear, child or remoter issue, or brother or sister. 5 For the purposes of this Chapter " director " includes any person occupying the position of director by whatever name called, any person in accordance with whose directions or instructions the directors are accustomed to act, and any person who — a is a manager of the company or otherwise concerned in the management of the company's trade or business, and b is remunerated out of the funds of that trade or business, and c is, either on his own or with one or more associates, the beneficial owner of, or able, directly or through the medium of other companies or by any other indirect means, to control 20 per cent. or over of the ordinary share capital of the company. 6 In subsection (5)(c) above, the expression " either on his own or with one or more associates " requires a person to be treated as owning or, as the case may be, controlling what any associate owns or controls, even if he does not own or control share capital on his own, and in paragraph (ii) of the proviso to subsection (3) above the expression " either on his own or with his relatives " has a corresponding meaning. 7 For the purposes of this Chapter " loan creditor", in relation to a company, means a creditor in respect of any debt incurred by the company — a for any money borrowed or capital assets acquired by the company, or b for any right to receive income created in favour of the company, or c for consideration the value of which to the company was (at the time when the debt was incurred) substantially less than the amount of the debt (including any premium thereon), or in respect of any redeemable loan capital issued by the company: Provided that a person carrying on a business of banking shall not be deemed to be a loan creditor in respect of any loan capital or debt issued or incurred by the company for money lent by him to the company in the ordinary course of that business. PART XII Special Classes of Companies and Businesses CHAPTER I Investment and Insurance Companies : Expenses of Management and Capital Allowances Expenses of management of investment companies (including savings banks) 304 1 In computing for the purposes of corporation tax the total profits for any accounting period of an investment company resident in the United Kingdom there shall be deducted any sums disbursed as expenses of management (including commissions) for that period, except any such expenses as are deductible in computing income for the purposes of Schedule A: Provided that there shall be deducted from the amount treated as expenses of management the amount of any income derived from sources not charged to tax, other than franked investment income and group income. 2 Where in any accounting period of an investment company the expenses of management deductible under subsection (1) above, together with any charges on income paid in the accounting period wholly and exclusively for purposes of the company's business, exceed the amount of the profits from which they are deductible, the excess shall be carried forward to the succeeding accounting period; and the amount so carried forward shall be treated for purposes of this section, including any further application of this subsection, as if it had been disbursed as expenses of management for that accounting period. 3 For the purposes of subsections (1) and (2) above, there shall be added to a company's expenses of management in any accounting period the amount of any allowances falling to be made to the company for that period by virtue of section 306 below, in so far as effect cannot be given to them under subsection (2) of that section. 4 Where an appeal against an assessment to corporation tax or against a decision on a claim under section 254 of this Act (set off of losses etc. against franked investment income) relates exclusively to the relief to be given under subsection (1) above, the appeal shall lie to the Special Commissioners, and if and so far as the question in dispute on any such appeal which does not lie to the Special Commissioners relates to that relief, that question shall, instead of being determined on the appeal, be referred to and determined by the Special Commissioners, and the Taxes Management Act 1970 shall apply as if that reference were an appeal. 5 In this section " investment company " means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom, but includes any savings bank or other bank for savings. Expenses of management of insurance companies 305 1 Subject to the provisions of this section and of section 307 below, section 304 above shall apply for computing the profits of a company carrying on life assurance business, whether mutual or proprietary, (and not charged to corporation tax in respect of it under Case I of Schedule D), whether or not the company is resident in the United Kingdom, as that section applies in relation to an investment company except tot — a there shall be deducted from the amount treated as expenses of management for any accounting period the amount of any fines, fees or profits arising from reversions, and b no deduction shall be made under the proviso to subsection (1) of section 304 above. 2 Relief in respect of management expenses shall not be given to any such company, whether under section 254 of this Act or under subsection (1) above, so far as it would, if given in addition to all other reliefs to which the company is entitled, reduce the income tax and corporation tax borne by the company on the income and gains of its life assurance business for any accounting period to less than would have been paid if the company had been charged to tax in respect of that business under Case I of Schedule D; and where relief has been withheld in respect of any accounting period by virtue of this subsection, the excess to be carried forward by virtue of section 304(2) above shall be increased accordingly. The reference in paragraph 2(1) of Schedule 6 to the Finance Act 1965 (computation of chargeable gains: exclusion of sums taken into account in computing income) to computing income or profits or gains or losses shall not be taken as applying to a computation of a company's income for the purposes of this subsection. 3 In subsection (2) above " life assurance business " includes the business of granting annuities on human life. Capital allowances for machinery and plant 306 1 Subject to the provisions of this section, Chapter II of Part I of the Capital Allowances Act 1968, and such other provisions of the Corporation Tax Acts as relate to allowances or charges under that Chapter, shall apply with any necessary adaptations in relation to machinery or plant provided for use or used for the purposes of the management of the business — a of an investment company (as defined in section 304(5) above), or b of a company carrying on the business of life assurance, as they apply in relation to machinery or plant provided for use or used for the purposes of a trade ; and, except as provided by subsection (2) below, in relation to any allowances and balancing charges which fall to be made by virtue of this section the Corporation Tax Acts shall apply as if they were to be made in taxing a trade. 2 As respects allowances or charges falling to be made by virtue of this section in relation to any business — a allowances for any accounting period shall, as far as may be, be given effect by deducting the amount of the allowance from any income for the period of the business, and in so far as effect cannot be so given section 304(3) above shall apply ; and b effect shall be given to any charge by treating the amount on which the charge is to be made as income of the business; and section 46 of the Capital Allowances Act 1968 (manner of making allowances and charges under Chapter II) shall not apply. 3 No allowance, other than an investment allowance, and no balancing charge shall be made by virtue of this section for any accounting period in respect of expenditure incurred by any person on machinery or plant, except in pursuance of an election made by him for that accounting period; but an election for any chargeable period shall have effect as an election for that and all subsequent chargeable periods. 4 An election under subsection (3) above shall be made by notice in writing to the inspector either for all machinery or plant provided for use or used for the purposes of the management of the relevant business, or for any class of machinery or plant so provided or used; but an election for machinery or plant of any class shall not be made for any accounting period after an assessment in respect of the business for that or a subsequent accounting period has been finally determined without such an election. 5 Corresponding allowances or charges in the case of the same machinery or plant shall not be made under Chapter II of Part I of the Capital Allowances Act 1968 (whether for the same chargeable period or for different chargeable periods) both under subsection (2) above and in some other way; and, on any assessment to tax, expenditure to which an election under this section applies shall not be taken into account otherwise than under the said Chapter II (and except as provided by section 304(3) above). 6 In this section references to the purposes of the management of a business are to be taken as referring to those purposes expenditure on which would, apart from this section, be treated as expenses of management within the meaning of section 304 above. 7 The Tax Acts shall have effect as if this section were contained in Chapter II of Part I of the Capital Allowances Act 1968. CHAPTER II Insurance Companies, Etc Insurance companies Separation of different classes of business 307 1 Where an insurance company carries on life assurance business in conjunction with insurance business of any other class, the life assurance business shall, for the purposes of the Corporation Tax Acts, be treated as a separate business from any other class of business carried on by the company. 2 Where an insurance company carries on both ordinary life assurance business and industrial life assurance business, the business of each such class shall, for the purposes of the Corporation Tax Acts, be treated as though it were a separate business, and section 305 of this Act shall apply separately to each such class of business. Case I computation: investment income, etc. 308 1 Section 239 of this Act shall not prevent franked investment income of a company resident in the United Kingdom which carries on life assurance business from being taken into account as part of the profits in computing trading income in accordance with the provisions applicable to Case I of Schedule D. 2 In ascertaining for the purposes of section 177 or section 178 of this Act (relief for losses) whether and to what extent a company has incurred a loss on its life assurance business any profits derived from the investments of its life assurance fund (including franked investment income of a company so resident) shall be treated as part of the profits of that business. Case I computation: profits reserved for policy holders and annuitants 309 Where the profits of an insurance company in respect of its life assurance business are, for the purposes of this Act, computed in accordance with the provisions thereof applicable to Case I of Schedule D, such part of those profits as belongs or is allocated to, or is reserved for, or expended on behalf of, policy holders or annuitants shall be excluded in making the computation, but if any profits so excluded as being reserved for policy holders or annuitants cease at any time to be so reserved and are not allocated to or expended on behalf of policy holders or annuitants, those profits shall be treated as profits of the company for the accounting period in which they ceased to be so reserved. Rate relief: investment income reserved for policy holders 310 1 A claim may be made under this section by an insurance company carrying on life assurance business in respect of unrelieved income from investments held in connection with that business. 2 If on the claim the company proves to the satisfaction of the Board that it has, for any year for which the rate of corporation tax exceeds 375 per cent., borne corporation tax in respect of any of the said unrelieved income, the company shall be entitled to repayment of so much of that tax borne by it for that year as is equal to the amount by which — a the corporation tax borne by the company for that year in respect of the part specified in subsection (6) below of the said unrelieved income, exceeds — b the corporation tax which would have been so borne in respect of that part of that income if the rate of corporation tax for that year had been 37-5 per cent. 3 If on the claim the company proves to the satisfaction of the Board that it has, for any year for which the standard rate of income tax exceeds 37-5 per cent., borne income tax in respect of any of the said unrelieved income, the company shall be entitled to repayment of so much of that tax borne by it for that year as is equal to the amount by which — a the income tax borne by the company for that year in respect of the part specified in subsection (6) below of the said unrelieved income, exceeds — b the income tax which would have been so borne in respect of that part of that income if the standard rate of income tax for that year had been 37-5 per cent. 4 Subsection (3) above shall apply to franked investment income as if income tax deducted (or treated under paragraph 2 of Schedule F as deducted) from it were income tax borne by the company, and for the purposes of the preceding provisions of this section — a " unrelieved income " means income which has not been excluded from charge to tax by virtue of any provision and against which no relief has been allowed by deduction or set-off; b the amount of tax which has been or would be borne by a company shall be taken to be the amount of tax which has been or would be so borne after the allowance of any relief to which the company is or would be entitled otherwise than under the preceding provisions of this section. 5 Except as provided by the preceding provisions of this section, a company resident in the United Kingdom shall not be entitled to repayment of income tax deducted (or treated under paragraph 2 of Schedule F as deducted) from such part of the franked investment income from investments held in connection with its life assurance business as is specified in subsection (6) below. The reference in this subsection to repayment of income tax includes a reference to the setting off of income tax against tax which the company is liable to pay in respect of its own distributions, and this subsection shall not be taken to apply to repayments of income tax under section 254 of this Act. 6 The said part shall be, in the case of any unrelieved income, the same fraction of it as the fraction which, on a computation of the profits of the company in respect of its life assurance business in accordance with the provisions applicable to Case I of Schedule D (whether or not the company is in fact charged to tax under that Case for the relevant accounting period or periods), would be connoted by the words in section 309 above " such part of those profits as belongs or is allocated to, or is reserved for, or expended on behalf of, policy holders or annuitants ": Provided that, if the income exceeds the profits as computed in accordance with those provisions other than section 309 above, the said part shall be that fraction of the income so far as not exceeding the profits, together with the amount of the excess. Rate relief: chargeable gains reserved for policy holders 311 1 Where an insurance company carrying on life assurance business proves on a claim to the satisfaction of the Board that it has, for any year for which the rate of corporation tax exceeds the rate set out in subsection (2) below, borne corporation tax in respect of chargeable gains from investments held in connection with its life assurance business, the company shall be entitled to repayment of so much of that tax borne by it for that year as is equal to the amount by which — a the corporation tax borne by the company for that year in respect of such part of those gains as, in the opinion of the Board, belongs or is allocated to, or is reserved for, or expended on behalf of, policy holders, exceeds — b the corporation tax which would have been so borne in respect of that part of those gains if the rate of corporation tax on the gains had been the rate set out below. 2 The said rate of corporation tax is 37-5 per cent., or the rate at which capital gains tax is for the time being chargeable under section 20(3) of the Finance Act 1965, whichever is the lower rate. In relation to corporation tax for any accounting period the relevant rate of capital gains tax under the said section 20(3) shall be that for the year of assessment in which that accounting period ends. 3 For the purposes of this section, the amount of corporation tax which has been or would be borne by a company (in respect of chargeable gains from investments held in connection with its life assurance business) shall be taken to be the amount of corporation tax which has been or would be so borne after the allowance of any relief to which the company is or would be entitled otherwise than under this section. Annuity business: separate charge on profits 312 1 Subject to the provisions of this section, profits arising to an insurance company from general annuity business or pension annuity business shall be treated as income within Schedule D, and be chargeable under Case VI of that Schedule, and for that purpose — a the business of each such class shall be treated separately, and b subject to paragraph (a) above, and to subsection (2) below, the profits therefrom shall be computed in accordance with the provisions of this Act applicable to Case I of Schedule D: Provided that this subsection shall not apply to an insurance company charged to corporation tax in accordance with the provisions applicable to Case I of Schedule D in respect of the profits of its ordinary life assurance business. 2 In making the said computation — a section 309 of this Act shall apply with the necessary modifications and in particular with the omission therefrom of all references to policy holders, and b no deduction shall be allowed in respect of any expenses of management deductible under section 305 of this Act, and c there may be set off against the profits any loss, to be computed on the same basis as the profits, which has arisen in connection with the granting of annuities on human life in any previous accounting period or year of assessment not earlier than the year 1923-24. 3 Section 179 of this Act (Case VI losses) shall not be taken to apply to a loss incurred by a company on its general annuity business or pension annuity business. 4 For the purposes of subsection (2) of this section, losses for years of assessment earlier than 1956-57 shall be computed by reference to the annuity business as a whole, and by apportioning any losses which arose on that business (and in respect of which relief has not been given) between the general annuity business and the pension annuity business in such manner as may be appropriate. General annuity business 313 1 In the case of a company carrying on general annuity business, the annuities paid by the company, so far as referable to that business and so far as they do not exceed the taxed income of the part of the annuity fund so referable, shall be treated as charges on income. 2 In computing under section 312 above the profits arising to an insurance company from general annuity business — a taxed income and group income shall not be taken into account as part of those profits, and b of the annuities paid by the company and referable to general annuity business — i those which under subsection (1) above are treated as charges on income shall not be deductible, and ii those which are not so treated shall (notwithstanding section 251(2) of this Act) be deductible. 3 In subsections (1) and (2) above "taxed income " means income charged to corporation tax otherwise than under section 312 above, and franked investment income. 4 Subject to subsection (5) below, tax on any franked investment income which is taken into account under subsection (2) above to enable annuities referable to general annuity business to be treated as charges on income shall not be available for setoff against income tax which the company is liable to pay in respect of its own distributions. 5 For the purposes of subsection (4) above there shall be deducted from the amount of the franked investment income of the company arising in any accounting period and taken into account under subsection (1) above — a the amount of any profit arising in that accounting period to the company from general annuity business and computed under section 312 above, and b the amount of any group income arising in that accounting period to the company and referable to its general annuity business. 6 A company which is not resident in the United Kingdom but carries on through a branch or agency there any general annuity business shall not be entitled to treat any part of the annuities paid by it which are referable to that business as paid out of profits or gains brought into charge to income tax. Pension annuity business 314 1 Exemption from income tax and corporation tax shall be allowed in respect of income from, and chargeable gains in respect of, investments and deposits of so much of an insurance company's annuity fund as is referable to pension annuity business. 2 The exemption from tax conferred by subsection (1) above shall not exclude any sums from being taken into account as receipts in computing profits or losses for any purpose of the Corporation Tax Acts. 3 Subject to subsection (4) below — a the exclusion by section 239 of this Act from the charge to corporation tax of franked investment income shall not prevent such income being taken into account as part of the profits in computing under section 312 of this Act income from pension annuity business, b notwithstanding anything in section 240 of this Act a company resident in the United Kingdom and carrying on life assurance business shall be entitled to repayment of income tax in respect of franked investment income of the company's annuity fund so far as it is referable to pension annuity business, and c any franked investment income on which income tax is so repayable shall be left out of account under the said section 240. 4 If for any accounting period there is, apart from this subsection, a profit arising to an insurance company from pension annuity business and computed under section 312 of this Act, and the company so elects as respects all or any part of its franked investment income arising in that period, being an amount of franked investment income not exceeding the amount of the said profit, subsection (3) above shall not apply to the franked investment income to which the election relates. If an accounting period falls partly in one income tax year of assessment, and partly in another such year, the power of making elections under this subsection may be exercised separately for the respective parts of the accounting period as if they were separate accounting periods, and an election under this subsection shall be made by notice in writing given to the inspector not later than two years after the end of the accounting period, or part of an accounting period, to which the election relates, or within such longer period as the Board may by notice in writing allow. 5 In computing under section 312 of this Act profits from pension annuity business — a group income shall not be taken into account as part of those profits, b annuities shall be deductible notwithstanding section 251(2) of this Act, and a company shall not be entitled to treat as paid out of profits or gains brought into charge to income tax any part of the annuities paid by the company which is referable to pension annuity business. Foreign life assurance funds 315 1 Corporation tax under Cases IV and V on income arising from investments of the foreign life assurance fund of an insurance company shall be computed as in the cases mentioned in section 122(2) of this Act, that is to say, by reference to the amount of income received in the United Kingdom; and this subsection shall apply notwithstanding that the said section relates only to income tax. 2 Where any of the following securities, namely — a securities issued by the Treasury with the condition that the interest thereon shall not be liable to income tax so long as it is shown, in manner directed by the Treasury, that the securities are in the beneficial ownership of persons who are not ordinarily resident in the United Kingdom, or b securities issued by the Treasury with the condition that — i so long as the securities are in the beneficial ownership of persons who are not ordinarily resident in the United Kingdom, the interest thereon shall be exempt from income tax, and ii so long as the securities are in the beneficial ownership of persons who are neither domiciled nor ordinarily resident in the United Kingdom, neither the capital thereof nor the interest thereon shall be liable to any taxation present or future, or c securities to which section 416 of this Act (local authority securities expressed in foreign currencies) applies, for the time being form part of the investments of the foreign life assurance fund of an insurance company, the income arising from those securities, if applied for the purposes of that fund or reinvested so as to form part of that fund, shall not be liable to tax. 3 Where any income arising abroad from the investments of the foreign life assurance fund of an insurance company has been remitted to the United Kingdom and invested, as part of the investments of that fund, in any such securities as are mentioned in subsection (2) above, that income shall not be liable to tax and any tax paid thereon shall, if necessary, be repaid to the company on the making of a claim. 4 Any securities issued by the Treasury, in pursuance of the power conferred by section 60(1) of the Finance Act 1940, with a modified form of the condition specified in subsection (2)(b) above shall, save in so far as the terms of the issue otherwise provide, be deemed for the purposes of subsections (2) and (3) above to be such securities as are mentioned in the said subsection (2). 5 Where income arising from the investments of the foreign life assurance fund of an insurance company has been relieved from tax in pursuance of the provisions of this section, a corresponding reduction shall be made — a in the relief granted under section 305 of this Act in respect of expenses of management, and b in any amount on which the company is chargeable to tax by virtue of section 312 of this Act. 6 In this section " foreign life assurance fund " — a means any fund representing the amount of the liability of an insurance company in respect of its life assurance business with policy holders and annuitants residing outside the United Kingdom whose proposals were made to, or whose annuity contracts were granted by, the company at or through a branch or agency outside the United Kingdom, and b where such a fund is not kept separately from the life assurance fund, means such part of the life assurance fund as represents the liability of the company under such policies and contracts, such liability being estimated in the same manner as it is estimated for the purpose of the company's periodical return. 7 Subject to subsection (8) below, for any year for which the agreements set out in Part I of Schedule 12 to this Act are in force, subsection (6) above shall have effect as if the expression " the United Kingdom" included the Republic of Ireland. 8 Where — a an insurance company having its head office in the United Kingdom carries on business in the Republic of Ireland, and b under provisions of the law of that country corresponding with section 314(1) above exemption from income tax is allowable in respect of income corresponding to the income from investments and deposits referable to pension annuity business to which the said section 314(1) applies, this section shall have effect in relation to the income so exempt in the Republic of Ireland with the omission of subsection (7) above. 9 Where this section has effect in relation to income arising from investments of any part of an insurance company's life assurance fund, it shall have the like effect in relation to chargeable gains accruing from the disposal of any such investments, and losses so accruing shall not be allowable losses. Overseas life insurance companies: charge on investment income 316 1 Any income of an overseas life insurance company from the investments of its life assurance fund (excluding the annuity fund, if any), wherever received, shall, to the extent provided in this section, be deemed to be profits comprised in Schedule D and shall be charged to corporation tax under Case III of Schedule D. 2 Distributions received from companies resident in the United Kingdom shall be brought into account under this section notwithstanding their exclusion from the charge to corporation tax. 3 A portion only of the income from the investments of the life assurance fund (excluding the annuity fund, if any) shall be charged in accordance with subsection (1) above, and for any accounting period that portion shall be determined by the formula A × B C where — A is the total income from those investments for that period, B is the average of the liabilities for that period to policy holders resident in the United Kingdom and to policy holders resident abroad whose proposals were made to the company at or through its branch or agency in the United Kingdom, and C is the average of the liabilities for that period to all the company's policy holders, but any reference in this subsection to liabilities does not include liabilities in respect of annuity business. 4 For the purposes of subsection (3) above, the average of any liabilities for an accounting period shall be taken as one half of the aggregate of the liabilities at the beginning and end of the valuation period which coincides with that accounting period or in which that accounting period falls. 5 For the purposes of this section the liabilities of an insurance company attributable to any business at any time shall be ascertained by reference to the net liabilities of the company as valued by an actuary for the purposes of the relevant periodical return. 6 Section 129(3) of this Act (income assessable and chargeable in one sum) shall not apply to tax in respect of income to which subsection (1) of this section applies. Management expenses of overseas life insurance companies 317 The relief under section 305 above available to an overseas life insurance company in respect of its expenses of management shall be limited to expenses attributable to the life assurance business carried on by the company at or through its branch or agency in the United Kingdom. Overseas life insurance companies: annuity business 318 1 Nothing in the Corporation Tax Acts shall prevent the distributions of companies resident in the United Kingdom from being taken into account as part of the profits in computing, under section 312 above, the profits arising from pension annuity business and general annuity business to an overseas life insurance company. 2 Any charge to tax under section 312 above for any accounting period on profits arising to an overseas life insurance company from general annuity business shall extend only to a portion of the profits arising from that business and that portion shall be determined by the formula A × B C where — A is the total amount of those profits, B is the average of the liabilities attributable to that business for the relevant accounting period in respect of contracts with persons resident in the United Kingdom or contracts with persons resident abroad whose proposals were made to the company at or through its branch or agency in the United Kingdom, and C is the average of the liabilities attributable to that business for that accounting period in respect of all contracts. 3 For the purposes of subsection (2) above, the average of any liabilities for an accounting period shall be taken as one half of the aggregate of the liabilities at the beginning and end of the valuation period which coincides with that accounting period or in which that accounting period falls. 4 For the purposes of this section the liabilities of an insurance company attributable to general annuity business at any time shall be ascertained by reference to the net liabilities of the company as valued by an actuary for the purposes of the relevant periodical return. Set-off of income tax against corporation tax by overseas life insurance companies 319 1 For the purposes of subsection (3) of section 246 of this Act (set-off by non-resident companies of income tax deducted from payments received against corporation tax), as it applies to life insurance companies, the amount of the income tax referred to in that subsection which shall be available for set-off under that subsection in an accounting period shall be limited in accordance with subsections (2) and (3) below. 2 If the company is chargeable to corporation tax for an accounting period in accordance with section 316 above in respect of the income from the investments of its life assurance fund, the amount of income tax available for set-off against any corporation tax assessed for that period on that income shall not exceed an amount equal to income tax at the standard rate on the portion of income from investments which is chargeable to corporation tax by virtue of subsection (3) of the said section 316. 3 If the company is chargeable to corporation tax for an accounting period in accordance with section 318 above on a proportion of the total amount of the profits arising from its general annuity business, the amount of income tax available for set-off against any corporation tax assessed for that period on those profits shall not exceed an amount equal to income tax at the standard rate on the like proportion of the income from investments included in computing those profits. Overseas life insurance companies: double taxation agreements 320 1 This section applies to an overseas life insurance company if, by virtue of arrangements specified in an Order in Council under section 497 of this Act (double taxation relief), no charge to corporation tax under Case III of Schedule D arises under section 316 of this Act in respect of any income of the company from the investments of its life assurance fund (excluding the annuity fund, if any). 2 For the purposes of section 254 of this Act (set-off of losses etc. against franked investment income), so much of any distributions received in any year of assessment from a company resident in the United Kingdom by an overseas life insurance company to which this section applies as is received in respect of the portion of the investments of its life assurance fund (excluding the annuity fund, if any) attributable to the business of its branch or agency in the United Kingdom shall be deemed to be franked investment income of that company, and accordingly the company may make a claim under subsection (1) of the said section 254 for any of the purposes specified in subsection (2) thereof. Life policies carrying rights not in money 321 1 Where any investments or other assets are, in accordance with a policy issued in the course of life assurance business carried on by an insurance company, transferred to the policy holder, the policy holder's acquisition of the assets, and the disposal of them to him, shall be deemed to be for a consideration equal to the market value of the assets — a for the purposes of Part III of the Finance Act 1965 (chargeable gains), and b for the purposes of computing income in accordance with Case I or Case VI of Schedule D, and c for the purposes of Case VII of Schedule D. 2 This section has effect as respects investments or other assets transferred on or after 6th April 1967. Benefits from life policies issued before 5th August 1965: deduction for tax on chargeable gains 322 1 This section applies in relation to policies of life assurance issued before 5th August 1965 by a company carrying on life assurance business, being policies which — a provide for benefits consisting to any extent of investments of a specified description or of a sum of money to be determined by reference to the value of such investments, but b do not provide for the deduction from those benefits of any amount by reference to tax chargeable in respect of chargeable gains. 2 Where — a the investments of the company's life assurance fund, so far as referable to those policies, consist wholly or mainly of investments of the description so specified, and b on the company becoming liable under any of those policies for any such benefits (including benefits to be provided on the surrender of a policy), a chargeable gain accrues to the company from the disposal, in meeting or for the purpose of meeting that liability, of investments of that description forming part of its life assurance fund, or would so accrue if the liability were met by or from the proceeds of such a disposal, then the company shall be entitled as against the person receiving the benefits to retain thereout a part thereof not exceeding in amount or value corporation tax, at the rate specified in subsection (3) below, in respect of the chargeable gain referred to in paragraph (b) above, computed without regard to any amount retained under this subsection. 3 The amount to be retained under subsection (2) above shall be computed by reference to the rate of corporation tax for the time being in force or, if no rate of corporation tax has yet been fixed for the financial year, the rate last in force: Provided that, in so far as the chargeable gain represents or would represent a gain belonging or allocated to, or reserved for, policy holders, the amount to be retained shall be computed by reference to a rate of tax not exceeding 37-5 per cent. Interpretation 323 1 This section has effect for the interpretation of the preceding provisions of this Chapter, with this section. 2 Unless the context otherwise requires — " annuity business " means the business of granting annuities on human life, " annuity fund " means, where an annuity fund is not kept separately from the life assurance fund of an insurance company, such part of the life assurance fund as represents the liability of the company under its annuity contracts, as stated in its periodical returns, " insurance company " means a company to which the Insurance Companies Act 1958 or the Insurance Companies Act (Northern Ireland) 1968 applies, " life assurance business " includes annuity business, " overseas life insurance company " means an insurance company having its head office outside the United Kingdom but carrying on life assurance business through a branch or agency in the United Kingdom, " periodical return ", in relation to an insurance company, means a return deposited with the Board of Trade under the Insurance Companies Act 1958 or, as the case may be, with the Ministry of Commerce for Northern Ireland under the Insurance Companies Act (Northern Ireland) 1968. 3 " General annuity business " means any annuity business which is not pension annuity business, and any division to be made between the two classes of business shall be made on the principle of referring to pension annuity business any premiums falling within subsection (4) below, together with the part resulting therefrom of the company's annuity fund and liability for annuities, and of dealing with other incomings and outgoings accordingly. 4 The premiums to be referred to pension annuity business are those payable under contracts falling (at the time when the premium is payable) within one or other of the following descriptions, that is to say — a any contract with an individual who is, or would but for an insufficiency of profits or gains be, chargeable to income tax in respect of relevant earnings (as defined in section 226(8) and (9) of this Act) from a trade, profession, vocation, office or employment carried on or held by him, being a contract approved by the Board under that section, b any contract with the trustees or other persons having the management of a superannuation fund within the meaning of section 208 of this Act, or of a scheme approved under section 226 of this Act, being a contract which — i was entered into for the purposes only of that fund or scheme, or, in the case of a fund part only of which is approved under the said section 208, then for the purposes only of that part of that fund, and ii (in the case of a contract entered into or varied after 1st August 1956) is so framed that the liabilities undertaken by the insurance company under the contract correspond with liabilities against which the contract is intended to secure the fund (or the relevant part of it) or the scheme, and in this and the last preceding subsection " premium" includes any consideration for an annuity. Capital redemption business Capital redemption business 324 1 Where any person carries on capital redemption business in conjunction with business of any other class, the capital redemption business shall, for the purposes of the Corporation Tax Acts (including the provisions about corporation tax on chargeable gains) and the Income Tax Acts, be treated as a separate business from any other class of business carried on by that person. 2 In ascertaining whether and to what extent any person has incurred a loss on his capital redemption business — a for the purposes of sections 177 and 178 of this Act (corporation tax losses), or b for the purposes of section 168 of this Act (income tax losses against general income), any profits derived from investments held in connection with the capital redemption business (including franked investment income of a company resident in the United Kingdom) shall be treated as part of the profits of that business, and in determining whether any, and if so what, relief can be given under section 171(3) of this Act (income tax loss carried forward and set off against investment income which has borne tax) in the case of capital redemption business, the loss which may be carried forward under subsection (1) of that section shall be similarly computed. 3 In this section, " capital redemption business " means the business (not being life assurance business or industrial assurance business) of effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby, in return for one or more premiums paid to the insurer, a sum or a series of sums is to become payable to the insured in the future. 4 This section shall not apply to any capital redemption business in so far as it consists of carrying out such contracts as aforesaid effected before 1st January 1938. Dealers in securities: conversions 3½ per cent. war loan 325 Where a war loan holding which was continued under Part III of the Finance (No. 2) Act 1931 beyond the redemption date as therein defined was, on that date, in the beneficial ownership of a person who was carrying on a trade consisting wholly or partly in dealing in securities, that person shall be treated for tax purposes as not having changed his investment on that date and the produce of any realisation of the whole or any part of the continued holding, together with any additional consideration, or the appropriate part of any additional consideration, received by him in connection with the continuance, shall be treated as the produce of the realisation of the whole or the appropriate part of the original holding: Provided that where any such person, in pursuance of section 16 of the said Act, gave notice in writing to the inspector not later than the end of the year 1933-34 that he desired to be treated for the purposes of the Income Tax Acts as having changed his investment on the redemption date, the preceding provisions of this section shall not apply to him and he shall be treated for tax purposes as having changed his investment on the redemption date. Exchange of securities in connection with conversion operations, nationalisation, etc. 326 1 If — a any securities to which a person who is carrying on a trade which consists wholly or partly in dealing in securities is beneficially entitled are exchanged for other securities; and b the exchange is one to which this section applies, then (whether or not any additional consideration is given for the exchange) that person shall, unless he gives notice in writing to the inspector not later than two years after the end of the chargeable period in which the exchange takes place that he desires not to be so treated, be treated for tax purposes (except as regards any tax payable in respect of dividends or interest), both at the time of the exchange and thereafter, as if the exchange had not taken place, and in that case the produce of any subsequent realisation of any of the securities received by him under the exchange (together with any additional consideration or the appropriate part of any additional consideration received by him thereunder) shall be treated as the produce of the realisation of the corresponding securities surrendered by or transferred from him under the exchange, or of a corresponding part thereof, as the case may be. 2 The exchanges to which this section applies are — a any exchange effected under any arrangement carried out under section 2 of the National Loans Act 1939 or section 14 of the National Loans Act 1968 if the Treasury direct, in pursuance of that arrangement, that this section shall apply to exchanges thereunder; and b any exchange of securities effected by section 1 of the Bank of England Act 1946 ; and c any exchange of securities effected in pursuance of any enactment passed after 5 th April 1946 which provides for the compulsory acquisition of any securities and the issue of other securities in lieu thereof, if the Treasury direct that this section shall apply to exchanges of securities effected in pursuance of that enactment. 3 In this section, " securities " includes shares, stock, bonds, debentures and debenture stock. Other provisions as to issues of securities in connection with nationalisation, etc. 327 1 Where — a in pursuance of any enactment passed after 5th April 1946 any securities are issued to any body corporate as, or as part of, the consideration for the compulsory acquisition of any property under that enactment, and b that body corporate is wound up or the capital thereof is reduced or any bonds, debentures or debenture stock thereof are redeemed, and, in or in connection with the winding up, reduction of capital or redemption, all or any of the securities issued as aforesaid to the body corporate are distributed to holders of securities of the body corporate, and c the Treasury direct that this section shall apply in relation to the distribution, any person who is carrying on a trade which consists wholly or partly in dealing in securities and is beneficially entitled to any securities to the holders of which the distribution is made shall, in relation to that distribution, be treated for tax purposes in the manner specified in the following provisions of this section, unless he gives notice in writing to the inspector not later than two years after the end of the chargeable period in which the distribution takes place that he desires not to be so treated in relation to that distribution. 2 If the result of the winding up, reduction of capital or redemption of bonds, debentures or debenture stock is that the securities of the body corporate to which the person in question is entitled as aforesaid are wholly extinguished without his receiving anything in respect thereof except the securities distributed as aforesaid, he shall be treated for tax purposes (except as regards any tax payable in respect of dividends or interest), both then and thereafter, as if neither the extinction nor the distribution had taken place but as if the produce of any subsequent realisation of any of the distributed securities were the produce of the realisation of the extinguished securities or a corresponding part thereof, as the case may be. 3 In any other case — a the said person shall be treated as having acquired the distributed securities at a cost equal to such proportion of the cost to him of the securities in respect of which the distribution was made as may be specified in the direction of the Treasury referred to in subsection (1) of this section and the question whether he has made any, and if so what, profit or suffered any, and if so what, loss on any subsequent realisation of the distributed securities shall be determined accordingly, and b in considering whether he has, either as the result of the winding up, reduction of capital or redemption of bonds, debentures or debenture stock and the distribution of the securities, or on any subsequent realisation of any of the securities in respect of which the distribution was made, made any, and if so what, profit or suffered any, and if so what, loss in connection with the securities in respect of which the distribution was made, the distributed securities shall be left out of account and the cost to him of the securities in respect of which the distribution was made shall be deemed to be reduced by the amount of the cost at which, under paragraph (a) of this subsection, he is taken to have acquired the distributed securities. 4 In this section " securities " includes shares, stock, bonds, debentures and debenture stock. Non-resident banks, insurance companies and dealers in securities Treatment of tax-free income 328 1 Where a banking business, an insurance business or a business consisting wholly or partly in dealing in securities is carried on in the United Kingdom by a person not resident therein, then — a in computing for any of the purposes of the Tax Acts the profits arising from, or loss sustained in, the business, and b in the case of an insurance business, also in computing the profits or loss from annuity business under section 312 of this Act, all interest, dividends and other payments whatsoever to which section 100 or section 159(4) of this Act (which exempt certain dividends of non-residents) extends shall be included notwithstanding the exemption from tax conferred by those sections respectively. In this subsection " securities " includes stocks and shares. 2 Where — a any such business as aforesaid is carried on in the United Kingdom by a person not ordinarily resident therein, and b in making any such computation as aforesaid with respect to that business, any interest on any securities issued by the Treasury is excluded by virtue of a condition of the issue thereof regulating the treatment of the interest thereon for tax purposes, any expenses attributable to the acquisition or holding of, or to any transaction in, the securities (but not including in those expenses any interest on borrowed money), and any profits or losses so attributable, shall also be excluded in making that computation. 3 In the case of an overseas life insurance company as defined in section 323 of this Act — a in computing for the purposes of section 316 of this Act the income from the investments of the life assurance fund of the company, any interest, dividends and other payments whatsoever to which section 100 or section 159(4) of this Act extends shall be included notwithstanding the exemption from tax conferred by those sections respectively, and b where in computing the said income any interest on any securities issued by the Treasury is excluded by virtue of a condition of the issue thereof regulating the treatment of the interest thereon for tax purposes, the relief under section 305 of this Act shall be reduced so as to bear to the amount of relief which would be granted but for the provisions of this paragraph the same proportion as the amount of that income, excluding the said interest, bears to the amount of that income including that interest. Tax-free Treasury securities: exclusion of interest on borrowed money 329 1 This section has effect where paragraphs (a) and (b) of section 328(2) above apply to a business for any accounting period or year of assessment. 2 Up to the amount determined under this section (called the amount ineligible for relief) interest on money borrowed for the purposes of the business — a shall be excluded in any computation under the Tax Acts of the profits (or loss) arising from the business or, where subsection (5) below applies, arising from any annuity business forming part of the life assurance business, and b shall be excluded from the definition of " charges on income " in section 248 of this Act. 3 In determining the amount ineligible for relief, account shall be taken of all money borrowed for the purposes of the business which is outstanding in the accounting or basis period, up to the total cost of the tax-free Treasury securities held for the purpose of the business in that period: Provided that where the person carrying on the business is a company, account shall not be taken of any borrowed money carrying interest which, apart from subsection (2) above, does not fall to be included in the computations under paragraph (a) of that subsection, and is not to be treated as a charge on income for the purposes of the Corporation Tax Acts. 4 Subject to subsection (5) below, the amount ineligible for relief shall be equal to a year's interest on the amount of money borrowed which is to be taken into account under subsection (3) above at a rate equal to the average rate of interest in the accounting or basis period on money borrowed for the purposes of the business, except that in the case of a period of less than twelve months, interest shall be taken for that shorter period instead of for a year. 5 Where relief for expenses of management is to be granted to an insurance company for any accounting period, and that relief falls to be reduced under section 328(3)(b) above (by applying the fraction which is investment income of the life assurance fund other than income from tax-free Treasury securities divided by that total investment income) the amount ineligible for relief shall be a fraction of the amount of interest in the accounting period on money borrowed for the purposes of the business, and that fraction shall be the fraction which is income from tax-free Treasury securities divided by total investment income of the life assurance fund (that is to say one minus the fraction to be applied under the said subsection (3)(b)). 6 In this section "tax-free Treasury securities" means securities issued by the Treasury with a condition regulating the treatment of the interest thereon for income tax or corporation tax purposes such that interest on the securities is excluded in computing the income or profits. 7 For the purposes of this section the cost of a holding of tax-free Treasury securities which has fluctuated in the accounting or basis period shall be the average cost of acquisition of the initial holding, and of any subsequent acquisitions in the accounting or basis period, applied to the average amount of the holding in the accounting or basis period, and this subsection shall be applied separately to securities of different classes. 8 In this section " accounting or basis period " means the company's accounting period or the period by reference to which the profits or gains arising in the year of assessment are to be computed. Underwriters Underwriters 330 Schedule 10 to this Act shall have effect as respects underwriters. CHAPTER III Friendly Societies and Trade Unions Unregistered friendly societies Unregistered friendly societies 331 An unregistered friendly society whose income does not exceed £160 a year shall, on making a claim, be entitled to exemption from income tax and corporation tax (whether on income or on chargeable gains). Registered friendly societies Registered friendly societies 332 1 Subject to subsection (2) below, a registered friendly society shall, on making a claim, be entitled to exemption from income tax and corporation tax (whether on income or on chargeable gains). 2 Subsection (1) above — a shall not apply to profits arising from life or endowment business consisting of the assurance of gross sums exceeding £500 or of the granting of annuities of annual amounts exceeding £104, and b as respects other life or endowment business (in this Chapter referred to as " tax exempt life or endowment business ") has effect subject to the following provisions of this Chapter. 3 In applying the said limits of £500 and £104 any bonus or addition declared upon an assurance of a gross sum or annuity shall be disregarded. Life or endowment business: distinction between old and new societies 333 1 So far as section 332 above relates to profits arising from life or endowment business it shall not exempt — a a friendly society registered after 31st December 1957 which at any time in the period of three months ending on 3rd May 1966 entered into any transaction in return for a single premium, being a transaction forming part of its life or endowment business, or b subject to subsections (2) and (3) below, a friendly society registered after 3rd May 1966, or a friendly society which was registered in the period of three months ending on 3rd May 1966 but which at no time earlier than 3rd May 1966 carried on any life or endowment business. 2 Subsection (1)(b) above shall not apply to a friendly society if, by the rules of the society, the only life or endowment business which it may carry on is — a industrial assurance business, b assurance affording provision for sickness or other infirmity, whether bodily or mental, which is also assurance for a gross sum independent of sickness or other infirmity, where not less than sixty per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity, and no bonus or addition may be declared upon the assurance of the gross sum, or c contracts exclusively for the assurance of a gross sum or annuity payable on death to or for the benefit of the deceased's widow or dependent child, or business which falls within any two or all three of paragraphs (a),(b) or (c) above taken together. 3 Subsection (1)(b) above shall not apply to any part of a friendly society's tax exempt life or endowment business which it acquires by way of transfer of engagements or amalgamation from another friendly society, and which consists of business relating to contracts made not later than the time of transfer or amalgamation. Conditions for tax exempt business 334 1 Section 332(1) above shall not apply to profits arising from tax exempt life or endowment business unless the following provisions of this section are satisfied in relation to that business. 2 The following conditions shall apply to every policy for the assurance of a gross sum, or of an annuity, which the friendly society issues, or has issued at any time since 3rd May 1966 — a the period (in this section called " the term" of the policy) between the payment of the first premium and the time when the gross sum assured is payable (or as the case may be when the first instalment of the annuity is payable) shall be not less than ten years, and must not, on any contingency other than the death, or retirement on grounds of ill health, of the person liable to pay the premiums or whose life is insured, become less than ten years, b the premiums payable under the policy shall be premiums of equal or rateable amounts payable at yearly or shorter intervals over the whole term of the policy of assurance, or over the whole term of the policy of assurance apart from any period after the person liable to pay the premiums or whose life is insured attains a specified age, being an age which he will attain at a time not less than ten years after the beginning of the term of the policy of assurance, c until the expiration of three-quarters of the term of the policy of assurance, or of ten years from the beginning of the term, whichever is the shorter, the policy may not be surrendered to the friendly society for consideration exceeding the amount of the premiums paid, except that, if a surrender value is prescribed for the surrender by section 24 of the Industrial Assurance Act 1923 or section 3 of the Industrial Assurance and Friendly Societies Act 1929, or by the Industrial Assurance and Friendly Societies Act (Northern Ireland) 1929, the limit on the consideration shall be either that value or the amount of the premiums paid, whichever is the greater; and the friendly society shall not be a party to any variation of the terms of a policy which infringes the conditions in this subsection. 3 Notwithstanding subsection (2)(a) above, the policy — a may provide for a payment to a person of an age not exceeding 18 years at any time not less than five years from the beginning of the term of the policy if the premium or premiums payable in any period of twelve months in the term of the policy do not exceed £13, b may provide for a payment at any time not less than five years from the beginning of the term of the policy, if it is one of a series of payments falling due at intervals of not less than five years, and the amount of any payment, other than the final payment, does not exceed four-fifths of the premiums paid in the interval before its payment. 4 Notwithstanding subsection (2)(b) above, the policy — a may allow a payment at any time after the expiration of one-half of the term of the policy of assurance, or of ten years from the beginning of the term, whichever is the earlier, being a payment in commutation of the liability to pay premiums falling due after that time, b may allow the person liable to pay the premiums to commute any liability for premiums where he ceases to reside in the United Kingdom or gives satisfactory proof of intention to emigrate, and c may allow any liability for premiums to be discharged in consideration of surrendering a sum which has become payable on the maturity of any other policy of assurance issued by the same friendly society to the person liable to pay the premiums, or to his parent, where that other policy of assurance is issued as part of the friendly society's tax exempt life or endowment business. Life or endowment business: further provisions 335 1 Subject to section 332(1) above, the Corporation Tax Acts shall apply to the life or endowment business carried on by registered friendly societies in the same way as they apply to mutual life assurance business carried on by insurance companies, so however that the Treasury may by regulations contained in a statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament provide that those Acts as so applied shall have effect subject to such modifications and exceptions as may be prescribed by the regulations, and those regulations may in particular require any part of any business to be treated as a separate business. 2 If a friendly society registered not later than 3rd May 1966 begins after that date to carry on tax exempt life or endowment business or, in the opinion of the Chief Registrar of Friendly Societies, begins to carry on tax exempt life or endowment business on an enlarged scale, or of a new character, and it appears to the Chief Registrar, having regard to the restrictions placed on friendly societies registered after the said date by subsection (1)(b) of section 333 above, that for the protection of the revenue it is expedient to do so, he may serve a notice on the friendly society referring to the provisions of this subsection and stating that he is considering the question whether, for the protection of the revenue, it is expedient to give a direction that, as from such date as may be specified in the notice, being the date when in the opinion of the Chief Registrar the relevant change in the society's activities took place, the society is to be treated as one within the said subsection (1)(b). 3 The Chief Registrar shall consider any representations or undertakings made or offered to him by the friendly society within the period of one month from service of the notice, and if the society so requests shall afford it an opportunity of being heard by him not later than three weeks after the end of that period of one month. 4 If after consideration of any such representations or undertakings, the Chief Registrar remains of opinion that it is expedient to do so, he shall direct that the society shall, subject to any further direction given by him cancelling that direction, be treated for the purposes of section 333 above as a friendly society registered after 3rd May 1966, but subject to the like right of appeal as is conferred by section 77(6) of the Friendly Societies Act 1896 on cancellation of registration. 5 In the application of this section to Scotland for references to the Chief Registrar of Friendly Societies there shall be substituted references to the assistant registrar for Scotland. Saving for contracts made not later than 3rd May 1966 336 Sections 333, 334 and 335 above shall not withdraw exemption under section 332(1) above for profits arising from any part of a life or endowment business relating to contracts made not later than 3rd May 1966. Interpretation 337 1 This section has effect for the interpretation of the preceding provisions of this Chapter, together with this section, but excluding section 331 (unregistered friendly societies). 2 In the said provisions " life or endowment business" means any business within section 8(1)(b) or (d) or (dd) of the Friendly Societies Act 1896 (life insurance and endowments and insurance of money payable on the duration of a life for a specified period) and any other life assurance business, but — a shall include business within section 8(1) (a) of the Friendly Societies Act 1896 for the relief or maintenance of any person in old age (meaning any age after fifty), b shall not include the granting of approved annuities (as defined in section 226(13) of this Act), c shall not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society. 3 In the said provisions — " industrial assurance business " has the meaning given by section 1(2) of the Industrial Insurance Act 1923, " life assurance business " means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life, not being industrial assurance business, " tax exempt life or endowment business " has the meaning given by subsection (2)(b) of section 332 above, that is to say, it means life or endowment business other than business profits arising from which are excluded from subsection (1) of that section by subsection (2)(a) of that section, " policy ", in relation to life or endowment business, includes an instrument evidencing a contract to pay an annuity upon human life, and references in the said provisions to a friendly society include references to any branch of that friendly society. 4 It is hereby declared that for the purposes of the said provisions a registered friendly society formed on the amalgamation of two or more friendly societies is to be treated as different from the amalgamated societies: Provided that — a the society shall be treated as registered not later than 3rd May 1966 if at the time of the amalgamation all the friendly societies amalgamated were societies which, subject to satisfying the conditions of section 334 above, were eligible for the exemption conferred by section 332(1) above in respect of life or endowment business and at least one of them was a society not within section 333(1)(b) above, b in determining, as respects a society resulting from an amalgamation and coming within section 335(2) above by virtue of proviso (a) above, the questions in that subsection in the period immediately following the amalgamation, the activities of the amalgamated societies in the period immediately preceding the amalgamation shall be treated as if they were the activities then being carried on by the society resulting from the amalgamation. 5 In the application of the said provisions to a friendly society which is for the time being registered or deemed to be registered in Northern Ireland under the enactments relating to friendly societies in Northern Ireland — a for references to section 1(2) and section 24 of the Industrial Assurance Act 1923 there shall be substituted references to section 1(2) and section 24 respectively of the Industrial Assurance Act (Northern Ireland) 1924, b for references to the Friendly Societies Act 1896 or to any provision of that Act there shall be substituted references to that Act or provision as it applies in Northern Ireland, c for references to the Chief Registrar of Friendly Societies there shall be substituted references to the registrar having corresponding functions under the law of Northern Ireland. Trade unions Exemption for trade unions 338 1 A registered trade union which is precluded by Act of Parliament, or by it's rules, from assuring to any person a sum exceeding £500 by way of gross sum or £104 a year by way of annuity shall, on the making of a claim, be entitled — a to exemption from income tax and corporation tax in respect of its income which is not trading income and which is applicable and applied for the purpose of provident benefits, b to exemption from tax in respect of chargeable gains which are applicable and applied for the purpose of provident benefits. 2 In this section " provident benefits " includes any payment, expressly authorised by the registered rules of the trade union, which is made to a member during sickness or incapacity from personal injury or while out of work, or to an aged member by way of superannuation, or to a member who has met with an accident, or has lost his tools by fire or theft, and includes a payment in discharge or aid of funeral expenses on the death of a member or the wife of a member or as provision for the children of a deceased member. 3 In determining for the purposes of this section whether a registered trade union is by Act of Parliament or by its rules precluded from assuring to any person a sum exceeding £104 a year by way of annuity, there shall be disregarded any approved annuities (as defined in section 226(13) of this Act). CHAPTER IV Savings Banks, Industrial and Provident Societies, Building Societies and Mutual Business Savings banks 339 1 Any trustee savings bank within the meaning of section 95(1) of the Trustees Saving Banks Act 1969 shall, on making a claim, be entitled to exemption from income tax and corporation tax in respect of its income arising from investments with the National Debt Commissioners. 2 Any savings bank, including any such trustee savings bank, shall, on making a claim, be entitled to exemption from income tax and corporation tax in respect of the income of its funds, to the extent that such income is applied in the payment or credit of interest to any depositor: Provided that, subject to section 414 of this Act (relief for first £15 of deposits), any such interest shall be chargeable under Case III of Schedule D. Industrial and provident societies, etc. 340 1 Notwithstanding anything in the Corporation Tax Acts, share interest or loan interest paid by a registered industrial and provident society shall not be treated as a distribution; and, subject to subsection (6) below, any share or loan interest paid in an accounting period of the society — a shall be deductible in computing, for the purposes of corporation tax, the income of the society for that period from the trade carried on by the society, or b if the society is not carrying on a trade, shall be treated for the said purposes as a charge on the income of the society. 2 Notwithstanding anything in Part II of this Act, any share interest or loan interest paid by a registered industrial and provident society shall be paid without deduction of income tax: Provided that this subsection shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the United Kingdom, and in any such case section 54 of this Act shall apply to the payment as it applies to a payment of yearly interest, and income tax shall be deducted accordingly. 3 Any share interest or loan interest paid by a registered industrial and provident society shall be chargeable under Case III of Schedule D. 4 Where at any time, by virtue of this section, the income of a person from any source, not having previously been chargeable by direct assessment on that person, becomes so chargeable, section 120(3) of this Act shall apply as if the source of that income were a new source of income acquired by that person at that time. 5 Every registered industrial and provident society shall, within three months after the end of any accounting period of the society, deliver to the inspector a return showing — a the name and place of residence of every person to whom the society has by virtue of this section paid without deduction of income tax sums amounting to more than £15 in that period, and b the amount so paid in that period to each of those persons. 6 If for any accounting period a return under subsection (5) above is not duly made by a registered industrial and provident society, share and loan interest paid by the society in that period shall not be deductible in computing its income, or be treated as a charge on income. 7 If in the course of, or as part of, a union or amalgamation of two or more registered industrial and provident societies, or a transfer of engagements from one registered industrial and provident society to another, there is a disposal of an asset by one society to another, both shall be treated for the purposes of corporation tax in respect of chargeable gains as if the asset were acquired from the society making the disposal for a consideration of such amount as would secure that neither a gain nor a loss would accrue to that society on the disposal. 8 Subsections (1) and (7) of this section shall have effect as if references to a registered industrial and provident society included any co-operative association established and resident in the United Kingdom, and having as its object or primary object to assist its members in the carrying on of agricultural or horticultural businesses on land occupied by them in the United Kingdom or in the carrying on of businesses consisting in the catching or taking of fish or shellfish. 9 In this section — " co-operative association " means a body of persons having a written constitution from which the Minister is satisfied, having regard to the provision made as to the manner in which the income of the body is to be applied for the benefit of its members and all other relevant provisions, that the body is in substance a co-operative association, " the Minister " means — the Minister of Agriculture, Fisheries and Food, as regards England or Wales, the Secretary of State, as regards Scotland, and the Ministry of Agriculture for Northern Ireland, as regards Northern Ireland, " registered industrial and provident society " means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or under the Industrial and Provident Societies Act (Northern Ireland) 1969, " share interest " means any interest, dividend, bonus or other sum payable to a shareholder of the society by reference to the amount of his holding in the share capital of the society, " loan interest " means any interest payable by the society in respect of any mortgage, loan, loan stock or deposit, and references to the payment of share interest or loan interest include references to the crediting of such interest. Co-operative housing associations 341 1 Where a housing association makes a claim in that behalf for any year or part of a year of assessment during which the association was approved for the purposes of this section. — a rent to which the association was entitled from its members for the year or part shall be disregarded for tax purposes, and b any yearly interest payable by the association for the year or part shall be treated for tax purposes as payable not by the association but severally by the members of the association who during the year or part were tenants of property of the association, in the proportion which the rents payable by those members for the year or part bear to the aggregate of the rents to which the association was entitled for the year or part from the properties to which the interest relates, and c each member of the association shall be treated for the purposes of section 57 of this Act (relief for interest on loans for purchase or improvement of land) as if he were the owner of the association's estate or interest in the property of which he is the tenant. 2 Where the property, or any of the properties, to which any such interest as aforesaid relates is for any period not subject to a tenancy, subsection (1)(b) above shall not apply in relation to so much of the interest as is attributable to the property not subject to a tenancy, but for the purposes of the said subsection (1)(b) as it applies in relation to a tenant of any other property to which the interest relates the association shall be deemed to have received, in respect of the property not subject to a tenancy, rent at the rate payable therefor when it was last let by the association. 3 In computing the income of the association no payments shall be deductible under subsections (2), (3) or (4) of section 72 of this Act in so far as attributable to a period as respects which a claim under subsection (1) of this section had effect. 4 Where a claim under subsection (1) of this section has effect, any adjustment of the liability to tax of a member or of the association which is required in consequence of the claim may be made by an assessment or by repayment or otherwise, as the case may require. 5 Where a housing association makes a claim in that behalf for an accounting period or part of an accounting period during which it was approved for the purposes of this section, the housing association shall be exempt from corporation tax on chargeable gains accruing to it in the accounting period or part thereof on the disposal by way of sale of any property which has been or is being occupied by a tenant of the housing association. 6 References in this section to the approval of an association shall be construed as references to approval — a by the Minister of Housing and Local Government, in the case of an association in England (excluding Monmouthshire), b by the Secretary of State in the case of an association in Scotland, Wales or Monmouthshire, c by the Minister of Development for Northern Ireland, in the case of an association in Northern Ireland ; and an association shall not be approved unless the approving authority is satisfied — i that the association is, or is deemed to be, duly registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969, and is a housing association within the meaning of the Housing Act 1957, the Housing (Scotland) Act 1950 or section 12 of the Housing and Local Government (Miscellaneous Provisions) Act (Northern Ireland) 1946, ii that the rules of the association restrict membership to persons who are tenants or prospective tenants of the association, and preclude the granting or assignment (or in Scotland the granting or assignation) of tenancies to persons other than members, and iii that the association satisfies such other requirements as may be prescribed by the approving authority, and will comply with such conditions as may for the time being be so prescribed. 7 An approval given for the purposes of this section shall have effect as from such date (whether before or after the giving of the approval) as may be specified by the approving authority, and shall cease to have effect if revoked by him. 8 The Minister of Housing and Local Government and the Secretary of State as respects England and Wales and Scotland, or the Minister of Development for Northern Ireland as respects Northern Ireland, may make regulations for the purpose of carrying out the provisions of this section ; and from the coming into operation of regulations under this subsection prescribing requirements or conditions for the purposes of subsection (6)(iii) above, " prescribed " in the said subsection (6)(iii) shall mean prescribed by or under such regulations. The power to make regulations conferred by this subsection on the Minister of Housing and Local Government and the Secretary of State shall be exercisable by statutory instrument. 9 A claim under this section shall be made to the inspector, and shall be made not later than two years after the end of the year of assessment or accounting period to which, or to a part of which, it relates. Section 42 of the Taxes Management Act 1970 shall not apply to a claim under this section. 10 No claim under this section shall have effect unless it is proved that during the year or accounting period, or part thereof, 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 subsection (6)(i) and (ii) above and has complied with the conditions prescribed under subsection (6)(iii) above 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 Board are satisfied that the requirements of paragraphs (a) to (d) of this subsection are substantially complied with they may direct that the claim shall have effect, but if subsequently information comes to the knowledge of the Board which satisfies them that the direction was not justified they may revoke the direction and thereupon the liability of all persons concerned to tax for all relevant years or accounting periods shall be adjusted by the making of assessments or otherwise. For the purposes of paragraph (b) above 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. 11 A claim under this section shall be in such form and contain such particulars as may be prescribed by the Board, 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 made by a member under the provisions of the Income Tax Acts to be used by the Board in such manner as the Board may think fit for determining whether the claim ought to be allowed. Disposals of land between the Housing Corporation and housing societies 342 Where — a in accordance with a scheme approved under section 5 of the Housing Act 1964 the Housing Corporation acquires from a housing society the society's interest in all the land held by the society for carrying out its objects, or b after the Housing Corporation has so acquired from a housing society all the land so held by it the Corporation disposes to a single housing society of the whole of that land (except any part previously disposed of or agreed to be disposed of otherwise than to a housing society), together with all related assets, then both parties to the disposal of the land to or, as the case may be, by the Housing Corporation shall be treated for the purposes of corporation tax in respect of chargeable gains as if the land and any related assets disposed of therewith (and each part of that land and those assets) were acquired from the party making the disposal for a consideration of such an amount as would secure that on the disposal neither a gain nor a loss accrued to that party. In this section, " housing society " has the same meaning as in Part I of the Housing Act 1964, and " related assets " means, in relation to an acquisition of land by the Housing Corporation, assets acquired by the Corporation in accordance with the same scheme as that land, and in relation to a disposal of land by the Housing Corporation, assets held by the Corporation for the purposes of the same scheme as that land. Building societies 343 1 The Board and any building society may, as respects any year of assessment, enter into arrangements whereby — a on such sums as may be determined in accordance with the arrangements the society is liable to account for and pay an amount representing income tax calculated in part at the standard rate and in part at a reduced rate which takes into account the operation of the subsequent provisions of this section ; and b provision is made for any incidental or consequential matters, and any such arrangements shall have effect notwithstanding anything in this Act: Provided that in exercising their powers of entering into arrangements under this section, the Board shall at all times aim at securing that (if the amount so payable by the society under the arrangements is regarded as income tax for the year of assessment) the total income tax becoming payable to, and not becoming repayable by, the Crown is, when regard is had to the operation of the subsequent provisions of this section, as nearly as may be the same in the aggregate as it would have been if those powers had never been exercised. 2 Where for any year of assessment a building society enters into arrangements under this section, dividends or interest payable in respect of shares in, or deposits with or loans to, the society shall be dealt with for the purposes of corporation tax as follows: — a in computing for any accounting period ending in the year of assessment the total profits of the society there shall be allowed as a deduction the actual amount paid or credited in the accounting period of any such dividends or interest, together with the amount accounted for and paid by the society in respect thereof as representing income tax, b in computing the income of a company which is paid or credited in the year of assessment with any such dividends or interest, the company shall be treated as having received an amount which, after deduction of income tax at the standard rate for the year of assessment, is equal to the amount paid or credited, and shall be entitled to a set off or repayment of income tax accordingly, except that the dividends or interest shall not be brought into account under Schedule 9 to this Act (method by which companies are to account for income tax due from them), c no part of any such dividends or interest paid or credited in the year of assessment shall be treated as a distribution of the society or as franked investment income of any company resident in the United Kingdom. 3 Where any arrangements under this section are in force in the case of any society as respects any year of assessment — a notwithstanding anything in Part II of this Act, income tax shall not be deducted from any dividends or interest payable in that year in respect of shares in or deposits with or loans to that society, b no assessment to income tax or (subject to subsection (2)(b) above) repayment of income tax shall be made in respect of any such dividends or interest on or to the person receiving or entitled to the dividends or interest, c subject to subsection (2)(b) above, the amounts actually paid or credited in respect of any such dividends or interest (and no more) shall be treated as income for that year of the person entitled thereto, and d subject to section 240(4) of this Act (payments by companies not to be treated as paid out of profits or gains brought into charge to income tax), the said amounts (and no more) shall, in applying section 52 and section 53 of this Act to other payments, be treated as profits or gains which have been brought into charge to income tax: Provided that — i any such dividends or interest shall be taken into account for the purposes of assessment to surtax; and ii the amount actually paid or credited in respect of any such dividends or interest shall be deemed for surtax purposes to be a net amount corresponding to a gross amount from which tax at the standard rate for that year has been duly deducted, and the amount on which surtax is to be charged in the case of any person shall be calculated accordingly ; and iii the provisions of this subsection shall not apply in relation to interest on any bank loan; and iv the provisions of this subsection shall not apply in relation to any interest which is payable in respect of a loan to the society under a contract made before the beginning of the first year of assessment as respects which the society enters into arrangements under subsection (1) of this section, if and to the extent that, both at the time of the making of the contract and at the time when the interest becomes payable, it is contemplated by the parties that tax shall be deducted on payment of the interest. 4 Where any arrangements under this section are in force in the case of any society as respects any year of assessment then, notwithstanding anything in Part II of this Act, income tax shall not be deducted upon payment to the society of any interest on advances, being interest payable in that year. 5 If in the course of, or as part of, a union or amalgamation of two or more building societies, or a transfer of engagements from one building society to another, there is a disposal of an asset by one society to another, both shall be treated for purposes of corporation tax in respect of chargeable gains as if the asset were acquired from the one making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the one making the disposal. 6 Any arrangements made under this section as respects any year of assessment shall, if made after the beginning of that year, be deemed to have come into force at the beginning thereof, and any necessary adjustments shall be made in relation to any sums paid or credited before the date of the making of the arrangements. 7 In this section "dividend" includes any distribution as defined for the purposes of the Corporation Tax Acts, whether described as a dividend or otherwise. 8 In this section "building society" means a building society within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967. 9 This section shall apply in relation to a company within the meaning of the Companies Act 1948, or the corresponding enactments in force in Northern Ireland, which carries on a business which in the opinion of the Board is similar to that carried on by a building society as it applies in relation to a building society, except that in subsections (2) and (3) the references to dividends and shares shall be deemed to be omitted. Building societies: time for payment of corporation tax 344 1 Where a building society which had for the year 1965-66 entered into arrangements under section 445 of the Income Tax Act 1952 (which is re-enacted in section 343 above) would but for the arrangements have been assessed for that year by reference to a period ending before that year, but under the arrangements (and without any election thereunder by the society) was so assessed by reference to a period ending in that year, then this section shall apply to the society in place of the provisions of Chapter I of Part XI of this Act as to the time for payment of corporation tax. 2 Where this section applies to a building society, then — a corporation tax assessed on the society for any accounting period shall be paid within one month from the making of the assessment, except that if the society's basis period for the year 1965-66 did not extend into the year 1966, the tax shall not be payable before the like time after the last day of the accounting period as 1st January 1966 is after the last day of that basis period; but b if corporation tax has not become payable by the society for an accounting period by the like time from the beginning of that period as there is between the beginning of the said basis period and 1st January 1966, the society shall at that time from the beginning of the accounting period make a provisional payment of tax computed on the amount on which the society is chargeable to corporation tax for the accounting period last ended with such adjustments, if any, as may be required for periods of different length or as may be agreed between the society and the inspector. References in this subsection to a society's basis period for the year 1965-66 are references to the period by reference to which the society was assessed to income tax for that year under the arrangements referred to in subsection (1) above. Companies trading with their members, and certain industrial and provident societies 345 1 In the application to any company of any provision of the Tax Acts relating to profits or gains chargeable under Case I of Schedule D, any reference to profits or gains shall be deemed to include a reference to a profit or surplus arising from transactions of the company with its members which would be included in profits or gains for the purposes of that provision if those transactions were transactions with non-members, and the profit or surplus aforesaid shall be determined for the purposes of that provision on the same principles as those on which profits or gains arising from transactions with non-members would be so determined. 2 It is hereby declared that, in computing, for the purposes of any provision of the Tax Acts relating to profits or gains chargeable under Case I of Schedule D, any profits or gains of — a any registered industrial and provident society which does not sell to persons not members thereof; or b any registered industrial and provident society the number of the shares whereof is not limited by its rules or practice ; or c any other company, being a company the profits or gains whereof include any income which is chargeable to tax by virtue of subsection (1) of this section, there are to be deducted as expenses any sums which — i represent a discount, rebate, dividend or bonus granted by the company to members or other persons in respect of amounts paid or payable by or to them on account of their transactions with the company, being transactions which are taken into account in the said computation ; and ii are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the company. 3 No dividends or bonus deductible in computing income as mentioned in subsection (2) above shall be regarded as a distribution. 4 In this section " registered industrial and provident society " means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or under the Industrial and Provident Societies Act (Northern Ireland) 1969. Companies carrying on mutual business, or not carrying on a business 346 1 Subject to subsection (2) below, where a company carries on any business of mutual trading or mutual insurance or other mutual business the provisions of the Corporation Tax Acts relating to distributions shall apply to distributions made by the company notwithstanding that they are made to persons participating in the mutual activities of that business and derive from those activities, but shall so apply only to the extent to which the distributions are made out of profits of the company which are brought into charge to corporation tax or out of franked investment income (including group income). 2 In the case of a company carrying on any mutual life assurance business, the provisions of the Corporation Tax Acts relating to distributions shall not apply to distributions made to persons participating in the mutual activities of that business and derived from those activities ; but if the business includes annuity business, the annuities payable in the course of that business shall not be treated as charges on the income of the company to any greater extent than if the business were not mutual but were being carried on by the company with a view to the realisation of profits for the company. 3 Subject to the preceding subsections, the fact that a distribution made by a company carrying on any such business is derived from the mutual activities of that business and the recipient is a person participating in those activities shall not affect the character which the payment or other receipt has for purposes of corporation tax or income tax in the hands of the recipient. 4 Where a company does not carry on, and never has carried on, a trade or a business of holding investments, and is not established for purposes which include the carrying on of a trade or of such a business, the provisions of the Corporation Tax Acts relating to distributions shall apply to distributions made by the company only to the extent to which the distributions are made out of profits of the company which are brought into charge to corporation tax or out of franked investment income. Distribution of assets of body corporate carrying on mutual business 347 1 Where any person receives any money or money's worth — a forming part of the assets of a body corporate, other than assets representing capital, or b forming part of the consideration for the transfer of the assets of a body corporate, other than assets representing capital, as part of a scheme of amalgamation or reconstruction which involves the winding up of the body corporate, or c consisting of the consideration for a transfer or surrender of a right to receive anything falling under paragraph (a) or (b) above, being a receipt not giving rise to any charge to tax on the recipient apart from this section, and the body corporate has at any time carried on a trade which consists of or includes the conducting of any mutual business (whether confined to members of the body corporate or not), and is being or has been wound up or dissolved, the provisions of this section shall apply to the receipt. 2 If a transfer or surrender of a right under subsection (1)(c) of this section is not at arm's length, the person making the transfer or surrender shall, for the purposes of this section, be deemed then to have received consideration equal to the value of the right. 3 If in respect of a payment of any amount made to the body corporate for the purposes of its mutual business any deduction has been allowed for the purposes of tax in computing the profits or gains or losses of a trade, then — a if at the time of the receipt the recipient is the person, or one of the persons, carrying on that trade, the amount or value of the receipt shall be treated for the purposes of tax as a trading receipt of that trade, and b if at the time of the receipt the recipient is not the person, or one of the persons, carrying on that trade, but was the person, or one of the persons carrying on that trade when any payment was made to the body corporate for the purposes of its mutual business in respect of which a deduction was allowed for the purposes of tax in computing the profits or gains or losses of the trade, the recipient shall, subject to the provisions of subsection (5) of this section, be charged under Case VI of Schedule D for the chargeable period in which the receipt falls on an amount equal to the amount or value of the receipt. Paragraph (a) of this subsection applies notwithstanding that, as a result of a change in the persons carrying on the trade, the profits or gains are under section 154 or section 251(1) of this Act (income tax and corporation tax rules for commencement or discontinuance of trade), determined as if it had been permanently discontinued and a new trade set up and commenced. 4 Where an individual is chargeable to tax by virtue of subsection (3)(b) of this section and the profits or gains of the trade there mentioned fell to be treated as earned income for the purposes of the Income Tax Acts, the sums in respect of which he is so chargeable shall also be treated for those purposes as earned income. 5 If the trade mentioned in subsection (3)(b) of this section was permanently discontinued before the time of the receipt, then in computing the charge to tax under the said subsection (3)(b) there shall be deducted from the amount or value of the receipt — a any loss, expense or debit (not being a loss, expense or debit arising directly or indirectly from the discontinuance itself) which, if the trade had not been discontinued, would have been deducted in computing for tax purposes the profits or gains or losses of the person by whom it was carried on before the discontinuance, or would have been deducted from or set off against those profits as so computed, and b any capital allowance to which the person who carried on the trade was entitled immediately before the discontinuance and to which effect has not been given by way of relief before discontinuance. Relief shall not be given under this subsection or under section 145(1) of this Act (post-cessation receipts: allowable deductions) in respect of any loss, expense, debit or allowance if and so far as it has been so given by reference to another charge to tax under this section or under section 143 of this Act (post-cessation receipts). 6 For the purposes of subsection (1) of this section assets representing capital consist of — a assets representing any loan or other capital subscribed, including income derived from any investment of any part of that capital, but not including profits from the employment of that capital for the purposes of the mutual business of the body corporate, b assets representing any profits or gains charged to tax as being profits or gains of any part of the trade carried on by the body corporate which does not consist of the conducting of any mutual business, c (so far as not comprised in the paragraphs above) assets representing taxed income from any investments. 7 In this section " mutual business " includes any business of mutual insurance or mutual trading. 8 Subsections (3), (4) and (5) of this section shall apply with any necessary modifications — a to a profession or vocation, and b to the occupation of woodlands the profits or gains of which are assessable under Schedule D, as they apply to a trade. 9 It is hereby declared that the description of trades in subsection (1) of this section does not include any trade all the profits or gains of which are chargeable to tax and, in particular, does not include such a trade carried on by any registered industrial and provident society. CHAPTER V Statutory Bodies Reserves of marketing boards 348 1 Where a marketing board to which this section applies carries on a trade which includes the buying and selling of the board's commodity, and the board is required in connection with arrangements for maintaining guaranteed prices to producers of that commodity to pay the whole or part of any surplus derived from dealings in the commodity into a reserve fund satisfying the conditions of the next following subsection, then — a in computing for the purposes of tax the profits or gains or losses of the said trade there shall be allowed as deductions any sums required to be paid by the board into the reserve fund out of the profits or gains of the trade, and there shall be taken into account as trading receipts any sums withdrawn by the board from the fund except in so far as the sums withdrawn are required to be paid to a Minister of the Crown or Government department or are distributed to producers of the board's commodity, and b in computing for the purposes of tax the profits or gains or losses of a trade carried on by any person there shall be taken into account as a trading receipt any payment made to him on a distribution by the board to producers of the board's commodity of sums withdrawn from the fund. 2 The conditions to be satisfied by the reserve fund are — a that no sum may be withdrawn from it by the board without the authority or consent of a Minister of the Crown or Government department, and b that, where money has been paid to the board by a Minister of the Crown or Government department in connection with the arrangements for maintaining guaranteed prices to producers of the board's commodity, sums afterwards standing to the credit of the fund are required to be applied in whole or in part in repaying that money, and c that the sums standing to the credit of the fund and not otherwise applied become, at intervals fixed by or under any scheme or arrangements approved by or made with a Minister of the Crown or Government department, available for distribution to producers of the board's commodity. 3 In this section — a " marketing board to which this section applies " means any body of persons established by or under any enactment and having for its object or one of its objects to regulate in the interests of producers in the United Kingdom or any class of them the marketing of a particular commodity, and " the board's commodity " refers to that commodity, b " required " means required by or under any scheme or arrangements approved by or made with a Minister of the Crown or Government department, c " Minister of the Crown or Government department" includes a Minister of the Crown or Government department in Northern Ireland, d " producer " includes a person who produces one type or quality of the commodity from another and (except in so far as the context otherwise requires) a person who has been a producer and the personal representatives of a producer who has died. 4 For the purposes of subsection (1)(b) of this section, a payment made to a person in respect of a trade he has ceased to carry on, and a payment made to a person's personal representatives but referable to his having carried on the trade in respect of which it is made, shall be treated as if it had been made to him on the last day on which he was engaged in carrying on the trade. Electricity Council and Boards 349 1 For the purposes of the Corporation Tax Acts the Electricity Council shall be treated as carrying on a trade, and those Acts shall have effect as if the trade carried on by the Central Electricity Authority at any time before 1st January 1958 had been the trade of the Electricity Council. 2 For the purposes of the Corporation Tax Acts — a any trade carried on by a Board shall be treated as if it were part of the trade carried on by the Electricity Council, b subject to paragraph (c) below, any property, rights or liabilities of a Board shall be treated as property, rights or liabilities of the Electricity Council, and anything done by or to a Board shall be deemed to have been done by or to the Electricity Council, c any rights, liabilities or things done — i of, by or to the Electricity Council against, to or by a Board, or ii of, by or to a Board against, to or by the Electricity Council or any other Board, shall be left out of account, and corporation tax shall be charged accordingly. 3 For the purposes of the operation of the Corporation Tax Acts in accordance with the preceding provisions of this section, the Electricity Council shall be deemed to have been in existence as from 1st April 1948, and anything done by, to or in relation to the Central Electricity Authority shall be treated as if it had been done by, to or in relation to the Electricity Council. 4 In this section " Board " means — a any Area Board established by or under the provisions of the Electricity Act 1947, and b in relation to any time on or after 1st January 1958, the Central Electricity Generating Board. Gas Council and Area Boards 350 1 Subject to the provisions of this section, for the purposes of the Corporation Tax Acts the Gas Council shall be treated as carrying on a trade from the beginning of April 1962, and from the beginning of that month — a any trade carried on by an Area Board within the meaning of the Gas Act 1948 shall be treated as part of the trade carried on by the Gas Council; b subject to paragraph (c) below, any property, rights or liabilities of any such Board shall be treated as property, rights or liabilities of the Gas Council, and any thing done by or to any such Board shall be deemed to have been done by or to the Gas Council, c any rights, liabilities or things done — i of, by or to the Gas Council against, to or by any such Board, or ii of, by or to any such Board against, to or by the Gas Council or any other such Board, shall be left out of account, and corporation tax shall be charged accordingly. 2 Any losses of the trade of an Area Board for any year of assessment earlier than the year 1962-63 may be carried forward and set off against the profits or gains of the trade of the Gas Council as if incurred by the Gas Council in carrying on that trade. 3 The Corporation Tax Acts shall apply in relation to the trade of the Gas Council as if before the beginning of April 1962 it had consisted of the trades of the Area Boards, and (without prejudice to the generality of the foregoing) allowances and balancing charges shall be made to or on the Gas Council accordingly by reference to the capital expenditure of Area Boards and to the allowances made to Area Boards in respect of that expenditure. Atomic Energy Authority and National Radiological Protection Board 351 1 The United Kingdom Atomic Energy Authority and the National Radiological Protection Board shall be entitled to exemption from income tax and corporation tax — a under Schedules A, B and C, b under Schedule D in respect of any yearly interest or other annual payment received by the Authority or Board, c under Schedule F in respect of distributions received by the Authority or Board, and d in respect of chargeable gains. 2 Income arising from investments or deposits held for the purposes of any pension scheme provided and maintained by the said Atomic Energy Authority shall be treated for the purposes of this section as if that income and the source thereof belonged to the Authority, and similarly with chargeable gains (the exemptions from corporation tax conferred on the Authority having effect as exemptions from income tax or capital gains tax). Harbour reorganisation schemes 352 1 This section has effect where the trade of any body corporate other than a limited liability company is transferred to a harbour authority by or under a certified harbour reorganisation scheme which provides also for the dissolution of the transferor. 2 For the purposes of the Corporation Tax Acts, the trade shall not be treated as permanently discontinued, nor shall a new trade be treated as set up and commenced. 3 The transferee shall be entitled to relief from corporation tax under section 177(1) of this Act, as for a loss sustained by it in carrying on the transferred trade or any trade of which it comes to form part, for any amount which, if the transferor had continued to carry it on, would have been available to the transferor for carry forward against chargeable profits of succeeding accounting periods, but subject to any claim made by the transferor under subsection (2) of the said section 177. 4 There shall be made to or on the transferee in accordance with the Capital Allowances Act 1968 all such allowances and charges as would, if the transferor had continued to carry on the trade, have fallen to be made to or on it under that Act and the amount of any such allowance or charge shall be computed as if the transferee had been carrying on the trade since the transferor had begun to do so and as if everything done to or by the transferor had been done to or by the transferee. No sale or transfer which on the transfer of the trade is made by the transferor to the transferee of any assets in use for the purposes of the trade shall be treated as giving rise to any such allowance or charge. 5 The transferor shall not be entitled to relief under section 178 of this Act or section 87 of the Finance Act 1965 (transitional relief for existing companies on cessation of trade) in respect of the trade. 6 The transferee shall be entitled to relief from corporation tax in respect of chargeable gains for any amount for which the transferor would have been entitled to claim relief in respect of allowable losses if it had continued to carry on the trade. 7 For the purposes of Part III of the Finance Act 1965 any asset transferred on the transfer of the trade shall be deemed to be for a consideration such that no gain or loss accrues to the transferor on its transfer ; and for the purposes of Part II of Schedule 6 to that Act the transferee shall be treated as if the acquisition by the transferor of any asset so transferred had been the transferee's acquisition thereof. 8 Where a part only of such trade is transferred to a harbour authority by or under a certified harbour reorganisation scheme, and the transferor continues to carry on the remainder of the trade, or any such trade is, by or under a certified harbour reorganisation scheme which provides also for the dissolution of the transferor, transferred in parts to two or more harbour authorities, this section shall apply as if the transferred part, or each of the transferred parts, had been at all times a separate trade. 9 Where a part of any trade is to be treated by virtue of subsection (8) above as having been a separate trade over any period there shall be made any necessary adjustments of accounting periods, and such apportionments as may be just of receipts, expenses, allowances or charges. Subsection (9) of section 252 of this Act shall apply to any apportionment under this subsection as it applies to an apportionment under subsection (8) of that section. 10 This section shall not apply to a transfer of a trade or part of a trade before 3rd August 1966 (the date of the passing of the Finance Act 1966) except that where the trade carried on by any body corporate was, by or under a certified harbour reorganisation scheme, transferred to a harbour authority in the year 1965-66 — a for all purposes of corporation tax the transferee and all other persons affected shall be treated as if the transferee had carried on the trade from the end of the basis period for that year of the trade as carried on by the transferor, and as if anything done to or by the transferor in carrying on the trade since the end of that period had been done to or by the transferee, and b subsections (3), (4), (6) and (7) of this section shall apply. 11 In this section — " harbour authority " has the same meaning as in the Harbours Act 1964, " harbour reorganisation scheme " means any statutory provision providing for the management by a harbour authority of any harbour or group of harbours in the United Kingdom, and " certified ", in relation to any harbour reorganisation scheme, means certified by a Minister of the Crown or Government department as so providing with a view to securing, in the public interest, the efficient and economical development of the harbour or harbours in question, " limited liability company " means a company having a limit on the liability of its members, " statutory provision " means any enactment, or any scheme, order or other instrument having effect under an enactment, and includes an enactment confirming a provisional order, " transferor ", in relation to any trade, means the body from whom the trade is transferred, whether or not the transfer is effected by that body. Local authorities 353 1 A local authority in the United Kingdom — a shall be exempt from all charge to income tax in respect of its income, and b shall be exempt from corporation tax and capital gains tax, and so far as the exemption from income tax conferred by this subsection calls for repayment of tax, effect shall be given thereto by means of a claim. This subsection shall apply to a local authority association as it applies to a local authority. 2 In this section " local authority " means — a in relation to England and Wales, any authority being, within the meaning of the Local Loans Act 1875, an authority having power to levy a rate, and includes a joint board or joint committee of such authorities ; b in relation to Scotland, any county council, town council or district council, and any statutory authority, commissioners or trustees having power to levy a rate as defined in section 379 of the Local Government (Scotland) Act 1947, or to issue a requisition for payment of money to be raised out of such a rate, and includes any joint board or joint committee of such authorities appointed under any enactment, order or scheme; c in relation to Northern Ireland, the council of any county, county or other borough, or urban or rural district, any other body of which all or substantially all the members are elected by local government electors and which is established for public local purposes and has power to raise money for those purposes by rates leviable on the basis of assessments in respect of land, and any committee or board appointed wholly or partly by a county or district council or by several such councils jointly. 3 In subsection (2)(a) and (b) above any reference to a joint board or joint committee of such authorities as are there mentioned applies, and applies only, to a joint board or joint committee of which all the constituent members are such authorities or which, having such authorities and other bodies corporate as its constituent members, is authorised by or under any enactment to require from those authorities, but not from other constituent members, the payment of sums to meet or towards meeting the amount or estimated amount by which its revenue for any period falls short or may fall short of its expenditure for that period; and for this purpose, if a member of a joint board or joint committee is a representative of or appointed by any authority or body, that authority or body (and not he) is to be treated as a constituent member of the board or committee. 4 In this section " local authority association " means any incorporated or unincorporated association of which all the constituent members are local authorities, groups of local authorities or local authority associations and which has for its object or primary object the protection and furtherance of the interests in general of local authorities or any description of local authorities ; and for this purpose, if a member of an association is a representative of or appointed by any authority, group of authorities or association, that authority, group or association (and not he) is to be treated as a constituent member of the association. CHAPTER VI Unit Trusts and Investment Trusts Unit trusts Authorised unit trusts 354 1 In respect of income and chargeable gains arising to the trustees of an authorised unit trust, the Tax Acts shall have effect — a as if the trustees were a company, resident in the United Kingdom, whose business consists mainly in the making of investments and the principal part of whose income is derived therefrom, and b as if the rights of the unit holders were shares in the company, and c as if so much of the income arising to the trustees as is available for payment to unit holders or for investment were dividends on such shares paid to them in proportion to their rights, the date of payment, in the case of income not paid to unit holders, being taken to be — i the date or latest date provided by the terms of the authorised unit trust for any distribution in respect of the distribution period in question, ii if no date is so provided, the last day of the distribution period; and references in the Corporation Tax Acts to a body corporate shall be construed in accordance with this subsection. 2 Without prejudice to the generality of the preceding provisions — a sums periodically appropriated out of income or chargeable gains arising as aforesaid for managers' remuneration shall be treated for the purposes of section 304 of this Act as sums disbursed as expenses of management, b the proportion of income attributable to any unit holder, being income not paid to unit holders but available for investment, shall be treated as an amount paid to the unit holder after such deduction of tax as is authorised by section 232(3) of this Act (Schedule F), c section 242 of this Act (explanation of income tax deductions to be annexed to dividend warrants, etc.) shall apply with any necessary modifications. 3 In ascertaining the amount available for distribution to unit holders in respect of any distribution period the trustees of an authorised unit trust may make such adjustments as may be reasonably required to allow for liabilities to and reliefs from tax where the amount of the liability or relief is not yet ascertained. 4 In this section " distribution period " means a period over which income from the investments subject to the trusts is aggregated for the purposes of ascertaining the amount available for distribution to unit holders. Cancellation and creation of units 355 Where in an accounting period of an authorised unit trust the aggregate of the capital sums paid in respect of the cancellation of units exceeds the aggregate of the capital sums received in respect of the creation of units, then the amount (as computed apart from this section) of any chargeable gain or allowable loss accruing to the unit trust in that period shall be taken as reduced by the fraction of A B it where — A is the said excess, B is the total net consideration received by the unit trust on the disposal of chargeable assets during the period after deduction of the incidental costs of making the disposal; and if A exceeds B no chargeable gain or allowable loss shall accrue to the unit trust in that period. Unit trusts and investment trusts Rate of tax on chargeable gains 356 The rate of tax payable by an authorised unit trust or by an investment trust on any chargeable gains accruing in any accounting period (as calculated in accordance with section 265 of this Act) shall not exceed that payable in that period by an individual under section 20(3) of the Finance Act 1965. Apportionment of chargeable gains 357 1 For the purposes of section 37 of the Finance Act 1965 (relief for unit holders in respect of chargeable gains of unit trust) the total net gains of an authorised unit trust for an accounting period are the excess, if any, of the chargeable gains accruing to the unit trust in the period over the allowable losses deductible from those gains (as those gains and losses are computed for the charge to tax on the unit trust), after deduction from that excess of the tax which will be charged on the unit trust for the period in respect of chargeable gains, and the proportion attributable to any unit holder of the total net gains for any accounting period shall be determined by the unit trust, regard being among other things had, as between units of different classes, to the proportion of the assets of the unit trust representing gains on capital which would be attributable to the respective classes in a liquidation of the unit trust; and no apportionment which the unit trust makes under this section shall be questionable in any proceedings by the unit holders or by any other person. 2 After carrying out an apportionment under subsection (1) of this section the unit trust shall give any unit holder to whom part of the total net gains is attributable a notice referring to the provisions of this section and certifying — a the total net gains (employing that term) of the unit trust for the accounting period, so far as known ; and b the amount apportioned to him ; and the unit holders between whom the total net gains are to be apportioned shall (except on an apportionment made in accordance with subsection (3) below) be determined by reference to the same date as the right to payment of the first dividend after the end of the accounting period, and that date shall be deemed to be the date when the apportionment is made and shall be specified in the notice. 3 The apportionment under subsection (1) of this section shall be carried out separately for each accounting period but a notice may be issued in respect of part of an accounting period apportioned in the light of the information available at the time, and an apportionment (or final apportionment) for an accounting period may be made at or after the end of the period, notwithstanding that any amounts are not finally ascertained; but if at any time it is found that too much or too little has been apportioned it shall be corrected as soon as may be by deduction from or addition to the total net gains of a later accounting period or periods. 4 A notice under subsection (2) of this section may be combined with the statement in writing required to be given under section 242 of this Act (explanation of income tax deductions to be annexed to dividend warrants, etc.). 5 Before the notices under subsection (2) of this section are sent out, particulars of the apportionments shall be submitted to the inspector, and the notices shall not be sent out without his approval, but subject to a right of appeal to the General Commissioners having jurisdiction in any assessment on the unit trust, being a right of appeal against the refusal of the inspector to give his approval. In the application of this subsection to Northern Ireland for the reference to the General Commissioners there shall be substituted a reference to the Special Commissioners. 6 Anything required by this section to be done by a unit trust shall be done by the managers of the unit trust with the approval of the trustee. 7 Subsections (1) to (5) above shall apply to an investment trust as they apply in relation to a unit trust with the necessary adaptations of references to units and unit holders. Interpretation Definitions of authorised unit trust and unit holder 358 In this Chapter — " authorised unit trust " means, as respects any accounting period, a unit trust scheme in the case of which an order of the Board of Trade under section 17 of the Prevention of Fraud (Investments) Act 1958 or of the Ministry of Commerce for Northern Ireland under section 16 of the Prevention of Fraud (Investments) Act (Northern Ireland) 1940 is in force during the whole or some part of that accounting period, " unit holder " means a person entitled to a share of the investments subject to the trusts of a unit trust scheme. Definition of investment trust 359 1 For the purposes of this Chapter " investment trust" means, as respects any accounting period, a company which is not a close company and which is approved for the purposes of this section for that accounting period by the Board, and the Board shall not approve any company unless it is shown to their satisfaction — a that the company's income is derived wholly or mainly from shares or securities ; and b subject to subsection (2) of this section, that no holding in a company, other than an investment trust or a company which would qualify as an investment trust but for paragraph (c) of this subsection, represents more than 15 per cent. by value of the investing company's investments, and c that the shares or securities of the company, or a class of them, are quoted on a recognised stock exchange in the United Kingdom, and d that the distribution as dividend of surpluses arising from the realisation of investments is prohibited by the company's memorandum or articles of association, and e that the company does not retain in respect of any accounting period more than 15 per cent of the income it derives from shares and securities. 2 Subsection (1)(b) above shall not apply — a to a holding in a company acquired before 6th April 1965 which on that date represented not more than 25 per cent. by value of the investing company's investments, or b to a holding in a company which, when it was acquired, represented not more than 15 per cent. by value of the investing company's investments, so long as no addition is made to the holding. 3 For the purposes of subsection (2) above — a " holding " means the shares or securities (whether of one class or more than one class) held in any one company, and b an addition is made to a holding whenever the investing company acquires shares or securities of that one company, otherwise than by being allotted shares or securities without becoming liable to give any consideration, and if an addition is made to a holding that holding is acquired when the addition, or the latest addition, is made to the holding, and c where in connection with a scheme of reconstruction or amalgamation, a company issues shares or securities to persons holding shares or securities in a second company in respect of and in proportion to (or as nearly as may be in proportion (a) their holdings in the second company, without those persons becoming liable to give any consideration, a holding of the shares or securities in the second company and a corresponding holding of the shares or securities so issued shall be regarded as the same holding. 4 In this section " company " and " shares " shall be construed in accordance with subsections (1) and (8) of section 45 of the Finance Act 1965. PART XIII Special Exemptions Charities 360 1 The following exemptions shall be granted on a claim in that behalf to the Board — a exemption from tax under Schedules A and D in respect of the rents and profits of any lands, tenements, hereditaments or heritages belonging to a hospital, public school or almshouse, or vested in trustees for charitable purposes, so far as the same are applied to charitable purposes only, b exemption from tax under Schedule B in respect of any lands occupied by a charity, c exemption — i from tax under Schedule C in respect of any interest, annuities, dividends or shares of annuities, ii from tax under Schedule D in respect of any yearly interest or other annual payment, and iii from tax under Schedule F in respect of any distribution, where the income in question forms part of the income of a charity, or is, according to rules or regulations established by Act of Parliament, charter, decree, deed of trust or will, applicable to charitable purposes only, and so far as it is applied to charitable purposes only, d exemption from tax under Schedule C in respect of any interest, annuities, dividends or shares of annuities which are in the names of trustees and are applicable solely towards the repairs of any cathedral, college, church or chapel, or of any building used solely for the purpose of divine worship, so far as the same are applied to those purposes, e exemption from tax under Schedule D in respect of the profits of any trade carried on by a charity, if the profits are applied solely to the purposes of the charity and either — i the trade is exercised in the course of the actual carrying out of a primary purpose of the charity, or ii the work in connection with the trade is mainly carried out by beneficiaries of the charity. 2 A charity shall be exempt from tax chargeable under Case VII of Schedule D on any gain accruing from its acquisition and disposal of any assets, and in respect of tax on chargeable gains shall be allowed exemption in accordance with section 35 of the Finance Act 1965. 3 In this section " charity " means any body of persons or trust established for charitable purposes only. Agricultural societies 361 1 Profits or gains arising to an agricultural society from any exhibition or show held for the purposes of the society shall be exempt from tax if applied solely to the purposes of the society. 2 In this section " agricultural society " means any society or institution established for the purpose of promoting the interests of agriculture, horticulture, livestock breeding or forestry. Scientific research associations 362 1 Where — a an Association which has as its object the undertaking of scientific research which may lead to or facilitate an extension of any class or classes of trade is approved for the purposes of this section by the Minister of Technology, and b the memorandum of association or other similar instrument regulating the functions of the Association precludes the direct or indirect payment or transfer to any of its members of any of its income or property by way of dividend, gift, division, bonus or otherwise howsoever by way of profit, there shall, on a claim in that behalf to the Board, be allowed in the case of the Association — i such exemption from tax as falls to be allowed under section 360 above in the case of a charity the whole income of which is applied to charitable purposes, and ii exemption from tax in respect of chargeable gains. 2 The condition specified in paragraph (b) of subsection (1) above shall not be deemed not to be complied with in the case of any Association by reason only that the memorandum or other similar instrument regulating its functions does not prevent the payment to its members of reasonable remuneration for goods, labour or power supplied, or for services rendered, of reasonable interest for money lent, or of reasonable rent for any premises. 3 In this section "scientific research " means any activities in the fields of natural or applied science for the extension of knowledge. 4 For the purposes of subsection (1)(a) above any approval given before the passing of this Act under section 449(1)(a) of the Income Tax Act 1952 (which is reproduced in the said subsection (1)(a)) by the Committee of the Privy Council for Scientific and Industrial Research shall be treated as given by the Minister of Technology. British Museum 363 The Trustees of the British Museum, and the Trustees of the British Museum (Natural History), shall each be entitled, on a claim in that behalf to the Board, to the following exemptions — a exemption from tax under Schedules A and D in respect of any land, or interest in or right over land, vested in them, b the like exemptions in respect of any dividends of stock vested in them, or in any other person for their use, and in respect of distributions charged under Schedule F, as are granted to charities under section 360 above, and c exemption from tax in respect of chargeable gains. Funds for reducing National Debt 364 Where any property is held upon trust in accordance with directions which are valid and effective under section 9 of the Superannuation and other Trust Funds (Validation) Act 1927 (which provides for the validation of trust funds for the reduction of the national debt), any income arising from that property or from any accumulation of any such income, and any profits of any description otherwise accruing to the property and liable to be accumulated under the trust, shall be exempt from income tax, and a gain shall not be a chargeable gain for the purposes of capital gains tax if accruing on the disposal by the trustees of any settled property held on trusts to which this section applies. Armed forces and Victoria Cross and other awards Wounds and disability pensions 365 1 Income from wounds and disability pensions to which this subsection applies shall be exempt from income tax and shall not be reckoned in computing income for any of the purposes of the Income Tax Acts. 2 Subsection (1) above applies to — a wounds pensions granted to members of the naval, military or air forces of the Crown, b retired pay of disabled officers granted on account of medical unfitness attributable to or aggravated by naval, military or air-force service, c disablement or disability pensions granted to members, other than commissioned officers, of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval, military or air-force service, d disablement pensions granted to persons who have been employed in the nursing services of any of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval, military or air-force service, and e injury and disablement pensions payable under any scheme made under the Injuries in War (Compensation) Act 1914, the Injuries in War Compensation Act 1914 (Session 2), and the Injuries in War (Compensation) Act 1915, or under any War Risks Compensation Scheme for the Mercantile Marine: Provided that, where the amount of any retired pay or pension to which subsection (1) above applies is not solely attributable to disablement or disability, the relief conferred by the said subsection (1) shall extend only to such part as is certified by the Secretary of State for Social Services, after consultation with the appropriate Government Department, to be attributable to disablement or disability. 3 Allowances granted by the Secretary of State for Social Services under a Royal Warrant, Order in Council or order administered by him to widows of members of the naval, military or air forces of the Crown in respect of their children shall not be reckoned in computing the income of such widows for any of the purposes of the Income Tax Acts. Allowances, bounties and gratuities 366 1 Where, under the scheme relating to men in the Armed Forces of the Crown announced on behalf of His Majesty's Government in the United Kingdom on 15th April 1946, or under any other scheme certified by the Treasury to make analogous provision for classes of persons to whom the first mentioned scheme does not apply, a person who has served in the armed forces of the Crown at any time during the continuance in force of the Emergency Powers (Defence) Act 1939 voluntarily undertakes to serve therein for a further period, any sum payable to him in pursuance of the scheme out of moneys provided by Parliament by way of gratuity at the end of his further period of service shall not be regarded as income for any income tax purposes. 2 Where, under the scheme relating to members of the Women's Royal Naval Service, the Auxiliary Territorial Service and the Women's Auxiliary Air Force announced on behalf of His Majesty's Government in the United Kingdom on 20th November 1946, or under any other scheme certified by the Treasury to make analogous provision for classes of persons to whom the first mentioned scheme does not apply, a woman who has served in or with the armed forces of the Crown at any time during the continuance in force of the Emergency Powers (Defence) Act 1939 voluntarily undertakes to serve in or with those forces for a further period, any sum payable to her in pursuance of the scheme out of moneys provided by Parliament by way of gratuity at the end of her further period of service shall not be regarded as income for any income tax purposes. 3 Any allowance payable out of the public revenue to or in respect of any class of persons, being either members of the armed forces of the Crown or women serving in any of the capacities mentioned at the end of this subsection, as respects which the Minister for the Civil Service certifies either — a that it is payable to the persons in question in lieu of food or drink normally supplied in kind to members of the armed forces or women serving in any of the capacities so mentioned, or b that it is payable in respect of the persons in question as a contribution to the expenses of a mess, shall not be regarded as income for any income tax purposes. Women's Services Member of Queen Alexandra's Royal Naval Nursing Service or any reserve thereof. Member of the Women's Royal Naval Service or any reserve thereof. Woman medical or dental practitioner serving in the Royal Navy or any naval reserve. Member of Queen Alexandra's Royal Army Nursing Corps. Member of Women's Royal Army Corps. Woman employed with the Royal Army Medical Corps or the Royal Army Dental Corps with relative rank as an officer. Member of the Princess Mary's Royal Air Force Nursing Service and Reserve. Member of the Women's Royal Air Force. Woman officer of the Medical and Dental Branch of the Royal Air Force. Member of the Voluntary Aid Detachment Reserves employed under the Admiralty Board of the Defence Council. 4 The sums known as training expenses allowances payable out of the public revenue to members (whether men or women) of the reserve and auxiliary forces of the Crown, and the sums payable by way of bounty out of the public revenue to such members in consideration of their undertaking prescribed training and attaining a prescribed standard of efficiency, shall not be treated as income for any income tax purpose. 5 Any sum which, in pursuance of the scheme as to service emoluments contained in the Command Paper laid before Parliament in August 1950, becomes payable out of moneys provided by Parliament by way of bounty to a person who, having served in the armed forces of the Crown, voluntarily undertakes to serve for a further period shall not be regarded as income for any income tax purpose. Visiting forces 367 1 The emoluments paid by the government of any designated country to a member of a visiting force of that country who is not a citizen of the United Kingdom and colonies shall be exempt from income tax. 2 A period during which a member of a visiting force to whom subsection (1) above applies is in the United Kingdom by reason solely of his being a member of that force shall not be treated for the purposes of income tax or capital gains tax either as a period of residence in the United Kingdom or as creating a change of his residence or domicile: Provided that this subsection shall not affect the operation of section 27 of this Act (personal reliefs to be granted, subject to certain exceptions, to United Kingdom residents only) in relation to any person for any year of assessment. 3 In subsections (1) and (2) above, references to a visiting force shall apply to a civilian component of a visiting force as they apply to the force itself; and the said subsections shall be construed as one with Part I of the Visiting Forces Act 1952, but so that, for the purposes of this section, references to a designated country shall be substituted in that Act for references to a country to which a provision of that Act applies. 4 For the purpose of conferring on persons attached to any designated allied headquarters the like benefits as are conferred by the said subsections (1) and (2) on members of a visiting force or civilian component, any members of the armed forces of a designated country shall, while attached to any such headquarters, be deemed to constitute a visiting force of that country, and there shall be a corresponding extension of the class of persons who may be treated as members of a civilian component of such a visiting force. 5 In the case of persons of any category for the time being agreed between Her Majesty's Government in the United Kingdom and the other members of the North Atlantic Council — a employment by a designated allied headquarters shall be treated for the purposes of subsection (2) above as if it were service as a member of a visiting force of a designated country, and b the emoluments paid by a designated allied headquarters to persons employed by such a headquarters shall be exempt from income tax: Provided that the exemption conferred by paragraph (b) of this subsection shall cease to apply to citizens of the United Kingdom and colonies if it becomes unnecessary that it should so apply for the purpose of giving effect to any agreement between parties to the North Atlantic Treaty. 6 For the purposes of this section — " allied headquarters " means any international military headquarters established under the North Atlantic Treaty, and " designated " means designated for the purpose in question by or under any Order in Council made for giving effect to any international agreement. 7 Any Order in Council under this section may be varied or revoked by a subsequent Order in Council. Victoria Cross and other awards 368 The following shall be disregarded for all the purposes of the Income Tax Acts: a annuities and additional pensions paid to holders of the Victoria Cross, b annuities paid to holders of the George Cross, c annuities paid to holders of the Albert Medal or of the Edward Medal, where paid by virtue of holding the award. Crown servants Foreign service allowance 369 Where any allowance to any person in the service of the Crown is certified by the Minister for the Civil Service to represent compensation for the extra cost of having to live outside the United Kingdom in order to perform his duties, that allowance shall not be regarded as income for any income tax purpose. Central banks Government securities held by non-resident central banks 370 1 Tax shall not be chargeable on dividends (within the meaning of Schedule C) paid out of the public revenue of the United Kingdom where they are income of any bank or issue department of a bank to which this section for the time being applies: Provided that this subsection shall not prevent any such dividends being taken into account in computing profits or gains or losses of a business carried on in the United Kingdom. 2 A bank or issue department of a bank to which this section for the time being applies shall be exempt from tax in respect of chargeable gains accruing to it: Provided that subsection (1) above may be applied to a bank or issue department without this subsection, or this subsection without that. 3 Her Majesty may by Order in Council direct that this section shall apply to any bank, or to its issue department, if it appears to Her Majesty that the bank is not resident in the United Kingdom and is entrusted by the government of a territory outside the United Kingdom with the custody of the principal foreign exchange reserves of that territory; and Her Majesty may by a further Order in Council revoke or vary any direction so given. 4 No recommendation shall be made to Her Majesty in Council to make an order under this section unless a draft of the order has been laid before the House of Commons and has been approved by resolution of that House. Issue departments of Reserve Bank of India and State Bank of Pakistan 371 There shall be exempt from tax any profits or income or chargeable gains arising or accruing to the issue department of the Reserve Bank of India constituted under an Act of the Indian legislature called the Reserve Bank of India Act 1934, or to the issue department of the State Bank of Pakistan constituted under certain orders made under section 9 of the Indian Independence Act 1947. Commonwealth and foreign representatives Commonwealth Agents-General and official agents, etc. 372 1 An Agent-General who is resident in the United Kingdom shall be entitled to the same immunity from income tax and capital gains tax as that to which the head of a mission so resident is entitled under the Diplomatic Privileges Act 1964. 2 Any person having or exercising any employment to which this subsection applies (not being a person employed in any trade, business or other undertaking carried on for the purposes of profit) shall be entitled to the same immunity from income tax and capital gains tax as that to which a member of the staff of a mission is entitled under the Diplomatic Privileges Act 1964. The employments to which this subsection applies are the employment in the United Kingdom as — a a member of the personal staff of any Agent-General, or b an official agent for, or for any state or province of, any of the countries for the time being mentioned in section 1(3) of the British Nationality Act 1948 or the Republic of Ireland, or c an official agent for any self-governing colony, of a person certified by the High Commissioner of the country in question or, as the case may be, by the Agent-General for the state, province or self-governing colony in question to be ordinarily resident outside the United Kingdom and to be resident in the United Kingdom solely for the purpose of the performance of his duties as such member or official agent. 3 In this section — " Agent-General " means the Agent-General for any state or province of a country within subsection (2)(b) above or for any self-governing colony ; " High Commissioner " includes the head of the mission of a country within subsection (2)(b) above, by whatever name called; " mission " has the same meaning as in the Diplomatic Privileges Act 1964, and references to the head of a mission and a member of the staff of a mission shall be construed in accordance with that Act; " self-governing colony " means any colony certified by a Secretary of State to be a self-governing colony. Consuls and other official agents 373 1 Income arising from any office or employment to which this section applies shall be exempt from income tax, and no account shall be taken of any such income in estimating the amount of income for any income tax purposes. 2 The offices and employments to which this section applies are the following, that is to say — a the office of a consul in the United Kingdom in the service of any foreign state ; and b the employment of an official agent in the United Kingdom for any foreign state, not being an employment exercised by a British subject or a citizen of the Republic of Ireland or exercised in connection with any trade, business or other undertaking carried on for the purposes of profit. 3 In this section — " consul " means a person recognised by Her Majesty as being a consul-general, consul, vice-consul or consular agent; and " official agent " means a person, not being a consul, who is employed on the staff of any consulate, official department or agency of a foreign state, not being a department or agency which carries on any trade, business or other undertaking for the purposes of profit. Consular officers and employees 374 1 Where a consular officer or employee in the United Kingdom of any foreign state to which this section applies — a is not a citizen of the United Kingdom and colonies, and b is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as such a consular officer or employee, and c either is a permanent employee of that state or was not ordinarily resident in the United Kingdom immediately before he became a consular officer or employee in the United Kingdom of that state ; then any income of his falling within Case IV or V or VII of Schedule D (which relate to income from overseas property and to short-term capital gains) shall be exempt from income tax, and he shall be treated as not resident in the United Kingdom for the purposes of sections 100 and 159(4) of this Act (which exempt certain dividends of non-residents). 2 A gain shall not be a chargeable gain for the purposes of capital gains tax if accruing to a consular officer or employee of any foreign state to which this section applies on the disposal of assets which at the time of the disposal were situated outside the United Kingdom. 3 Without prejudice to section 373 above, the income arising from a person's employment in the United Kingdom as a consular employee of any foreign state to which this section applies shall be exempt from income tax, except in the case of a person who is not a national of that state but is a citizen of the United Kingdom and colonies. 4 For the purposes of this section, " consular employee " includes any person employed, for the purposes of the official business of a consular officer, at any consulate or consular establishment or at any other premises used for those purposes. 5 This section shall apply to any foreign state to which Her Majesty by Order in Council directs that it shall apply for the purpose of giving effect to any consular convention or other arrangement with that state making similar provision in the case of Her Majesty's consular officers or employees in that state: Provided that any such Order in Council may limit the operation of this section in relation to any state in such manner as appears to Her Majesty to be necessary or expedient having regard to the arrangement with that state. 6 Any Order in Council under this section may be made so as to have effect from a date earlier than the making of the Order or the passing of this Act (but not earlier than the coming into force of the arrangement with regard to which it is made), may be varied or revoked by a subsequent Order in Council and may contain such transitional provisions as appear to Her Majesty to be necessary or expedient. 7 Any statutory instrument under this section shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. Other exemptions Scholarship income 375 1 Income arising from a scholarship held by a person receiving full-time instruction at a university, college, school or other educational establishment shall be exempt from income tax, and no account shall be taken of any such income in computing the amount of income for income tax purposes. 2 In this section " scholarship" includes an exhibition, bursary or any other similar educational endowment. 3 If any question arises whether any income is income arising from a scholarship held as aforesaid, the Board may consult the Secretary of State for Education and Science. In the application of this subsection to Scotland and Northern Ireland, the Secretary of State and the Governor of Northern Ireland shall respectively be substituted for the Secretary of State for Education and Science. Housing grants 376 Where, under any enactment relating to the giving of financial assistance for the provision, maintenance or improvement of housing accommodation or other residential accommodation, a payment is made to a person by way of grant or other contribution towards expenses incurred, or to be incurred, by that or any other person, the payment shall not be treated as a receipt in computing income for any tax purpose: Provided that the preceding provision shall not apply to a payment in so far as it is made in respect of an expense giving rise to a deduction in computing income for any tax purpose. Compensation for National-Socialist persecution 377 1 Annuities payable under the law of the Federal German Republic relating to the compensation of victims of National-Socialist persecution, being annuities which under any such law relating to the taxation of such compensation are specifically exempted from tax of a character similar to that of income tax, shall not be regarded as income for any income tax purpose. 2 The preceding subsection shall apply to annuities payable under the law of any part of the Federal German Republic as it applies to annuities payable under the law of that Republic. PART XIV Miscellaneous Special Provisions CHAPTER I Patents and Know-How Patents Writing-down allowances for capital expenditure on purchase of patent rights 378 1 Where a person incurs capital expenditure on the purchase of patent rights, there shall, subject to and in accordance with the following provisions of this Chapter, be made to him writing-down allowances in respect of that expenditure during the writing-down period as hereinafter defined: Provided that no writing-down allowance shall be made to a person in respeot of any expenditure unless — a the allowance falls in accordance with section 385(1) of this Act to be made to him in taxing his trade; or b any income receivable by him in respect of the rights-would be liable to tax. 2 The writing-down period shall be the seventeen years beginning with the chargeable period related to the expenditure: Provided that — a where the rights are purchased for a specified period, the preceding provisions of this subsection shall have effect with the substitution for the reference to seventeen years of a reference to seventeen years or the number of years comprised within that period, whichever is the less ; and b where the rights purchased begin one complete year or more after the commencement of the patent and paragraph (a) of this proviso does not apply, the said provisions shall have effect with the substitution for the reference to seventeen years of a reference to seventeen years less the number of complete years which, when the rights begin, have elapsed since the commencement of the patent, or, if seventeen complete years have elapsed as aforesaid, of a reference to one year; and c any expenditure incurred for the purposes of a trade by a person about to carry it on shall be treated for the purposes of this subsection as if it had been incurred by that person on the first day on which he does carry it on, unless, before the said first day, he has sold all the rights on the purchase of which the expenditure was incurred. 3 Subsections (2) and (3) of section 75 of the Capital Allowances Act 1968 (effect of providing for writing-down allowances during a writing-down period of a specified length) shall apply to this section as they apply to the provisions specified in subsection (1) of the said section 75. Effect of lapses of patent rights, sales, etc. 379 1 Where a person incurs capital expenditure on the purchase of patent rights and, before the end of the writing-down period under section 378 above, any of the following events occurs, that is to say — a the rights come to an end without being subsequently revived, or b he sells all those rights or so much thereof as he still owns, or c he sells part of those rights and the net proceeds of the sale (so far as they consist of capital sums) are not less than the amount of the capital expenditure remaining unallowed, no writing-down allowance shall be made to that person for the chargeable period related to the event or for any subsequent chargeable period. 2 Where a person incurs capital expenditure on the purchase of patent rights and, before the end of the writing-down period under section 378 above, either of the following events occurs, that is to say — a the rights come to an end without being subsequently revived, or b he sells all those rights, or so much thereof as he still owns, and the net proceeds of the sale (so far as they consist of capital sums) are less than the amount of the capital expenditure remaining unallowed, there shall, subject to and in accordance with the following provisions of this Chapter, be made to him for the chargeable period related to the event an allowance (in this Chapter referred to as " a balancing allowance ") equal, if the event is the rights coming to an end, to the amount of the capital expenditure remaining unallowed, and, if the event is a sale, to the amount of the capital expenditure remaining unallowed less the net proceeds of the sale. 3 Where a person who has incurred capital expenditure on the purchase of patent rights sells all or any part of those rights and the net proceeds of the sale (so far as they consist of capital sums) exceed the amount of the capital expenditure remaining unallowed, if any, there shall, subject to and in accordance with the following provisions of this Chapter, be made on him for the chargeable period related to the sale a charge (in this Chapter referred to as " a balancing charge ") on an amount equal to the excess or, where the amount of the capital expenditure remaining unallowed is nil, to the said net proceeds. 4 Where a person who has incurred capital expenditure on the purchase of patent rights sells a part of those rights and subsection (3) of this section does not apply, the amount of any writing-down allowance made in respect of that expenditure for the chargeable period related to the sale or any subsequent chargeable period shall be the amount arrived at by — a subtracting the net proceeds of the sale (so far as they consist of capital sums) from the amount of the expenditure remaining unallowed at the time of the sale, and b dividing the result by the number of complete years of the writing-down period which remained at the beginning of the chargeable period related to the sale, and so on for any subsequent sales. 5 References in the preceding provisions of this section to the amount of any capital expenditure remaining unallowed shall, in relation to any event, be construed as references to the amount of that expenditure less any writing-down allowances made in respect thereof for chargeable periods before that related to the event, and less also the net proceeds of any previous sale by the person who incurred the expenditure of any part of the rights acquired by the expenditure, so far as those proceeds consist of capital sums. 6 Notwithstanding anything in the preceding provisions of this section, no balancing allowance shall be made in respect of any expenditure unless a writing-down allowance has been, or, but for the happening of the event giving rise to the balancing allowance, could have been, made in respect of that expenditure, and the total amount on which a balancing charge is made in respect of any expenditure shall not exceed the total writing-down allowances actually made in respect of that expenditure, less, if a balancing charge has previously been made in respect of that expenditure, the amount on which that charge was made. Taxation as income of capital sums received for sale of patent rights 380 1 Where a person resident in the United Kingdom sells all or any part of any patent rights and the net proceeds of the sale consist wholly or partly of a capital sum, he shall, subject to the provisions of this Chapter, be charged to tax under Case VI of Schedule D, for the chargeable period in which the sum is received by him and successive chargeable periods, being charged in each period on the same fraction of the sum as the period is of six years (or such less fraction as has not already been charged): Provided that if that person, by notice in writing served on the inspector not later than two years after the end of the chargeable period in which the said amount was received, elects that the whole of the said sum shall be charged to tax for the said chargeable period, it shall be charged to tax accordingly. References in this subsection to tax for a chargeable period shall be construed, in relation to corporation tax, as referring to the tax for any financial year which is charged in respect of that period. 2 Where a person not resident in the United Kingdom sells all or any part of any patent rights and the net proceeds of the sale consist wholly or partly of a capital sum, and the patent is a United Kingdom patent, then, subject to the provisions of this Chapter — a he shall be chargeable to tax in respect of that sum under Case VI of Schedule D; and b section 53 of this Act (deduction of income tax at source) shall apply to that sum as if it was an annual sum payable otherwise than out of profits or gains charged to income tax; and c all the other provisions of the Tax Acts shall, save as therein otherwise provided, have effect accordingly: Provided that if, not later than two years after the end of the year of assessment in which the sum is paid, the person to whom it is paid, by notice in writing to the Board, elects that the said sum shall be treated for the purpose of income tax for that year and each of the five succeeding years as if one-sixth thereof, and no more, were included in his income chargeable to tax for all those years respectively, it shall be so treated, and all such repayments and assessments of tax for each of those years shall be made as are necessary to give effect to the election, so, however, that — i the election shall not affect the amount of tax which is to be deducted and assessed under the said section 53; and ii where any sum is deducted under the said section 53, any adjustments necessary to give effect to the election shall be made by way of repayment of tax; and iii the said adjustments shall be made year by year and as if one-sixth of the sum deducted had been deducted in respect of tax for each year, and no repayment of, or of any part of, that portion of the tax deducted which is to be treated as deducted in respect of tax for any year shall be made unless and until it is ascertained that the tax (other than surtax) ultimately falling to be paid for that year is less than the amount of tax (other than surtax) paid for that year. 3 In subsection (2) above the word " tax" shall mean income tax, unless the seller of the patent rights, being a company, would be within the charge to corporation tax in respect of any proceeds of the sale not consisting of a capital sum; and where the subsection applies to charge a company to corporation tax in respect of a sum paid to it, the proviso shall not apply, but the company may, by notice in writing given to the Board not later than two years after the end of the accounting period in which the sum is paid, elect that the sum shall be treated as arising rateably in the accounting periods ending not later than six years from the beginning of that in which the sum is paid (being accounting periods during which the company remains within the charge to corporation tax as aforesa(d), and there shall be made all such repayments of tax and assessments to tax as are necessary to give effect to any such election. 4 Where the person selling all or any part of any patent rights acquired the rights sold, or the rights out of which they were granted, by purchase and the price paid by him consisted wholly or partly of a capital sum, the preceding provisions of this section shall apply as if any capital sum received by him when he sells the rights were reduced by the amount of that sum: Provided that — a where between the said purchase and the said sale he has sold part of the rights acquired by him and the net proceeds of that sale consist wholly or partly of a capital sum, the amount of the reduction falling to be made under this subsection in respect of the subsequent sale shall be itself reduced by the amount of that sum; b nothing in this subsection shall affect the amount of income tax which is to be deducted and assessed under section 53 of this Act by virtue of subsection (2) of this section, and, where any sum is deducted under that section, any adjustment necessary to give effect to the provisions of this subsection shall be made by way of repayment of tax. 5 A claim for relief under this section shall be made to the Board. Capital sums: death, winding-up or partnership change 381 1 Where a person on whom, by reason of the receipt of a capital sum, a charge falls or would otherwise fall to be made under section 380 above dies or, being a body corporate, commences to be wound up — a no sums shall be charged under the said section on that person for any chargeable period subsequent to that in which the death takes place or the winding up commences; and b the amount falling to be charged for the chargeable period in which the death occurs or the winding up commences shall be increased by the total amounts which, but for the death or winding up, would have fallen to be charged for subsequent chargeable periods ; Provided that, in the case of a death, the personal representatives may, by notice in writing served on the inspector not later than thirty days after notice has been served on them of the charge falling to be made by virtue of this subsection, require that the income tax (including surtax) payable out of the estate of the deceased by reason of the increase provided for by this subsection shall be reduced so as not to exceed the total amount of income tax (including surtax) which would have been payable by him or out of his estate by reason of the operation of section 380 above in relation to that sum, if, instead of the amount falling to be charged for the year in which the death occurs being increased by the whole amount of the sums charged for subsequent years, the several amounts falling to be charged for the years beginning with that in which the capital sum was received and ending with that in which the death occurred had each been increased by the said whole amount divided by the number of those years. 2 Where, under section 79 of the Capital Allowances Act 1968 as applied by section 387 below, a charge under section 380 above falls to be made on two or more persons jointly as being the persons for the time being carrying on a trade, and that trade is discontinued, subsection (1) above shall have effect in relation to the discontinuance as it has effect where a body corporate commences to be wound up: Provided that — a the additional sum which, under subsection (1) above, falls to be charged for the chargeable period in which the discontinuance occurs shall be apportioned among the members of the partnership immediately before the discontinuance, according to their respective interests in the partnership profits before the discontinuance, and each partner (or, if he is dead, his personal representatives) shall be charged separately for his proportion; and b each partner, or, if he is dead, his personal representatives, shall have the same right to require a reduction of the total income tax (including surtax) payable by him or out of his estate by reason of the increase as would have been exercisable by the personal representatives under subsection (1) above in the case of a death, and the proviso to that subsection shall have effect accordingly, but as if references to the amount of income tax (including surtax) which would have been payable by the deceased or out of his estate in the event therein mentioned were a reference to the amount of income tax (including surtax) which would in that event have fallen to be paid or borne by the partner in question or out of his estate. 3 In this section, any references to the income tax (including surtax) paid or borne or payable or falling to be paid or borne by a person include, in cases where the income of a wife is deemed to be income of the husband, references to the income tax (including surtax) paid or borne, or payable or falling to be paid or borne, by his wife or her husband, as the case may be. Relief for expenses 382 1 Where — a a person, otherwise than for the purposes of a trade carried on by him, pays any fees or incurs any expenses in connection with the grant or maintenance of a patent, or the obtaining of an extension of a term of a patent, or a rejected or abandoned application for a patent, and b those fees or expenses would, if they had been paid or incurred for the purposes of a trade, have been allowable as a deduction in estimating the profits or gains thereof, there shall be made to him, for the chargeable period in which those expenses were paid or incurred, an allowance equal to the amount thereof. 2 Where a patent is granted in respect of any invention, an allowance equal to so much of the net amount of any expenses incurred by an individual who, whether alone or in conjunction with any other person, actually devised the invention as is properly ascribable to the devising thereof (not being expenses in respect of which, or of assets representing which, an allowance falls to be made under any other provision of the Income Tax Acts) shall be made to that individual for the year of assessment in which the expenses were incurred. Patent income to be earned income in certain cases 383 Any income from patent rights arising to an individual where the patent was granted for an invention actually devised by him, whether alone or jointly with any other person, shall be treated for all purposes as earned income: Provided that where any part of the rights in question or of any rights out of which they were granted has at any time belonged to any other person, so much only of the said income shall be treated as earned income as is not properly attributable to the rights which have belonged to that other person. Spreading of patent royalties over several years 384 1 Where a royalty or other sum to which section 52 or 53 of this Act (deduction of income tax at standard rate) applies is paid in respect of the user of a patent, and that user extended over a period of six complete years or more, the person receiving the payment may on the making of a claim require that the income tax (including surtax) or corporation tax payable by him by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of income tax (including surtax) or corporation tax which would have been payable by him if that royalty or sum had been paid in six equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made. 2 Subsection (1) of this section shall apply in relation to a royalty or other sum where the period of the user is two complete years or more but less than six complete years as it applies to the royalties and sums mentioned in that subsection, but with the substitution for the reference to six equal instalments of a reference to so many equal instalments as there are complete years comprised in that period. 3 In this section, any reference to the income tax (including surtax) payable by a person includes, in cases where the income of a wife is deemed to be the income of the husband, references to the income tax (including surtax) payable by his wife or her husband, as the case may be. 4 Nothing in this section shall apply to any sum to which section 53 of this Act applies by virtue of section 380(2)(i) above. Manner of making allowances and charges 385 1 An allowance or charge under section 378 or section 379 of this Act shall be made to or on a person in taxing his trade if — a he is carrying on a trade the profits or gains of which are, or, if there were any, would be, chargeable to tax under Case I of Schedule D for the chargeable period for which the allowance or charge is made, and b at any time in that chargeable period or its basis period the patent rights in question, or other rights out of which they were granted, were or were to be used for the purposes of that trade. 2 Where an allowance falls to be made to a person for any year of assessment under section 378, 379 or 382 of this Act as those provisions apply for the purposes of income tax, and the allowance is not to be made in taxing a trade — a the amount of the allowance shall be deducted from or set off against his income from patents for that year of assessment, and b if the amount to be allowed is greater than the amount of his income from patents for that year of assessment, the balance shall be deducted from or set off against his income from patents for the next year of assessment, and so on for subsequent years of assessment, and tax shall be discharged or repaid accordingly. Relief shall be given under this subsection on the making of a claim. 3 Where an allowance falls to be made to a company for any accounting period under section 378, 379 or 382 of this Act as those provisions apply for the purposes of corporation tax, and is not to be made in taxing a trade — a the allowance shall, as far as may be, be given effect by deducting the amount of the allowance from the company's income from patents of the accounting period, b where the allowance cannot be given full effect under paragraph (a) above in that period by reason of a want or deficiency of income from patents, then (so long as the company remains within the charge to corporation tax) the amount unallowed shall be carried forward to the succeeding accounting period, and shall be treated for the purposes of paragraph (a) above, and of any further application of this paragraph, as the amount of a corresponding allowance for that period. 4 Effect shall be given to any balancing charge under section 379 of this Act which is not to be made in taxing a trade — a if a charge to income tax, by making the charge under Case VI of Schedule D, b if a charge to corporation tax, by treating the amount on which the charge is to be made as income from patents. Know-how (income tax, corporation tax and capital gains tax) Dealings in know-how 386 1 Subject to subsections (3) and (6) below, where after 19th March 1968 a person — a acquires know-how for use in a trade carried on by him, or b acquires know-how, and thereafter sets up and commences a trade in which it is used, writing-down allowances in respect of his expenditure on the acquisition, so far as not otherwise deducted for the purposes of corporation tax or income tax, shall be made in taxing the trade during a writing-down period of six years beginning with the chargeable period related to the expenditure ; and if during that period he ceases to carry on the trade, an allowance equal to the amount of that expenditure then unallowed shall be made in taxing the trade for the chargeable period related to the discontinuance. For the purposes of this subsection, a person incurring expenditure on know-how before the setting up and commencement of the trade in which it is used shall be treated as incurring it on that setting up and commencement. 2 Subject to the said subsection (6), where after 19th March 1968 a person disposes of know-how which has been used in a trade carried on by him, and continues to carry on the trade after the disposal, the amount or value of any consideration received by him for the disposal shall, so far as it is not chargeable to tax as a revenue or income receipt, be treated for all purposes as a trading receipt. 3 Where after the said 19th March a person disposes of a trade or part of a trade and, together therewith, of know-how used therein, any consideration received by him for the know-how shall be dealt with in relation both to him and to the person acquiring the know-how, if that person provided the consideration, and for the purposes of corporation tax, income tax and capital gains tax, as a payment for goodwill: Provided that this subsection shall not apply — a to either of the persons concerned if they so elect by notice in writing given jointly to the inspector within two years of the disposal, or b to the person acquiring the know-how if the trade in question was, before the acquisition, carried on wholly outside the United Kingdom ; and where know-how is disposed of with a trade or part of a trade, but this subsection is excluded in relation to the person acquiring it, subsection (1) above shall apply as if that person had acquired it for use in a trade previously carried on by him. 4 Subject to subsection (6) below, any consideration received by a person for the disposal of know-how shall, if it is neither chargeable to tax under subsection (2) above, or otherwise as a revenue or income receipt, nor dealt with in relation to him as a payment for goodwill as mentioned in subsection (3) above, be treated as a profit or gain chargeable to tax under Case VI of Schedule D: Provided that, where the person concerned has incurred expenditure wholly and exclusively in the acquisition or disposal of the know-how, the amount which would apart from this proviso be treated as a profit or gain so chargeable shall be reduced by the amount of that expenditure; but a deduction shall not be twice made in respect of the same expenditure, whether under this proviso or otherwise. 5 Where subsection (4) above has effect in the case of an individual who devised the know-how in question, whether alone or jointly with any other person, the amount in respect of which he is chargeable to tax by virtue of that subsection shall be treated for all purposes as earned income. 6 The preceding provisions of this section, except subsection (3), shall not apply on any sale of know-how where the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both the seller and the buyer are bodies of persons and some other person has control over both of them; and the said subsection (3) shall apply on any such sale with the omission of the proviso. In this subsection, references to a body of persons include references to a partnership. 7 In this section " know-how " means any industrial information and techniques likely to assist in the manufacture or processing of goods or materials, or in the working of a mine, oil-well or other source of mineral deposits (including the searching for, discovery, or testing of deposits or the winning of access there(a), or in the carrying out of any agricultural, forestry or fishing operations. 8 Where, in connection with any disposal of know-how, a person gives an undertaking (whether absolute or qualified, and whether legally valid or not) the tenor or effect of which is to restrict his or another's activities in any way, any consideration received in respect of the giving of the undertaking or its total or partial fulfilment shall be treated for the purposes of this section as consideration received for the disposal of the know-how. 9 Subsection (2) of section 75 of the Capital Allowances Act 1968 (effect of providing writing-down allowances during writing-down period of a specified length) shall apply to this section as it applies to the provisions specified in subsection (1) of that section. Supplemental Application of Capital Allowances Act 1968 387 1 The Tax Acts shall have effect as if this Chapter were contained in Part I of the Capital Allowances Act 1968, and any reference in the Tax Acts to any capital allowance to be given " by way of discharge or repayment of tax and to be available or available primarily against a specified class of income " shall include a reference to any capital allowance given in accordance with subsection (2) or subsection (3) of section 385 above. 2 In the said Part I as so applied to patent rights, the sum referred to in paragraph 4(1)(a) of Schedule 7 to the said Act (special provisions as to controlled sales) is the amount of any capital expenditure on the acquisition of the patent rights remaining unallowed, computed in accordance with the provisions of section 379 of this Act. 3 The reference in section 82(1) of the Capital Allowances Act 1968 (certain payments not to be treated as capital expenditure) to any expenditure or sum in the case of which a deduction of income tax falls or may fall to be made under Part II of this Act does not include a sum in the case of which such a deduction falls or may fall to be so made by virtue of section 3 80(2) (b) above. 4 In Part I of the Capital Allowances Act 1968 as so applied to know-how — a references in that Part to property and its purchase or sale include references to know-how and its acquisition or disposal, b section 78, with Schedule 7 to the Act (special provisions as to controlled sales), shall be omitted. Interpretation of provisions about patents 388 1 In this Chapter — " income from patents " means — any royalty or other sum paid in respect of the user of a patent; and any amount on which tax is payable for any chargeable period by virtue of section 379(3), section 380 or section 381 of this Act; " the commencement of the patent " means, in relation to a patent, the date as from which the patent rights become effective; " patent rights " means the right to do or authorise the doing of anything which would, but for that right, be an infringement of a patent; " United Kingdom patent " means a patent granted under the laws of the United Kingdom. 2 In this Chapter, any reference to the sale of part of patent rights includes a reference to the grant of a licence in respect of the patent in question, and any reference to the purchase of patent rights includes a reference to the acquisition of a licence in respect of a patent: Provided that if a licence granted by a person entitled to any patent rights is a licence to exercise those rights to the exclusion of the grantor and all other persons for the whole of the remainder of the term for which the rights subsist, the grantor shall be treated for the purposes of this Chapter as thereby selling the whole of the rights. 3 Where, under sections 46 to 49 of the Patents Act 1949 or any corresponding provisions of the law of any country outside the United Kingdom, an invention which is the subject of a patent is made, used, or exercised or vended by or for the service of the Crown or the government of the country concerned, the provisions of this Chapter shall have effect as if the making, user, exercise or vending of the invention had taken place in pursuance of a licence, and any sums paid in respect thereof shall be treated accordingly. 4 Expenditure incurred on or after 9th July 1952 (the commencement of the Finance Act 1952) in obtaining a right to acquire in the future patent rights as respects any invention in respect of which the patent has not yet been granted shall be deemed for all the purposes of this Chapter to be expenditure on the purchase of patent rights, and if the patent rights are subsequently acquired the expenditure shall be deemed for those purposes to have been expenditure on the purchase of those rights. 5 Any sum received from a person which by virtue of subsection (4) above is deemed to be expenditure incurred by him on the purchase of patent rights shall be deemed to be proceeds of a sale of patent rights. CHAPTER II Copyright and Artists' Receipts Copyright Relief for copyright payments 389 1 Where — a an author of a literary, dramatic, musical or artistic work assigns the copyright therein wholly or partially, or grants any interest in the copyright by licence ; and b the consideration for the assignment or grant consists wholly or partially of a payment to which this section applies, being a payment the whole amount of which would, but for this section, be included in computing the amount of his profits or gains for a single year of assessment; and c the author was engaged on the making of the work for a period of more than twelve months, he may on making a claim require that effect shall be given to the following provisions of this section in connection with that payment. 2 If the period for which he was engaged on the making of the work does not exceed twenty-four months, then, for all income tax purposes, one-half only of the amount of the payment shall be treated as having become receivable on the date on which it actually became receivable, and the remaining half shall be treated as having become receivable twelve months before that date. 3 If the period for which he was engaged on the making of the work exceeds twenty-four months, then, for all income tax purposes, one-third only of the amount of the payment shall be treated as having become receivable on the date on which it actually became receivable, and one-third shall be treated as having become receivable twelve months, and one-third twenty-four months, before that date. 4 This section applies — a to a lump sum payment, including an advance on account of royalties which is not returnable, and b to any payment of or on account of royalties or sums payable periodically, except that it shall not by virtue of paragraph (b) above apply to payments in respect of the copyright in any work which only become receivable more than two years after its first publication. 5 A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above shall have effect as a claim with respect to all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim ; and such a claim may be made at any time not later than 5th April next following the expiration of eight years after the work's first publication. 6 A claim cannot be made under this section in respect of a payment if a prior claim has been made under section 390 below as respects that payment. 7 In this section — " author " includes a joint author, and any reference to the first publication of a work is a reference to the first occasion on which the work or a reproduction of it is published, performed or exhibited. Relief where copyright sold after ten years or more 390 1 Where not less than ten years after the first publication of the work the author of a literary, dramatic, musical or artistic work assigns the copyright therein wholly or partially, or grants any interest in the copyright by licence, and — a the consideration for the assignment or grant consists wholly or partially of a lump sum payment the whole amount of which would, but for this section, be included in computing the amount of his profits or gains for a single year of assessment, and b the copyright or interest is not assigned or granted for a period of less than two years, he may by making a claim require that effect shall be given to the following provisions of this section in connection with that payment. 2 Except where the copyright or interest is assigned or granted for a period of less than six years, the amount of the payment shall for income tax purposes be treated as becoming receivable in six equal instalments at yearly intervals, the first of which becomes receivable on the date on which the payment actually became receivable. 3 Where the copyright or interest is assigned or granted for a period of less than six years, the payment shall for income tax purposes be treated as becoming receivable in a number of equal instalments at yearly intervals the first of which becomes receivable on the date when the payment actually became receivable, the number being the number of whole years in that period. 4 Subject to subsection (5) below, if the author dies, any instalment which under this section would, but for the death, be treated as becoming receivable after the death shall for income tax purposes be treated as becoming receivable on the date when the last instalment before the death is to be treated as becoming receivable. 5 If the personal representatives so elect — a the total amount of income tax (including surtax) which would have been payable by the deceased or out of his estate in respect of the payment if the copyright or interest had been assigned or granted for a period beginning with the date when the first instalment is treated as becoming receivable and ending with the day before the death shall be computed, and b the income tax (including surtax) payable out of the estate by reason of the provisions of subsection (4) above shall be reduced so as not to exceed the amount at (a) above. The references in this subsection to the income tax (including surtax) payable by a person include, in cases where the income of a wife is deemed to be income of the husband, references to the income tax (including surtax) payable by his wife or her husband, as the case may be. 6 If the payment would, apart from this section, have been taken into account in assessing the profits or gains of a profession or vocation, and the profession or vocation is permanently discontinued (otherwise than on death) after the date on which the payment actually became receivable, any instalment which under this section would, but for the discontinuance, be treated as receivable on a date after the discontinuance shall for income tax purposes be treated as becoming receivable when the last instalment before the discontinuance is to be treated as becoming receivable, unless the author elects to be treated (for all purposes) as if the copyright or interest had been assigned or granted for a period beginning with the date when the first instalment is treated as becoming receivable and ending with the day before the discontinuance. 7 Notice of any election under subsection (5) or subsection (6) above shall be served on the inspector within two years of the death, or as the case may be of the discontinuance. 8 Where, but for this section, the payment would be included in computing any profits or gains chargeable to tax under Case VI of Schedule D, and any amount would be deductible from that payment in computing those profits or gains (whether under the general provisions relating to Case VI or under section 145(1) of this Act (post-cessation receipts: allowable deductions)), the amount which, under this section, is to be treated as receivable in instalments shall be the amount of the payment after that deduction, and effect shall not be given to that deduction in any other way. 9 A claim cannot be made under this section in respect of a payment if a prior claim has been made under section 389 above as respects that payment. 10 Where it is necessary, in order to give effect to a claim or election under this section, or as a result of the claim or election, to make any adjustment by way of an assessment on any person, the assessment shall not be out of time if it is made within one year of the final determination of the claim, or as the case may be within one year from the giving of notice of the election. 11 In this section — " author " includes a joint author, " lump sum payment " includes an advance on account of royalties which is not returnable, and the reference to the first publication of a work is a reference to the first occasion on which the work or a reproduction of it is published, performed or exhibited. Taxation of copyright royalties where owner's usual place of abode is abroad 391 1 Subject to the provisions of this section, where the usual place of abode of the owner of a copyright is not within the United Kingdom, section 53 of this Act shall apply to any payment of or on account of any royalties or sums paid periodically for or in respect of that copyright as it applies to annual payments not payable out of profits or gains brought into charge to income tax. In this subsection — " copyright " does not include a copyright in any dramatic work being a cinematograph production, or in any artistic work being a photograph intended to be used for the purposes of the exhibition of pictures or other optical effects by means of a cinematograph or other similar apparatus; and " owner of a copyright " includes a person who, notwithstanding that he has assigned a copyright to some other person, is entitled to receive periodical payments in respect of that copyright; and the reference to royalties or sums paid periodically for or in respect of a copyright does not include royalties or sums paid in respect of copies of works which are shown on a claim to have been exported from the United Kingdom for distribution outside the United Kingdom. 2 Where any payment to which subsection (1) of this section applies is made through an agent resident in the United Kingdom and that agent is entitled as against the owner of the copyright to deduct any sum by way of commission in respect of services rendered, the amount of the payment shall, for the purposes of section 53 of this Act, be taken to be the amount thereof as diminished by the sum which the agent is so entitled to deduct: Provided that, where the person by or through whom any such payment is made does not know that any such commission is payable or does not know the amount thereof, any income tax deducted by or assessed and charged on him shall be computed in the first instance on, and the account to be delivered of the payment shall be an account of, the total amount of the payment without regard being had to any diminution thereof, and in that case, on proof of the facts on a claim, there shall be made to the agent on behalf of the owner of the copyright such repayment of income tax as is proper in respect of the sum deducted by way of commission. 3 The time of the making of a payment to which subsection (1) of this section applies shall, for all tax purposes, be taken to be the time when it is made by the person by whom it is first made and not the time when it is made by or through any other person. 4 Any agreement for the making of any payment to which subsection (1) of this section applies in full and without deduction of income tax shall be void. Artists' receipts Relief for painters, sculptors and other artists 392 1 Where the artist obtains any sum for the sale of a painting, sculpture or other work of art, or by way of commission or fee for the creation of the work of art, and — a he was engaged on the making of the work of art for a period of more than twelve months, or b he was engaged for a period of more than twelve months in making a number of works of art for an exhibition, and the work is one of them, he may by making a claim require that effect shall be given to the following provisions of this section as respects that sum. 2 If the period for which he was engaged on the making of the work does not exceed twenty-four months, then, for all income tax purposes, one-half only of the amount of the payment shall be treated as having become receivable on the date on which it actually became receivable, and the remaining half shall be treated as having become receivable twelve months before that date. 3 If the period for which he was engaged on the making of the work exceeds twenty-four months, then, for all income tax purposes, one-third only of the amount of the payment shall be treated as having become receivable on the date on which it actually became receivable, and one-third shall be treated as having become receivable twelve months, and one-third twenty-four months, before that date. CHAPTER III Life Policies, Life Annuities and Capital Redemption Policies Introductory 393 1 This Chapter shall have effect for the purpose of imposing, in the manner and to the extent therein provided, charges to surtax and to tax under section 289 of this Act (shortfall in distributions of close company) in respect of gains to be treated in accordance with this Chapter as arising in connection with policies of life insurance, contracts for life annuities, and capital redemption policies. 2 Nothing in this Chapter shall apply — a to any policy of life insurance having as its sole object the provision on an individual's death or disability of a sum substantially the same as any amount then outstanding under a mortgage of his residence, or of any premises occupied by him for the purposes of a business, being a mortgage the principal amount secured by which is repayable by instalments payable annually or at shorter regular intervals, or b to any policy of life insurance issued in connection with a sponsored superannuation scheme as defined in section 226(11) of this Act if one-half at least of the cost of the scheme is borne by the person or persons under whom the relevant offices or employments are held. In the application of this subsection to Scotland, for the reference to a mortgage there shall be substituted a reference to a heritable security within the meaning of the Conveyancing (Scotland) Act 1924 (but including a security constituted by ex facie absolute disposition or assignation). 3 In this Chapter — " life annuity " means any annuity to which section 230 of this Act (purchased life annuities) applies, " capital redemption policy " means any insurance effected in the course of a capital redemption business as defined in section 324(3) of this Act, " assignment ", in relation to Scotland, means an assignation. 4 This Chapter shall have effect only as respects policies of life insurance issued in respect of insurances made after 19th March 1968, contracts for life annuities entered into after that date, and capital redemption policies effected after that date. 5 A policy of life insurance issued in respect of an insurance made on or before 19th March 1968 shall be treated for the purposes of subsection (4) above and the following provisions of this Chapter as issued in respect of one made after that date if it is varied after that date so as to increase the benefits secured or to extend the term of the insurance: Provided that a variation effected before the end of the year 1968 shall be disregarded for the purposes of this subsection if its only effect was to bring into conformity with paragraph 2 of Schedule 1 to this Act (qualifying conditions for endowment policies) a policy previously conforming therewith except as respects the amount guaranteed on death, and no increase was made in the premiums payable under the policy. Life policies: chargeable event 394 1 Subject to the provisions of this section, in this Chapter " chargeable event" means, in relation to a policy of life insurance — a unless it is a policy which falls within subsection (2) below, any of the following — i any death giving rise to benefits under the policy, ii the maturity of the policy, iii the surrender in whole or in part of the rights conferred by the policy, and iv the assignment for money or money's worth of those rights or of any share therein; and b if it is a policy falling within subsection (2) below, any of the above events, but — i in the case of death or maturity, only if the policy is converted into a paid-up policy before the expiry of ten years from the making of the insurance, or, if sooner, of three-quarters of the term for which the policy is to run if not ended by death or disability, ii in the case of a surrender or assignment, only if it is effected within that time, or the policy has been converted into a paid-up policy within that time. 2 A policy falls within this subsection if (whether or not the premiums thereunder are eligible for relief under section 19 of this Act) it is a qualifying policy within the meaning of Part I of Schedule 1 to this Act. 3 The maturity of a policy is not a chargeable event in relation thereto if a new policy is issued in consequence of the exercise of an option conferred by the maturing policy unless the person making the insurance in respect of which the new policy is issued was an infant when the former policy was issued, and the former policy was one securing a capital sum payable either on a specified date falling not later than one month after his attaining twenty-five or on the anniversary of the policy immediately following his attainment of that age. 4 No event is a chargeable event in relation to a policy if the rights conferred by the policy have at any time before the event been assigned for money or money's worth. 5 No account shall be taken for the purposes of this section of any assignment effected by way of security for a debt, or on the discharge of a debt secured by the rights or share concerned, or of any assignment between spouses living together; and references in subsection (1) above to the surrender of the rights conferred by a policy do not include references to the surrender of any right to a bonus. 6 Where subsection (1)(b) above applies to a policy which has been varied so as to increase the premiums payable thereunder, it shall so apply as if the references in subsection (1)(b)(i) to the making of the insurance and the term of the policy were references respectively to the taking effect of the variation and the term of the policy as from the variation. Life policies: computation of gain 395 1 On the happening of a chargeable event in relation to any policy of life insurance, there shall be treated as a gain arising in connection with the policy — a if the event is a death, the excess (if any) of the surrender value of the policy immediately before the death, plus the amount or value of any relevant capital payments, over the total amount previously paid under the policy by way of premiums ; b if the event is the maturity of the policy, or the surrender in whole or in part of the rights thereby conferred, the excess (if any) of the amount or value of the sum payable or other benefits arising by reason of the event, plus the amount or value of any relevant capital payments, over the total amount previously paid under the policy by way of premiums, or, in the case of a partial surrender, over the same proportion of that amount as is borne by the amount or value of the said sum or other benefits to the amount or value of the sum or other benefits which would have been payable, or would have arisen, if the rights had been wholly surrendered; c if the event is an assignment — i if it is an assignment of all the rights conferred by the policy, the excess (if any) of the amount or value of the consideration, plus the amount or value of any relevant capital payments, over the total amount previously paid under the policy by way of premiums, and ii if it is an assignment of a share only in those rights, the excess (if any) of the amount or value of the consideration, plus the amount or value of any relevant capital payments so far as attributable to the share assigned and received by the assignor or by any person at his direction, over the same proportion of the total amount previously paid under the policy by way of premiums as is borne by the amount or value of the consideration to the market value of the rights. 2 Where, in a case falling within subsection (1)(b) above, a right to periodical payments arises by reason of the event, there shall be treated as payable by reason thereof an amount equal to the capital value of those payments at the time the right arises. 3 Where, in a case falling within subsection (1)(c) above, the assignment is between persons who are connected with each other within the meaning of section 533 of this Act, the assignment shall be deemed to have been made for a consideration equal to the market value of the rights or share assigned. 4 In this section, " relevant capital payments " means, in relation to any policy, any sum or other benefit of a capital nature, other than one attributable to a person's disability, paid or conferred under the policy before the happening of the chargeable event, and any sum paid, or other benefit conferred, by reason of any surrender before that time of a right to a bonus under the policy; and references in this subsection and (in relation to premiums) in subsection (1) above to " the policy " include references to any related policy, that is to say, to any policy in relation to which the policy is a new policy within the meaning of paragraph 9 of Schedule 1 to this Act, any policy in relation to which that policy is such a policy, and so on. Life annuity contracts: chargeable event 396 1 Subject to subsections (2) and (3) below, in this Chapter " chargeable event" means, in relation to any contract for a life annuity, the surrender in whole or in part of the rights conferred by the contract, or the assignment for money or money's worth of those rights or of any share therein. Where the terms of a contract provide for the payment of a capital sum as an alternative, in whole or in part, to payments by way of annuity, the taking of the capital sum shall be treated for the purposes of this section and section 397 below as a surrender in whole or in part of the rights conferred by the contract. 2 An event referred to in subsection (1) above is not a chargeable event in relation to any contract if the rights conferred by the contract have at any time before the event been assigned for money or money's worth. 3 Subsection (5) of section 394 above shall, with any necessary modification, apply for the purposes of this section as it applies for the purposes of the said section 394. Life annuity contracts: computation of gain 397 1 On the happening of a chargeable event in relation to any contract for a life annuity, there shall be treated as a gain arising in connection with the contract — a if the event is the surrender in whole or in part of the rights conferred by the contract, the excess (if any) of the amount payable by reason of the event over — i the total amount previously paid under the contract, whether by way of premiums or as lump sum consideration, reduced, if before the happening of the event one or more payments have been made on account of the annuity, by the capital element in the said payment or payments, as determined in accordance with section 230 of this Act, or ii in the case of a partial surrender, the same proportion of that amount (as so reduced where appropriate) as is borne by the amount payable by reason of the event to the amount which would have been so payable if the rights had been wholly surrendered ; b if the event is the assignment for money or money's worth of the rights conferred by the contract, or of any share therein, the excess (if any) of the amount or value of the consideration over — i the amount specified in subsection (1)(a)(i) above, or ii if the assignment is of a share only, the same proportion of that amount (reduced as therein mentioned where appropriate) as is borne by the amount or value of the consideration to the market value of the rights. 2 Subsection (3) of section 395 above shall apply for the purposes of subsection (1) above as it applies for the purposes of subsection (1)(c) of that section. Capital redemption policies 398 1 Subject to subsection (2) below, in this Chapter "chargeable event" means, in relation to a capital redemption policy, any of the following — i the maturity of the policy, ii the surrender in whole or in part of the rights conferred by the policy, and iii the assignment for money or money's worth of those rights or of any share therein. 2 Subsection (5) of section 394 above shall apply for the purposes of this section as it applies for purposes of the said section 394. 3 The provisions of section 395 above, except subsection (3) thereof, shall, so far as appropriate and subject to subsection (4) below, apply to capital redemption policies as they apply to policies of life insurance. 4 Where a chargeable event happens in relation to a capital redemption policy which has previously been assigned for money or money's worth, the said section 395 shall have effect in relation thereto as if, for the references to the total amount previously paid under the policy by way of premiums, there were substituted references to the amount or value of the consideration given for the last such assignment, plus the total amount of the premiums paid under the policy since that assignment. Method of charging gain to tax 399 1 Where, under the preceding provisions of this Chapter, a gain is to be treated as arising in connection with any policy or contract — a if, immediately before the happening of the chargeable event in question, the rights conferred by the policy or contract were vested in an individual as beneficial owner, or were held on trusts created by an individual (including trusts arising under section 11 of the Married Women's Property Act 1882, section 2 of the Married Women's Policies of Assurance (Scotland) Act 1880, or section 4 of the Law Reform (Husband and Wife) Act (Northern Ireland) 1964) or as security for a debt owed by an individual, the amount of the gain shall be deemed for the purposes of surtax (but not for any other income tax purpose except the furnishing of information) to form part of that individual's total income for the year in which the event happened; b if, immediately before the happening of that event, the said rights were in the beneficial ownership of a close company, or were held on trusts created, or as security for a debt owed, by a close company, then — i for the purposes of section 289 of this Act (shortfall in distributions) the company's distributable income (but not its estate or trading income) for the accounting period in which the event happened shall be treated as increased by the amount of the gain, and ii the amount of the gain shall also be deemed to form part of the company's income for that period for the purposes of section 296 of this Act (surtax apportionments); c if, immediately before the happening of that event, the said rights were vested in personal representatives within the meaning of Part XV of this Act, the amount of the gain shall, as regards surtax, be deemed for the purposes of the said Part XV to be part of the aggregate income of the estate of the deceased: Provided that nothing in this subsection shall apply to any amount which is chargeable to tax apart from this subsection. 2 Where, immediately before the happening of a chargeable event, the rights conferred by any policy or contract were vested beneficially in two or more persons, or were held on trusts created, or as security for a debt owed, by two or more persons, paragraphs (a) and (b) of subsection (1) above shall have effect in relation to each of those persons as if he had been the sole owner, settlor or debtor, but with references to the amount of the gain construed as references to the part of it proportionate to his share in the rights at the time of the event or, as the case may require, when the trusts were created. 3 References in subsections (1) and (2) above to the rights conferred by a policy or contract are, in the case of an assignment of a share only in any rights, references to that share. Relief where gain charged directly to surtax 400 1 The following provisions of this section shall have effect for the purpose of giving relief, on a claim in that behalf being made by him to the Board, in respect of any increase in an individual's liability to tax which is attributable to one or more amounts being included in his total income for a year of assessment by virtue of section 399(1)(a) above. 2 Where one amount only is so included, there shall be computed — a the surtax which would be chargeable in respect of the amount if relief under this section were not available and it constituted the highest part of the claimant's total income for the year, and b the surtax (if any) which would be chargeable in respect of the amount if calculated, in accordance with subsection (3) below, by reference to its appropriate fraction, and the relief shall consist of a reduction or repayment of tax equal to the difference between the two amounts of surtax so computed, or, if surtax would not be chargeable on a calculation by reference to the appropriate fraction, of a reduction or repayment of the tax equal to the surtax computed under paragraph (a) above. 3 In subsection (2) above " appropriate fraction " means, in relation to any amount, such a sum as bears thereto the same proportion as that borne by one to the number of complete years for which the policy or contract has run before the happening of the chargeable event; and the computation required by paragraph (b) of that subsection shall be made by applying to the amount in question the rate or rates of surtax (if more than one, in corresponding proportions) which would apply if it were reduced to that fraction, treating it, as so reduced, as still constituting the highest part of the claimant's total income for the year, and treating so much of it (if any) as would then not be chargeable to surtax as if it were chargeable thereto at a nil rate. For the purposes of this subsection, the number of years for which a policy of life insurance has run before the happening of a chargeable event shall be calculated, where appropriate, from the issue of the earliest related policy, meaning, any policy in relation to which the policy is a new policy within the meaning of paragraph 9 of Schedule 1 to this Act, any policy in relation to which that policy is such a policy, and so on. 4 Where by virtue of the said section 399(1)(a) two or more amounts are included in an individual's total income for any year of assessment, subsections (2) and (3) above shall apply as if they together constituted a single amount, but with the appropriate fraction of the whole determined by adding together the appropriate fractions of the individual amounts. 5 A provision of this section requiring surtax to be calculated as if an amount constituted the highest part of a claimant's total income shall apply notwithstanding any provision of the Income Tax Acts directing any other amount to be treated as the highest part thereof, but, for the purposes of this section, a claimant's total income shall be deemed not to include any amount in respect of which he is chargeable to tax under sections 80, 81 or 82 of this Act (premiums, etc. treated as rent) or section 187 of this Act (payments on retirement or removal from office or employment). Right of individual to recover tax from trustees 401 1 Where an amount is included in an individual's income by virtue of section 399(1)(a) above, and the rights or share in question were held immediately before the happening of the chargeable event on trust, the individual shall be entitled to recover from the trustees, to the extent of any sums, or to the value of any benefits, received by them by reason of the event, an amount equal to that (if any) by which the tax with which he is chargeable for the year of assessment in question, reduced by the amount of any relief available under section 400 above in respect of the amount so included, exceeds the tax with which he would have been chargeable for the year if the said amount had not been so included. 2 Where, for the purposes of relief under the said section 400, two or more amounts are to be treated as one, the reduction required by subsection (1) above on account of the relief available in respect of any of them shall consist of a proportionate part of the relief available in respect of their aggregate. 3 An individual may require the Board to certify any amount recoverable by him by virtue of this section, and the certificate shall be conclusive evidence of the amount. Information: duty of insurers 402 1 Subject to subsection (2) below, where a chargeable event within the meaning of this Chapter has happened in relation to any policy or contract, the body by or with whom the policy or contract was issued, entered into or effected shall, within three months of the event or, if it is a death or an assignment, within three months of their receiving written notification thereof, deliver to the inspector a certificate specifying — a the name and address of the policy holder, b the nature of the event, and the date on which it happened, c as may be required for computing the gain to be treated as arising by virtue of this Chapter — i the surrender value of the policy, or the sum payable, or other benefits to be conferred, by the body in question by reason of the event, ii the amount or value of any relevant capital payments, iii the amounts previously paid under the policy or contract by way of premiums, or otherwise by way of consideration for an annuity, and iv the capital element in any payment previously made on account of an annuity, and d the number of years relevant for computing the appropriate fraction of the gain for the purposes of section 400(3) above. 2 Subsection (1) above shall not apply where — a the body in question are satisfied that no gain is to be treated as arising by reason of the event, or b the amount of the surrender value or sum, or the value of the other benefits, referred to in paragraph (c)(i) of that subsection, together with the amount or value of any payments within paragraph (c)(ii) thereof, does not exceed £500, but the inspector may by notice in writing require a like certificate in any such case, and it shall be the duty of the body to deliver the certificate within thirty days of receipt of the notice. CHAPTER IV Insurance: Borrowing to pay Premiums and Borrowing against Life Policies Interest on loans used for payment of premiums, etc.: disallowance as deduction for surtax 403 1 Subject to the exceptions contained in section 404 below, in computing for the purposes of surtax the total income for any year of assessment of an individual who has entered into a contract of assurance, no deduction shall be allowed in respect of any interest on any borrowed money which has been applied directly or indirectly to or towards the payment of any premium under that contract, or of any sum paid in lieu of any such premium. 2 Where the benefit of a contract of assurance entered into by any person has become vested in another person, being an individual, subsection (1) above shall apply in relation to that individual — a as if the contract had been a contract entered into by him, and b in a case where the benefit of the contract became vested in him by virtue of an assignment and any payment was made by him in consideration of the assignment, as if that payment were the payment of a premium under the contract, and c in a case where, either as being the person in whom the said benefit is vested, or by reason of any agreement under or in pursuance of which the said benefit became vested in him, he pays any interest on any borrowed money, as if that money had been applied to the payment of a premium under 'the contract. 3 The provisions of section 22 of the Taxes Management Act 1970 with regard to the delivery of particulars as to deductions claimed to be allowed shall be extended so as to enable the Board to require such particulars with respect to deductions and otherwise as they may consider necessary for the purpose of carrying this section and section 404 below into effect. 4 In this section and the said section 404 — a " contract of assurance " means a contract of assurance or a contract similar in character to a contract of assurance, being in either case a contract under which a capital sum is expressed to be payable in the future in return for one or more antecedent payments, and " premium" means any such antecedent payment, b " interest" includes any sum payable in respect of any borrowed money, c any reference to borrowed money applied to or towards any payment shall be deemed to include a reference to borrowed money applied directly or indirectly to or towards the replacement of any money so applied, and d any reference to a capital sum payable on death under a contract of assurance shall be construed as a reference to the actual capital sum assured on death, exclusive of any addition which has arisen or may arise from any bonus, share of profits, return of premiums or otherwise, and, in the case of a contract under which different capital sums are payable on death in different events, as a reference to the least of those sums. Exceptions from disallowance for surtax 404 1 Subject to the provisions of this section, section 403 above shall not, where the interest is payable at a rate not exceeding 10 per cent. per annum, apply to — a interest on money borrowed mainly on the security of property other than a contract of assurance, if the premium in question either — i is payable under a contract of assurance entered into in order to provide against the failure of a contingent interest in any property, and to serve as additional security for the loan and for no other purpose, or ii is the first of a series of premiums payable under a contract of assurance entered into solely in order to provide for the repayment of the money borrowed and does not exceed 10 per cent. of the sum assured under that contract, or b interest on borrowed money applied to or towards the payment of premiums under a contract of assurance which assures throughout the term of the contract a capital sum payable on death, if — i neither the amount of the first premium under the contract, nor the amount subsequently payable by way of premiums thereunder in respect of any period of twelve months, exceeds one-eighth of the capital sum payable on death, and ii it is shown to the satisfaction of the Board that it is exceptional for the individual in question to apply borrowed money to or towards the payment of premiums to which this paragraph applies, and that no such money has been so applied by him in any of the three years of assessment immediately preceding that in which he so applies the money on which the interest in question is payable, or c interest on borrowed money applied to or towards the payment of premiums which — i are not premiums such as those specified in paragraph (a), (d) or (e) of this subsection, and ii are either premiums payable under a policy of life insurance which is a qualifying policy within the meaning of Part I of Schedule 1 to this Act or premiums each of which is one of a series of equal premiums payable at equal intervals of not more than one year, except so far as such interest exceeds in the year of assessment £100 in all, or d interest on borrowed money applied to or towards the payment of any premium under a contract of assurance entered into before 15th April 1930 which assures a fixed capital sum payable either — i on death only, or ii on the expiry of a period of not less than ten years from the date of the commencement of the contract or on earlier death, or e interest on money borrowed before 6th. April 1929, unless — i the money was borrowed from an insurance company, and ii the repayment thereof was secured on a contract of assurance, and iii the premium in question was a premium under that contract. 2 In relation to — a interest on borrowed money applied to or towards the payment of premiums under any policy of life insurance falling within paragraph (a) or (b) of section 393(2) of this Act (mortgage repayments and sponsored superannuation schemes), and b interest on money borrowed on or before 19th March 1968, subsection (1) above shall have effect with the omission of paragraph (b)(ii) and paragraph (c), but subsection (3) below shall apply. 3 Section 403 above shall not apply to interest — a which is payable at a rate not exceeding 10 per cent. per annum, and b which is within subsection (2) (a) or (b) above, and c which is interest on borrowed money applied to or towards the payment of premiums which — i are not premiums such as those specified in paragraph (a), (b), (d) or (e) of subsection (1) above, and ii are premiums each of which is one of a series of equal premiums payable at equal intervals of not more than one year, except so far as such interest exceeds in the year of assessment £100 in all. Borrowings against life policies to be treated as income in certain cases 405 1 Where — a under any contract or arrangements made on or after 7th April 1949, provision is made for the making to any person, at intervals until the happening of an event or contingency dependent on human life, of payments by way of loan ; and b under the contract or arrangements, the loans are secured upon a policy of life assurance which assures moneys payable on the happening of such an event or contingency and need not be repaid until the policy moneys become payable ; and c the amount of the moneys payable on the happening of the event or contingency is made by the policy to increase by reference to the length of a period ending on the happening thereof, the payments by way of loan shall be treated for tax purposes as annual payments falling within Case III of Schedule D, or, if they are made to a person residing in the United Kingdom and the contract or arrangements were made outside the United Kingdom, as income from a possession out of the United Kingdom and, for income tax, as falling within section 122(1) of this Act. 2 The amount of the moneys payable under a policy of life assurance shall not be deemed for the purposes of this section to be made to increase by reference to the length of a period ending on the happening of an event or contingency dependent on human life by reason only that those moneys are to increase from time to time if profits are made by the persons liable under the policy. 3 This section shall not apply to any payments by way of loan if the Board are satisfied as respects those payments that it is not one of the objects of the contract or arrangements under which the payments are made that the recipient thereof, should enjoy the advantages which would, apart from any question of liability to tax, be enjoyed by a person in receipt of payments of the same amounts paid at the same times by way of annuity. CHAPTER V Schemes for Rationalizing Industry Deduction from profits of contributions paid under certified schemes 406 1 Notwithstanding anything contained in section 130 of this Act (general rules as to deductions not allowable), but subject to the following provisions of this Chapter, where a person pays, wholly and exclusively for the purposes of a trade in respect of which he is chargeable under Case I of Schedule D, a contribution in furtherance of a scheme which is for the time being certified by the Board of Trade under this section, the contribution shall, in so far as it is paid in furtherance of the primary object of the scheme, be allowed to be deducted as an expense in computing the profits or gains of the said trade. 2 The Board of Trade shall certify a scheme under this section if they are satisfied — a that the primary object of the scheme is the elimination of redundant works or machinery or plant from use in an industry in the United Kingdom; and b that the scheme is in the national interest and in the interest of the said industry as a whole; and c that such number of persons engaged in the said industry as are substantially representative of the industry are liable to pay contributions in furtherance of the primary object of the scheme by agreement between them and the body of persons carrying out the scheme. References in this subsection to an industry in the United Kingdom shall include references to the business carried on by owners of ships or of a particular class of ships, wherever that business is carried on, and, in relation to that business, references in this subsection to works or machinery or plant shall include references to ships. 3 The Board of Trade shall cancel any certificate granted under this section if they cease to be satisfied as to any of the matters referred to in subsection (2) of this section. 4 The Board of Trade may at any time require the body of persons carrying out a scheme certified under this section to produce any books or documents of whatever nature relating to the scheme and, if the requirement is not complied with, the Board of Trade may cancel the certificate. 5 In this section and section 407 below, "contribution ", in relation to a scheme, does not include a sum paid by a person by way of loan or subscription of share capital, or in consideration of the transfer of assets to him, or by way of a penalty for contravening or failing to comply with the scheme. Repayment of contributions 407 1 In the event of the repayment, whether directly or by way of distribution of assets on a winding up or otherwise, of a contribution or any part thereof which has been allowed to be deducted under section 406 above, the deduction of the contribution, or of so much thereof as has been repaid, shall be deemed to be an unauthorised deduction in respect of which an assessment shall be made, and, notwithstanding the provisions of the Tax Acts requiring assessments to be made within six years after the end of the chargeable period to which they relate, any such assessment and, in the case of an income tax assessment any consequential assessment to surtax, may be made at any time within three years after the end of the chargeable period in which the repayment was made. 2 For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on. Payments under certified schemes which are not repayments of contributions 408 1 Subject to the provisions of this section, where under any scheme which is for the time being certified or has at any time been certified by the Board of Trade under section 406 above, any payment (not being a payment made by way of repayment of contributions) is made to a person carrying on a trade to which the scheme relates, that payment shall be treated for the purposes of the Tax Acts as a trading receipt of the trade, and shall accordingly be taken into account in computing the profits or gains of the trade for those purposes. 2 Where on a claim it is shown in accordance with the provisions of Part II of Schedule 11 to this Act that the payments which have been made under such a scheme in respect of a trade (not being payments made by way of repayment of contributions) have been made wholly or partly in respect of damage in respect of which no relief may be given under the Tax Acts, then, subject to and in accordance with the provisions of that Schedule, relief shall be given in respect of those payments by reducing the amounts which are to be treated as trading receipts of the trade under subsection (1) of this section, but, where such relief is given, the said section 406 shall, in relation to contributions subsequently paid under the scheme in respect of the trade, have effect subject to the modifications specified in Part III of that Schedule. 3 The provisions of this section and of the said Schedule shall apply in relation to any payment made to a person who has ceased to carry on a trade to which any such scheme as aforesaid relates as they apply in relation to payments made to a person carrying on such a trade, subject to the modification that so much of that payment as falls to be treated as a trading receipt by virtue of the said provisions shall be deemed for the purposes of those provisions to have been made to him on the last day on which he was engaged in carrying on the trade. 4 In determining, for the purposes of this section and of the said Schedule — a whether any trade has ceased to be carried on ; or b whether any contribution is paid in respect of a trade in respect of which a payment has been made ; or c whether any payment is made in respect of a trade in respect of which a contribution has been paid, no regard shall be had to any event which, by virtue of any of the provisions of section 154 (income tax consequences of change in ownership of trade) or section 251(1) (corporation tax rules for commencement or discontinuance of trade) of this Act, is to be treated as effecting a discontinuance of a trade. Cancellation of certificates of Board of Trade 409 1 Where any certificate granted with respect to a scheme under section 406 of this Act is cancelled by the Board of Trade, and any deductible contributions paid in furtherance of the scheme have not been repaid at the expiration of one year from the cancellation, the body of persons carrying out the scheme shall, for the chargeable period in which the said year expires, be charged to tax under Case VI of Schedule D upon the aggregate amount of the deductible contributions which have not been repaid at that time: Provided that the charge shall not be made if the total amount of any contributions, other than deductible contributions, which have been paid under the scheme and have not been repaid before that time is greater than the available resources of the scheme, and shall not in any case be made upon an amount greater than the excess, if any, of those resources over that total amount. In this subsection, " the available resources ", in relation to any scheme, means a sum representing the total funds held for the purposes of the scheme at the expiration of one year from the cancellation of the certificate plus a sum representing any funds held for the purposes of the scheme which, during that year, have been applied otherwise than in accordance with the provisions of the scheme as in force when the certificate was granted. 2 Where the body of persons carrying out a scheme are charged to tax by virtue of subsection (1) of this section, and, after the expiration of the said year, any deductible contribution paid in furtherance of the scheme is repaid, the amount upon which the charge is made shall on the making of a claim be reduced by the amount repaid, and all such repayments of tax shall be made as are necessary to give effect to the provisions of this subsection. 3 In this section, "contribution " includes a part of a contribution, and " deductible contribution " means a contribution allowed to be deducted under section 406 above, any reduction thereof under Part III of Schedule 11 to this Act being left out of account. 4 For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on. Application to statutory redundancy schemes 410 1 Sections 407, 408 and 409 above, and Schedule 11 to this Act, shall, subject to the adaptations specified in sub-section (2) of this section, apply in relation to a statutory redundancy scheme as they apply in relation to a scheme certified under section 406 above. 2 The said adaptations are as follows, that is to say — a for any reference to a contribution allowed to be deducted under the said section 406 there shall be substituted a reference to a contribution allowed to be deducted under any provision of the Tax Acts other than the said section 406; and b any provision that the said section 406 shall, in relation to contributions, have effect subject to modifications, shall be construed as a provision that so much of any provision of the Tax Acts other than the said section 406 as authorises the deduction of contributions shall, in relation to the contributions in question, have effect subject to the modifications in question; and c for any reference to the cancellation of a certificate with respect to a scheme there shall be substituted a reference to the scheme ceasing to have effect; and d for any reference to the provisions of the scheme as in force when the certificate was granted there shall be substituted a reference to the provisions of the scheme as in force when contributions were first paid thereunder. 3 In this section, "statutory redundancy scheme " means a scheme for the elimination or reduction of redundant works, machinery or plant, or for other similar purposes, to which effect is given by or under any Act, whether passed before or after this Act. CHAPTER VI Other Provisions Business entertaining expenses 411 1 Subject to the provisions of this section — a no deduction shall be made in computing profits or gains chargeable to tax under Schedule A or Schedule D for any expenses incurred in providing business entertainment, and such expenses shall not be included in computing any expenses of management in respect of which relief may be given under the Tax Acts; b no deduction for expenses so incurred shall be made from emoluments chargeable to tax under Schedule E ; and c for the purposes of Chapter II of Part I of the Capital Allowances Act 1968 (capital allowances for machinery and plant) the use of any asset for providing business entertainment shall be treated as use otherwise than for the purposes of a trade. 2 Subsection (1) of this section shall not apply to expenses incurred in, or the use of an asset for, the provision by a person carrying on a trade in the United Kingdom (in this section referred to as a " United Kingdom trader "), or by a member of his staff, of entertainment for an overseas customer of that person, being entertainment of a kind and on a scale which is reasonable having regard to all the circumstances. 3 The expenses to which paragraph (a) of subsection (1) of this section applies include, in the case of any person, any sums paid by him to, or on behalf of, or placed by him at the disposal of, a member of his staff exclusively for the purpose of defraying expenses incurred or to be incurred by him in providing business entertainment, but where — a any such sum falls to be included in his emoluments chargeable to tax under Schedule E; and b the deduction or inclusion of that sum as mentioned in that paragraph falls to be disallowed in whole or in part by virtue of this section ; paragraph (b) of that subsection shall not preclude the deduction of any expenses defrayed out of that sum. 4 Where by virtue of subsection (2) of this section a person claims to deduct or include any expenses as mentioned in paragraph (a) or (b) of subsection (1) of this section or claims any allowance under the provisions mentioned in paragraph (c) of that subsection he shall, if the inspector so requires, furnish particulars of the entertainment in question and of the person for whom it was provided. 5 For the purposes of this section " business entertainment " means entertainment (including hospitality of any kind) provided by a person, or by a member of his staff, in connection with a trade carried on by that person, but does not include anything provided by him for bona fide members of his staff unless its provision for them is incidental to its provision also for others. 6 For the purposes of this section " overseas customer" means, in relation to any United Kingdom trader — a any person who is not ordinarily resident nor carrying on a trade in the United Kingdom and avails himself, or may be expected to avail himself, in the course of a trade carried on by him outside the United Kingdom, of any goods, services or facilities which it is the trade of the United Kingdom trader to provide; and b any person who is not ordinarily resident in the United Kingdom and is acting, in relation to such goods, services or facilities, on behalf of an overseas customer within paragraph (a) of this subsection or on behalf of any government or public authority of a country outside the United Kingdom. 7 In this section any reference to expenses incurred in, or to the use of an asset for, providing entertainment includes a reference to expenses incurred in, or to the use of an asset for, providing anything incidental thereto; references to a trade include references to any business, profession or vocation; and references to the members of a person's staff are references to persons employed by that person, directors of a company or persons engaged in the management thereof being for this purpose deemed to be persons employed by it. 8 This section shall apply in relation to the provision of a gift as it applies in relation to the provision of entertainment, except that it shall not by virtue of this subsection apply in relation to the provision for any person of a gift consisting of an article incorporating a conspicuous advertisement for the donor, being an article — a which is not food, drink, tobacco or a token or voucher exchangeable for goods ; and b the cost of which to the donor, taken together with the cost to him of any other such articles given by him to that person in the same year, does not exceed £1. 9 Nothing in this section shall be taken as precluding the deduction of expenses incurred in, or any claim for capital allowances in respect of the use of an asset for, the provision by any person of anything which it is his trade to provide, and which is provided by him in the ordinary course of that trade for payment or, with the object of advertising to the public generally, gratuitously. Statutory redundancy payments 412 1 Any redundancy payment, and the corresponding amount of any other employer's payment, shall be exempt from income tax under Schedule E. 2 Where a redundancy payment or other employer's payment is made in respect of employment wholly in a trade, profession or vocation carried on by the employer, and within the charge to tax, the amount of the redundancy payment or the corresponding amount of the other employer's payment shall (if not otherwise so allowable) be allowable as a deduction in computing for the purposes of Schedule D the profits or gains or losses of the trade, profession or vocation, but if it is so allowed by virtue of this section the amount of the rebate recoverable shall (if it is not otherwise to be so treated) be treated as a receipt to be brought into account in computing those profits or gains; and if the employer's payment was made after the discontinuance of the trade, profession or vocation the net amount so deductible shall be treated as if it were a payment made on the last day on which the trade, profession or vocation was carried on. 3 Where a redundancy payment or other employer's payment is made in respect of employment wholly in a business carried on by the employer, and expenses of management of the business are eligible for relief under section 304 or section 305 of this Act the amount by which the redundancy payment, or the corresponding amount of the other employer's payment, exceeds the recoverable rebate shall (if not otherwise so allowable) be allowable as expenses of management eligible for relief under that section; and if the employer's payment was made after the discontinuance of the business the net amount so allowable shall be treated as if it were expenses of management incurred on the last day on which the business was carried on. 4 Where a redundancy payment or other employer's payment is made in respect of employment wholly in maintaining or managing property the expenses of maintaining or managing which were eligible for relief under the provisions of section 72(1) or section 74 of this Act (allowable deductions for tax under Schedule A), the amount by which the redundancy payment or the corresponding amount of the other employer's payment exceeds the recoverable rebate shall (if not otherwise allowable under those provisions) be treated for the purposes of the said provisions as a payment made by the employer in respect of the maintenance or management of the property, or of such part of it as he may elect; and if the employer's payment was made after the latest time when it could be taken into account for the purposes of relief under the said provisions as a payment in respect of the maintenance or management of the property or any part of it, it shall be treated as having been made at that time. 5 Relief shall not be given under subsections (2), (3) and (4) above, or otherwise, more than once in respect of any employer's payment, and if the employee was being employed by the employer in such a way that different parts of the employee's remuneration fell for tax purposes to be treated in different ways, the amount by which the redundancy payment, or the corresponding amount of the other employer's payment, exceeds the recoverable rebate shall be apportioned to the different capacities in which the employee was employed, and subsections (2), (3) and (4) above shall apply separately to the employment in those capacities, and by reference to the apportioned part of the said amount, instead of by reference to the full amount of the employer's payment, and the full amount of the rebate. 6 Where the Minister pays a sum under section 32 of the Redundancy Payments Act 1965 or section 42 of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965 in respect of an employer's payment this section shall apply as if that sum had been paid on account of that redundancy or other employer's payment and, so far as the employer has reimbursed the Minister, as if it had been so paid by the employer. 7 In this section " redundancy payment", " employer's payment" and " rebate " have the same meaning as in Part II of the Redundancy Payments Act 1965 or Part III of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965, and — a references to the corresponding amount of an employer's payment (other than a redundancy payment) are references to the amount of that employer's payment so far as not in excess of the amount of the relevant redundancy payment (and so that where in consequence of section 30(2) of the Redundancy Payments Act 1965 or section 40(2) of the said Act of Northern Ireland, there is no relevant redundancy payment, the corresponding amount of the employer's payment is nil), b " relevant redundancy payment" shall be construed in accordance with paragraph 8 of Schedule 5 to the Redundancy Payments Act 1965 or paragraph 8 of Schedule 6 to the said Act of Northern Ireland, c in subsection (6) above " the Minister ", in relation to the Redundancy Payments Act 1965, means the Secretary of State and, in relation to the said Act of Northern Ireland, means the Ministry of Health and Social Services, and a source of income is " within the charge to tax " if tax is chargeable on the income arising from it, or would be so chargeable if there were any such income. 8 In subsection (1) above the reference to tax under Schedule E does not include a reference to tax under section 187 of this Act (payments on retirement or removal from office or employment) and accordingly payments exempted by subsection (1) above may be taken into account under that section. Funds in court 413 1 If any common investment fund established under section 1 of the Administration of Justice Act 1965 is for the time being designated for the purposes of this subsection by an agreement between the Board and the Public Trustee — a the Public Trustee shall be entitled to exemption from income tax in respect of so much of the income derived from that fund or any investment thereof as is paid by him by way of dividend on the shares into which the fund is divided ; and b dividends on those shares shall be paid without deduction of income tax and shall be chargeable under Case III of Schedule D. 2 A claim for exemption under subsection (1)(a) above shall be made to the Board. 3 Where at any time, by virtue of subsection (1) of this section, the income of a person from any source becomes chargeable to income tax as therein provided, not having previously been chargeable by direct assessment on that person, section 120(3) of this Act shall apply as if the source of that income were a new source of income acquired by that person at that time. 4 The Accountant General shall as respects each year of assessment furnish to the Board, at such time and in such manner as they may direct, particulars of any sums paid without deduction of tax by virtue of subsection (1) of this section and of the persons to whom such sums were paid, except that particulars shall not be required of any case where the total of such sums paid to any person in that year did not exceed £15. 5 An agreement designating a fund for the purposes of subsection (1) of this section may provide for incidental and consequential matters, including arrangements for giving effect to subsection (1)(a) of this section by provisional repayments of tax deducted at source, and may be determined by the Board or the Public Trustee by one year's notice in writing expiring with the end of any year of assessment. 6 The reference in this section to the Accountant General is a reference to the Accountant General of the Supreme Court of Judicature in England and, in relation to any such moneys as are mentioned in section 30 of the Administration of Justice Act 1965 (which relates to Northern Ireland), or money in a county court in Northern Ireland, and in relation to investments representing such moneys, includes a reference to the Accountant General of the Supreme Court of Judicature of Northern Ireland or any other person by whom such funds are held. Relief from income tax on certain savings bank interest 414 1 Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums paid or credited in respect of interest on — a deposits with the National Savings Bank, other than investment deposits, b ordinary deposits with a trustee savings bank, or c deposits with a seamen's savings bank, those sums shall be disregarded for all the purposes of the Income Tax Acts, other than surtax or the furnishing of information, if or in so far as they do not exceed £15 ; and for this purpose the question whether or how far those sums exceed £15 shall, where by virtue of section 37 of this Act, a woman's income is deemed to be her husband's, be determined separately as regards the part of his income which is his by virtue of that section and the part which is his apart from that section. 2 Where by virtue of subsection (1) above the total income of an individual for any year of assessment is treated as reduced by any amount for the purposes of income tax chargeable at the standard rate, it shall for the purposes of surtax be treated as having in the first place been reduced by a like amount but having thereafter been increased by such amount as would after deduction of income tax at the standard rate for that year be equal to the amount of the reduction. 3 Where, on the application in that behalf of any savings bank maintained under a local Act, the Treasury are satisfied, having regard to the rules to be adopted by the bank, the conditions subject to which deposits are to be accepted by it or any department to be formed by it, and such other matters as the Treasury may require to be proposed in the application, that the deposits will, if the application is granted, sufficiently correspond with savings account deposits in a trustee savings bank to justify a certificate under this section, the Treasury may certify the bank or department for the purposes of this section, and, while the certificate is in force — a the interest payable on the deposits shall not exceed the rate of 2 ½ per cent. per annum, but the interest shall be treated for the purposes of this section as if it were such interest as is mentioned in subsection (1) above, and b the deposits shall be invested with the National Debt Commissioners, and c the provisions of the Trustee Savings Banks Act 1969 specified below shall apply in relation to the bank or department as they apply in relation to trustee savings banks, but subject to such modifications as the Treasury may by order provide, including, if the order so provides, a reduction of the rate which the Treasury may by order under section 34(2) of the said Act of 1969 fix as the rate of interest on receipts for the bank's or department's payments into the Fund for the Banks for Savings. The provisions of the Trustee Savings Banks Act mentioned in paragraph (c) above are sections 32, 33(1) and (2), 34 (except subsections (3) and (5)), 35 to 37 and 39 to 42. 4 The Treasury may by order under subsection (3) above make for any bank or department for the time being certified under that subsection provision as to the manner in which sums standing to the credit of the bank or department in the books of the National Debt Commissioners may be withdrawn, the manner in which payments may be made on any such withdrawal and the manner in which a valid discharge is to be given to the Commissioners for any such payment. 5 Ah order under subsection (3) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament, and may be varied or revoked by a subsequent order. 6 If the Treasury at any time cease to be satisfied that a certificate under subsection (3) above is justified they may revoke the certificate and give such directions as they think fit for the withdrawal by the bank or department of any money standing to its credit in the books of the National Debt Commissioners. 7 In this section — " investment deposit ", in relation to the National Savings Bank, has the meaning given by section 1(2) of the Post Office Savings Bank Act 1966, " trustee savings bank ", " ordinary deposit " and " savings account deposit" have the same meanings as in the Trustee Savings Banks Act 1969, " seamen's savings bank " means a bank maintained under section 148 of the Merchant Shipping Act 1894. Contractual savings schemes: income tax and capital gains tax 415 1 Any terminal bonus, or interest or other sum, payable under a certified contractual savings scheme — a in respect of money raised under section 12 of the National Loans Act 1968, or b in respect of shares in a building society, shall be disregarded for all purposes of the Income Tax Acts and of the enactments relating to capital gains tax. 2 In this section " certified contractual savings scheme" means, except in relation to a building society, a scheme — a governed by regulations made under section 12 of the National Debt Act 1958 or section 52 of the Finance Act 1969, and b providing for periodical contributions by individuals for a specified period, and the repayment in accordance with the regulations of contributions together with any additional sum by way of bonus or interest, and c certified by the Treasury as qualifying for exemption under this section. 3 In this section "certified contractual savings scheme" means, in relation to a building society, a scheme — a providing for periodical contributions by individuals for a specified period, being contributions by way of investment in shares in the building society, and b certified by the Treasury as corresponding to a scheme certified under subsection (2) above, and as qualifying for exemption under this section. 4 Nothing in this section shall be taken as affecting section 343 (2) (a) of this Act (allowance of dividends on building society's shares in computing the society's profits for corporation tax), and that paragraph shall apply to any terminal bonus paid by the society under a certified contractual savings scheme as if it were a dividend on a share in the society. 5 In this section "building society" means a building society within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967. Local authority borrowing in foreign currency 416 1 If the Treasury direct that this section shall apply to any securities issued by a local authority and expressed in the currency of a country which at the time of the issue is outside the scheduled territories, interest on those securities — a shall be paid without deduction of income tax, and b so long as the beneficial owner is not resident in the United Kingdom, shall be exempt from income tax (but not from corporation tax). 2 Where for repayment of the principal amount due under the securities there is an option between one or more currencies within subsection (1) above and one or more other currencies, that subsection shall be applicable to the securities if the option is exercisable only by the holder of the securities, and shall not be applicable to the securities in any other case. 3 Where any income of any person is by virtue of any provision of the Income Tax Acts to be deemed to be income of any other person, that income shall not be exempt from tax by virtue of this section by reason of the first-mentioned person not being resident in the United Kingdom. 4 In this section "the scheduled territories" means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force. Funding bonds issued in respect of interest on certain debts 417 1 Where any funding bonds are issued to a creditor in respect of any liability to pay interest on any debt to which this section applies — a the issue of the bonds shall be treated for all the purposes of the Tax Acts as if it were the payment of an amount of that interest equal to the value of the bonds at the time of their issue, and b the redemption of the bonds shall not be treated for those purposes as the payment of any amount of that interest. 2 Where an issue of bonds is treated by virtue of subsection (1) above as if it were the payment of an amount of interest, and any person by or through whom the bonds are issued would be required by virtue of any provision of the Tax Acts to deduct income tax from that amount of interest if it had been actually paid by or through him, the following provisions shall have effect — a subject to paragraph (b) below, any such person — i shall retain bonds the value of which at the time of their issue is equal to income tax on the said amount of interest at the standard rate for the year of assessment in which the bonds are issued, and ii shall be acquitted in respect of any such retention in the same way as if he had deducted such tax from the interest, and iii shall be chargeable with the said tax accordingly, but may tender the bonds so retained in satisfaction thereof; b where the Board are satisfied that it is impracticable to retain bonds on account of income tax under paragraph (a) above — i they may relieve any such person from the obligation to retain bonds and account for income tax under that paragraph, on his furnishing to them a statement of the names and addresses of the persons to whom the bonds have been issued and the amount of the bonds issued to each such person, and ii tax in respect of the amount of interest treated by virtue of this section as having been paid by the issue of the bonds shall be charged under Case VI of Schedule D for the chargeable period in which the bonds are issued on the persons receiving or entitled to the bonds. 3 This section applies to any debt incurred, whether in respect of any money borrowed or otherwise, by any government, public authority or public institution whatsoever, or by any body corporate whatsoever. 4 For the purposes of this section " funding bonds " includes any bonds, stocks, shares, securities or certificates of indebtedness. Unremittable overseas income Relief for unremittable income 418 1 Where a person is chargeable to tax by reference to the amount of any income arising in a territory outside the United Kingdom (hereafter in this section referred to as " overseas income"), then for the purposes of tax this section shall apply to the overseas income in so far as — a he is prevented from transferring the amount of the overseas income to the United Kingdom, either by the laws of that territory or any executive action of its Government or by the impossibility of obtaining foreign currency in that territory ; and b he has not realised the overseas income outside that territory for a consideration in sterling or a consideration in some other currency which he is not prevented from transferring to the United Kingdom. Overseas income to which this section applies is hereafter in this section referred to as unremittable. 2 Where a person chargeable as aforesaid gives written notice of his desire to be assessed in accordance with this subsection, then, in the first instance, account shall not be taken of the overseas income to the extent to which he shows to the satisfaction of the Board that the following conditions are satisfied with respect to it, that is to say — a that it is unremittable ; and b that subsection (1)(a) above would continue to apply notwithstanding any reasonable endeavours on his part, and tax shall be assessed and charged on all persons concerned and for all periods accordingly; but, on the Board ceasing, as respects any part of the income, to be satisfied that the said conditions are satisfied, such assessments, reductions of assessments and repayments of tax shall be made as may be necessary to take account of it, and of any tax payable in respect of it under the law of the territory where it arises, according to their value at the date when, in the opinion of the Board, the said conditions cease to be satisfied with respect to it, and may be so made at any time not later than six years after that date. 3 Any notice under subsection (2) above shall be delivered to the inspector before an assessment made by reference to that income otherwise than in accordance with that subsection has become final and conclusive; and there shall be made all such assessments, reductions of assessments or repayments of tax as may be required by reason of any such notice. 4 In the case of the death of a person who, if he had not died, would, under subsection (2) above, have become chargeable to any income tax, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators, and shall be a debt due from and payable out of his estate. 5 Subject to subsection (2) above, the amount of any unremittable overseas income shall be determined by reference to the generally recognised market value in the United Kingdom (if any) or, in the absence of any such value, according to the official rate of exchange of the territory where the income arises. 6 Any appeal against an assessment which involves a question as to the operation of this section shall be made to the Special Commissioners, and not to the General Commissioners. 7 In this section " overseas income " shall include any gains chargeable under Case VII of Schedule D which arise in a territory outside the United Kingdom, but so long as gains so arising in any year of assessment are treated as unremittable, losses arising in that year in the same territory shall be allowable under Case VII only in so far as they exceed those gains or the part thereof for the time being treated as unremittable. Relief from tax on delayed remittances 419 1 A person charged or chargeable for any year of assessment in respect of income from any source with tax which (apart from this section) falls to be computed under Case IV or V of Schedule D, or under Case III of Schedule E, on the amount of income received in the United Kingdom in the basis year for that year of assessment, may by making a claim require that the following provisions of this section shall apply, on showing that the following conditions are satisfied, that is to say — a that of the income so received all or part arose before the basis year but he was unable to transfer it to the United Kingdom before that year; and b subject to subsection (2) below, that that inability was due to the laws of the territory where the income arose, or to executive action of its government, or to the impossibility of obtaining foreign currency in that territory; and c that the inability was not due to any want of reasonable endeavours on his part. 2 For the purposes of this section, where in any year of assessment a person is granted a pension or increase of pension retrospectively, the amount paid in respect of any previous year of assessment by virtue of the grant shall be treated as income arising in that previous year, whenever it is paid, and he shall be treated as having possessed the source of income from the time as from which the grant has effect; and subsection (1)(b) above shall not apply in relation to any amount so paid, except as respects the period after it becomes payable. 3 Where a person claims that the provisions of this section shall apply for any year of assessment as respects the income from any source, then for purposes of income tax — a there shall be deducted from the income received in the United Kingdom in the basis year for that year the amount as respects which the conditions in paragraphs (a), (b) and (c) of subsection (1) above are satisfied, so far as applicable; but b the part (if any) of that amount arising in each previous year of assessment shall be treated as if it were income received in the United Kingdom in the basis year for that previous year. 4 Nothing in this section shall alter the year which is to be taken as the basis year for computing tax chargeable for any year of assessment under Case IV or V of Schedule D, and where under subsection (3) (b) above income is treated as received in the United Kingdom in a year which is the basis year for two years of assessment, it shall not by reason thereof be taken into account except in the year in which it arose. 5 Where a person makes a claim under this section for any year of assessment as respects income from any source chargeable under the said Case IV or V, and that year is the basis year for computing the tax with which he is chargeable on the income from that source both for that and for the succeeding year of assessment, tax shall not be chargeable for either of those years of assessment on the amount referred to in paragraph (a) of subsection (3) of this section (without however being charged a second time by virtue of paragraph (b) of that subsection). 6 No claim under this section shall be made in respect of any income more than six years after the end of the year of assessment in which the income is received in the United Kingdom. 7 There shall be made all such adjustments, whether by way of repayment of tax, assessment or otherwise, as may be necessary to give effect to this section, and notwithstanding anything in the Income Tax Acts, any adjustment to give effect to a claim under this section may be made at any time. 8 A person's executors or administrators may make any claim under this section which he might have made, if he had not died, and after a person's death — a any tax paid by him and repayable by virtue of a claim under this section (whoever made the claim) shall be repaid to his executors or administrators ; and b any additional tax chargeable by virtue of such a claim shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate. 9 In this section " basis year " means, in relation to tax chargeable for any year of assessment under Case IV or V of Schedule D in respect of income from any source, the year by reference to which the amount of the income chargeable finally falls to be computed, and in relation to tax chargeable for any year of assessment under Case III of Schedule E, means that year of assessment; and any reference in this section to a source of income includes a part of a source. War risks and war injuries Disallowance of deductions for war risk premiums 420 1 In computing the amount of the profits or gains of any person for any tax purpose, no sum shall be deducted in respect of any payment made by him to which this section applies. 2 No payment to which this section applies shall be included in computing the expenses of management in respect of which relief may be given under section 304 or section 305 of this Act. 3 This section applies to any payment made by any person under any contract or arrangement under which that person is, in the event of war damage, entitled or eligible, either absolutely or conditionally, to or for any form of indemnification, whether total or partial, and whether by way of a money payment or not, in respect of that war damage: Provided that — a where the payment is made in respect of the right or eligibility aforesaid and also in respect of other matters, the deduction or inclusion of so much of the payment as is properly attributable to the other matters shall not be disallowed by virtue only of subsection (1) or subsection (2) of this section ; and b this section shall not apply to any payment made under — i any policy of insurance issued under Part II of the War Risks Insurance Act 1939, or any similar enactment in force in any country outside the United Kingdom; or ii any contract of marine insurance, or any contract of insurance of an aircraft, or any contract of insurance of goods in transit. 4 In this section, " war damage " means loss or damage arising from action taken by an enemy of Her Majesty, or action taken in combating such an enemy or in repelling an imagined attack by such an enemy, or action taken in anticipation of or in consequence of an attack by such an enemy. Disallowance of certain payments in respect of war injuries to employees 421 1 In computing the amount of the profits or gains, or total income, of any person for any tax purpose, no sum shall be deducted in respect of any payment made by him to which this section applies. 2 No payment to which this section applies shall be included in computing — a the expenses of management in respect of which relief may be given under section 304 or section 305 of this Act; or b the expenses of management or supervision in respect of which relief may be given under section 158 of this Act (expenses of owner of mineral rights). 3 This section applies — a to any payments by way of benefit made by any person to, or to the personal representatives or dependants of, any employees of his on account of their incapacity, retirement or death owing to war injuries, whether sustained in the United Kingdom or elsewhere; and b to any payments made by any person by way of premium or contribution under any policy, agreement, scheme or arrangement providing for the payment of benefits to, or to the personal representatives or dependants of, any employees of his on account of their incapacity, retirement or death as aforesaid: Provided that — i this section shall not apply to any payment (whether by way of benefit or by way of premium or contribution) which is payable under any policy, agreement, scheme or arrangement made before 3rd September 1939, except to the extent that the amount of the payment is increased by any variation of the terms of that policy, agreement, scheme or arrangement made on or after that date; ii this section shall not apply to any payment by way of benefit if, in the opinion of the Board, that payment was made under an established practice which was such that the same or a greater payment would have been made if the incapacity, retirement or death had not been due to war injuries. 4 Where a person makes a payment by way of benefit to which this section applies and, in the opinion of the Board, there is an established practice under which a smaller payment would have been made if the incapacity, retirement or death had not been due to war injuries, the deduction or inclusion of an amount equal to that smaller payment shall not be disallowed by virtue only of subsection (1) or subsection (2) of this section. 5 Where a person makes a payment to which this section applies by way of premium or contribution, and the policy, agreement, scheme or arrangement provides for the payment of any benefit in the event of incapacity, retirement or death not due to war injuries, the deduction or inclusion of so much of the payment of premium or contribution as, in the opinion of the Board, is properly attributable to benefit payable in the event of incapacity, retirement or death not due to war injuries shall not be disallowed by virtue only of subsection (1) or subsection (2) of this section. 6 In this section " war injuries " means physical injuries — a caused by — i the discharge of any missile (including liquids and gas); ii the use of any weapon, explosive or other noxious thing; or iii the doing of any other injurious act, either by the enemy or in combating the enemy or in repelling an imagined attack by the enemy; or b caused by the impact on any person or property of any enemy aircraft, or any aircraft belonging to, or held by any person on behalf of, or for the benefit of, Her Majesty or any allied power, or any part of, or anything dropped from, any such aircraft. Pre-war provisions for tax free annuities, salaries, pensions, etc. Modification of pre-war provisions for tax free annuities, etc. 422 1 Subject to the provisions of this section, any provision, however worded, for the payment, whether periodically or otherwise, of a stated amount free of income tax, or free of income tax other than surtax, being a provision which — a is contained in any deed or other instrument, in any will or codicil, in any order of any court, in any local or personal Act, or in any contract, whether oral or in writing, and b was made before 3rd September 1939, and c has not been varied on or after that date, shall, as respects payments falling to be made during any year of assessment the standard rate of income tax for which exceeds 27-5 per cent., have effect as if for the stated amount there were substituted an amount equal to the appropriate fraction thereof. 2 Where any such provision as is mentioned in subsection (1) of this section is a provision for a payment free of income tax (and not merely a provision for a payment free of income tax other than surtax) the sum, if any, to be paid under that provision to make good the requirement that the payment shall be free of surtax shall, in the case of surtax for the year preceding any such year of assessment as is mentioned in the said subsection (1), be reduced to the appropriate fraction of the sum which would have been sufficient for that purpose if the rates of surtax in force for the year 1937-38 had applied to the year for which the surtax is payable. 3 If, in the case of a payment to which subsection (1) of this section applies, the relations of the payee and the payor are such that the payee is accountable to the payor for so much of any relief from income tax which he receives as is ascribable to the payment — a the liability of the payee to account to the payor shall be limited to the appropriate fraction of the sum for which he would have been accountable if the 1938-39 rates of income tax, other than surtax, had applied to the year of assessment in which the payment falls to be made, and the preceding provisions of this section had not been passed; and b the relief to be given shall be calculated as if — i the gross sum represented by the payment were what it would have been if the 1938-39 rates of income tax, other than surtax, had applied to the year of assessment in which the payment falls to be made, and the preceding provisions of this section had not been passed ; and ii that gross sum had borne income tax at the standard rate of tax for the year of assessment in which the payment falls to be made. 4 This section shall not — a affect any provision falling within section 391(4) of this Act or section 106(2) of the Taxes Management Act 1970 (which render invalid agreements not to deduct income tax), or b affect any provision if, by virtue of any provision in the same or any other deed, instrument, will, codicil, order, local or personal Act or contract which contemplates rises in the rates of income tax, the payments thereunder have ceased or, in the event of further rises in the rates of income tax, may cease, to be wholly free of income tax, or, as the case may be, wholly free of income tax other than surtax; or c apply to any emoluments of any office, employment, annuity, pension or stipend taxed under Schedule E ; or d apply to any dividends or shares of profits: Provided that the reference in this subsection to any annuity taxed under Schedule E shall not include a reference to any annuity so taxed by virtue of section 208(3) of this Act (approved superannuation funds). 5 In this section " the appropriate fraction " in relation to any year of assessment is 100 − A 72.5 where A is the standard rate of income tax for the year expressed as a percentage. Modification of pre-war provisions for tax free salaries, pensions, etc. 423 1 This section applies to offices, employments, annuities, pensions and stipends taxed under Schedule E, where by virtue of — a some provision which is contained in a contract (whether oral or in writing) made before the 3rd September 1939, and which has not been varied on or after that date; or b some provision which is contained in an enactment passed before 3rd September 1939 and which has not been amended on or after that date, the emoluments include a payment to or for the benefit of the recipient of the emoluments in respect of his income tax: Provided that the reference in this subsection to annuities taxed under Schedule E shall not include a reference to any annuities so taxed by virtue of section 208(3) of this Act (approved superannuation funds). 2 The amount, if any, payable, in a case to which this section applies, to or for the benefit of the recipient of the emoluments in respect of his income tax for any year of assessment, other than surtax, shall not exceed the amount which would have been payable if the 1938-39 rates of income tax, other than surtax, had applied to the year of assessment in question. 3 The amount, if any, payable, in a case to which this section applies, to or for the benefit of the recipient of the emoluments in respect of his surtax for any year of assessment shall not exceed the amount which would have been payable if the rates of surtax in force for the year 1937-38 had applied to the year of assessment in question. Interpretation of last two preceding sections 424 For the purposes of sections 422 and 423 above — a a provision, however worded, for the payment of such sum as will after deduction of income tax be equal to a stated amount, shall be treated as a provision for the payment of the said stated amount free of income tax, other than surtax; and b the expression " a stated amount" includes a stated fraction of the gross amount of any specified income (that is to say, of the amount of that income before income tax has been charged thereon, whether by deduction or otherwise), but does not include a stated fraction of the net amount of any specified income (that is to say, of the amount of that income after it has been charged to income tax, whether by deduction or otherwise); and c the expression " if the 1938-39 rates of income tax, other than surtax, had applied " means, in relation to a year of assessment, if the standard rate of tax for the year had been 27-5 per cent. and the enactments relating to relief from income tax had not been amended in any respect by any Act passed since 3rd September 1939. Arrangements for payment of interest less tax or of fixed net amount Application to interest payable without deduction of tax 425 1 It is hereby declared that any provision made before or after the passing of this Act, whether orally or in writing, for the payment of interest " less tax ", or using words to that effect, is to be construed, in relation to interest payable without deduction of tax, as if the words " less tax ", or the equivalent words, were not included. 2 In relation to interest on which the recipient is chargeable to tax under Case III of Schedule D, and which is payable without deduction of tax, any provision, made before or after the passing of this Act, whether orally or in writing, and however worded, for the payment of interest at such a rate (referred to below in this subsection as the " gross rate ") as shall, after the deduction of the standard rate of income tax for the time being in force, be equal to a stated rate, shall be construed as if it were a provision requiring the payment of interest at the gross rate. PART XV Estates of Deceased Persons in Course of Administration Limited interests in residue 426 1 The following provisions of this section shall have effect in relation to a person who, during the period commencing on the death of a deceased person and ending on the completion of the administration of his estate (in this Part of this Act referred to as " the administration period ") or during a part of that period, has a limited interest in the residue of the estate or in a part thereof. 2 When any sum has been paid during the administration period in respect of that limited interest, the amount thereof shall, subject to subsection (3) below, be deemed for all tax purposes to have been paid to that person as income for the year of assessment in which that sum was paid or, in the case of a sum paid in respect of an interest that has ceased, for the last year of assessment in which it was subsisting. 3 On the completion of the administration of the estate — a the aggregate amount of all sums paid before, or payable on, the completion of the administration in respect of that limited interest shall be deemed to have accrued due to that person from day to day during the administration period or the part thereof during which he had that interest, as the case may be, and to have been paid to him as it accrued due, and b the amount deemed to have been paid to that person by virtue of paragraph (a) above in any year of assessment shall be deemed for all tax purposes to have been paid to him as income for that year, and c where the amount which is deemed to have been paid to that person as income for any year by virtue of this subsection is less or greater than the amount deemed to have been paid to him as income for that year by virtue of subsection (2) above, such adjustments shall be made as are provided in section 431 below. 4 Any amount which is deemed to have been paid to that person as income for any year by virtue of this section shall — a in the case of a United Kingdom estate, be deemed to be income of such an amount as would after deduction of standard tax for that year be equal to the amount deemed to have been so paid, and to be income that has borne standard tax, and b in the case of a foreign estate, be deemed to be income of the amount deemed to have been so paid, and shall be chargeable to standard tax under Case IV of Schedule D as if it were income arising from securities in a place out of the United Kingdom. 5 Where a person has been charged to standard tax for any year by virtue of this section in respect of an amount deemed to have been paid to him as income in respect of an interest in a foreign estate and any part of the aggregate income of that estate for that year has borne United Kingdom income tax by deduction or otherwise, the tax so charged on him shall, on proof of the facts on a claim, be reduced by an amount bearing the same proportion thereto as the amount of the said income which has borne United Kingdom income tax, less the tax so borne, bears to the amount of the said aggregate income, less the tax so borne: Provided that, where relief has been so given, such part of the amount in respect of which he has been charged to standard tax as corresponds to the said proportion shall, for the purposes of surtax, be deemed to represent income of such an amount as would after deduction of standard tax be equal to that part of the amount charged. Absolute interests in residue 427 1 The following provisions of this section shall have effect in relation to a person who, during the administration period or during a part of that period, has an absolute interest in the residue of the estate of a deceased person or in a part thereof. 2 There shall be ascertained in accordance with section 428 below the amount of the residuary income of the estate for each whole year of assessment, and for each broken part of a year of assessment, during which — a the administration period was current, and b that person had that interest, and the amount so ascertained in respect of any year or part of a year, or, in the case of a person having an absolute interest in a part of a residue, a proportionate part of that amount, is in this Part of this Act referred to as the " residuary income " of that person for that year of assessment: Provided that, when legacy duty charged on the residue, or on the part thereof in which that person has an absolute interest, as the case may be, has been paid in respect of income for any such year or part of a year as aforesaid, his residuary income for that year shall thereafter be treated for the purposes of surtax as reduced by the amount of that duty so far as paid in respect of such income. 3 When any sum or sums has or have been paid during the administration period in respect of that absolute interest, the amount of that sum or the aggregate amount of those sums shall, subject to subsection (4) below, be deemed for all tax purposes to have been paid to that person as income to the extent to which, and for the year or years of assessment for which, he would have been treated for those purposes as having received income if he had had a right to receive in each year of assessment — a in the case of a United Kingdom estate, his residuary income for that year less standard tax for that year, and b in the case of a foreign estate his residuary income for that year, and that sum or the aggregate of those sums had been available for application primarily in or towards satisfaction of those rights as they accrued and had been so applied. In the case of a United Kingdom estate, any amount which is deemed to have been paid to that person as income for any year by virtue of this subsection shall be deemed to be income of such an amount as would, after deduction of standard tax for that year, be equal to the amount deemed to have been so paid, and to be income that has borne standard tax. 4 On the completion of the administration of the estate — a the amount of the residuary income of that person for any year of assessment shall be deemed for all tax purposes to have been paid to him as income for that year, and in the case of a United Kingdom estate shall be deemed to have borne income tax by reference to the standard rate, and b where the amount which is deemed to have been paid to that person as income for any year, by virtue of this subsection is less or greater than the amount deemed to have been paid to him as income for that year by virtue of subsection (3) above, such adjustments shall be made as are provided in section 431 below. 5 In the case of a foreign estate, any amount which is deemed to have been paid to that person as income for any year by virtue of this section shall be deemed to be income of that amount, and shall be chargeable to standard tax under Case IV of Schedule D as if it were income arising from securities in a place out of the United Kingdom. 6 Where a person has been charged to standard tax for any year by virtue of this section in respect of an amount deemed to have been paid to him as income in respect of an interest in a foreign estate, and any part of the aggregate income of that estate for that year has borne United Kingdom income tax by deduction or otherwise, the tax so charged on him shall, on proof of the facts on a claim, be reduced by an amount bearing the same proportion thereto as the amount of the said income which has borne United Kingdom income tax bears to the amount of the said aggregate income. 7 For the purposes of any charge to corporation tax under this section, the residuary income of a company shall be computed in the first instance by reference to years of assessment, and the residuary income for any such year shall be apportioned between the accounting periods (if more than one) comprising that year. Supplementary provisions as to absolute interests in residue 428 1 The amount of the residuary income of an estate for any year of assessment shall be ascertained by deducting from the aggregate income of the estate for that year — a the amount of any annual interest, annuity or other annual payment for that year which is a charge on residue and the amount of any payment made in that year in respect of any such expenses incurred by the personal representatives as such in the management of the assets of the estate as, in the absence of any express provision in a will, would be properly chargeable to income, but excluding any such interest, annuity or payment allowed or allowable in computing the aggregate income of the estate, and b the amount of any of the aggregate income of the estate for that year to which a person has on or after assent become entitled by virtue of a specific disposition either for a vested interest during the administration period or for a vested or contingent interest on the completion of the administration. 2 In the event of its appearing, on the completion of the administration of an estate in the residue of which, or in a part of the residue of which, a person had an absolute interest at the completion of the administration, that the aggregate of the benefits received in respect of that interest does not amount to as much as the aggregate for all years of the residuary income of the person having that interest, his residuary income for each year shall be reduced for the purpose of section 427 above by an amount bearing the same proportion thereto as the deficiency bears to the aggregate for all years of his residuary income. In this subsection " benefits received" in respect of an absolute interest means the following amounts in respect of all sums paid before, or payable on, the completion of the administration in respect of that interest, that is to say — a as regards a sum paid before the completion of the administration, in the case of a United Kingdom estate such an amount as would, after deduction of standard tax for the year of assessment in which that sum was paid, be equal to that sum, or in the case of a foreign estate the amount of that sum, and b as regards a sum payable on the completion of the administration, in the case of a United Kingdom estate such an amount as would, after deduction of standard tax for the year of assessment in which the administration is completed, be equal to that sum, or in the case of a foreign estate the amount of that sum. 3 In the application of subsection (2) above to a residue or a part of a residue in which a person other than the person having an absolute interest at the completion of the administration had an absolute interest at any time during the administration period, the aggregates therein mentioned shall be computed in relation to those interests taken together, and the residuary income of that other person also shall be subject to reduction thereunder. Special provisions as to certain interests in residue 429 1 Where the personal representatives of a deceased person have as such a right in relation to the estate of another deceased person such that, if that right were vested in them for their own benefit, they would have an absolute or limited interest in the residue of that estate or in a part thereof, they shall be deemed to have that interest notwithstanding that that right is not vested in them for their own benefit, and any amount deemed to be paid to them as income by virtue of this Part of this Act shall be treated as part of the aggregate income of the estate of the person whose personal representatives they are. 2 Where different persons have successively during the administration period absolute interests in the residue of the estate of a deceased person or in a part thereof, sums paid during that period in respect of the residue or of that part thereof, as the case may be, shall be treated for the purpose of this Part of this Act as having been paid in respect of the interest of the person who first had an absolute interest therein up to the amount of — a in the case of a United Kingdom estate, the aggregate for all years of that person's residuary income less standard tax, or b in the case of a foreign estate, the aggregate for all years of that person's residuary income, and, as to any balance up to a corresponding amount, in respect of the interest of the person who next had an absolute interest therein, and so on. 3 Where, upon the exercise of a discretion, any of the income of the residue of the estate of a deceased person for any period (being the administration period or a part thereof) would, if the residue had been ascertained at the commencement of that period, be properly payable to any person, or to another in his right, for his benefit, whether directly by the personal representatives or indirectly through a trustee or other person, the amount of any sum paid pursuant to an exercise of the discretion in favour of that person shall be deemed for all tax purposes to have been paid to that person as income for the year of assessment in which it was paid, and the provisions of subsections (4) and (5) of section 426 above shall have effect in relation to an amount which is deemed to have been paid as income by virtue of this subsection. Relief from surtax for estate duty on accrued income 430 1 Where any income, having accrued before the death of any person, is taken into account both — a in estimating the principal value of an estate for the purposes of any estate duty payable on his death, and b in ascertaining for the purposes of this Part of this Act the residuary income of his estate for any year of assessment, then, in ascertaining the liability to surtax of any person having an absolute interest in the residue of that or any other estate or part thereof, that residuary income shall be treated as reduced by an amount calculated in accordance with the following provisions of this section. 2 The amount of the reduction shall be an amount which, after deduction of standard tax for the said year of assessment, would equal the amount of estate duty payable in respect of so much of the income taken into account as mentioned in subsection (1) above as exceeds any liabilities so taken into account. 3 The amount of estate duty payable in respect of any income taken into account in estimating the principal value of an estate shall be taken to be — a subject to paragraph (b) below, the amount which would be produced by levying estate duty on the amount of that income at the estate rate applicable to the estate in question under the law in force in Great Britain or, as the case may be, in Northern Ireland or, if estate duty is payable both in Great Britain and in Northern Ireland, whichever is the higher of the respective amounts which would be so produced; b where section 16(3)(b) of the Finance Act 1894 or any other provision for corresponding purposes of the law in force in Northern Ireland applies for the purpose of determining the amount of the estate duty payable in Great Britain or, as the case may be, in Northern Ireland in respect of property consisting of or including that income, the amount which would be produced as aforesaid shall be taken to be an amount equal to so much of that amount of estate duty as may reasonably be regarded as attributable to that income. 4 The amount of any income accruing before the death of any person and taken into account in estimating the principal value of an estate shall (whether or not the income was valued separately or its amount known at the date of the death) be taken to be the actual amount so accruing less standard tax for the year of assessment in which the death occurred. 5 The amounts agreed between the persons accountable for estate duty and the Board (or, as respects estate duty payable under the law of Northern Ireland, the Ministry of Finance for Northern Ireland), or determined in proceedings between them, as being respectively the principal value of an estate and the amount of any estate duty payable shall be conclusive for the purposes of this section; and evidence of those amounts and of any facts relevant to their computation may be given by the production of a document purporting to be a certificate from the Board or, as the case may be, that Ministry. 6 In this section references to liabilities taken into account in ascertaining the amount of the residuary income of an estate include references to liabilities allowed or allowable in computing its aggregate income. 7 This section shall come into force so as to apply only where the death occurred after 3rd June 1969 (and so that section 19 of the Finance Act 1956 and, where relevant, paragraph 21 of Part III of Schedule 17 to the Finance Act 1969 continue to apply to earlier deaths). Adjustments and information 431 1 Where on the completion of the administration of an estate any amount is deemed by virtue of this Part of this Act to have been paid to any person as income for any year of assessment and — a that amount is greater than the amount that has previously been deemed to have been paid to him as income for that year by virtue of this Part of this Act, or b no amount has previously been so deemed to have been paid to him as income for that year, an assessment may be made upon him for that year and tax charged accordingly or, on a claim being made for the purpose, any relief or additional relief to which he may be entitled shall be allowed accordingly. 2 Where on the completion of the administration of an estate any amount is deemed by virtue of this Part of this Act to have been paid to any person as income for any year of assessment, and that amount is less than the amount that has previously been so deemed to have been paid to him, then — a if an assessment has already been made upon him for that year, such adjustments shall be made in that assessment as may be necessary for the purpose of giving effect to the provisions of this Part of this Act which take effect on the completion of the administration, and any tax Overpaid shall be repaid, and b if — i any relief has been allowed to him by reference to the amount which has been previously deemed as aforesaid to have been paid to him as income for that year, and ii the amount of that relief exceeds the amount of relief which could have been given by reference to the amount which, on the completion of the administration, is deemed to have been paid to him as income for that year, the relief so given in excess may, if not otherwise made good, be charged under Case VI of Schedule D and recovered from that person accordingly. 3 Notwithstanding anything in the Tax Acts, the time within which an assessment may be made for the purposes of this Part of this Act, or an assessment may be adjusted for those purposes, or a claim for relief may be made by virtue of this Part of this Act, shall not expire before the end of the third year following the year of assessment in which the administration of the estate in question was completed. 4 The Board or, for the purpose of charging income tax at the standard rate, an inspector may by notice in writing require any person being or having been a personal representative of a deceased person, or having or having had an absolute or limited interest in the residue of the estate of a deceased person or in a part thereof, to furnish them within such time as they may direct (not 'being less than twenty-eight days) with such particulars as they think necessary for 'the purposes of this Part of this Act. Interpretation 432 1 The following provisions of this section shall have effect for the purpose of the interpretation of the preceding provisions of this Part of this Act. 2 A person shall be deemed to have an " absolute interest" in the residue of the estate of a deceased person, or in a part thereof, if and so long as the capital of the residue or of that part thereof, as the case may be, would, if the residue had been ascertained, be properly payable to him, or to another in his right, for his benefit, or is properly so payable, whether directly by the personal representatives or indirectly through a trustee or other person. 3 A person shall be deemed to have a " limited interest" in the residue of the estate of a deceased person, or in a part thereof, during any period, being a period during which he has not an absolute interest in the residue or in that part thereof, as the case may be, where the income of the residue or of that part thereof, as the case may be, for that period would, if the residue had been ascertained at the commencement of that period, be properly payable to him, or to another in his right, for his benefit, whether directly or indirectly as aforesaid. 4 " Personal representatives " means, in relation to the estate of a deceased person, his personal representatives as defined in relation to England and Wales by section 55 of the Administration of Estates Act 1925, and persons having in relation to the deceased under the law of another country any functions corresponding to the functions for administration purposes under the law of England and Wales of personal representatives as so defined; and references to " personal representatives as such " shall be construed as references to the personal representatives in their capacity as having such functions as aforesaid. 5 " Specific disposition" means a specific devise or bequest made by a testator, and includes the disposition of personal chattels made by section 46 of the Administration of Estates Act 1925 and any disposition having, whether by virtue of any enactment or otherwise, under the law of another country an effect similar to that of a specific devise or bequest under the law of England and Wales. Real estate included (either by a specific or general description) in a residuary gift made by the will of a testator shall be deemed to be a part of the residue of his estate and not to be the subject of a specific disposition. 6 " Charges on residue " means, in relation to the estate of a deceased person, the following liabilities properly payable thereout and interest payable in respect of those liabilities, that is to say — a funeral, testamentary and administration expenses and debts, and b general legacies, demonstrative legacies, annuities and any sum payable out of residue to which a person is entitled under the law of intestacy in any part of the United Kingdom or any other country, and c any other liabilities of his personal representatives as such: Provided that where, as between persons interested under a specific disposition or in such a legacy as aforesaid or in an annuity and persons interested in the residue of the estate, any such liabilities fall exclusively or primarily upon the property that is the subject of the specific disposition or upon the legacy or annuity, only such part (if any) of those liabilities as falls ultimately upon the residue shall be treated as charges on residue. 7 References to the " aggregate income of the estate " of a deceased person for any year of assessment shall be construed as references to the aggregate income from all sources for that year of the personal representatives of the deceased as such, treated as consisting of — a any such income which is chargeable to United Kingdom income tax by deduction or otherwise, such income being computed at the amount on which that tax falls to be borne for that year, and b any such income which would have been so chargeable if it had arisen in the United Kingdom to a person resident and ordinarily resident therein, such income being computed at the full amount thereof actually arising during that year, less such deductions as would have been allowable if it had been charged to United Kingdom income tax, but excluding any income from property devolving on the personal representatives otherwise than as assets for payment of the debts of the deceased. As regards surtax, this subsection has effect subject to section 287(2) (close companies: loans to participators), section 297(3) (close companies: surtax apportionments) and section 399(1)(c) (gains from insurance policies, etc.) of this Act. 8 " United Kingdom estate " and " foreign estate " mean respectively, as regards any year of assessment — a an estate the income of which comprises only income which either has borne United Kingdom income tax by deduction or in respect of which the personal representatives are directly assessable to United Kingdom income tax, not being an estate any part of the income of which is income in respect of which the personal representatives are entitled to claim exemption from United Kingdom income tax by reference to the fact that they are not resident, or not ordinarily resident, in the United Kingdom, and b an estate other than a United Kingdom estate. 9 In a case in which different parts of the estate of a deceased person are the subjects respectively of different residuary dispositions, this Part of this Act shall have effect in relation to each of those parts with the substitution for references to the estate of references to that part of the estate, and for references to the personal representatives of the deceased as such of references to his personal representatives in their capacity as having the functions referred to in subsection (4) above in relation to that part of the estate. 10 References to sums paid or payable in respect of an absolute or limited interest in the residue of the estate of a deceased person, or in a part thereof, shall, in the application of this Part of this Act for the purposes of surtax, be construed as excluding any sum paid or payable in discharge of any legacy duty charged in respect of that absolute or limited interest. 11 "Standard tax" means United Kingdom income tax at the standard rate. 12 References to sums paid include references to assets that are transferred or that are appropriated by a personal representative to himself, and to debts that are set off or released; references to sums payable include references to assets as to which an obligation to transfer or a right of a personal representative to appropriate to himself is subsisting on the completion of the administration and to debts as to which an obligation to release or set off, or a right of a personal representative so to da in his own favour, is then subsisting; and references to amount shall be construed, in relation to such assets, as references to the value thereof at the date on which they were transferred or appropriated, or at the completion of the administration, as the case may require, and, in relation to such debts, as references to the amount thereof. Application to Scotland 433 For the purpose of the application of this Part of this Act to Scotland — a any reference to the completion of, the administration of an estate shall be construed as a reference to the date at which, after discharge of, or provision for, liabilities falling to be met out of the deceased's estate (including without prejudice to the foresaid generality, debts, legacies immediately payable, and legal rights of surviving spouse or children), the free balance held in trust for behoof of the residuary legatees has been ascertained, and b for paragraph (b) of section 428(1) of this Act the following paragraph shall be substituted — b the amount of any of the aggregate income of the estate for that year to which a person has become entitled by virtue of a specific disposition , and c " real estate " means heritable estate, and d " charges on residue " shall include, in addition to the liabilities specified in section 432(6) of this Act, any sums required to meet claims in respect of legal rights by surviving spouse or children. PART XVI Settlements CHAPTER I Dispositions for Short Periods Disposition for period which cannot exceed six years 434 1 Any income which, by virtue or in consequence of any disposition made, directly or indirectly, by any person (other than a disposition made for valuable and sufficient consideration), is payable to or applicable for the benefit of any other person for a period which cannot exceed six years shall be deemed for all the purposes of the Income Tax Acts to be the income of the person, if living, by whom the disposition was made, and not to be the income of any other person. 2 In this Chapter, unless the context otherwise requires, " disposition" includes any trust, covenant, agreement or arrangement. Adjustments between disponor and trustees 435 1 Where, by virtue of this Chapter, any income tax becomes chargeable on and is paid by the person by whom a disposition was made, that person shall be entitled — a to recover from any trustee or other person to whom the income is payable by virtue or in consequence of the disposition the amount of the tax so paid; and b for that purpose to require the Board or, in relation to tax at the standard rate, an inspector to furnish to him a certificate specifying the amount of the income in respect of which he has so paid tax and the amount of the tax so paid, and any certificate so furnished shall be conclusive evidence of the facts appearing thereby. 2 Where any person obtains in respect of any allowance or relief a repayment of income tax in excess of the amount of the repayment to which he would but for the provisions of this Chapter have been entitled, an amount equal to the excess shall be paid by him to the trustee or other person to whom the income is payable by virtue or in consequence of the disposition, or, where there are two or more such persons, shall be apportioned among those persons as the case may require. If any question arises as to the amount of any payment or as to any apportionment to be made under this subsection, that question shall be decided by the General Commissioners whose decision thereon shall be final. 3 Subject to section 529 of this Act, any income which is deemed by virtue of this Chapter to be the income of any person shall be deemed to be the highest part of his income. Application of Chapter I to dispositions where there is more than one disponor 436 1 In the case of any disposition where there is more than one person who made the disposition, this Chapter shall, subject to the provisions of this section, have effect in relation to each person who made the disposition as if he were the only person who had made it. 2 In the case of any such disposition, references in this Chapter to income payable or applicable by virtue or in consequence of the disposition include, in relation to any person making the disposition, only — a income from property which that person has provided directly or indirectly for the purposes of the disposition ; and b income from property representing that property; and c income from so much of any property which represents both property provided as aforesaid and other property as, on a just apportionment, represents the property so provided; and d income provided directly or indirectly by that person. 3 In this section references to property which represents other property include references to property which represents accumulated income from that other property. CHAPTER II Settlements on Children The general rule 437 1 Where, by virtue or in consequence of any settlement to which this Chapter applies and during the life of the settlor, any income is paid to or for the benefit of a child of the settlor in any year of assessment, the income shall, if at the time of the payment the child was unmarried and — a had not attained the age of eighteen, or b had attained that age but had not attained the age of twenty-one and was not working regularly, be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person. 2 This Chapter applies to every settlement, wheresoever it was made or entered into, and whether it was made or entered into before or after the passing of this Act, except a settlement made or entered into before 22nd April 1936 which immediately before that date was irrevocable. Paragraph 18 of Schedule 14 to this Act shall have effect as respects certain earlier settlements on children. 3 Subsection (1) above shall not have effect in relation to a child who has not attained the age of eighteen for any year of assessment for which his aggregate income, so far as it would fall within subsection (1) above or within section 43(1) of this Act (aggregation of income of parent and child) but for this exception and the corresponding exception in subsection (3) of the said section 43, does not exceed £5. 4 Without prejudice to subsection (3) above, income paid to or for the benefit of a child of a settlor shall not be treated as provided in subsection (1) above for any year of assessment in which the child is over the age of eighteen if the aggregate amount of the income paid to or for the benefit of the child which, but for this subsection, would be so treated by virtue of subsection (1) above, does not exceed £5. 5 This Chapter shall not apply in relation to any income arising under a settlement in any year of assessment for which the settlor is not chargeable to income tax as a resident in the United Kingdom, and references in this Chapter to income shall be construed accordingly. Accumulation settlements 438 1 Subject to the provisions of this section, for the purposes of this Chapter — a income which, by virtue or in consequence of a settlement to which this Chapter applies, is so dealt with that it, or assets representing it, will or may become payable or applicable to or for the benefit of a child of the settlor in the future (whether on the fulfilment of a condition, or the happening of a contingency, or as the result of the exercise of a power or discretion conferred on any person, or otherwise) shall be deemed to be paid to or for the benefit of that child; and b any income dealt with as aforesaid which is not required by the settlement to be allocated, at the time when it is so dealt with, to any particular child or children of the settlor shall be deemed to be paid in equal shares to or for the benefit of each of the children to or for the benefit of whom or any of whom the income or assets representing it will or may become payable or applicable. 2 Where any income is dealt with as mentioned in subsection (1) of this section by virtue or in consequence of a settlement to which this Chapter applies, being a settlement which, at the time when the income is so dealt with, is an irrevocable settlement — a the provisions of subsection (1) of this section shall not apply to that income unless and except to the extent that that income consists of, or represents directly or indirectly, sums paid by the settlor which are allowable as deductions in computing his total income; and b any sum whatsoever paid thereafter by virtue or in consequence of the settlement, or any enactment relating thereto, to or for the benefit of a child of the settlor, being a child who at the time of the payment is unmarried and within subsection (1)(a) or subsection (1)(b) of section 437 above, shall be deemed for the purposes of that section to be paid as income, unless and except to the extent that the sum so paid together with any other sums previously so paid (whether to that child or to any other child who, at the relevant time, was unmarried and within the said subsection (1)(a) or subsection (1)(b)) exceeds the aggregate amount of the income which, by virtue or in consequence of the settlement, has been paid to or for the benefit of a child of the settlor, or dealt with as mentioned in subsection (1) of this section, since the date when the settlement took effect or the date when it became irrevocable, whichever is the later. 3 In subsection (2)(b) above " the relevant time " means — a in relation to a payment made after the year 1957-58, except a payment made in the year 1958-59 to or for the benefit of a child born after 6th April 1958, and so made by virtue or in consequence of a settlement made before 9th July 1958, the date when the payment was made, b in relation to a payment made in or before the year 1957-58, or a payment made in the year 1958-59 and excepted from paragraph (a) above, the commencement of the year of assessment in which the payment was made. Meaning of "irrevocable" 439 1 For the purposes of this Chapter, a settlement shall not be deemed to be irrevocable if the terms thereof provide — a for the payment to the settlor or, during the life of the settlor, to the wife or husband of the settlor for his or her benefit, or for the application for the benefit of the settlor or, during the life of the settlor, of the wife or husband of the settlor, of any income or assets in any circumstances whatsoever during the life of any child of the settlor to or for the benefit of whom any income, or assets representing it, is or are or may be payable or applicable by virtue or in consequence of the settlement ; or b for the determination of the settlement by the act or on the default of any person ; or c for the payment of any penalty by the settlor in the event of his failing to comply with the provisions of the settlement: Provided that a settlement shall not be deemed to be revocable by reason only — i that it contains a provision under which any income or assets will or may become payable to or applicable for the benefit of the settlor, or the wife or husband of the settlor, on the bankruptcy of any such child as is mentioned in paragraph (a) of this subsection or in the event of an assignment of or charge on that income or those assets being executed by such a child; or ii that it provides for the determination of the settlement as aforesaid in such a manner that the determination will not, during the lifetime of any such child as aforesaid, benefit the settlor or the wife or husband of the settlor; or iii in the case of a settlement to which section 33 of the Trustee Act 1925 applies, that it directs income to be held for the benefit of such a child as aforesaid on protective trusts, unless the trust period is a period less than the life of the child or the settlement specifies some event on the happening of which the child would, if the income were payable during the trust period to him absolutely during that period, be deprived of the right to receive the income or part thereof. 2 In applying section 438(2)(b) above to a settlement subsisting on 6th April 1958 which would have been revocable if, in paragraph (ii) above, in place of the words " the settlor or the wife or husband of the settlor " (which were inserted by section 20(5) of the Finance Act 1958) there stood " any person other than such a child, or the wife, husband or issue of such a child " the date when it became irrevocable shall be taken as 6th April 1958. Interest paid by trustees 440 1 Where interest is paid by the trustees of a settlement to which this Chapter applies there shall be deemed for the purposes of this Chapter to be paid to or for the benefit of a child of the settlor who at the time of the payment is unmarried and within subsection (1)(a) or subsection (1)(b) of section 437 above (in addition to any other amount deemed to be so paid) an amount equal to a fraction B A of the interest, where — A is the whole of the income arising under the settlement in the year of assessment, less any expenses of the trustees of the settlement paid in that year which, in the absence of any express provision of the settlement, would be properly chargeable to income, and B is such part of A as is paid to or for the benefit of any child of the settlor who is unmarried and within subsection (1)(a) or subsection (1)(b) of section 437 above. 2 This section shall not apply to interest in respect of which relief from tax at the standard rate is allowable under any provision of the Income Tax Acts or to interest payable to the settlor or the wife or husband of the settlor (if living with the settlor). 3 Nothing in this section shall be construed as affecting the liability to tax of the person receiving or entitled to the interest. 4 For the purpose of this section — " income arising under the settlement " has the meaning given by section 454 below, which for that purpose shall be deemed to apply in relation to settlements to which this Chapter applies as it applies in relation to settlements to which Chapter III below applies, and the reference to the trustees' expenses excludes sums mentioned in section 455(a) below (sums distributed to beneficiaries). Adjustments between disponor and trustees 441 1 Where, by virtue of this Chapter, any income tax becomes chargeable on and is paid by the person by whom a settlement was made or entered into, that person shall be entitled — a to recover from any trustee or other person to whom the income is payable by virtue or in consequence of the settlement the amount of the tax so paid; and b for that purpose to require the Board or, in relation to tax at the standard rate, an inspector to furnish to him a certificate specifying the amount of income in respect of which he has so paid tax and the amount of the tax so paid, and any certificate so furnished shall be conclusive evidence of the facts appearing thereby. 2 Where any person obtains in respect of any allowance or relief a repayment of income tax in excess of the amount of the repayment to which he would but for the provisions of this Chapter have been entitled, an amount equal to the excess shall be paid by him to the trustee or other person to whom the income is payable by virtue or in consequence of the settlement, or, where there are two or more such persons, shall be apportioned among those persons as the case may require. If any question arises as to the amount of any payment or as to any apportionment to be made under this subsection, that question shall be decided by the General Commissioners whose decision thereon shall be final. 3 Subject to section 529 of this Act, any income which is deemed by virtue of this Chapter to be the income of any person shall be deemed to be the highest part of his income. Application of Chapter II to settlements with more than one settlor 442 1 In the case of any settlement where there is more than one settlor, this Chapter shall, subject to the provisions of this section, have effect in relation to each settlor as if he were the only settlor. 2 In the case of any such settlement as aforesaid, only the following can, for the purposes of this Chapter, be taken into account, in relation to any settlor, as income paid by virtue or in consequence of the settlement to or for the benefit of a child of the settlor, that is to say — a income originating from that settlor; and b in a case in which paragraph (b) of subsection (2) of section 438 of this Act applies, any sums which are under that paragraph to be deemed to be paid as income: Provided that in applying the said paragraph (b) to any settlor — i the references to sums paid by virtue or in consequence of the settlement or any enactment relating thereto include only sums paid out of property originating from that settlor or income originating from that settlor ; and ii the reference to income which by virtue or in consequence of the settlement has been paid to or for the benefit of a child of the settlor or dealt with as mentioned in subsection (1) of that section includes only income originating from that settlor. 3 References in this section to property originating from a settlor are references to — a property which that settlor has provided directly or in directly for the purposes of the settlement; and b property representing that property; and c so much of any property which represents both property provided as aforesaid and other property as, on a just apportionment, represents the property so provided. 4 References in this section to income originating from a settlor are references to — a income from property originating from that settlor; and b income provided directly or indirectly by that settlor. 5 In subsections (3) and (4) of this section — a references to property or income which a settlor has provided directly or indirectly include references to property or income which has been provided directly or indirectly by another person in pursuance of reciprocal arrangements with that settlor but do not include references to property or income which that settlor has provided directly or indirectly in pursuance of reciprocal arrangements with another person; and b references to property which represents other property include references to property which represents accumulated income from that other property. Power to obtain information under Chapter II 443 The Board or, for the purpose of charging tax at the standard rate, an inspector may by notice in writing require any party to a settlement to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of this Chapter. Interpretation of Chapter II 444 1 In this Chapter "child" includes a stepchild, an adopted child and an illegitimate child, and a child is to be treated as working regularly if, and only if, he or she is engaged in a full-time occupation, not being one entered into during an interval not exceeding fifteen months between two periods of full-time education, and intends to be regularly engaged in it or another such occupation. In this subsection " occupation" means any office, employment, trade, profession or vocation. 2 In this Chapter — " settlement " includes any disposition, trust, covenant, agreement, arrangement or transfer of assets; " settlor ", in relation to a settlement, includes any person by whom the settlement was made or entered into directly or indirectly, and in particular (but without prejudice to the generality of the preceding words of this definition) includes any person who has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement; " income ", except in the phrase (occurring in section 437(1) above) " be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person ", includes any income chargeable to income tax by deduction or otherwise and any income which would have been so chargeable if it had been received in the United Kingdom by a person resident and ordinarily resident in the United Kingdom. 3 For the purpose of adapting the definition of " income " in subsection (2) above in relation to Case VII of Schedule D, that definition shall apply in relation to gains arising from the acquisition and disposal of chargeable assets as it would apply if the gains were profits from a trade of dealing in the assets, and any such gains shall be treated as payable in the first instance to the person to whom they accrue. 4 In the case of settled property as defined for the purposes of Case VII of Schedule D, section 438(1)(a) above shall have effect in relation to gains so arising from the settled property only in so far as they exceed losses so arising from them. CHAPTER III Revocable Settlements, Etc Revocable settlements allowing release of obligation 445 1 If and so long as the terms of any settlement (where-ever made) are such that — a any person has or may have power, whether immediately or in the future, and whether with or without the consent of any other person, to revoke or otherwise determine the settlement or any provision thereof and, in the event of the exercise of the power, the settlor or the wife or husband of the settlor will or may cease to be liable to make any annual payments payable by virtue or in consequence of any provision of the settlement; or b the settlor or the wife or husband of the settlor may, whether immediately or in the future, cease, on the payment of a penalty, to be liable to make any annual payments payable by virtue or in consequence of any provision of the settlement, any sums payable by the settlor or the wife or husband of the settlor by virtue or in consequence of that provision of the settlement in any year of assessment shall be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person: Provided that, where any such power as is referred to in paragraph (a) of this subsection cannot be exercised within the period of six years from the time when the first of the annual payments so referred to becomes payable, and the like annual payments are payable in each year throughout that period, the said paragraph (a) shall not apply so long as the said power cannot be exercised. 2 In subsection (1) above — a the references to a power to revoke or otherwise determine a settlement or any provision thereof shall be deemed to include references to any power to diminish the amount of any payments which are or may be payable under the settlement or any provision thereof and to any power to diminish the amount of any annual payments which the settlor or the wife or husband of the settlor is or may be liable to make by virtue or in consequence of any provision of the settlement ; b the references to the settlor or the wife or husband of the settlor ceasing to be liable to make any annual payments payable by virtue or in consequence of any provision of the settlement shall be deemed to include references to a diminution of the amount of any such annual payments which the settlor or the wife or husband of the settlor is or may be liable to make; but the sums to be treated under the said subsection (1) as the income of the settlor for any year of assessment and not as the income of any other person shall, where that subsection would not apply but for paragraph (b) of this subsection, be such part only of the sums payable as aforesaid by the settlor or the wife or husband of the settlor in that year as corresponds to the diminution mentioned in that paragraph. 3 Where, in the case of any settlement made before 16th April 1958, any sums payable by the settlor or by the wife or husband of the settlor would, by virtue of subsection (2) above, fall to be treated as the income of the settlor and not as the income of any other person, but would not fall to be so treated apart from that subsection, the sums shall not be so treated if — a no power by reason of which they would fall to be so treated has been exercised after 15th April 1958, or is or can become exercisable after 5th April 1959, or such later date as the Board may in any particular case allow, and b neither the settlor nor the wife or husband of the settlor has received or is entitled to any consideration or benefit in connection with the fulfilment of the condition set out in paragraph (a) of this subsection, or if the settlement was entered into in connection with any judicial separation or any agreement between spouses to live separate and apart, or with the dissolution or annulment of a marriage. Revocable settlements allowing reversion of property 446 1 If and so long as the terms of any settlement (wherever made) are such that — a any person has or may have power, whether immediately or in the future, and whether with or without the consent of any other person, to revoke or otherwise determine the settlement or any provision thereof; and b in the event of the exercise of the power, the settlor or the wife or husband of the settlor will or may become beneficially entitled to the whole or any part of the property then comprised in the settlement or of the income arising from the whole or any part of the property so comprised, any income arising under the settlement from the property comprised in the settlement in any year of assessment or from a corresponding part of that property, or a corresponding part of any such income, as the case may be, shall be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person: Provided that, where any such power as aforesaid cannot be exercised within six years from the time when any particular property first becomes comprised in the settlement, this subsection shall not apply to income arising under the settlement from that property, or from property representing that property, so long as the power cannot be exercised. 2 In subsection (1) above the references to a power to revoke or otherwise determine a settlement or any provision thereof shall be deemed to include references to — a any power to diminish the property comprised in the settlement; and b any power to diminish the amount of any payments which are or may be payable under the settlement or any provision thereof to any person other than the settlor and the wife or husband of the settlor. 3 Where, in the case of any settlement made before 16th April 1958, any income arising under the settlement would, by virtue of subsection (2) above, fall to be treated as the income of the settlor and not as the income of any other person, but would not fall to be so treated apart from that subsection, the income shall not be so treated if — a no power by reason of which it would fall to be so treated has been exercised after 15th April 1958 or is or can become exercisable after 5th April 1959, or such later date as the Board may in any particular case allow; and b neither the settlor nor the wife or husband of the settlor has received or is entitled to any consideration or benefit in connection with the fulfilment of the condition set out in paragraph (a) of this subsection. Settlements where settlor retains an interest 447 1 If and so long as the settlor has an interest in any income arising under or property comprised in a settlement (wherever made), any income so arising during the life of the settlor in any year of assessment shall, to the extent to which it is not distributed, be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person: Provided that — a if and so long as that interest is an interest neither in the whole of the income arising under the settlement nor in the whole of the property comprised in the settlement, the amount of income to be treated as the income of the settlor by virtue of this subsection shall be such part of the income which, but for this proviso, would be so treated as is proportionate to the extent of that interest; and b where it is shown that any amount of the income which is not distributed in any year of assessment consists of income which falls to be treated as the income of the settlor for that year by virtue of section 445 or 446 above, that amount shall be deducted from the amount of income which, but for this proviso, would be treated as his for that year by virtue of this subsection. 2 For the purpose of subsection (1) of this section, the settlor shall be deemed to have an interest in income arising under or property comprised in a settlement if any income or property which may at any time arise under or be comprised in that settlement is, or will or may become, payable to or applicable for the benefit of the settlor or the wife or husband of the settlor in any circumstances whatsoever: Provided that the settlor shall not be deemed to have an interest in any income arising under or property comprised in a settlement — a if and so long as that income or property cannot become payable or applicable as aforesaid except in the event of — i the bankruptcy of some person who is or may become beneficially entitled to that income or property ; or ii any assignment of or charge on that income or property being made or given by some such person ; or iii in the case of a marriage settlement, the death of both the parties to the marriage and of all or any of the children of the marriage; or iv the death under the age of twenty-five or some lower age of some person who would be beneficially entitled to that income or property on attaining that age; or b if and so long as some person is alive and under the age of twenty-five during whose life that income or property cannot become payable or applicable as aforesaid except in the event of that person becoming bankrupt or assigning or charging his interest in that income or property. Settlements: discretionary power for benefit of settlor, etc. 448 1 If and so long as the terms of any settlement (wherever made) are such that any person has or may have power, whether immediately or in the future, and whether with or without the consent of any person — a to pay or apply to or for the benefit of the settlor or the wife or husband of the settlor the whole or any part of the income or property which may at any time arise under or be comprised in the settlement; or b to secure the payment or application to or for the benefit of the settlor or the wife or husband of the settlor of the whole or any part of that income or property, being a power exercisable at his discretion, any income arising under the settlement in any year of assessment or, as the case may be, any income so arising from the property comprised in the settlement or from a corresponding part of that property, or a corresponding part of any such income, shall (so far as it is not so treated apart from this section) be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person, subject however to the following provisions of this section. 2 Where the power mentioned in subsection (1) of this section cannot be exercised within six years from the time when any income or class of income first arises under the settlement or from the time when any particular property first becomes comprised in the settlement, then, so long as the power cannot be exercised, that subsection shall not apply to any income arising under the settlement or, as the case may be, any income of that class or income from that property or property representing that property. 3 Where, under the proviso to section 447(2) above, the settlor is not deemed to have an interest in any income arising under or property comprised in the settlement, subsection (1) of this section shall not apply to that income or, as the case may be, to income arising from that property. 4 Where, in the case of any settlement made before 9th July 1958, any income arising under the settlement would, by virtue of the preceding provisions of this section, fall to be treated as the income of the settlor and not as the income of any other person, but would not fall to be so treated apart from those provisions, it shall not be so treated if — a no power by reason of which it would fall to be so treated has been exercised after 8th July 1958, or is or can become exerciseable after 5th April 1959, or such later date as the Board may in any particular case allow; and b neither the settlor nor the wife or husband of the settlor has received or is entitled to any consideration or benefit in connection with the fulfilment of the condition set out in paragraph (a) of this subsection. Provisions supplemental to preceding provisions of Chapter III 449 1 Tax chargeable at the standard rate by virtue of the preceding provisions of this Chapter shall be charged under Case VI of Schedule D. 2 In computing the liability to income tax of a settlor chargeable by virtue of any of the said preceding provisions, the same deductions and reliefs shall be allowed as would have been allowed if the income treated as his by virtue of that provision had been received by him. 3 Where, by virtue of any of the said preceding provisions, any income tax becomes chargeable on and is paid by a settlor, he shall be entitled — a to recover from any trustee, or other person to whom income arises under the settlement, the amount of the tax so paid ; and b for that purpose to require the Board or, in relation to tax at the standard rate, an inspector to furnish to him a certificate specifying the amount of income in respect of which he has so paid tax and the amount of tax so paid. Any certificate so furnished shall be conclusive evidence of the facts stated therein. 4 Where any person obtains, in respect of any allowance or relief, a repayment of income tax in excess of the amount of the repayment to which he would, but for any of the said preceding provisions, have been entitled, an amount equal to the excess shall be paid by him to the trustee or other person to whom income arises under the settlement, or, where there are two or more such persons, shall be apportioned among those persons as the case may require. If any question arises as to the amount of any payment or as to any apportionment to be made under this subsection, that question shall be decided by the General Commissioners whose decision thereon shall be final. 5 Subject to section 529 of this Act, any income which is treated by virtue of any of the said preceding provisions as income of a settlor shall be deemed for the purpose of this section to be the highest part of his income. Disallowance of deduction from total income of certain sums paid by settlor 450 1 Where, by virtue or in consequence of any settlement to which this section applies, the settlor pays directly or indirectly in any year of assessment to the trustees of the settlement any sums which would, but for this subsection, be allowable as deductions in computing his total income for that year for the purposes of surtax, those sums shall not be so allowable to the extent to which the aggregate amount thereof falls within the amount, of income arising under the settlement in that year which has not been distributed, less — a so much of any income arising under the settlement in that year which has not been distributed as is shown to consist of income which has been treated as the income of the settlor by virtue of section 445, 446 or 448 above, and b the amount of income so arising in that year which is treated as the income of the settlor by virtue of section 447 above. 2 For the purposes of subsection (1) of this section, any sum paid in any year of assessment by the settlor to any body corporate connected with the settlement in that year shall be treated as if it had been paid to the trustees of the settlement in that year by virtue or in consequence of the settlement. 3 No relief shall be given under any of the provisions of the Income Tax Acts on account of tax paid in respect of so much of any income arising under a settlement in any year of assessment as is equal to the aggregate amount of any sums paid by the settlor in that year which are not allowable as deductions by virtue of this section. 4 This section shall apply to any settlement (wherever made) made after 26th April 1938, and where income arising under any settlement (wherever made) made on or before that date is treated as the income of the settlor by virtue of section 445 or 446 above but ceases to be so treated by reason of any variation of the terms of the settlement made after that date, or would have been so treated but for such a variation, this section shall apply to that settlement as from the date when the variation takes effect. 5 In this section, references to sums paid by a settlor include references to sums paid by the wife or husband of the settlor. Sums paid to settlor otherwise than as income 451 1 Any capital sum paid directly or indirectly in any relevant year of assessment by the trustees of a settlement to which this section applies to the settlor shall — a to the extent to which the amount of that sum falls within the amount of income available up to the end of that year, be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year; b to the extent to which the amount of that sum exceeds the amount of income available up to the end of that year but falls within the amount of the income available up to the end of the next following year, be treated for the purposes aforesaid as the income of the settlor for the next following year, and so on. 2 For the purposes of subsection (1) of this section, the amount of income available up to the end of any year shall, in relation to any capital sum paid as aforesaid, be taken to be the aggregate amount of income arising under the settlement in that year and any previous relevant year which has not been distributed, less — a the amount of any other capital sums paid to the settlor in any relevant year before that sum was paid, and b so much of any income arising under the settlement in that year and any previous relevant year which has not been distributed as is shown to consist of income which has been treated as income of the settlor by virtue of section 445, 446 or 448 above, and c any income arising under the settlement in that year and any previous relevant year which has been treated as the income of the settlor by virtue of section 447 above, and d any sums paid by virtue or in consequence of the settlement, to the extent that they are not allowable, by virtue of section 450 above, as deductions in computing the settlor's income for that year or any previous relevant year, and e an amount equal to tax at the standard rate on — i the aggregate amount of income arising under the settlement in that year and any previous relevant year which has not been distributed, less ii the aggregate amount of the income and sums referred to in paragraphs (b), (c) and (d) of this subsection. 3 Where any amount is included in a person's income by virtue of section 287 of this Act (assessment in respect of loan from close company) in respect of any loan or advance, there shall be a corresponding reduction in the amount (if any) afterwards falling to be so included in respect of it by virtue of this section. 4 For the purpose of this section, any capital sum paid to the settlor in any year of assessment by any body corporate connected with the settlement in that year shall be treated as having been paid by the trustees of the settlement in that year. 5 Where the whole or any part of any sum is treated by virtue of this section as income of the settlor for any year, it shall be treated as income of such an amount as, after deduction of tax at the standard rate for that year, would be equal to that sum or that part thereof. 6 Tax chargeable at the standard rate by virtue of this section shall be charged under Case VI of Schedule D. 7 In computing the liability to income tax of a settlor chargeable by virtue of this section, the same deductions and reliefs shall be allowed as would have been allowed if the amount treated as his income by virtue of this section had been received by him as income. 8 This section applies to any settlement wherever made, and whether made before or after the passing of this Act, and in this section — " capital sum " means — any sum paid by way of loan or repayment of a loan; and any other sum paid otherwise than as income, being a sum which is not paid for full consideration in money or money's worth, but does not include any sum which could not have become payable to the settlor except in one of the events specified in the proviso to section 447(2) above, and " relevant year " means any year of assessment after the year 1937-38, and references to sums paid to the settlor include references to sums paid to the wife or husband of the settlor. Application of Chapter III to settlements where there is more than one settlor 452 1 In the case of any settlement where there is more than one settlor, this Chapter shall, subject to the provisions of this section, have effect in relation to each settlor as if he were the only settlor. 2 References in this Chapter to the property comprised in a settlement include, in relation to any settlor, only property originating from that settlor and references in this Chapter to income arising under the settlement include, in relation to any settlor, only income originating from that settlor. 3 In considering for the purposes of this Chapter, in relation to any settlor, whether any, and if so, how much, of the income arising under the settlement has been distributed, any sums paid partly out of income originating from that settlor and partly out of other income must (so far as not apportioned by the terms of the settlement) be apportioned evenly over all that income. 4 References in sections 445(1) and 450 above to sums payable by virtue or in consequence of any provision of the settlement or sums paid by virtue or in consequence of the settlement include, in relation to any settlor, only sums payable or paid by that settlor. 5 References in this section to property originating from a settlor are references to — a property which that settlor has provided directly or indirectly for the purposes of the settlement; and b property representing that property ; and c so much of any property which represents both property provided as aforesaid and other property as, on a just apportionment, represents the property so provided. 6 References in this section to income originating from a settlor are references to — a income from property originating from that settlor; and b so much of any such income of a body corporate as is mentioned in section 454(1)(b) below as corresponds to property originating from the settlor which is comprised in the settlement; and c income provided directly or indirectly by that settlor. 7 In subsections (5) and (6) of this section — a references to property or income which a settlor has provided directly or indirectly include references to property or income which has been provided directly or indirectly by another person in pursuance of reciprocal arrangements with that settlor, but do not include references to property or income which that settlor has provided directly or indirectly in pursuance of reciprocal arrangements with another person; and b references to property which represents other property include references to property which represents accumulated income from that other property. Power to obtain information for purposes of Chapter III 453 The Board or, for the purpose of charging tax at the standard rate, an inspector may by notice in writing require any person, being a party to a settlement, to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of any of the provisions of this Chapter. Interpretation of Chapter III 454 1 In this Chapter, " income arising under a settlement " includes — a any income chargeable to income tax by deduction or otherwise, and any income which would have been so chargeable if it had been received in the United Kingdom by a person domiciled, resident and ordinarily resident in the United Kingdom; and b where the amount of the income of any body corporate has been apportioned under section 296 of this Act (close companies), or (as respects income arising before the year 1966-67) under Chapter III of Part IX of the Income Tax Act 1952, for any year or period, or could have been so apportioned if the body corporate were incorporated in any part of the United Kingdom, so much of the income of the body corporate for that year or period as is equal to the amount which has been or could have been so apportioned to the trustees of or a beneficiary under the settlement, but, where the settlor is not domiciled, or not resident, or not ordinarily resident, in the United Kingdom in any year of assessment, does not include income arising under the settlement in that year in respect of which the settlor, if he were actually entitled thereto, would not be chargeable to income tax by deduction or otherwise by reason of his not being so domiciled, resident or ordinarily resident. 2 For the purpose of adapting the definition in subsection (1) above in relation to Case VII of Schedule D, references in that definition to income shall include the amount of any gains arising from the acquisition and disposal of chargeable assets subject to the like deduction for losses so arising as would be made under Case VII; but that amount shall be left out of account under section 450 above. 3 In this Chapter, "settlement" includes any disposition, trust, covenant, agreement or arrangement, and " settlor ", in relation to a settlement, means any person by whom the settlement was made ; and a person shall be deemed for the purposes of this Chapter to have made a settlement if he has made or entered into the settlement directly or indirectly, and in particular but without prejudice to the generality of the preceding words) if he has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement. 4 For the purposes of this Chapter, a body corporate shall be deemed to be connected with a settlement in any year of assessment if it is at any time in the year a close company (or only not a close company because it is not resident in the United Kingdom) and the participators then include the trustees of or a beneficiary under the settlement. 5 In relation to income arising before the year 1966-67 subsection (4) above shall not apply and, for the purposes of this Chapter, a body corporate shall be deemed to have been connected with a settlement in any year of assessment if any of the income thereof for any year or period ending in that year of assessment — a has been apportioned to the trustees of or a beneficiary under the settlement under Chapter III of Part IX of the Income Tax Act 1952, or could have been so apportioned if the body corporate had been incorporated in the United Kingdom, or b could have been so apportioned if the income of the body corporate for that year or period had not been distributed to the members thereof and, in the case of a body corporate incorporated outside the United Kingdom, if the body corporate had been incorporated in the United Kingdom. 6 The provisions of this Chapter shall be in addition to and not in derogation of any other provisions of this Act. Ascertainment of undistributed income 455 For the purposes of this Chapter, income arising under a settlement in any year of assessment shall be deemed not to have been distributed if and to the extent that it exceeds the aggregate amount of — a the sums, excluding all payments of interest, paid in that year by the trustees of the settlement to any persons (not being a body corporate connected with the settlement and not being the trustees of another settlement made by the settlor or the trustees of the settlement) in such manner that they fall to be treated in that year, otherwise than by virtue of section 451 above, as the income of those persons for the purposes of income tax, or would fall to be so treated if those persons were domiciled, resident and ordinarily resident in the United Kingdom and the sums had been paid to them therein, and b subject to section 456 below, any expenses of the trustees of the settlement paid in that year which, in the absence of any express provision of the settlement, would be properly chargeable to income, in so far as such expenses are not included in the sums mentioned in paragraph (a) of this section, and c in a case where the trustees of the settlement are trustees for charitable purposes, the amount by which any income arising under the settlement in that year in respect of which exemption from tax may be granted under section 360 of this Act exceeds the aggregate amount of any such sums or expenses as aforesaid paid in that year which are properly chargeable to that income. Ascertainment of undistributed income: interest paid by trustees 456 1 Paragraph (b) of section 455 above shall apply to any interest paid by the trustees of the settlement subject to the provisions of this section. 2 If no sums within paragraph (a) of that section were paid to any person other than the settlor, or the wife or husband of the settlor, the whole of the interest shall be excluded from the said paragraph (b). 3 If any sum was so paid, there shall be excluded from the said paragraph (b) a fraction A − B A of the interest where — A is the whole of the income arising under the settlement in the year of assessment, less the sums referred to in the said paragraph (b) apart from this section, and B is so much of the sums within the said paragraph (a) as is paid to persons other than the settlor, or the wife or husband of the settlor. 4 This section shall not apply to interest in respect of which relief from tax at the standard rate is allowable under any provision of the Income Tax Acts or to interest payable to the settlor or the wife or husband of the settlor (if living with the settlor). 5 Nothing in this section shall be construed as affecting the liability to tax of the person receiving or entitled to the interest. CHAPTER IV Surtax Liability of Settlors in Certain Cases Settlements made on or after 7th April 1965 457 1 Where, during the life of the settlor, income arising under a settlement made on or after 7th April 1965 is, under the settlement and in the events that occur, payable to or applicable for the benefit of any person other than the settlor, then, unless, under the settlement and in the said events, the income either — a consists of annual payments made under a partnership agreement to or for the benefit of a former member, or the widow or dependants of a deceased former member, of the partnership, being payments made under a liability incurred for full consideration, or b is excluded by subsection (2) below, or c is income arising under a settlement made by one party to a marriage by way of provision for the other after the dissolution or annulment of the marriage, or while they are separated under an order of a court or under a separation agreement or in such circumstances that the separation is likely to be permanent, being income payable to or applicable for the benefit of that other party, or d is income from property of which the settlor has divested himself absolutely by the settlement, or e is income which, by virtue of some provision of the Income Tax Acts not contained in this Chapter, is to be treated for the purposes of those Acts as income of the settlor, the income shall be treated for the purposes of surtax as the income of the settlor and not as the income of any other person. 2 Subsection (1) above shall not apply to income consisting of annual payments made by an individual, in connection with the acquisition by him of the whole or part of a business — a to or for the benefit of the individual from whom it is acquired or, if he is dead, to or for the benefit of his widow or dependants, or b if the acquisition was from a partnership, to or for the benefit of a former member, or the widow or dependants of a deceased former member, of that or any preceding partnership, or to or for the benefit of an individual from whom the business or part was acquired by that or any preceding partnership or, if he is dead, to or for the benefit of the widow or dependants of such an individual, being payments made under a liability incurred for full consideration. 3 Payments made in respect of any individual under a liability incurred in connection with an acquisition from a partnership shall only be excluded from the operation of subsection (1) above by virtue of subsection (2)(b) above if, and to the extent that, they are made in substitution for, or matched by reductions in, other payments which would themselves be excluded from its operation. 4 Where the right of a former member of a partnership to payments falling due not more than ten years after he ceased to be a member of that partnership has devolved on his death, subsections (1)(a) and (2) above shall apply to the payments as they would apply if he had not died. 5 For the purposes of this section — a " former member ", in relation to a partnership, means an individual who has ceased to be a member of that partnership on retirement or death, b a partnership becomes a " preceding partnership " of another if it transfers its business or part of its business to another and one or more individuals are members of both, and any preceding partnership of the transferor by reference to any part of the business transferred shall also become a preceding partnership of the transferee. 6 The settlor shall not be deemed for the purposes of this section to have divested himself absolutely of any property if that property or any income therefrom or any property directly or indirectly representing proceeds of, or of income from, that property or any income therefrom is, or will or may become, payable to or applicable for the benefit of the settlor or the wife or husband of the settlor in any circumstances whatsoever: Provided that a settlor shall not be deemed not to have divested himself absolutely of any property by reason only that that property or income therefrom or any such other property or income as aforesaid may become payable or applicable as aforesaid in the event of — a the bankruptcy of some person who is or may become beneficially entitled to any such property or income; or b an assignment of or charge on any such property or income being made or given by some such person; or c in the case of a marriage settlement, the death of both parties to the marriage and of all or any of the children of the marriage ; or d the death under the age of twenty-five or some lower age of some person who would be beneficially entitled to that property or income on attaining that age. Settlements made before 7th April 1965, but on or after 10th April 1946 458 1 Where, during the life of the settlor, income arising under a settlement made before 7th April 1965, but on or after 10th April 1946, is, under the settlement and in the events that occur, payable to or applicable for the benefit of any person other than the settlor, then, unless under the settlement and in the said events, the income either — a is payable to an individual for his own use, or b is applicable for the benefit of an individual named in that behalf in the settlement or of two or more individuals named in that behalf therein, or c is applicable for the benefit of a child or children of an individual named in that behalf in the settlement, or d is income from property of which the settlor has divested himself absolutely by the settlement, or e is income which, by virtue of some provision of the Income Tax Acts not contained in this Chapter, is to be treated for the purposes of those Acts as income of the settlor, the income shall be treated for the purposes of surtax as the income of the settlor and not as the income of any other person : Provided that the exceptions provided for by paragraphs (a), (b) and (c) of this subsection shall not apply where the named individual or individuals or, in the case of the said paragraph (c) , either the named individual or the child or any of the children in question, is in the service of the settlor or accustomed to act as the solicitor or agent of the settlor. 2 The settlor shall not be deemed for the purposes of this section to have divested himself absolutely of any property if that property or any income therefrom or any property directly or indirectly representing proceeds of, or of income from, that property or any income therefrom is, or will or may become, payable to him or applicable for his benefit in any circumstances whatsoever: Provided that a settlor shall not be deemed not to have divested himself absolutely of any property by reason only that that property or income therefrom or any such other property or income as aforesaid may become payable to him or applicable for his benefit in the event of — a the bankruptcy of some person who is or may become beneficially entitled to any such property or income, or b an assignment of or charge on any such property or income being made or given by some such person, or c in the case of a marriage settlement, the death of both parties to the marriage and of all or any of the children of the marriage, or d the death under the age of twenty-five or some lower age of some person who would be beneficially entitled to that property or income on attaining that age. Supplemental provisions for Chapter IV 459 1 In this Chapter " income arising under a settlement ", " settlement" and " settlor" have the meanings assigned to them for the purposes of Chapter III above by section 454 above. 2 Section 452 above shall have effect in relation to this Chapter as it has effect in relation to Chapter III above. PART XVII Tax Avoidance CHAPTER I Cancellation of Tax Advantages from certain Transactions in Securities Cancellation of tax advantage 460 1 Where — a in any such circumstances as are mentioned in section 461 below, and b in consequence of a transaction in securities or of the combined effect of two or more such transactions, a person is in a position to obtain, or has obtained, a tax advantage, then unless he shows that the transaction or transactions were carried out either for bona fide commercial reasons or in the ordinary course of making or managing investments, and that none of them had as their main object, or one of their main objects, to enable tax advantages to be obtained, this section shall apply to him in respect of that transaction or those transactions: Provided that this section shall not apply to him if — i the transaction or transactions in securities were carried out, and ii any change in the nature of any activities carried on by a person, being a change necessary in order that the tax advantage should be obtainable, was effected, before 5th April 1960. 2 Subject to section 468(3) below, for the purposes of this Chapter a tax advantage obtained or obtainable by a person shall be deemed to be obtained or obtainable by him in consequence of a transaction in securities or of the combined effect of two or more such transactions, if it is obtained or obtainable in consequence of the combined effect of the transaction or transactions and of the liquidation of a company. 3 Where this section applies to a person in respect of any transaction or transactions, the tax advantage obtained or obtainable by him in consequence thereof shall be counteracted by such of the following adjustments, that is to say an assessment, the nullifying of a right to repayment or the requiring of the return of a repayment already made (the amount to be returned being chargeable under Case VI of Schedule D and recoverable accordingly), or the computation or recomputation of profits or gains, or liability to tax, on such basis as the Board may specify by notice in writing served on him as being requisite for counteracting the tax advantage so obtained or obtainable. 4 Subject to section 468(3) below, an assessment under subsection (3) above to counteract a tax advantage consisting of the avoidance or reduction of an assessment to income tax which would be payable by a company under section 232(2) of this Act (Schedule F) in respect of a distribution may be made under Case VI of Schedule D on a person other than the company, and may be so made in addition to any assessment to counteract a tax advantage in respect of surtax. An assessment so made on a person other than the company may be of an amount arrived at without regard to any set-off to which the company would have been entitled under Schedule 9 to this Act. 5 Subject to section 468(3) below, in the case of a man and his wife living with him (whether or not she is separately assessed to tax), this Chapter shall be treated as applying to him in respect of any transaction or transactions as it would apply if any property, rights or liabilities of the wife were his property, rights or liabilities in relation to which she had acted only as nominee for him, and shall be treated as applying to the wife in respect of any transaction or transactions as it would apply it any property, rights or liabilities of the man were her property, rights or liabilities in relation to which he had acted only as nominee for her: Provided that no adjustment made under subsection (3) above by reference to any transaction or transactions to counteract any tax advantage shall by virtue of this subsection be so made that a person bears more tax than if the transaction or transactions had not had as a consequence that any relief or increased relief from, or repayment or increased repayment of, income tax, or any deduction in computing profits or gains, was obtained or obtainable, or that the way in which receipts accrued was such that the recipient did not pay or bear tax on them. 6 The Board shall not give a notice under subsection (3) above until they have notified the person in question that they have reason to believe that this section may apply to him in respect of a transaction or transactions specified in the notification ; and if within thirty days of the issue of the notification the said person, being of opinion that this section does not apply to him as aforesaid, makes a statutory declaration to that effect stating the facts and circumstances upon which his opinion is based, and sends it to the Board, then subject to subsection (7) below this section shall not apply to him in respect of the transaction or transactions. 7 If, when a statutory declaration has been sent to the Board under subsection (6) above, they see reason to take further action in the matter — a the Board shall send to the tribunal a certificate to that effect, together with the statutory declaration, and may also send therewith a counter-statement with reference to the matter; b the tribunal shall take into consideration the declaration and the certificate, and the counter-statement, if any, and shall determine whether there is or is not a prima facie case for proceeding in the matter, and if they determine that there is no such case this section shall not apply to the person in question in respect of the transaction or transactions: Provided that such a determination shall not affect the operation of this section in respect of transactions which include that transaction or some or all of those transactions and also include another transaction or other transactions. 8 Subject to section 468(3) below, any notice or notification under subsection (3) or subsection (6) above, or under section 465 below, concerning the application of this section to a person who has died may be given or issued to his personal representatives, and the provisions of this Chapter relating to the making of a statutory declaration, to rights of appeal and to the giving of information shall be construed accordingly. 9 No other provision contained in the Tax Acts shall be construed as limiting the powers conferred by this section, but nothing in this section shall authorise the making of an assessment later than six years after the chargeable period to which the tax advantage relates. The prescribed circumstances 461 The circumstances mentioned in section 460(1) above are — A That in connection with the distribution of profits of a company, or in connection with the sale or purchase of securities being a sale or purchase followed by the purchase or sale of the same or other securities, the person in question, being entitled by reason of — a any exemption from tax, or b the setting-off of losses against profits or income, or c the giving of group relief, to recover tax in respect of dividends received by him, receives an abnormal amount by way of dividend OR B 1 That in connection with the distribution of profits of a company, or in connection with the sale or purchase of securities being a sale or purchase followed by the purchase or sale of the same or other securities, the person in question becomes entitled — a in respect of securities held or sold by him, or b subject to section 468(3) below, in respect of securities formerly held by him (whether sold by him or not), to a deduction in computing profits or gains by reason of a fall in the value of the securities resulting from the payment of a dividend thereon or from any other dealing with any assets of a company. 2 Where a company in the circumstances mentioned in sub-paragraph (1) above becomes entitled to a deduction as there mentioned, section 460 above shall apply in relation to any tax advantage obtained or obtainable in consequence of that deduction by another company by way of group relief as if obtained or obtainable by the other company in circumstances falling within sub-paragraph (1) above. OR C 1 That the person in question receives, in consequence of a transaction whereby any other person — a subsequently receives, or has received, an abnormal amount by way of dividend ; or b subsequently becomes entitled, or has become entitled, to a deduction as mentioned in paragraph B(1) above, a consideration which either — i is, or represents the value of, assets which are (or apart from anything done by the company in question would have been) available for distribution by way of dividend, or ii is received in respect of future receipts of the company, or iii is, or represents the value of, trading stock of the company, and the said person so receives the consideration that he does not pay or bear tax on it as income. 2 The assets mentioned in sub-paragraph (1) above do not include assets which (while of a description which under the law of the country in which the company is incorporated is available for distribution by way of dividend) are shown to represent a return of sums paid by subscribers on the issue of securities. OR D 1 That in connection with the distribution of profits of a company to which this paragraph applies, the person in question so receives as is mentioned in paragraph C(1) above such a consideration as is therein mentioned. 2 The companies to which this paragraph applies are — a any company under the control of not more than five persons, and b any other company which does not satisfy the condition that its shares or stocks or some class thereof (disregarding debenture stock, preferred shares or preferred stock), are authorised to be dealt in on a stock exchange in the United Kingdom, and are so dealt in (regularly or from time to time), so, however, that this paragraph does not apply to a company under the control of one or more companies to which this paragraph does not apply. 3 Subsections (2) to (6) of section 302 of this Act (definition of control) shall apply for the purposes of this paragraph. OR E 1 That in connection with the transfer directly or indirectly of assets of a company to which paragraph D above applies to another such company, or in connection with any transaction in securities in which two or more companies to which paragraph D above applies are concerned, the person in question receives non-taxable consideration which is or represents the value of assets available for distribution by such a company, and which consists of any share capital or any security (as defined by section 237(5) of this Act) issued by such a company. 2 So far as sub-paragraph (1) above relates to share capital other than redeemable share capital, it shall not apply unless and except to the extent that the share capital is repaid (in a winding-up or otherwise), and where section 460 above applies to a person by virtue of sub-paragraph (1) above on the repayment of any share capital any assessment to tax under subsection (3) of the said section 460 shall be an assessment to tax for the year in which the share capital is repaid. 3 In this paragraph — " assets available for distribution " means assets which are, or apart from anything done by the company in question would have been, available for distribution by way of dividend, or trading stock of the company, " non-taxable ", in relation to a person receiving consideration, means that the recipient does not pay or bear tax on it as income (apart from the provisions of this Chapter), " share " includes stock and any other interest of a member in a company, and the references in sub-paragraph (2) above to the repayment of share capital include references to any distribution made in respect of any shares in a winding-up or dissolution of the company. 4 This paragraph has effect subject to section 468(3) below. Appeal against Board's notice 462 1 Any person to whom notice has been given under subsection (3) of section 460 above may within thirty days by notice to the Board appeal to the Special Commissioners on the grounds that that section does not apply to him in respect of the transaction or transactions in question, or that the adjustments directed to be made are inappropriate. 2 If he or the Board are dissatisfied with the determination of the Special Commissioners they may, on giving notice to the clerk to the Special Commissioners within thirty days after the determination, require the appeal to be re-heard by the tribunal, and the Special Commissioners shall transmit to the tribunal any document in their possession which was delivered to them for the purposes of the appeal. 3 Where notice is given under subsection (2) above, the tribunal shall re-hear and determine the appeal and shall have and exercise the same powers and authorities in relation to the appeal as the Special Commissioners might have and exercise, and the determination of the tribunal thereon shall be final and conclusive: Provided that section 56 of the Taxes Management Act 1970 (statement of case for opinion of High Court) shall apply with the necessary modifications in the case of any such rehearing and determination as it applies in the case of appeals to the General or Special Commissioners. 4 On an appeal under this section the Special Commissioners or the tribunal shall have power to cancel or vary a notice under subsection (3) of section 460 above or to vary or quash an assessment made in accordance with such a notice, but the bringing of an appeal or the statement of a case shall not affect the validity of a notice given or of any other thing done in pursuance of the said subsection (3) pending the determination of the proceedings. The tribunal 463 For the purposes of this Chapter the tribunal shall consist of — a a chairman, being either the chairman of the Board of Referees appointed under section 26(7) of the Capital Allowances Act 1968 or a person appointed by the Lord Chancellor, for a specified period or in relation to a specified case, to act as chairman of the tribunal in the absence of the chairman of the Board of Referees on account of illness or for any other reason, and b two or more persons appointed by the Lord Chancellor as having special knowledge of and experience in financial or commercial matters. Procedure for clearance in advance 464 1 The following provisions shall have effect where in pursuance of this section a person furnishes to the Board particulars of a transaction or transactions effected or to be effected by him, that is to say — a if the Board are of opinion that the particulars, or any further information furnished in pursuance of this paragraph, are not sufficient for the purposes of this section, they shall within thirty days of the receipt thereof notify to the said person what further information they require for those purposes, and unless that further information is furnished to the Board within thirty days from the notification, or such further time as the Board may allow, they shall not be required to proceed further under this section ; b subject to the preceding paragraph, the Board shall within thirty days of the receipt of the particulars, or, where that paragraph has effect, of all further information required, notify the said person whether or not they are satisfied that the transaction or transactions as described in the particulars were or will be such that no notice under section 460(3) above ought to be given in respect of it or them, and, subject to the following provisions of this section, if the Board notify him that they are so satisfied section 460 above shall not apply to him in respect of that transaction or those transactions. 2 If the particulars, and any further information given under this section with respect to any transaction or transactions, are not such as to make full and accurate disclosure of all facts and considerations relating thereto which are material to be known to the Board, any notification given by the Board under this section shall be void. 3 In no event shall the giving of a notification under this section with respect to any transaction or transactions prevent section 460 above applying to a person in respect of transactions which include that transaction or all or some of those transactions and also include another transaction or other transactions. Power to obtain information 465 Where it appears to the Board that by reason of any transaction or transactions a person may be a person to whom section 460 above applies, the Board may by notice in writing served on him require him, within such time not less than twenty-eight days as may be specified in the notice, to furnish information in his possession with respect to the transaction or any of the transactions, being information as to matters, specified in the notice, which are relevant to the question whether a notice under subsection (3) of that section should be given in respect of him. Meaning of " tax advantage " 466 1 In this Chapter " tax advantage " means a relief or increased relief from, or repayment or increased repayment of, tax, or the avoidance or reduction of an assessment to tax or the avoidance of a possible assessment thereto, whether the avoidance or reduction is effected by receipts accruing in such a way that the recipient does not pay or bear tax on them, or by a deduction in computing profits or gains. 2 Subject to section 468(3) below, for the purposes of subsection (1) above it shall be assumed that a person who might have received from a company any dividend or other distribution (as defined for the purposes of the Corporation Tax Acts) would have borne the income tax chargeable under Schedule F which the company would have had to account for under section 232(2) of this Act in respect of the distribution. Further interpretation 467 1 In this Chapter — " company " includes any body corporate, references to dividends include references to interest, " securities " — includes shares and stock, and subject to section 468(3) below, in relation to a company not limited by shares (whether or not it has a share capital) includes also a reference to the interest of a member of the company as such, whatever the form of that interest, " trading stock " has the same meaning as in section 137 of this Act, " transaction in securities " includes transactions, of whatever description, relating to securities, and in particular — the purchase, sale or exchange of securities, the issuing or securing the issue of, or applying or subscribing for, new securities, the altering, or securing the alteration of, the rights attached to securities. 2 In section 461 above — a references to profits include references to income, reserves or other assets, b references to distribution include references to transfer or realisation (including application in discharge of liabilities), and c references to the receipt of consideration include references to the receipt of any money or money's worth. 3 For the purposes of section 461 above an amount received by way of dividend shall be treated as abnormal if the Board, the Special Commissioners or the tribunal, as the case may be, are satisfied — a in the case of a dividend at a fixed rate, that it substantially exceeds the amount which the recipient would have received if the dividend had accrued from day to day and he had been entitled only to so much of the dividend as accrued while he held the securities, so however that an amount shall not be treated as abnormal by virtue only of this paragraph if during the six months beginning with the purchase of the securities the recipient does not sell or otherwise dispose of, or acquire an option to sell, any of those securities or any securities similar to those securities, or b in any case, that it substantially exceeds a normal return on the price paid for the securities: Provided that there shall be disregarded any amount received by a company before 30th April 1969 by way of dividend from an associated company in so far as the dividend was paid out of income arising to the company paying it since the two companies became associated companies, and Schedule 17 to the Finance Act 1965 shall with the necessary modifications apply for determining the extent to which the dividend was so paid. In this proviso references to an associated company or companies shall be construed in accordance with paragraphs (c) and (d) of section 486(4) of this Act. 4 For the purposes of subsection (3) (a) above securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred, and for those purposes rights guaranteed by the Treasury shall be treated as rights against the Treasury. Commencement and other transitory provisions 468 1 No notification shall be issued after 5th April 1970 under section 28(4) of the Finance Act 1960 (which is re-enacted in section 460(6) above) and this Chapter, including the said section 460(6), shall have effect (for all purposes and by reference to all chargeable periods, times and occasions on or before the said date or later) to the exclusion of the enactments re-enacted in this Chapter except in relation to matters and proceedings consequent upon a notification issued (on or before the said date) under the said section 28(4). 2 Subject to subsection (1) above, in relation to tax advantages related to corporation tax this Chapter shall apply (without prejudice to any general provision of this Act or the Finance Act 1965 for the continuity of income tax and corporation tax) to transactions taking place before the charge to corporation tax became effective. 3 The provisions of this Chapter specified in subsection (4) below shall not apply to a person in respect of any transaction or transactions in securities if they were carried out before the relevant date, and if any change in the nature of any activities carried on by any person, being a change necessary in order that the tax advantage should be obtainable in consequence of the transaction or transactions, was also effected before that date, but nothing in those provisions shall be taken to prejudice the operation of this Chapter, without those provisions, in any such case. In this subsection " the relevant date " is — a in relation to the provisions in column 1 in subsection (4) below, 10th April 1962, and b in relation to the provisions in column 2 of that subsection, 3rd May 1966. 4 The said provisions are — Relevant date: 10th April 1962 Section 460(2)(5) Relevant date: 3rd May 1966 Section 460(4)(8) In section 461 paragraph B(1)(b) In section 461 paragraph E In section 467(1)paragraph(6)of the definition of " securities " Section 466(2) Subsection (5) below. 5 Subject to subsections (3) and (4) above, paragraphs A and B(2) of section 461 above shall have effect as if the references to group relief included references to relief under section 20 of the Finance Act 1953 (which related to subvention payments and was superseded by group relief). 6 As respects any period before the coming into force of paragraph 15 of Schedule 15 to the Finance Act 1965, paragraph D(3) of section 461 and the proviso to section 467(3) of this Act (which re-enact part of the said paragraph 15) shall not apply, and the relevant provisions of the Finance Act 1960 as originally enacted which were replaced by the said paragraph 15 shall be applied instead. CHAPTER II Other Provisions about Securities Sale and repurchase of securities 469 1 Where the owner of any securities (in this subsection and subsection (3) below referred to as " the owner") agrees to sell or transfer those securities and by the same or any collateral agreement — a agrees to buy back or re-acquire the securities, or b acquires an option, which he subsequently exercises, to buy back or re-acquire the securities, then, if the result of the transaction is that any interest becoming payable in respect of the securities is receivable otherwise than by the owner, the following provisions shall have effect — i the interest payable as aforesaid shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed for all the purposes of the Tax Acts to be the income of the owner and not to be the income of any other person; and ii if the securities are of such a character that the interest payable in respect thereof may be paid without deduction of tax, the owner shall be chargeable to tax at the standard rate under Case VI of Schedule D in respect of the interest which is deemed to be his income as aforesaid, unless he shows that it has borne tax at the standard rate. 2 In relation to corporation tax — a subject to the provisions of the Tax Acts about distributions, interest deemed under subsection (1)(i) above to be the income of the owner shall be chargeable under Case VI of Schedule D, and b subsection (1)(ii) above shall not apply. 3 The references in subsection (1) above to buying back of reacquiring the securities shall be deemed to include references to buying or acquiring similar securities, so, however, that where similar securities are bought or acquired, the owner shall be under no greater liability to tax than he would have been under if the original securities had been bought back or re-acquired. 4 Where any person carrying on a trade which consists wholly or partly in dealing in securities agrees to buy or acquire any securities, and by the same or any collateral agreement — a agrees to sell back or re-transfer the securities, or b acquires an option, which he subsequently exercises, to sell back or re-transfer the securities, then, if the result of the transaction is that any interest becoming payable in respect of the securities is receivable by him, no account shall be taken of the transaction in computing for any of the purposes of the Tax Acts the profits arising from or loss sustained in the trade. 5 Subsection (4) above shall have effect, subject to any necessary modifications, as if references to selling back or re-transferring the securities included references to selling or transferring similar securities. 6 This section shall not apply to any income to which section 496(3) of this Act (transactions associated with loans or credit) applies. 7 For the purposes of this section — a " interest " includes a dividend, b " securities " includes stocks and shares, c securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred. 8 The Board may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days), in respect of all securities of which he was the owner at any time during the period specified in the notice, such particulars as they consider necessary for the purposes of this section and for the purpose of discovering whether tax has been borne in respect of the interest on all those securities. Transfers of income arising from securities 470 1 Where in any chargeable period the owner of any securities (in this section referred to as " the owner ") sells or transfers the right to receive any interest payable (whether before or after the sale or transfer) in respect of the securities without selling or transferring the securities, then, for all the purposes of the Tax Acts, that interest, whether it would or would not be chargeable to tax apart from the provisions of this section — a shall be deemed to be the income of the owner or, in a case where the owner is not the beneficial owner of the securities and some other person (hereafter in this section referred to as " a beneficiary ") is beneficially entitled to the income arising from the securities, the income of the beneficiary, and b shall be deemed to be the income of the owner or beneficiary for that chargeable period, and c shall not be deemed to be the income of any other person: Provided that, in the case of a sale or other realisation the proceeds whereof are chargeable to tax under Schedule C or under section 159(3) of this Act (foreign dividends, etc.), the interest so deemed to be the income of the owner or beneficiary shall be deemed to be equal in amount to the amount of those proceeds. 2 Nothing in subsection (1) of this section shall affect any provision of this Act authorising or requiring the deduction of income tax from any interest which is deemed to be the income of the owner or beneficiary as aforesaid or from the proceeds of any subsequent sale or other realisation of the right to receive that interest: Provided that the proceeds of any such subsequent sale or other realisation shall not, for any of the purposes of the Tax Acts, be deemed to be the income of the seller or the person on whose behalf the right is otherwise realised. 3 Where the securities are of such a character that the interest payable in respect thereof may be paid without deduction of income tax, the owner or beneficiary shall be chargeable to tax at the standard rate under Case VI of Schedule D in respect of any interest which is deemed to be his income by virtue of this section, unless he shows that it has borne tax at the standard rate or that the proceeds of any sale or other realisation of the right to receive that interest have been charged to tax under Schedule C or under section 159(3) of this Act: Provided that, in any case where if the interest had been chargeable under Case IV or Case V of Schedule D, the computation of tax would have been made by reference to the amount received in the United Kingdom, the tax under Case VI shall be computed on the full amount of the sums which have been or will be received in the United Kingdom in the year of assessment or any subsequent year in which the owner remains the owner of the securities. 4 In relation to corporation tax subsection (3) above shall not apply and the following provisions of this subsection shall have effect. Subject to the provisions of the Tax Acts about distributions, the owner or beneficiary shall, in respect of any interest which is deemed to be his income by virtue of this section, be chargeable to corporation tax under Case VI of Schedule D unless he shows that the proceeds of any sale or other realisation of the right to receive that interest have been charged to tax under Schedule C or under section 159(3) of this Act. 5 In this section — " interest " includes dividends, annuities and shares of annuities, and " securities " includes stocks and shares. 6 The Board may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days), in respect of all securities of which he was the owner at any time during the period specified in the notice, with such particulars as they consider necessary tor the purposes of this section and for the purpose of discovering whether — a tax has been borne in respect of the interest on all those securities; or b the proceeds of any sale or other realisation of the right to receive the interest on the securities have been charged to tax under Schedule C or section 159(3) of this Act. Purchase and sale of securities Application of following sections 471 1 Subject as hereinafter provided sections 472, 473 and 474 below relate to cases of a purchase by a person (in those sections referred to as " the first buyer ") of any securities and their subsequent sale by him, the result of the transaction being that interest becoming payable in respect of the securities (in those sections referred to as " the interest") is receivable by the first buyer. 2 The said sections do not relate to cases where — a the time elapsing between the purchase by the first buyer and his taking steps to dispose of the securities exceeded six months, or b that time exceeded one month and it is shown to the satisfaction of the Board that the purchase and sale were each effected at the current market price, and that the sale was not effected in pursuance of an agreement or arrangement made before or at the time of the purchase. The jurisdiction of the General Commissioners or Special Commissioners on any appeal shall include jurisdiction to review any relevant decision taken by the Board in the exercise of then-functions under this subsection. 3 The reference in subsection (2) above to the first buyer taking steps to dispose of the securities shall be construed — a if he sold them in the exercise of an option he had acquired, as a reference to his acquisition of the option, b in any other case, as a reference to his selling them. 4 For the purposes of this and the said three sections a sale of securities similar to, and of the like nominal amount as, securities previously bought (hereinafter referred to as " the original securities ") shall be equivalent to a sale of the original securities, and subsection (3) above shall apply accordingly; and where the first buyer bought parcels of similar securities at different times a subsequent sale of any of the securities shall so far as may be be related to the last to be bought of the parcels, and then to the last but one, and so on: Provided that a person shall be under no greater liability to tax by virtue of this subsection than he would have been under if instead of selling the similar securities he had sold the original securities. 5 Where at the time when a trade is, or is deemed to be, set up and commenced any securities form part of the trading stock belonging to the trade, those securities shall be treated for the purposes of this section as having been sold at that time in the open market by the person to whom they belonged immediately before that time and as having been purchased at that time in the open market by the person thereafter engaged in carrying on the trade ; and, subject to the preceding provisions of this subsection, where there is a change in the persons engaged in carrying on a trade which is not a change on which the trade is deemed to be discontinued the provisions of this section shall apply in relation to the person so engaged after the change as if anything done to or by his predecessor had been done to or by him. 6 For the purposes of this and the said three sections — a " interest" includes a dividend ; b " person " includes any body of persons, and references to a person entitled to any exemption from tax include, in a case of an exemption expressed to apply to income of a trust or fund, references to the persons entitled to make claims for the granting of that exemption ; c " securities " includes stocks and shares ; d securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred, and for the purposes of this paragraph rights guaranteed by the Treasury shall be treated as rights against the Treasury. Dealers in securities 472 1 Subject to the provisions of this section, if the first buyer is engaged in carrying on a trade which consists of or comprises dealings in securities, then in computing for any of the purposes of the Tax Acts the profits arising from or loss sustained in the trade the price paid by him for the securities shall be reduced by the appropriate amount in respect of the interest, as determined in accordance with section 475 below. 2 Subsection (1) of this section shall not apply if the first buyer — a is in the opinion of the Board bona fide carrying on the business of a discount house in the United Kingdom, or b is a member of the London Stock Exchange who is recognised by the committee thereof as carrying on the business of a jobber, or c is a member of any other stock exchange in the United Kingdom who is recognised by the committee thereof as carrying on the business of a dealer, and the securities were bought in the ordinary course of his said business and, in the case of a dealer such as is mentioned in paragraph (c) of this subsection, were securities in which he was authorised by the said committee to deal. 3 Subsection (1) of this section shall not apply if the purchase of the securities by the first buyer and their resale, or as the case may be the subsequent sale of similar securities, constitute a transaction which is to be left out of account in computing profits or losses by virtue of section 469(4) above. 4 Subsection (1) of this section shall not apply if the securities are overseas securities bought by the first buyer on a stock exchange outside the United Kingdom in the ordinary course of his trade as a dealer in securities and the following conditions are satisfied, namely — a the interest is brought into account in computing for the purposes of the Tax Acts the profits arising from or loss sustained in the trade, and b where credit against tax would fall to be allowed in respect of the interest under section 497 or section 498 of this Act (double taxation relief), the first buyer elects that credit shall not be so allowed. In this subsection " overseas securities " means securities of the government of, or of a body of persons resident in, any country or territory outside the United Kingdom and the Republic of Iceland. Persons entitled to exemptions 473 1 If the first buyer is entitled under any enactment to an exemption from tax which, apart from this subsection, would extend to the interest, then the exemption shall not extend to an amount equal to the appropriate amount in respect of the interest, as determined in accordance with section 475 below: Provided that if the first buyer is entitled as aforesaid and any annual payment is payable by him out of the interest, the annual payment shall be deemed as to the whole thereof to be paid out of profits or gains not brought into charge to income tax, and section 53 of this Act shall apply accordingly. 2 This section shall not apply where the exemption arises from the residence of the first buyer in the Republic of Ireland. Persons other than dealers in securities 474 1 If the first buyer carries on a trade not falling within section 472 above, then in ascertaining whether any or what repayment of income tax is to be made to him under section 168 of this Act by reference to any loss sustained in the trade and the amount of his income for the year of assessment his income for which includes the interest, there shall be left out of account — a the appropriate amount in respect of the interest, as determined in accordance with section 475 below, and b any tax paid on that amount. 2 Where the first buyer is a company which does not carry on a trade falling within section 472 above, the appropriate amount in respect of the interest, as determined in accordance with section 475 below, and any tax paid in respect of or deducted from that amount shall be disregarded except that, for the purposes of corporation tax on chargeable gains — a where that appropriate amount is determined in accordance with section 475(2) below, the appropriate proportion of the net interest receivable by the first buyer as mentioned in that subsection, and b where that appropriate amount is determined in accordance with section 475(6) below, the net amount of interest corresponding to the gross interest referred to in that subsection, shall be treated as if it were a capital distribution within the meaning of Part III of the Finance Act 1965 received in respect of the holding of the securities concerned. This subsection applies to any interest received after 29th April 1969. Meaning of " appropriate amount in respect of" interest 475 1 For the purposes of section 472 above the appropriate amount in respect of the interest is the appropriate proportion of the net interest receivable by the first buyer. 2 For the purposes of sections 473 and 474 above the appropriate amount in respect of the interest is the gross amount corresponding with the appropriate proportion of the net interest receivable by the first buyer. 3 For the purposes of this section the appropriate proportion is the proportion which — a the period beginning with the date on which the securities were first quoted in the official list of the London Stock Exchange at a price excluding the value of the interest payment last payable before the interest receivable by the first buyer, and ending with the day before the day on which the first buyer bought the securities, bears to — b the period beginning with the said date and ending with the day before the first date after the purchase by the first buyer on which the securities are quoted in the said list at a price excluding the value of the interest receivable by the first buyer. 4 Where the interest receivable by the first buyer was the first interest payment payable in respect of the securities, paragraphs (a) and (b) of subsection (3) above shall have effect with the substitution, for references to the date on which the securities were first quoted as mentioned in the said paragraph (a), of the beginning of the period for which the interest was payable: Provided that where the capital amount of the securities was not fully paid at the beginning of the said period and one or more instalments of capital were paid during that period — a the interest shall be treated as divided into parts, calculated by reference to the amount of the interest attributable to the capital paid at or before the beginning of the said period and the amount thereof attribuable to each such instalment, and b treating each of the said parts as interest payable for the said period or, where the part was calculated by reference to any such instalment, as interest payable for the part of the said period beginning with the payment of the instalment, there shall be calculated, in accordance with the preceding provisions of this section, the amount constituting the appropriate proportion of each part, and c the appropriate proportion of the interest for the purposes of this section shall be the proportion thereof constituted by the sum of the said amounts. 5 In relation to securities not quoted in the official list of the London Stock Exchange, subsection (3) above shall have effect with the substitution for the periods therein mentioned of such periods as in the opinion of the Commissioners having jurisdiction in the matter, correspond therewith in the case of the securities in question. 6 Where the securities are of a description such that under the rules of the London Stock Exchange the bargain price is increased, where interest is receivable by the buyer, by reference to gross interest accruing before the bargain date, the preceding subsections shall not apply but for the purposes of sections 472, 473 and 474 above the appropriate amount in respect of the interest shall be the amount of the increase in the bargain price. Miscellaneous Company dealing in securities: distribution materially reducing value of holding 476 1 Subsection (2) below applies where a company has, as a dealing company, a holding in another company resident in the United Kingdom (being a body corporate), and — a the holding amounts to, or is an ingredient in a holding amounting to, 10 per cent. of all holdings of the same class in that company, and b after 29th April 1969 a distribution is, or two or more distributions are, made in respect of the holding, and c the value (at any accounting date or immediately before realisation or appropriation) of any security comprised in the holding is materially reduced below the value of the security at the time when it was acquired, and the whole or any part of this reduction is attributable to any distribution falling within paragraph (b) above, and in relation to any security comprised in the holding, the company having the holding is in subsection (2) below referred to as " the dealing company" and so much of any reduction in title value of the security as is attributable to any distribution falling within paragraph (b) above is in that subsection referred to as " the relevant reduction ". 2 Where this subsection applies, an amount equal to the relevant reduction in the value of a security comprised in the holding — a shall, if and so long as the security is not realised or appropriated as mentioned below, be added to the value of the security for the purposes of any valuation, b shall be treated, on any realisation of the security in the course of trade, as a trading receipt of the dealing company or, in the event of a partial realisation, shall be so treated to an appropriate extent, and c shall be treated as a trading receipt of the dealing company if the security is appropriated in such circumstances that a profit on the sale of the security would no longer form part of the dealing company's trading profits. 3 References in this section to a holding in a company refer to a holding of securities by virtue of which the holder may receive distributions made by the company, but so that — a a company's holdings of different classes in another company shall be treated as separate holdings, and b holdings of securities which differ in the entitlements or obligations they confer or impose shall be regarded as holdings of different classes. 4 For the purposes of subsection (2) above — a all a company's holdings of the same class in another company are to be treated as ingredients constituting a single holding, and b a company's holding of a particular class shall be treated as an ingredient in a holding amounting to 10 per cent. of all holdings of that class if the aggregate of that holding and other holdings of that class held by connected persons amounts to 10 per cent. of all holdings of that class, and section 533 of this Act (definition of connected persons) shall have effect in relation to paragraph (b) above as if, in subsection (7) of that section, after the words " or exercise control of " in each place where they occur there were inserted the words " or to acquire a holding in 5 Where this section applies in relation to a distribution which consists of or includes interest to which section 472 above applies, any reduction under that section in the price paid for the securities in respect of which the distribution is made shall be adjusted in such manner as seems appropriate to the Board to take account of subsection (2) above. 6 For the purposes of this section " security " includes a share or other right and a company is a " dealing company " in relation to a holding if a profit on a sale of the holding would be taken into account in computing the company's trading profits. Manufactured dividends: treatment of tax deducted 477 1 Subject to the provisions of this section, where — a under a contract for the sale of securities the seller is required to pay to the purchaser the amount of a periodical payment of interest on the securities, and b the seller does not satisfy the following condition, that is to say that he is entitled to that payment of interest either as the registered holder of the securities or from a person from whom the seller purchased them, section 53(2) of this Act and Schedule 9 to this Act (which both impose a liability to account for income tax deducted) shall apply as if the payment by the seller were an annual payment made, after due deduction of tax, wholly out of a source other than profits or gains brought into charge to income tax. 2 Subsection (1) of this section shall not apply where the interest in question is payable without deduction of tax or where, under the rules of the stock exchange governing the transaction, the payment required to be made in respect of the interest is of the amount of the interest before deduction of tax. 3 If for any chargeable period the liability to tax of a jobber or dealing broker is determined on the footing that any excess of his payments in respect of interest on securities over his receipts in respect thereof, being payments made or receipts accrued in pursuance of a contract for the sale or purchase of the securities, is to be treated for all the purposes of the Tax Acts as an annual payment made by him, then as respects that chargeable period subsection (1) of this section shall not apply to him if he sold the securities in the ordinary course of his business as a jobber or dealing broker. 4 Where the seller is resident in the United Kingdom and purchased the securities (otherwise than through a broker) from a person not so resident, then paragraph (b) of subsection (1) of this section shall have effect as if after the word " say " there were inserted the word " either " and as if for the words from " either as " to the end of the paragraph there were inserted the words " as the registered holder of the securities or that he shows that he acquired the securities, directly or indirectly, from a person who was so entitled to the payment ". 5 Where the seller under such a contract as is mentioned in paragraph (a) of subsection (1) of this section is not resident in the United Kingdom, and the sale is effected through a broker, that subsection shall not apply but unless the broker shows either that the seller was entitled to the payment of interest as the registered holder of the securities or that the seller acquired the securities, directly or indirectly, from a person who was so entitled to the payment, the said section 53(2) of this Act shall apply as if the payment through the broker of the amount of the payment of interest were an annual payment by the broker made, after due deduction of tax, wholly out of such a source as is mentioned in subsection (1) of this section. 6 In this section — " broker " means a member of a stock exchange in the United Kingdom other than a jobber, " dealing broker ", in relation to any sale of securities, means a member of a stock exchange in the United Kingdom, other than the London Stock Exchange, who is recognised by the committee of his exchange as carrying on the business of a dealer and authorised by them to deal in those securities, " jobber " means a member of the London Stock Exchange who is recognised by the committee thereof as carrying on the business of a jobber, " securities " includes shares and stock, and references to a periodical payment of interest include references to a dividend. 7 Where it appears to the Board that by reason of any transaction or transactions a person may by virtue of this section have incurred any liability to tax, the Board may by notice in writing served on him require him, within such time not less than twenty-eight days as may be specified in the notice, to furnish information in his possession with respect to the transaction or any of the transactions, being information as to matters, specified in the notice, which are relevant to the question whether he has incurred such a liability as aforesaid. CHAPTER III Transfer of Assets Abroad Provisions for preventing avoidance of income tax by transactions resulting in the transfer of income to persons abroad 478 For the purpose of preventing the avoiding by individuals ordinarily resident in the United Kingdom of liability to income tax by means of transfers of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, income becomes payable to persons resident or domiciled out of the United Kingdom, it is hereby enacted as follows: — 1 Where by virtue or in consequence of any such transfer, either alone or in conjunction with associated operations, such an individual has, within the meaning of this section, power to enjoy, whether forthwith or in the future, any income of a person resident or domiciled out of the United Kingdom which, if it were income of that individual received by him in the United Kingdom, would be chargeable to income tax by deduction or otherwise, that income shall, whether it would or would not have been chargeable to income tax apart from the provisions of this section, be deemed to be income of that individual for all the purposes of the Income Tax Acts . 2 Where, whether before or after any such transfer, such an individual receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operation, any income which, by virtue or in consequence of the transfer, either alone or in conjunction with associated operations, has become the income of a person resident or domiciled out of the United Kingdom shall, whether it would or would not have been chargeable to income tax apart from the provisions of this section, be deemed to be the income of that individual for all the purposes of the Income Tax Acts. In this subsection, " capital sum " means — a any sum paid or payable by way of loan or repayment of a loan, and b any other sum paid or payable otherwise than as income, being a sum which is not paid or payable for full consideration in money or money's worth. 3 Subsections (1) and (2) of this section shall not apply if the individual shows in writing or otherwise to the satisfaction of the Board either — a that the purpose of avoiding liability to taxation was not the purpose or one of the purposes for which the transfer or associated operations or any of them were effected; or b that the transfer and any associated operations were bona fide commercial transactions and were not designed for the purpose of avoiding liability to taxation. The jurisdiction of the Special Commissioners on any appeal shall include jurisdiction to review any relevant decision taken by the Board in exercise of their functions under this subsection. 4 For the purposes of this section, " an associated operation " means, in relation to any transfer, an operation of any kind effected by any person in relation to any of the assets transferred or any assets representing, whether directly or indirectly, any of the assets transferred, or to the income arising from any such assets, or to any assets representing, whether directly or indirectly, the accumulations of income arising from any such assets. 5 An individual shall, for the purposes of this section, be deemed to have power to enjoy income of a person resident or domiciled out of the United Kingdom if — a the income is in fact so dealt with by any person as to be calculated, at some point of time, and whether in the form of income or not, to enure for the benefit of the individual, or b the receipt or accrual of the income operates to increase the value to the individual of any assets held by him or for his benefit, or c the individual receives or is entitled to receive, at any time, any benefit provided or to be provided out of that income or out of moneys which are or will be available for the purpose by reason of the effect or successive effects of the associated operations on that income and on any assets which directly or indirectly represent that income, or d the individual has power, by means of the exercise of any power of appointment or power of revocation or otherwise, to obtain for himself, whether with or without the consent of any other person, the beneficial enjoyment of the income, or may, in the event of the exercise of any power vested in any other person, become entitled to the beneficial enjoyment of the income, or e the individual is able in any manner whatsoever, and whether directly or indirectly, to control the application of the income. 6 In determining whether an individual has power to enjoy income within the meaning of this section, regard shall be had to the substantial result and effect of the transfer and any associated operations, and all benefits which may at any time accrue to the individual (whether or not he has rights at law or in equity in or to those benefits) as a result of the transfer and any associated operations shall be taken into account irrespective of the nature or form of the benefits. 7 For the purposes of this section, any body corporate incorporated outside the United Kingdom shall be treated as if it were resident out of the United Kingdom whether it is so resident or not. 8 For the purposes of this section — a a reference to an individual shall be deemed to include the wife or husband of the individual, b " assets" includes property or rights of any kind and " transfer", in relation to rights, includes the creation of those rights, c " benefit " includes a payment of any kind, d references to income of a person resident or domiciled out of the United Kingdom shall, where the amount of the income of a company for any year or period has been apportioned under section 296 of this Act, include references to so much of the income of the company for that year or period as is equal to the amount so apportioned to that person, e references to assets representing any assets, income or accumulations of income include references to shares in or obligations of any company to which, or obligations of any other person to whom, those assets, that income or those accumulations are or have been transferred, and for the purpose of applying this Chapter in relation to Case VII of Schedule D references to income in this Chapter shall apply in the case of gains accruing from the acquisition and disposal of chargeable assets as they would apply if the gains were profits from a trade of dealing in the assets, and any such gains shall be treated as payable in the first instance to the person to whom they accrue. Persons resident in Republic of Ireland: application of Chapter III to premiums on leases, etc. 479 In relation to amounts which by virtue of any provision of section 80, 81 or 82 of this Act (taxation as income of premiums on leases, etc.) would, in the case of a person resident in the Republic of Ireland and not resident in the United Kingdom, be included in his income if he were not resident in the Republic of Ireland, this Chapter shall apply — a as if his income included those amounts, and b as if references to an individual included references to any person (and so that in accordance with section 250 of this Act this Chapter then applies for corporation tax as well as for income tax), but shall so apply as if subsection (3) of section 478 above were omitted. Supplemental provisions 480 1 Income tax at the standard rate shall not be charged by virtue of the preceding provisions of this Chapter in respect of income which has borne tax at the standard rate by deduction or otherwise but, save as aforesaid, income tax chargeable at the standard rate by virtue of those provisions shall be charged under Case VI of Schedule D. 2 In computing the liability to income tax of an individual chargeable by virtue of the said provisions of this Chapter, the same deductions and reliefs shall be allowed as would have been allowed if the income deemed to be his by virtue of those provisions had actually been received by him. 3 Where an individual has been charged to income tax on any income deemed to be his by virtue of the said provisions of this Chapter and that income is subsequently received by him, it shall be deemed not to form part of his income again for the purposes of the Income Tax Acts. 4 In any case where an individual has for the purposes of the said provisions of this Chapter power to enjoy income of a person abroad by reason of his receiving any such benefit as is referred to in section 478(5)(c) above, then notwithstanding anything in subsection (1) of this section, the individual shall be chargeable to income tax by virtue of the said provisions of this Chapter for the year of assessment in which the benefit is received on the whole of the amount or value of that benefit except in so far as it is shown that the benefit derives directly or indirectly from income on which he has already been charged to tax for that or a previous year of assessment. Power to obtain information 481 1 The Board or, for the purpose of charging tax at the standard rate, an inspector may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of this Chapter. 2 The particulars which a person must furnish under this section, if he is required by such a notice so to do, include particulars — a as to transactions with respect to which he is or was acting on behalf of others, and b as to transactions which in the opinion of the Board or, for the purpose of charging tax at the standard rate, an inspector it is proper that they should investigate for the purposes of this Chapter notwithstanding that, in the opinion of the person to whom the notice is given, no liability to tax arises under this Chapter, and c as to whether the person to whom the notice is given has taken or is taking any, and if so what, part in any, and if so what, transactions of a description specified in the notice. 3 Notwithstanding anything in subsection (2) of this section, a solicitor shall not be deemed for the purposes of paragraph (c) thereof to have taken part in a transaction by reason only that he has given professional advice to a client in connection with that transaction, and shall not, in relation to anything done by him on behalf of a client, be compellable under this section, except with the consent of his client, to do more than state that he is or was acting on behalf of a client, and give the name and address of his client and also — a in the case of anything done by the solicitor in connection with the transfer of any asset by or to an individual ordinarily resident in the United Kingdom to or by any such body corporate as is hereinafter mentioned, or in connection with any associated operation in relation to any such transfer, the names and addresses of the transferor and the transferee or of the persons concerned in the associated operations, as the case may be; b in the case of anything done by the solicitor in connection with the formation or management of any such body corporate as is hereinafter mentioned, the name and address of the body corporate ; c in the case of anything done by the solicitor in connection with the creation, or with the execution of the trusts, of any settlement by virtue or in consequence whereof income becomes payable to a person resident or domiciled out of the United Kingdom, the names and addresses of the settlor and of that person. The bodies corporate mentioned in the preceding provisions of this section are bodies corporate resident or incorporated outside the United Kingdom which are, or if resident in the United Kingdom would be, close companies, but not trading companies (as defined in section 292(1) of this Act). 4 Nothing in this section shall impose on any bank the obligation to furnish any particulars of any ordinary banking transactions between the bank and a customer carried out in the ordinary course of banking business, unless the bank has acted or is acting on behalf of the customer in connection with the formation or management of any such body corporate as is mentioned in paragraph (b) of subsection (3) of this section or in connection with the creation, or with the execution of the trusts, of any such settlement as is mentioned in paragraph (c) thereof. 5 In this section " settlement" and " settlor" have the meanings assigned thereto by section 454(3) of this Act. CHAPTER IV Miscellaneous Companies Migration, etc., of companies 482 1 Subject to the provisions of this section, all transactions of the following classes shall be unlawful unless carried out with the consent of the Treasury, that is to say — a for a body corporate resident in the United Kingdom to cease to be so resident; or b for the trade or business or any part of the trade or business of a body corporate so resident to be transferred from that body corporate to a person not so resident; or c for a body corporate so resident to cause or permit a body corporate not so resident over which it has control to create or issue any shares or debentures; or d except for the purpose of enabling a person to be qualified to act as a director, for a body corporate so resident to transfer to any person, or cause or permit to be transferred to any person, any shares or debentures of a body corporate not so resident over which it has control, being shares or debentures which it owns or in which it has an interest. 2 Nothing in paragraph (c) of subsection (1) of this section shall apply to the giving to the bankers of the body corporate not resident in the United Kingdom of any security for the payment of any sum due or to become due from it to them by reason of any transaction entered into with it by them in the ordinary course of their business as bankers. 3 Nothing in the said paragraph (c) shall apply to the giving by the body corporate not resident in the United Kingdom to an insurance company of any security for the payment of any sum due or to become due from that body corporate to that company by reason of any transaction entered into with that body corporate by that company in the ordinary course of that company's business by way of investment of its funds. 4 Any consent granted by the Treasury under this section — a may be given either specially (that is to say, so as to apply only to specified transactions of or relating to a specified body corporate) or generally (that is to say, so as not only to apply as aforesaid); and b may, if given generally, be revoked by the Treasury; and c may in any case be absolute or conditional; and d shall be published in such a way as to give any person entitled to the benefit of it an adequate opportunity of getting to know of it, unless in the opinion of the Treasury publication is not necessary for that purpose. 5 Any person who, whether within or outside the United Kingdom, does or is a party to the doing of any act which to his knowledge amounts to or results in, or forms part of a series of acts which together amount to or result in, or will amount to or result in, something which is unlawful under subsection (1) of this section shall be guilty of an offence under this section, and in any proceedings in respect of such an offence against a director of the body corporate in question (that is to say, the body corporate which is or was resident in the United Kingdom) or against any person who was purporting to act in that capacity — a it shall be presumed that he was a party to every act of that body corporate unless he proves that it was done without his consent or connivance; and b it shall, unless the contrary is proved, be presumed that any act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in or would amount to or result in, something which is unlawful under subsection (1) of this section was to his knowledge such an act. 6 Any person who is guilty of an offence under this section shall be liable on conviction on indictment to imprisonment for not more than two years or to a fine not exceeding £10,000 or to both, and proceedings in respect of such an offence alleged to have been committed by a person may be taken before the appropriate court in the United Kingdom having jurisdiction in the place where that person is for the time being: Provided that where the person in question is a body corporate which is or was resident in the United Kingdom, the maximum amount of the fine shall be three times the corporation tax, profits tax, capital gains tax and income tax paid or payable which is attributable to the income, profits or gains (including chargeable gains) arising in the thirty-six months immediately preceding the commission of the offence, or £10,000, whichever is the greater. 7 A body corporate shall be deemed for the purposes of this section to be resident or not to be resident in the United Kingdom according as the central management and control of its trade or business is or is not exercised in the United Kingdom: Provided that if it is shown that it has been established as between the Crown and a body corporate for any income tax, corporation tax or profits tax purpose that the body corporate was resident or ordinarily resident in the United Kingdom for any year of assessment or other period, it shall be presumed, except so far as the contrary is proved, that that body corporate was resident in the United Kingdom for the purposes of this section at the beginning of that year of assessment or other period and that it continued to be so resident at all times thereafter. 8 Where the functions of a body corporate consist wholly or mainly in the holding of investments or other property, the holding of the investments or property shall be deemed for the purposes of this section to be a business carried on by the body corporate. 9 Notwithstanding anything in the preceding provisions of this section, in no event shall a mere transfer of assets by a body corporate not resulting in a substantial change in the character or extent of the trade or business of that body corporate be treated for the purpose of this section as a transfer of part of the trade or business thereof. 10 In this section — " share ", " debenture " and " director " have, in relation to any body corporate, the meanings respectively assigned to them by section 455 of the Companies Act 1948 in relation to a company ; " control " (except in the expression " central management and control") has, in relation to a body corporate, the meaning given by section 534 of this Act; " transfer ", in relation to shares or debentures, includes a transfer of any beneficial interest therein; " insurance company " means a body corporate lawfully carrying on business as an insurer, whether in the United Kingdom or elsewhere, and " funds " in relation to an insurance company means the funds held by it in connection with that business, and a body corporate shall not be deemed for the purposes of this section to cease to be resident in the United Kingdom by reason only that it ceases to exist. 11 No proceedings for an offence under this section shall be instituted, in England or Wales, except by or with the consent of the Attorney General or, in Northern Ireland, except by or with the consent of the Attorney General for Northern Ireland: Provided that this subsection shall not prevent the issue or execution of a warrant for the arrest of any person in respect of such an offence, or the remanding in custody or on bail of any person charged with such an offence. 12 This section shall come into force for all purposes on 6th April 1970 to the exclusion of the provisions thereby-re-enacted : Provided that any offence committed before 6th April 1970 shall not be punishable under this section, and neither this subsection nor any other provision of this Act shall prevent any such offence from being punishable as if this Act had not been passed. Change in ownership of company: disallowance of trading losses 483 1 If — a within any period of three years there is both a change in the ownership of a company and (either earlier or later in that period, or at the same time) a major change in the nature or conduct of a trade carried on by the company, or b at any time after the scale of the activities in a trade carried on by a company has become small or negligible, and before any considerable revival of the trade, there is a change in the ownership of the company, no relief shall be given under section 177 of this Act (relief for trading losses against future trading profits or total profits) by setting a loss incurred by the company in an accounting period beginning before the change of ownership against any income or other profits of an accounting period ending after the change of ownership. 2 In applying this section to the accounting period in which the change of ownership occurs, the part ending with the change of ownership, and the part after, shall be treated as two separate accounting periods, and the profits or losses of the accounting period shall be apportioned to the two parts. The apportionment shall be on a time basis according to the respective lengths of those parts except that if it appears that that method would work unreasonably or unjustly such other method shall be used as appears just and reasonable. 3 In subsection (1) above " major change in the nature or conduct of a trade " includes — a a major change in the type of property dealt in, or services or facilities provided, in the trade, or b a major change in customers, outlets or markets of the trade, and this section applies even if the change is the result of a gradual process which began outside the period of three years mentioned in subsection (1)(a) above. 4 In relation to any relief available under section 252 of this Act (company reconstructions) to a successor company, subsection (1) above shall apply as if any loss sustained by a predecessor company had been sustained by a successor company and as if the references to a trade included references to the trade as carried on by a predecessor company. 5 Where relief in respect of a company's losses has been restricted under this section then, notwithstanding section 87(3) of the Capital Allowances Act 1968, in applying the provisions of that Act about balancing charges to the company by reference to any event after the change of ownership of the company, any allowance or deduction falling to be made in taxing the company's trade for any chargeable period before the change of ownership shall be disregarded unless the profits or gains of that chargeable period or of any subsequent chargeable period before the change of ownership were sufficient to give effect to the allowance or deduction. In applying this subsection it shall be assumed that any profits or gains are applied in giving effect to any such allowance or deduction in preference to being set off against any loss which is not attributable to such an allowance or deduction. 6 Where the operation of this section depends on circumstances or events at a time after the change of ownership (but not more than three years after), an assessment to give effect to the provisions of this section shall not be out of time if made within six years from that time, or the latest of those times. 7 Any person in whose name any shares, stock or securities of a company are registered shall, if required by notice in writing by an inspector given for the purposes of this section, state whether or not he is the beneficial owner of those shares or securities and, if not the beneficial owner of those shares or securities or any of them, shall furnish the name and address of the person or persons on whose behalf those shares, stock or securities are registered in his name. 8 This section shall not apply if the change of ownership took place before 15th April 1969, and subsection (1)(a) above shall not apply if the major change in the nature or conduct of the trade was completed before that date. In other respects this section has effect by reference to circumstances and events before that date, as well as by reference to later circumstances and events. Rules for ascertaining change in ownership of company 484 1 For the purposes of section 483 above (in this section called " the principal section ") there is a change in the ownership of a company — a if a single person acquires more than half the ordinary share capital of the company, or b if two or more persons each acquire a holding of 5 per cent, or more of the ordinary share capital of the company, and those holdings together amount to more than half the ordinary share capital of the company, or c if two or more persons each acquire a holding of the ordinary share capital of the company, and the holdings together amount to more than half the ordinary share capital of the company, but disregarding a holding of less than 5 per cent. unless it is an addition to an existing holding and the two holdings together amount to 5 per cent. or more of the ordinary share capital of the company. 2 In applying subsection (1) above — a the circumstances at any two points of time with not more than three years between may be compared, and a holder at the later time may be regarded as having acquired whatever he did not hold at the earlier time, irrespective of what he has acquired or disposed of in between, b to allow for any issue of shares or other reorganisation of capital, the comparison may be made in terms of percentage holdings of the total ordinary share capital at the respective times, so that a person whose percentage holding is greater at the later time may be regarded as having acquired a percentage holding equal to the increase, c to decide for the purposes of subsection (1)(b) or (c) above if any person has acquired a holding of at least 5 per cent., or a holding which makes at least 5 per cent. when added to an existing holding, acquisitions by, and holdings of, two or more persons who are connected persons within the meaning of section 533 of this Act shall be aggregated as if they were acquisitions by, and holdings of, one and the same person, d any acquisition of shares under the will or on the intestacy of a deceased person and, if it is shown that the gift is unsolicited and made without regard to the provisions of the principal section, any gift of shares, shall be left out of account. 3 Where, because persons, whether company members or not, possess extraordinary rights or powers under the articles of association or under any other document regulating the company, ownership of ordinary share capital may not be an appropriate test of whether there has been a major change in the persons for whose benefit the losses may ultimately enure, then in considering whether there has been a change of ownership of the company for the purposes of the principal section, holdings of all kinds of share capital, including preference shares, or of any particular category of share capital, or voting power or any other special kind of power, may be taken into account instead of ordinary share capital. 4 Where the principal section has operated to restrict relief by reference to a change of ownership taking place at any time, no transaction or circumstances before that time shall be taken into account in determining whether there is any subsequent change of ownership. 5 A change in the ownership of a company shall be disregarded for the purposes of the principal section if — a immediately before the change the company is the 75 per cent. subsidiary of another company, and b (although there is a change in the direct ownership of the company) that other company continues after the change to own the first-mentioned company as a 75 per cent. subsidiary. 6 If there is a change in the ownership of a company which has a 75 per cent. subsidiary (whether owned directly or indirectly) then, unless under subsection (5) above that change in ownership is to be disregarded, the principal section shall apply as if there had also been a change in the ownership of that 75 per cent. subsidiary. 7 For the purposes of this section — a references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly, b a company shall be deemed to be a 75 per cent. subsidiary of another company if and so long as not less than three quarters of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies, c the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with subsections (5) to (10) of section 532 of this Act, d " share " includes stock. 8 If any acquisition of ordinary share capital or other property or rights taken into account in determining that there has been a change of ownership of a company was made in pursuance of a contract of sale or option or other contract, or the acquisition was made by a person holding such a contract, and the contract was made on or after 15th April 1969, the time when the change in the ownership of the company took place shall be determined as if the acquisition had been made when the contract was made with the holder or when the benefit of it was assigned to him so that, in the case of a person exercising an option to purchase shares, he shall be regarded as having purchased the shares when he acquired the option. Transactions between associated persons Sales, etc., at undervalue or overvalue 485 1 Subject to the provisions of this section, where any property is sold and — a the buyer is a body of persons over whom the seller has control or the seller is a body of persons over whom the buyer has control or both the seller and the buyer are bodies of persons and some other person has control over both of them ; and b the property is sold at a price less than the price which it might have been expected to fetch if the parties to the transaction had been independent persons dealing at arm's length, then, in computing the income, profits or losses of the seller for tax purposes, the like consequences shall ensue as would have ensued if the property had been sold for the price which it would have fetched if the transaction had been a transaction between independent persons dealing as aforesaid: Provided that this subsection shall not apply where the buyer is resident in the United Kingdom and is carrying on a trade therein, and the price of the property falls to be taken into account as a deduction in computing the profits or gains or losses of that trade for tax purposes. 2 Subject to the provisions of this section, where any property is sold and — a the buyer is a body of persons over whom the seller has control or the seller is a body of persons over whom the buyer has control or both the seller and the buyer are bodies of persons and some other person has control over both of them ; and b the property is sold at a price greater than the price which it might have been expected to fetch if the parties to the transaction had been independent persons dealing at arm's length, then, in computing the income, profits or losses of the buyer for tax purposes, the like consequences shall ensue as would have ensued if the property had been sold for the price which it would have fetched if the transaction had been a transaction between independent persons dealing as aforesaid: Provided that this subsection shall not apply where the seller is resident in the United Kingdom and is carrying on a trade therein, and the price of the property falls to be taken into account as a trading receipt in computing the profits or gains or losses of that trade for tax purposes. 3 The preceding provisions of this section shall not apply in relation to any sale unless the Board so direct, and where such a direction is given all such adjustments shall be made, whether by assessment, repayment of tax or otherwise, as are necessary to give effect to the direction. 4 Nothing in this section shall be construed as affecting the operation of any of the provisions of the Capital Allowances Act 1968. 5 In this section, " body of persons " includes a partnership and "control" has the meaning ascribed to it by section 534 of this Act, and, for the purposes of this section, a sale shall be deemed to take place at the time of completion or at the time when possession is given, whichever is the earlier. 6 The preceding provisions of this section shall, with the necessary adaptations, have effect in relation to lettings and hirings of property, grants and transfers of rights, interests or licences and the giving of business facilities of whatever kind as they have effect in relation to sales, and the references in the said preceding provisions to sales, sellers, buyers and prices shall be deemed to be extended accordingly. Transactions between dealing company and associated company 486 1 Subject to the provisions of this section, where — a a dealing company becomes entitled to a deduction, in computing the profits or gains of the company for tax purposes for any period, in respect of the depreciation in the value of any right subsisting against an associated company, not being a dealing company, or b a dealing company makes any payment to such an associated company, being a payment in respect of which the dealing company is entitled to a deduction in computing its profits or gains for tax purposes for any period, and the depreciation or payment is not brought into account in computing the profits or gains of the company not being a dealing company, that company shall be deemed to have received on the last day of the period income of an amount equal to the amount of the deduction and shall be chargeable in respect thereof under Case VI of Schedule D. 2 Where the company not being a dealing company is carrying on a trade, the said income shall, if the company so elects, not be so chargeable but shall be deemed to have been a receipt of the trade, or, if the company is carrying on more than one trade, to have been a receipt of such one of the trades as the company may choose. 3 Where the said company is carrying on, or was formed to carry on, a trade, then if the said right subsisting against the company was a right to the repayment of moneys lent for meeting expenditure which has proved (in whole or in part) abortive, or the payment to the company was made for meeting such expenditure, and the expenditure is such that the company is not entitled in respect thereof to any allowance or deduction in computing losses or gains, subsection (1) above shall not apply in so far as the expenditure proved abortive. 4 For the purposes of this section — a " company " includes any body corporate, b " dealing company" means a company dealing in securities, land or buildings and includes any company whose profits on the sale of securities, land or buildings are part of its trading profits, c two or more companies shall be treated as associated companies if one has control of the other or others, or any person has control of both or all of them, d references to a company having control of another company shall be construed as references to its having control thereof either by itself or in conjunction with any person having control over the first-mentioned company, and " control " has the meaning given by section 534 of this Act, e " securities " includes shares and stock. 5 Where it appears to the Board that by reason of any transaction or transactions a person may by virtue of this section have incurred any liability to tax, the Board may by notice in writing served on him require him, within such time not less than twenty-eight days as may be specified in the notice, to furnish information in his possession with respect to the transaction or any of the transactions, being information as to matters, specified in the notice, which are relevant to the question whether he has incurred such a liability as aforesaid. Other provisions Sale by individual of income derived from his personal activities 487 1 Subject to subsection (5) below, this section has effect where — a transactions or arrangements are effected or made to exploit the earning capacity of an individual in any occupation by putting some other person in a position to enjoy all or any part of the profits or gains or other income, or of the receipts, derived from the individual's activities in that occupation, or anything derived directly or indirectly from any such income or receipts, and b as part of, or in connection with, or in consequence of, the transactions or arrangements any capital amount is obtained by the individual for himself or for any other person, and c the main object, or one of the main objects, of the transactions or arrangements was the avoidance or reduction of liability to income tax. 2 Any such capital amount shall for all the purposes of the Income Tax Acts be treated as being earned income of the individual which arises when the capital amount is receivable, and which is chargeable to tax under Case VI of Schedule D. 3 In this section — a references to any occupation are references to any activities of any of the kinds pursued in any profession or vocation, irrespective of whether the individual is engaged in a profession or vocation, or is employed by or holds office under some other person, and b references in subsection (1) above to income or receipts include references to payments for any description of copyright or licence or franchise or other right deriving its value from the activities, including past activities, of the individual. 4 This section shall not apply to a capital amount obtained from the disposal — a of assets (including any goodwill) of a profession or vocation, or of a share in a partnership which is carrying on a profession or vocation, or b of shares in a company, so far as the value of what is disposed of, at the time of disposal, is attributable to the value of the profession or vocation as a going concern, or as the case may be to the value of the company's business, as a going concern: Provided that if the value of the profession, vocation or business as a going concern is derived to a material extent from prospective income or receipts derived directly or indirectly from the individual's activities in the occupation, and for which, when all capital amounts are disregarded, the individual will not have received full consideration, whether as a partner in a partnership or as an employee or otherwise, this subsection shall not exempt the part of the capital amount so derived. In this subsection references to the company's business include references to the business of any other company in which it holds shares directly or indirectly. 5 This subsection has effect where on any occasion an individual obtains a capital amount consisting of any property or right which derives substantially the whole of its value from the activities of the individual, or (as in the case where the individual acquires a stock option and subsequently exercises the stock option) there are two or more occasions on which an individual obtains a capital amount consisting of any such property or right. Tax under this section shall not be charged on any such occasion, but, without prejudice to the generality of the provisions of this section or section 489 below, tax under this section shall be charged on the occasion when the capital amount, or any such capital amount, is sold or otherwise realised, and shall be so charged by reference to the proceeds of sale or the realised value. 6 For the purposes of subsection (1)(b) above the cases where an individual obtains any capital amount for some other person include cases where the individual has put some other person in a position to receive the capital amount by providing that other person with something of value derived, directly or indirectly, from the individual's activities in the occupation. 7 This section shall apply to all persons, whether resident in the United Kingdom or not, if the occupation of the individual is carried on wholly or partly in the United Kingdom. 8 This section shall not apply as respects a capital amount receivable before 15th April 1969. Artificial transactions in land 488 1 This section is enacted to prevent the avoidance of tax by persons concerned with land or the development of land. 2 This section applies wherever — a land, or any property deriving its value from land, is acquired with the sole or main object of realising a gain from disposing of the land, or b land is held as trading stock, or c land is developed with the sole or main object of realising a gain from disposing of the land when developed, and any gain of a capital nature is obtained from the disposal of the land — i by the person acquiring, holding or developing the land, or by any connected person, or ii where any arrangement or scheme is effected as respects the land which enables a gain to be realised by any indirect method, or by any series of transactions, by any person who is a party to, or concerned in, the arrangement or scheme; and this subsection applies whether any such person obtains the gain for himself or for any other person. 3 Where this section applies, the whole of any such gain shall for all the purposes of the Tax Acts be treated — a as being income which arises when the gain is realised, and which constitutes profits or gains chargeable to tax under Case VI of Schedule D for the chargeable period in which the gain is realised, and b subject to the following provisions of this section, as being income of the person by whom the gain is realised. 4 For the purposes of this section land is disposed of if, by any one or more transactions, or by any arrangement or scheme, whether concerning the land or property deriving its value from the land, the property in the land, or control over the land, is effectually disposed of, and references in subsection (2) above to the acquisition or development of property with the sole or main object of realising the gain from disposing of the land shall be construed accordingly. 5 For the said purposes — a where, whether by a premature sale or otherwise, a person directly or indirectly transmits the opportunity of making a gain to another person, that other person's gain is obtained for him by the first-mentioned person, and b any number of transactions may be regarded as constituting a single arrangement or scheme if a common purpose can be discerned in them, or if there is other sufficient evidence of a common purpose. 6 For the purposes of this section such method of computing a gain shall be adopted as is just and reasonable in the circumstances, taking into account the value of what is obtained for disposing of the land, and allowing only such expenses as are attributable to the land disposed of, and in applying this subsection — a where a freehold is acquired and the reversion is retained on disposal, account may be taken of the way in which the profits or gains under Case I of Schedule D of a person dealing in land are computed in such a case, and b account may be taken of the adjustments to be made in computing such profits or gains under subsections (2), (3) and (4) of section 142 of this Act (allowance for tax on premiums on leases). In the application of this subsection to Scotland, " freehold " means the estate or interest of the proprietor of the dominium utile or, in the case of property other than feudal property, of the owner, and " reversion " means the interest of the landlord in property subject to a lease. 7 Subsection (2)(c) of this section shall not apply to so much of any gain as is fairly attributable to the period, if any, before the intention to develop the land was formed, and which would not fall under paragraph (a) or paragraph (b) of that subsection; and in applying this subsection account shall be taken of the treatment under Case I of Schedule D of a person who appropriates land as trading stock. 8 If all or any part of the gain accruing to any person is derived from value, or an opportunity of realising a gain, provided directly or indirectly by some other person, whether or not put at the disposal of the first-mentioned person, subsection (3)(b) of this section shall apply to the gain, or that part of it, with the substitution of that other person for the person by whom the gain was realised. 9 This section shall not apply to a gain accruing to an individual which by virtue of section 29 of the Finance Act 1965 (private residences) is exempt from capital gains tax, or which would be so exempt but for the provisions of paragraph 2 of Schedule 12 to the Finance Act 1968 (residence acquired partly with a view to making a gain). 10 Where there is a disposal of shares in — a a company which holds land as trading stock, or b a company which owns directly or indirectly 90 per cent. or more of the ordinary share capital of another company which holds land as trading stock, and all the land so held is disposed of in the normal course of its trade by the company which held it, and so as to procure that all opportunity of profit in respect of the land arises to that company, then this section shall not by virtue of subsection (2)(i) apply to any gain to the holder of shares as being a gain on property deriving value from that land (but without prejudice to any liability under paragraph (ii) of the said subsection (2)). 11 Where a person who considers that paragraph (a) or paragraph (c) of subsection (2) of this section may apply as respects a gain of a capital nature which that person has obtained from the disposal of land, or which he would obtain from a proposed disposal of land, supplies to the inspector to whom he makes his return of income written particulars showing how the gain has arisen or would arise — a the inspector shall, within thirty days from his receipt of the particulars, notify that person whether or not he is satisfied that, in the circumstances as described in the particulars, the gain will not, or would not, be chargeable to tax on that person under this section, and b if the inspector notifies that person that he is so satisfied the gain shall not be chargeable on that person under this section: Provided that if the particulars given under this section with respect to the gain are not such as to make full and accurate disclosure of all facts and considerations relating thereto which are material to be known to the inspector, any notification given by the inspector under this subsection shall be void. 12 In this section — a references to the land include references to all or any part of the land, and " land " includes buildings, and any estate or interest in land or buildings; b references to property deriving its value from land include — i any shareholding in a company, or any partnership interest, or any interest in settled property, deriving its value directly or indirectly from land, and ii any option, consent or embargo affecting the disposition of land, and for the purposes of this section any question whether a person is connected with another shall be determined in accordance with section 533 of this Act. 13 This section shall apply to all persons, whether resident in the United Kingdom or not, if all or any part of the land in question is situated in the United Kingdom. 14 This section shall not apply to any gain realised before 15th April 1969. Sale of income and land transactions (sections 487 and 488): supplemental 489 1 This section has effect to supplement sections 487 and 488 above (in this section called " the principal sections "). 2 In applying the principal sections and this section account shall be taken of any method, however indirect, by which — a any property or right is transferred or transmitted, or b the value of any property or right is enhanced or diminished, and accordingly the occasion of the transfer or transmission of any property or right, however indirect, and the occasion when the value of any property or right is enhanced, may be an occasion when, under the principal sections, tax becomes chargeable. 3 Subsection (2) above applies in particular — a to sales, contracts and other transactions made otherwise than for full consideration or for more than full consideration, and b to any method by which any property or right, or the control of any property or right, is transferred or transmitted by assigning share capital or other rights in a company or any partnership or interest in settled property, and c to the creation of any option or consent or embargo affecting the disposition of any property or right, and to the consideration given for the option, or for the giving of the consent or the release of the embargo, and d to the disposal of any property or right on the winding up, dissolution or termination of any company, partnership or trust. 4 In ascertaining for the said purposes the intentions of any person, the objects and powers of any company, partners or trustees, as set out in any memorandum, articles of association or other document, shall not be conclusive. 5 In order to ascertain whether and to what extent the value of any property or right is derived from any other property or right, value may be traced through any number of companies, partnerships and trusts, and the property held by any company, partnership or trust shall be attributed to the shareholders, partners or beneficiaries at each stage in such manner as is appropriate in the circumstances. 6 In applying the principal sections and this section — a any expenditure or receipt or consideration or other amount may be apportioned by such method as is just and reasonable in the circumstances, b all such valuations shall be made as are appropriate to give effect to the principal sections. 7 For the purposes of the principal sections and this section (and in particular for the purpose of the reference in section 487 above to an individual putting some other person in a position to enjoy income or receipts) partners, or the trustees of settled property, or personal representatives, may be regarded as persons distinct from the individuals or other persons who are for the time being partners or trustees or personal representatives 8 Where a person is assessed to tax under either of the principal sections, with this section, in respect of consideration receivable by another person — a he shall be entitled to recover from that other person any part of that tax which he has paid, and b if any part of that tax remains unpaid at the expiration of six months from the date when it became due and payable, it shall be recoverable from that other person as though he were the person assessed, but without prejudice to the right to recover it from the person actually assessed, and for the purposes of paragraph (a) above the Board or an inspector shall on request furnish a certificate specifying the amount of income in respect of which tax has been paid, and the amount of tax so paid; and the certificate shall be conclusive evidence of any facts stated therein. For the purposes of this subsection any income which a person is treated as having by virtue of the principal sections shall, subject to section 529 of this Act, be treated as the highest part of his income. 9 If it appears to the Board that any person entitled to any consideration or other amount taxable under the principal sections is not resident in the United Kingdom, the Board may direct that section 53 of this Act (payments not out of profits or gains brought into charge to income tax) shall apply to any payment forming part of that amount as if it were an annual payment charged with tax under Case III of Schedule D, but without prejudice to the final determination of the liability of that person, including any liability under subsection (8)(b) above. 10 The principal sections have effect subject to Part XVI of this Act and to any other provision of the Tax Acts deeming income to belong to a particular person. 11 Where under section 488(2)(c) above any person is charged to tax on the realisation of a gain, and the computation of the gain proceeded on the footing that the land or some other property was appropriated at any time as trading stock, that land or other property shall be treated on that footing also for the purposes of paragraph 1 of Schedule 7 to the Finance Act 1965 and paragraph 12 of Schedule 14 to the Finance Act 1967 (capital gains: property becoming or ceasing to be stock in trade.) 12 Where under section 487(1)(b) or 488(8) above the person charged to tax is a person other than the person for whom the capital amount was obtained or the person by whom the gain was realised, and the tax has been paid, then, for the purposes of paragraphs 2 and 5 of Schedule 6 to the Finance Act 1965 (profits taxable as income to be excluded from tax on capital gains), the person for whom the capital amount was obtained or the person by whom the gain was realised shall be regarded as having been charged to that tax. 13 For the purposes of the principal sections and this section — " capital amount " means any amount, in money or money's worth, which, apart from the principal sections, does not fall to be included in any computation of income for purposes of the Tax Acts, and other expressions including the word " capital" shall be construed accordingly, " company " includes any body corporate, " share " includes stock, and for the said purposes any amount in money or money's worth shall not be regarded as having become receivable by some person until that person can effectively enjoy or dispose of it. Sale of income and land transactions (sections 487 and 488): power to obtain information 490 1 The Board or an inspector may by notice in writing require any person to furnish them within such time as the Board or the inspector may direct (not being less than thirty days) with such particulars as the Board or the inspector think necessary for the purposes of sections 487 and 488 above. 2 The particulars which a person must furnish under this section, if he is required by a notice from the Board or the inspector so to do, include particulars — a as to transactions or arrangements with respect to which he is or was acting on behalf of others, and b as to transactions or arrangements which in the opinion of the Board or the inspector should properly be investigated for the purposes of the said sections notwithstanding that, in the opinion of the person to whom the notice is given, no liability to tax arises under those sections, and c as to whether the person to whom the notice is given has taken or is taking any, and if so what, part in any, and if so what, transactions or arrangements of a description specified in the notice. 3 Notwithstanding anything in subsection (2) above, a solicitor shall not be deemed for the purposes of subsection (2)(c) above to have taken part in any transaction or arrangements by reason only that he has given professional advice to a client in connection with the transaction or arrangements, and shall not, in relation to anything done by him on behalf of a client, be compellable under this section, except with the consent of his client, to do more than state that he is or was acting on behalf of a client, and give the name and address of his client. Land sold and leased back: limitation on tax reliefs 491 1 If land or any estate or interest in land is transferred from one person to another and — a as a result of a lease of the land or any part of the land granted at that time or subsequently by the transferee to the transferor, or b as a result of any other transaction or series of trans actions affecting the land or any estate or interest in the land, the transferor, or any person who is associated with the transferor, becomes liable at the time of the transfer or subsequently to pay any rent under a lease of the land or any part of the land, this section shall apply to all rent due under the lease from the transferor, or from any person who is associated with the transferor. 2 If land or any estate or interest in land is transferred from one person to another, and, as a result of any transaction or series of transactions affecting the land or any estate or interest in the land, the transferor, or any person who is associated with the transferor, becomes liable at the time of the transfer or subsequently to make any payment (other than rent under a lease) for which tax relief of any of the kinds listed in subsection (13) below is available, being a payment by way of rentcharge on the land or any part of the land or a payment in any other way connected with the land, this section shall apply to all such payments under the rentcharge or other transaction due from the transferor, or from any person who is associated with the transferor. 3 The references in subsections (1) and (2) of this section to the transfer of an estate or interest in land include references to — a the granting of a lease or any other transaction involving the creation of a new estate or interest in the land, b the transfer of the lessee's interest under a lease by surrender or forfeiture of the lease, and c any transaction or series of transactions affecting land, or an estate or interest in land, such that some person is the owner, or one of the owners, before and after the carrying out of the transaction or transactions, but another person becomes or ceases to become one of the owners, and in relation to any such transaction or series of transactions any person who is an owner before the carrying out of the transaction or transactions, and is not the sole owner thereafter, shall be regarded for the purposes of this section as a transferor. 4 A deduction by way of tax relief which is one of the kinds to which this section applies, being a deduction in respect of rent or of any other payment to which this section applies, shall not exceed the commercial rent for the period for which the rent or other payment is made of the land in respect of which that payment is made. 5 If under subsection (4) of this section part of a payment which would otherwise be allowable as a deduction by way of tax relief of one of the kinds to which this section applies is not so allowable, and one or more subsequent payments are made by the transferor, or a person who is associated with the transferor, under the lease or other transaction, that part of the first-mentioned payment may be carried forward and treated for the purposes of any such deduction by way of tax relief as if it were made at the time when the next of those subsequent payments was made, and so made for the period for which that subsequent payment was made. 6 For the purposes of subsection (4) of this section — a if more than one payment is made for the same period the payments shall be taken together, b if payments are made for periods which overlap, the payments shall be apportioned, and the apportioned payments which belong to the common part of the overlapping periods shall be taken together, c the preceding references to payments include references to parts of payments which under subsection (5) of this section are treated as if made at a time subsequent to that at which they were made, and to the extent that a part of a payment so carried forward under subsection (5) of this section is not so allowable as a deduction by way of tax relief, it may again be carried forward under subsection (5) of this section, d so much of any payment as is in respect of services or the use of assets or rates usually borne by the tenant shall be excluded, and in determining the amount to be so excluded provisions in any lease or agreement fixing the payments or parts of payments which are in respect of services or the use of assets may be overridden. 7 A payment made for a period all of which falls more than one year after the payment is made shall be treated for the purposes of this section as made for that period of one year beginning with the date on which the payment was made, and a payment for a period part of which falls after the end of that year shall be treated for those purposes as if a corresponding part of the payment was made for that year (and no part for any later period). 8 For the purpose of making a comparison under subsection (4) of this section between a payment consisting of rent under a lease (in this subsection referred to as " the actual lease "), or such payments taken together, and the commercial rent of the land, " commercial rent" shall mean the rent which might be expected to be paid under a lease of the land negotiated in the open market at the time when the actual lease was created, being a lease which is of the same duration as the actual lease, which is, as respects liability for maintenance and repairs, subject to the terms and conditions of the actual lease and which provides for rent payable at uniform intervals and — a at a uniform rate, or b if the rent payable under the actual lease is rent at a progressive rate (and such that the amount of rent payable for any year is never less than the amount payable for any previous year), a rent which progresses by gradations proportionate to those provided by the actual lease. , 9 For the purpose of making a comparison under subsection (4) of this section between a payment which does not consist of rent under a lease (or such a payment taken together with other payments) and the commercial rent of the land, " commercial rent" shall mean the rent which might be expected to be paid under a tenant's repairing lease negotiated in the open market at the time when the transaction was effected under which the payment or payments became due, being — a where the period over which payments are to be made under that transaction is not less than 200 years, or the obligation to make such payments is perpetual, a lease for 200 years, and b where that period is less than 200 years, a lease which is of the same duration as that period. 10 In this section references to rent under a lease include references to rent which the person entitled to the lease is under subsection (2) or (3) of section 83, or under section 134, of this Act (allowance to person paying a premium taxed as income) treated, for any purpose, as paying in respect of land comprised in the lease, and such rent shall be (treated for the purposes of this section as having been paid from day to day as it has become due. 11 For the purposes of this section the following persons shall be deemed to be associated with one another, that is — a the transferor in any such transaction as is described in subsection (1) or subsection (2) of this section, and the transferor in another such transaction, if those two persons are acting in concert, or if the two transactions are in any way reciprocal, and any person who is an associate of either of those associated transferors ; b any two or more bodies corporate participating in, or incorporated for the purposes of, a scheme for the reconstruction of any body or bodies corporate or for the amalgamation of any two or more bodies corporate; c any persons who are associates as defined in section 494(10) below. 12 In this section — a " asset " means any description of property or rights other than land or an interest in land, b " lease " includes an underlease, sublease or any tenancy or licence, and any agreement for a lease, underlease, sublease or tenancy or licence and, in the case of land outside the United Kingdom, any interest corresponding to a lease as so defined ; and, in relation to such land, expressions in this section relating to interests in land and their disposition shall be construed accordingly, c " rent " includes any payment made under a lease as so defined, d " 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. 13 The kinds of deductions by way of tax relief to which this section applies are as follows — a a deduction in computing profits or gains chargeable under Schedule A allowable by virtue of sections 71 to 77 of, and Schedule 2 to, this Act, b a deduction in computing profits or gains or losses of a trade, profession or vocation for the purposes of tax, c a deduction in computing profits or gains chargeable under Case VI of Schedule D, or in computing any loss for which relief is allowable under section 176 or section 179 of this Act (Case VI losses), d allowance of a payment under section 304 or 305 of this Act (management expenses), e a deduction from emoluments to be assessed under Schedule E made in pursuance of section 189(1) of this Act (necessary expenses), or allowable in computing losses in an employment for tax purposes, f a deduction allowable for tax purposes in computing profits or gains or losses arising from woodlands. 14 This section shall not apply if the transfer described in subsection (1) or subsection (2) above was on or before 14th April 1964. Assets leased to traders and others 492 1 Subject to section 493 below, where — a a deduction by way of tax relief which is of one of the kinds listed in subsection (3) below is allowable in respect of a payment made under a lease of an asset of any description, and b before, at or after the time when the payment is made, either — i the person who made the payment has obtained or obtains a capital sum in respect of the lessee's interest in the lease, or ii the lessor's interest in the lease, or any other interest in the asset, has belonged to an associate of the person who made the payment, and that associate has obtained a capital sum in respect of that interest, the person obtaining that sum shall be charged under Case VI of Schedule D for the chargeable period in which the sum is obtained with tax on an amount equal to the amount of the payment in respect of which tax relief is so allowed: Provided that the total amount on which he is assessed by reference to the capital sum shall not exceed the amount of the capital sum. 2 Subsection (1) above shall not apply to payments under a lease created on or before 14th April 1964. 3 The kinds of deductions by way of tax relief to which subsection (1) above applies are as follows — a a deduction in computing profits or gains or losses of a trade, profession or vocation for the purposes of tax, b a deduction in computing profits of gains chargeable under Case VI of Schedule D, or in computing any loss for which relief is allowable under section 176 or section 179 of this Act (Case VI losses), c allowance of a payment under section 304 or 305 of this Act (management expenses), d a deduction from emoluments to be assessed under Schedule E made in pursuance of section 189(1) of this Act (necessary expenses), or allowable in computing losses in an employment for tax purposes, e a deduction allowable for tax purposes in computing profits or gains or losses arising from woodlands. 4 Where the deduction by way of tax relief mentioned in subsection (1)(a) of this section is a deduction in computing, for income tax purposes, profits or gains or losses of a trade, profession or vocation, or arising from woodlands, and any part of the payments made under the lease by the person obtaining the capital sum is a payment in respect of which a deduction is not allowed for the reason that the whole or any part of the period in which the payment would fall to be allowed is not a period on the profits or gains of which income tax falls to be computed in respect of the trade, profession or vocation, for the reference in the proviso to the said subsection (1) to the amount of the capital sum there shall be substituted a reference to that amount after deducting the amount of the payment in respect of which a deduction is not allowed for that reason. 5 So far as in respect of a capital sum any part of a payment allowed as a deduction by way of tax relief of a kind to which this section applies is taken into account in making an assessment under subsection (1) of this section, that part of the payment shall be left out of account in determining whether any and if so what amount should be assessed by reference to any other capital sum ; and the order in which this subsection is applied shall be the order in which the capital sums are obtained. 6 In this section and sections 493, 494 and 495 below — " asset " means any description of property or rights other than land or an interest in land, " capital sum " means any sum of money, or any money's worth, except so far as it or any part of it is to be treated for the purposes of tax as a receipt to be taken into account in computing the profits or gains or losses of a trade, profession or vocation, or profits or gains or losses arising from woodlands, or is, apart from this section, chargeable under Case VI of Schedule D, and " lease ", in relation to an asset, means any kind of agreement or arrangement under which payments are made for the use of, or otherwise in respect of, an asset, and includes, in particular, any agreement or arrangement all or any of the payments under which represent instalments of, or payments towards, a purchase price. 7 There shall be made all such adjustments of tax, whether by way of making assessments or by repayment of tax, as are required after the making of any such payment as is described in subsection (1) of this section to give effect to the charge under that subsection in respect of a sum obtained before the making of the payment. 8 Notwithstanding anything in the Tax Acts limiting the time within which an assessment may be made or a claim for relief may be admitted any such adjustment may be made, by making an assessment or otherwise, at any time not more than six years from the end of the chargeable period in which the payment was made. Leased assets: special cases 493 1 This section shall apply, and section 492 above shall not apply, to payments — a which are allowable by way of deductions in computing the profits or gains or losses of a trade, and b which are made under a lease of an asset which at any time before the creation of the lease was used for the purposes — i of that trade, or ii of another trade carried on by the person who at that time or later was carrying on the first mentioned trade, and when so used, was owned by the person carrying on the trade in which it was being used. 2 Subject to this section, the deduction allowable in computing the profits or gains or losses of the trade for the purposes of tax as respects any such payment shall not exceed the commercial rent of the asset for the period for which the payment was made. 3 If under subsection (2) of this section part of a payment which would otherwise be allowable as a deduction is not so allowable, and one or more subsequent payments are made by the same person under the same lease, that part of the first-mentioned payment may be carried forward and treated for the purposes of computing the profits or gains or losses of the trade for the purposes of tax as if it were made at the time when the next of those subsequent payments was made, and so made for the period for which that subsequent payment was made. 4 For the purposes of subsection (2) of this section — a if more than one payment is made for the same period the payments shall be taken together, b if payments are made for periods which overlap, the payments shall be apportioned, and the apportioned payments which belong to the common part of the overlapping periods shall be taken together, c the preceding references to payments include references to parts of payments which under subsection (3) of this section are treated as if made at a time subsequent to that at which they were made, and to the extent that a part of a payment carried forward under subsection (3) of this section is not allowable as a deduction it may again be carried forward under the said subsection (3). 5 A payment made for a period all of which falls more than one year after the payment is made shall be treated for the purposes of this section as made for that period of one year beginning with the date on which the payment is made, and a payment for a period part of which falls after the end of that year shall be treated for those purposes as if a corresponding part of the payment was made for that year (and no part for any later period). 6 For the purpose of making a comparison under subsection (2) of this section between a payment, or payments taken together, and the commercial rent of the asset, " commercial rent" shall mean the rent which might at the relevant time be expected to be paid under a lease of the asset for the remainder of the anticipated normal working life of the asset, being a rent payable at uniform intervals and at a uniform rate which would afford a reasonable return for its market value at the relevant time, having regard to the terms and conditions of the lease, and in this subsection — " anticipated normal working life " has, for any asset, the meaning given, for machinery and plant, by section 20(7) of the Capital Allowances Act 1968, and " the relevant time " means the time when the lease was created under which the payment was made with which the commercial rent is to be compared: Provided that if the asset is used at the same time partly for the purposes of the trade and partly for other purposes the commercial rent as denned in this subsection shall be determined by reference to what would be paid for such a partial use of the asset. 7 This section shall not apply in relation to payments made under a lease created on or before 14th April 1964. 8 In this section references to the person carrying on a trade are references to the person carrying on the trade for the time being, and where at any time a person succeeds to a trade which until that time was carried on by another person, and by virtue of section 154 or section 251(1) of this Act the trade is to be treated as discontinued, the trade shall, nonetheless, be treated as the same trade for the purposes of this section. 9 In this section references to a trade include references, to a profession or vocation. Leased assets: supplemental 494 1 References in section 492 above (in this section called " the principal section ") to a sum obtained in respect of the lessee's interest in a lease of an asset, or in respect of any other interest in an asset include — a in the case of a lessee's interest, references to sums representing the consideration in money or money's worth obtained on a surrender of the rights to the lessor, or on an assignment of the lease, or on creating a sublease or any other interest out of the lease, and b references to any insurance moneys payable in respect of the asset, so far as payable to the owner of the interest in the asset. 2 Such references also include references to sums representing money or money's worth obtained by the person entitled to the interest by a transaction or series of transactions disposing of the asset, or of an interest in the asset, and in particular transactions which comprise arrangements under which the rights of the lessee under a lease of the asset are merged in any way with the rights of the lessor, or with any other rights as respects the asset, so far as the money or money's worth so obtained is attributable to the rights of the lessee under the lease. 3 References in the principal section to sums obtained in respect of any interest in an asset include references to money or money's worth so obtained in any transaction (including a transaction of the kind described in the preceding provisions of this section) by way of consideration received by a person who is an associate of the person entitled to the interest in the asset. 4 If an interest in the asset is disposed of by any person to a person who is his associate, the person disposing of the interest shall (unless in fact he obtains a greater sum) be treated for the purposes of the principal section as having obtained in respect of the interest — a the value of the interest in the open market, or b the value of the interest to the person to whom it is, in effect, transferred, whichever is the greater. 5 For the purposes of subsections (3) and (4) above a disposition may be direct or indirect and may be effected by any such transaction as is described in subsection (2) above. 6 For the purposes of the principal section, this section and section 495 below, any sum obtained by persons carrying on a trade, profession or vocation in partnership in respect of an interest in an asset which is and continues to be used for the purposes of the trade, profession or vocation shall be regarded as apportionable between them in the shares in which they are then entitled to the profits of the trade, profession or vocation. 7 Subject to subsection (6) above, for those purposes a sum obtained by persons jointly entitled to an interest in an asset shall be apportionable according to their respective interests in the rights. 8 For the said purposes, any payment in respect of which a deduction is allowable by way of tax relief which is made by persons carrying on a trade, profession or vocation in partnership shall be apportioned in such manner as may be just. 9 Where under this section any sum or payment falls to be apportioned and, at the time of the apportionment, it appears that it is material as respects the liability to tax (for whatever period) of two or more persons, any question which arises as to the manner in which the sum or payment is to be apportioned shall be determined, for the purposes of the tax of all those persons — a in a case where the same body of General Commissioners have jurisdiction with respect to all those persons, by those Commissioners, unless all those persons agree that it shall be determined by the Special Commisioners, b in a case where different bodies of Commissioners have jurisdiction with respect to those persons, by such of those bodies as the Board may direct, unless all those persons agree that it shall be determined by the Special Commissioners, and c in any other case, by the Special Commissioners, and any such Commissioners shall determine the question in like manner as if it were an appeal : Provided that all the said persons shall be entitled to appear and be heard by the Commissioners who are to make the determination or to make representations to them in writing. 10 For the purposes of this section and in construing the expressions " associate " and " associated " in the principal section and this section, the following persons shall be deemed to be associated with each other, that is to say. — a any individual and that individual's husband or wife, and any relative, or husband or wife of a relative, of that individual or of that individual's husband or wife ("relative" meaning for this purpose brother, sister, ancestor or lineal descendant); b any person in his capacity of trustee of a settlement and any individual who in relation to the settlement is a settlor, and any person associated with that individual ("settlement" and "settlor" having for this purpose the meanings assigned to them by section 444(2) of this Act); c any person and a body of persons of which that person, or persons associated with him, or that person and persons associated with him, has or have control; d any two or more bodies of persons associated with the same person by virtue of paragraph (c) above; e in relation to a disposal by joint owners, the joint owners and any person associated with any of them. In this subsection " body of persons " includes a partnership and "control" has the meaning assigned to it by section 534 of this Act. Leased assets subject to hire-purchase agreements 495 1 In the application of section 492 above (in this section called "the principal section") to a lease which constitutes a hire purchase agreement, for the reference in the proviso to subsection (1) of that section to the amount of the capital sum there shall, where that capital sum was obtained in respect of the lessee's interest in the lease constituting the hire-purchase agreement, be substituted references to the amount of the capital sum (adjusted, if necessary, under subsection (4) of the principal section) after deducting any capital expenditure which was incurred by the person obtaining the capital sum in providing the lessee's interest and which is, for capital allowance purposes, still unallowed at the time when the assignment or other transaction takes place in respect of which the capital sum is obtained. 2 In subsection (1) above " capital expenditure incurred by the person obtaining the capital sum in providing the lessee's interest" means — a so much of any payment made under the lease by the person obtaining the capital sum (or, where the capital sum was obtained by the personal representatives of a deceased person, so made by that deceased person) as is not a payment in respect of which a deduction is allowable by way of tax relief which is one of the kinds listed in subsection (3) of the principal section, plus b where the lessee's interest was assigned to the person obtaining the capital sum, any capital payment made by that person as consideration for the assignment. 3 In subsection (1) above the reference to the amount of capital expenditure which is, for capital allowance purposes, still unallowed at the said time shall be construed as a reference to the amount of the capital expenditure after deducting any amount which, under section 41 of the Capital Allowances Act 1968 (definition of "expenditure unallowed " for purposes of capital allowances for machinery and plant), would be deductible in ascertaining as at that time the amount still unallowed of expenditure incurred by the said person in providing the leased asset. 4 If the amount to be deducted in pursuance of subsection (1) above exceeds the amount of the capital sum from which it is to be deducted, no charge shall arise under subsection (1) of the principal section in respect of the capital sum. 5 If the capital sum represents the consideration for part only of the lessee's interest in the lease which constitutes a hire-purchase agreement, the amount to be deducted under subsection (1) above shall be such proportion of the capital expenditure which is still unallowed as is reasonable having regard to the degree to which the capital expenditure has contributed to the value of what is disposed of in return for the capital sum. 6 If more than one capital sum is, or is to be regarded as, obtained by the same person in respect of the lessee's interest in the lease which constitutes a hire-purchase agreement, then, so far as in respect of one of those capital sums any deduction is made in respect of capital expenditure in pursuance of subsection (1) above that capital expenditure shall be left out of account in applying subsections (1) and (4) above to any other such capital sum; and the order in which this subsection is applied shall be the order in which the capital sums are obtained. 7 In this section " hire-purchase agreement" has the meaning given by section 1 of the Hire-Purchase Act 1965. In Scotland for the preceding definition there shall be substituted the following definition — " hire-purchase agreement " means any contract, in whatsoever terms it may be expressed, whereby goods are taken on hire by one person from another person in consideration of periodical payments to be made by the first mentioned person to the other person, with an option to the first mentioned person to become the buyer of the goods. Transactions associated with loans or credit 496 1 This section applies as respects any transaction effected with reference to the lending of money or the giving of credit, or the varying of the terms on which money is lent or credit is given, or which is effected with a view to enabling or facilitating any such arrangement concerning the lending of money or the giving of credit. This subsection has effect whether the transaction is effected between the lender or creditor and the borrower or debtor, or between either of them and a person connected with the other or between a person connected with one and a person connected with the other. 2 If the transaction provides for the payment of any annuity or other annual payment, not being interest, being a payment chargeable to tax under Case III of Schedule D, the payment shall be treated for all the purposes of the Tax Acts as if it were a payment of annual interest. 3 If the transaction is one by which the owner of any securities or other property carrying a right to income agrees to sell or transfer the property, and by the same or any collateral agreement — a the purchaser or transferee, or a person connected with him, agrees that at a later date he will sell or transfer the same or any other property to the first-mentioned person, or a person connected with him, or b the first-mentioned person, or a person connected with him, acquires an option which he subsequently exercises, to buy or acquire the same or any other property from the said purchaser or transferee or a person connected with him, then, without prejudice to the liability of any other person, the first-mentioned person shall be chargeable to tax under Case VI of Schedule D on an amount equal to any income which arises from the first-mentioned property at any time before the repayment of the loan or the termination of the credit. 4 If under the transaction a person assigns, surrenders or otherwise agrees to waive or forgo income arising from any property (without a sale or transfer of the property) then, without prejudice to the liability of any other person, he shall be chargeable to tax under Case VI of Schedule D on a sum equal to the amount of income assigned, surrendered, waived or forgone. 5 If credit is given for the purchase price of any property, and the rights attaching to the property are such that, during the subsistence of the debt, the purchaser's rights to income from the property are suspended or restricted, he shall be treated for the purposes of subsection (4) above as if he had surrendered a right to income of an amount equivalent to the income which he has in effect forgone by obtaining the credit. 6 The amount of any income payable subject to deduction of income tax at the standard rate shall be taken for the purposes of subsection (4) above as the amount before deduction of that tax. 7 References in this section to connected persons shall be construed in accordance with section 533 of this Act. PART XVIII Double Taxation Relief CHAPTER I The Principal Reliefs Relief by agreement with other countries 497 1 If Her Majesty by Order in Council declares that arrangements specified in the Order have been made with the government of any territory outside the United Kingdom with a view to affording relief from double taxation in relation to income tax or corporation tax and any taxes of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect, then, subject to the provisions of this Part of this Act, the arrangements shall, notwithstanding anything in any enactment, have effect in relation to income tax and corporation tax in so far as they provide — a for relief from income tax, or from corporation tax in respect of income, or b for charging the income arising from sources in the United Kingdom to persons not resident in the United Kingdom, or c for determining the income to be attributed — i to persons not resident in the United Kingdom and their agencies, branches or establishments in the United Kingdom, or ii to persons resident in the United Kingdom who have special relationships with persons not so resident. 2 The provisions of Chapter IT below shall apply where arrangements which have effect by virtue of this section provide that tax payable under the laws of the territory concerned shall be allowed as a credit against tax payable in the United Kingdom. 3 For the purposes of this section and, subject to section 503(3) below, of the said Chapter II in its application to relief under this section, any amount of tax which would have been payable under the law of a territory outside the United Kingdom but for a relief to which this subsection applies given under the law of that territory shall be treated as having been payable; and references in this section and that Chapter to double taxation, to tax payable or chargeable, or to tax not chargeable directly or by deduction shall be construed accordingly. This subsection applies to any relief given with a view to promoting industrial, commercial, scientific, educational or other development in a territory outside the United Kingdom, being a relief with respect to which provision is made in the arrangements in question for double taxation relief. 4 Except in the case of a claim for an allowance by way of credit in accordance with Chapter II below, a claim for relief under subsection (1)(a) above shall be made to the Board. 5 Where, under any arrangements which have effect by Kingdom or in the territory with the government of which the virtue of this section, relief may be given, either in the United arrangements are made, in respect of any income, and it appears that the assessment to income tax or corporation tax made in respect of the income is not made in respect of the full amount thereof, or is incorrect having regard to the credit, if any, which falls to be given under the arrangements, any such assessments may be made as are necessary to ensure that the total amount of the income is assessed, and the proper credit, if any, is given in respect thereof, and, where the income is entrusted to any person in the United Kingdom for payment, any such assessment may be made on the recipient of the income under Case VI of Schedule D. 6 Any arrangements to which effect is given under this section may include provision for relief from tax for periods before the passing of this Act, or before the making of the arrangements, and provisions as to income which is not itself subject to double taxation, and the preceding provisions of this section shall have effect accordingly. 7 Any Order in Council made under this section may be revoked by a subsequent Order in Council, and any such revoking Order may contain such transitional provisions as appear to Her Majesty to be necessary or expedient. 8 Before any Order proposed to be made under this section is submitted to Her Majesty in Council, a draft thereof shall be laid before the House of Commons, and the Order shall not be so submitted unless an Address is presented to Her Majesty by that House praying that the Order be made. 9 Notwithstanding section 501(2) below, any arrangements made in relation to the profits tax under section 347 of the Income Tax Act 1952 (which this section re-enacts) or any earlier enactment corresponding to the said section 347 shall, except in so far as arrangements made after the passing of the Finance Act 1965 provide otherwise, have effect in relation to corporation tax and income chargeable thereto as they are expressed to have effect in relation to the profits tax and profits chargeable thereto (with the substitution of accounting periods for chargeable accounting periods), and not as they have effect in relation to income tax. Unilateral relief 498 1 To the extent appearing from the following provisions of this section, relief from income tax and corporation tax in respect of income shall be given in respect of tax payable under the law of any territory outside the United Kingdom by allowing the last-mentioned tax as a credit against income tax or corporation tax, notwithstanding that there are not for the time being in force any arrangements under section 497 above providing for such relief: Provided that the said relief shall not be given in respect of tax payable under the law of the Republic of Ireland. 2 The said relief (hereafter referred to as " unilateral relief ") shall be such relief as would fall to be given under Chapter II below if arrangements with the government of the territory in question containing the provisions specified in subsections (3) and (4) below were in force by virtue of the said section 497, but subject to any particular provision made with respect to unilateral relief in that Chapter; and any expression in that Chapter which imports a reference to relief under arrangements for the time being having effect by virtue of the said section 497 shall be deemed to import also a reference to unilateral relief. 3 Credit for tax paid under the law of the territory outside the United Kingdom and computed by reference to income arising in that territory shall be allowed against any United Kingdom income tax or corporation tax computed by reference to that income (profits from, or remuneration for, personal or professional services performed in that territory being deemed for this purpose to be income arising in that territory): Provided that — a where the territory is the Isle of Man or any of the Channel Islands, the limitation to income arising in the territory shall not apply, b where arrangements with the government of the territory are for the time being in force by virtue of section 497 above, credit for tax paid under the law of the territory shall not be allowed by virtue of this subsection in the case of any income if any credit for that tax is allowable under those arrangements in respect of that income, and c credit shall not be allowed by virtue of this subsection for overseas tax on a dividend paid by a company resident in the territory unless — i the overseas tax is directly charged on the dividend, whether by charge to tax, deduction of tax at source or otherwise, and the whole of it represents tax which neither the company nor the recipient would have borne if the dividend had not been paid, or ii the dividend is paid to a company within subsection (4) below, or iii the dividend is paid to a company to which section 509(1) below applies, and is a dividend of the kind described in that subsection. 4 Where a dividend paid by a company resident in the territory is paid to a company resident in the United Kingdom which either — a controls directly or indirectly, or b is a subsidiary of a company which controls directly or indirectly, not less than 25 per cent. of the voting power in the company paying the dividend, or not less than 10 per cent. of the voting power if the territory is one of the Commonwealth territories, any tax in respect of its profits paid under the law of the territory by the company paying the dividend shall be taken into account in considering whether any, and if so what, credit is to be allowed in respect of the dividend. In this subsection references to the Commonwealth territories, and to one company being a subsidiary of another, are to be construed in accordance with section 500 below. 5 Where unilateral relief may be given in respect of any income, and it appears that the assessment to income tax or corporation tax made in respect of the income is not made in respect of the full amount thereof, or is incorrect having regard to the credit, if any, which falls to be given by way of unilateral relief, any such assessments may be made as are necessary to ensure that the total amount of the income is assessed, and the proper credit, if any, is given in respect thereof, and, where the income is entrusted to any person in the United Kingdom for payment, any such assessment may be made on the recipient of the income under Case VI of Schedule D. 6 In this section, and in Chapter II below in its application to unilateral relief, references to tax payable or paid under the law of a territory outside the United Kingdom include only references to taxes which are charged on income and correspond to income tax or corporation tax in the United Kingdom, but, for this purpose, tax under the law of any such territory shall not be treated as not corresponding to income tax or corporation tax by reason only that it is payable under the law of a province, state or other part of a country, or is levied by or on behalf of a municipality or other local body. Application to corporation tax on chargeable gains 499 The provisions of this Chapter and of Chapter II below, so far as they are applicable to capital gains tax by virtue of section 39(1) of the Finance Act 1965, shall have effect in relation to corporation tax in respect of chargeable gains as they have effect in relation to capital gains tax. CHAPTER II Rules Governing Relief by way of Credit General Interpretation of credit code 500 1 In this Chapter, except where the context otherwise requires — " arrangements " means any arrangements having effect by virtue of section 497 above, " Commonwealth territory " means any of Her Majesty's dominions, any other country for the time being mentioned in section 1(3) of the British Nationality Act 1948, any British protectorate or protected state, and any trust territory administered by the government of any part of Her Majesty's dominions, " foreign tax " means, in relation to any territory arrangements with the government of which have effect by virtue of section 497 above, any tax chargeable under the laws of that territory for which credit may be allowed under the arrangements, " the United Kingdom taxes " means income tax and corporation tax, " underlying tax " means, in relation to any dividend, tax which is not chargeable in respect thereof directly or by deduction, and " unilateral relief " means relief under section 498 above. 2 For the purposes of this Chapter one company is a subsidiary of another if the other company controls, directly or indirectly, not less than 50 per cent. of the voting power in the first company. 3 Any reference in this Chapter to foreign tax shall be construed in relation to credit to be allowed under any arrangements as a reference only to tax chargeable under the laws of the territory with the government of which the arrangements were made. Relief to be given by reducing U.K. taxes by amount of credit due 501 1 Subject to the provisions of this Chapter, where under any arrangements credit is to be allowed against any of the United Kingdom taxes chargeable in respect of any income, the amount of the United Kingdom taxes so chargeable shall be reduced by the amount of the credit. 2 Nothing in subsection (1) above authorises the allowance of credit against any United Kingdom tax against which credit is not allowable under the arrangements. Requirement as to residence 502 Credit shall not be allowed under any arrangements against any of the United Kingdom taxes for any chargeable period unless the person in respect of whose income the United Kingdom tax is chargeable is resident in the United Kingdom for that period: Provided that credit may be allowed by way of unilateral relief — a for tax paid under the law of the Isle of Man or any of the Channel Islands, if the person in question is, for the chargeable period in question, resident either in the United Kingdom or in the Isle of Man or the Channel Islands, as the case may be, and b for tax paid under the law of any territory and computed by reference to income from an office or employment the duties of which are performed wholly or mainly in that territory, against income tax chargeable under Schedule E and computed by reference to that income, if the person in question is for the year of assessment in question resident either in the United Kingdom or in that territory. Computation, for purposes of U.K. taxes, of income subject to foreign tax 503 1 Where credit for foreign tax falls under any arrangements to be allowed in respect of any income, and income tax or corporation tax is payable by reference to the amount received in the United Kingdom, the amount received shall be treated for the purposes of income tax or corporation tax as increased by the amount of the foreign tax in respect of the income, including, in the case of a dividend, any underlying tax which, under the arrangements, is to be taken into account in considering whether any, and if so what, credit is to be allowed in respect of the dividend. 2 Where credit for foreign tax falls under any arrangements to be allowed in respect of any income, and subsection (1) above does not apply, then, in computing the amount of the income for the purposes of income tax or corporation tax — a no deduction shall be made for foreign tax, whether in respect of the same or any other income, and b the amount of the income shall, in the case of a dividend, be treated as increased by any underlying tax which, under the arrangements, is to be taken into account in considering whether any, and if so what, credit is to be allowed in respect of the dividend. 3 The amount of any income shall not be treated as increased under this section by reference to any foreign tax which, although not payable, falls to be taken into account for the purposes of credit by virtue of section 497(3) above. Limits on credit: income tax 504 1 The amount of the credit for foreign tax which, under any arrangements, is to be allowed to a person against income tax for any year of assessment shall not exceed the difference between the amounts of income tax which would be borne by him for the year (no credit being allowed for foreign tax) — a if he were charged to tax on his total income for the year, computed in accordance with section 503 above, and b if he were charged to tax on the same income, computed in the same way, but excluding the income in respect of which the credit is to be allowed. 2 Where credit for foreign tax is to be allowed in respect of income from more than one source, subsection (1) above shall be applied successively to the income from each source, but so that, on each successive application, paragraph (a) shall apply to the total income exclusive of the income to which the subsection has already been applied. 3 Without prejudice to subsections (1) and (2) above, the total credit for foreign tax to be allowed to a person against income tax for any year of assessment under all arrangements having effect by virtue of section 497 above shall not exceed the total income tax payable by him for that year of assessment, less any income tax which he is entitled to charge against any other person. Limit on credit: corporation tax 505 The amount of the credit for foreign tax which, under any arrangements, is to be allowed against corporation tax in respect of any income shall not exceed the corporation tax attributable to that income. Underlying tax on dividends Computation of underlying tax 506 1 Where, in the case of any dividend, arrangements provide for underlying tax to be taken into account in considering whether any, and if so what, credit is to be allowed against the United Kingdom taxes in respect of the dividend, the tax to be taken into account by virtue of that provision shall be so much of the foreign tax borne on the relevant profits by the body corporate paying the dividend as is properly attributable to the proportion of the relevant profits represented by the dividend. 2 For the purposes of subsection (1) above, the relevant profits are — a if the dividend is paid for a specified period, the profits of that period, b if the dividend is not paid for a specified period, but is paid out of specified profits, those profits, and c if the dividend is paid neither for a specified period nor out of specified profits, the profits of the last period for which accounts of the body corporate were made up which ended before the dividend became payable: Provided that if, in a case falling under paragraph (a) or (c) above, the total dividend exceeds the profits available for distribution of the period mentioned in the said paragraph (a) or (c), as the case may be, the relevant profits shall be the profits of that period plus so much of the profits available for distribution of preceding periods (other than profits previously distributed or previously treated as relevant for the purposes of this section) as is equal to the excess; and for the purposes of this proviso, the profits of the most recent preceding period shall first be taken into account, then the profits of the next most recent preceding period, and so on. 3 Profits treated as relevant for the purposes of paragraph 9 of Schedule 16 to the Income Tax Act 1952 (which this section re-enacts), and profits deemed by virtue of that paragraph to be profits previously so treated, shall be deemed for the purposes of this section to be profits previously treated as relevant for the purposes of this section. Extension of relief to certain dividends not covered by arrangements where paid between related companies 507 1 Where — a arrangements provide, in relation to dividends of some classes but not in relation to dividends of other classes, that underlying tax is to be taken into account in considering whether any, and if so what, credit is to be allowed against the United Kingdom taxes in respect of the dividends, and b a dividend is paid which is not of a class in relation to which the arrangements so provide, then, if the dividend is paid to a company which controls directly or indirectly, or is a subsidiary of a company which controls directly or indirectly, not less than 25 per cent. of the voting power in the company paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide. 2 Where any arrangements contain a provision which. — a applies to any company which controls, directly or indirectly, not less than a stated fraction of the voting power of a company resident in a specified territory outside the United Kingdom, and b in allowing credit against United Kingdom tax on dividends paid to any such company by the company so resident, authorises account to be taken of tax payable by the company so resident in respect of the profits out of which the dividends were paid, then, subject to subsection (3) below, credit shall be allowed under the arrangements as if the provision treated the subsidiary of a company which owns, directly or indirectly, the stated fraction of the voting power of a company resident in the specified territory as if that subsidiary also owned that fraction of the voting power of the company so resident. 3 Subsections (1) and (2) above have no application to unilateral relief; and credit shall not be allowable in the case of the same income both by virtue of the said subsection (2) and by way of unilateral relief. Extension of relief to U.K. and third country taxes where dividends paid between related companies 508 1 Where a dividend is paid by a company resident in a territory outside the United Kingdom to a company resident in the United Kingdom which either — a controls directly or indirectly, or b is a subsidiary of a company which controls directly or indirectly, not less than 25 per cent. of the voting power in the company paying the dividend, then, for the purpose of allowing credit under any arrangements against corporation tax in respect of the dividend, any United Kingdom income tax or corporation tax payable by the first-mentioned company in respect of its profits, and any tax so payable under the law of any territory outside the United Kingdom, shall be taken into account as if it were tax payable under the law of the first-mentioned territory. 2 In relation to dividends paid by a company resident in a Commonwealth territory, subsection (1) above shall have effect for the purposes of unilateral relief with the substitution of " 10 per cent. " for " 25 per cent.". U.K. insurance companies trading overseas 509 1 Subject to subsection (2) below, where a company resident in the United Kingdom is charged to tax under Case I of Schedule D in respect of any insurance business carried on by it, and that business or any part of it is carried on through a branch or agency in a territory outside the United Kingdom, then, in respect of dividends referable to that business which are paid to the company by companies resident in that territory, any tax payable by those companies in respect of their profits under the law of that or any other territory outside the United Kingdom, and any United Kingdom income tax or corporation tax so payable, shall, in considering whether any, and if so what, credit is to be allowed under any arrangements, be taken into account as tax so payable under the law of the first-mentioned territory is taken into account in a case falling within section 506 above. 2 Credit shall not be allowed to a company by virtue of subsection (1) above for any financial year in respect of a greater amount of dividends paid by companies resident in any overseas territory than is equal to any excess of the relevant fraction of the company's total income in that year from investments (including franked investment income and group income) so far as referable to the said business over the amount of the dividends so referable which are paid to it in the year by companies resident in that territory and in respect of which credit may, apart from the said subsection (1), be allowed to it for underlying tax. 3 For the purposes of subsection (2) above "the relevant fraction " is, in relation to any overseas territory, the fraction of which the numerator is the company's local, and the denominator the company's total, premium income in the financial year so far as referable to the said business, and premium income shall be deemed to be local premium income in so far as it consists of premiums under contracts entered into at or through a branch or agency in that territory by persons not resident in the United Kingdom. Miscellaneous rules Relief against income tax in respect of income arising in years of commencement 510 1 Subject to the provisions of this section, credit for overseas tax paid in respect of any income arising in the years of commencement shall be allowed under this Part of this Act against United Kingdom income tax chargeable for any year of assessment in respect of that income if it would have been so allowed but for the fact that credit for that overseas tax had been allowed against the United Kingdom income tax chargeable in respect of that income for a previous year of assessment. 2 The amount of credit to be allowed in respect of any income by virtue of this section for any year of assessment shall not exceed the difference between — a the total credit allowable against income tax in respect of that income under this Part of this Act (including this section) for all years of assessment for which credit is so allowable, and b the amount of credit which was in fact so allowed in respect of that income for any earlier year or years of assessment. 3 The total credit allowable as aforesaid in respect of any income for all those years of assessment shall be taken to be the amount of the overseas tax charged on that income, adjusted where the number of the United Kingdom periods of assessment exceeds the number of the foreign periods of assessment, in the proportion which the former number bears to the latter, a period for which part only of the income is charged to tax being counted not as one period but as a fraction equal to the proportion which that part of the income bears to the whole of the income. 4 Where the same income is charged to different overseas taxes for different foreign periods of assessment, subsection (3) above, so far as it relates to the adjustment of overseas tax, shall be applied separately to each of the overseas taxes, and the total credit allowable shall be the aggregate of those taxes after the making of any adjustments in accordance with that subsection as so applied. 5 Where credit against income tax for any year of assessment is allowed by virtue of subsection (1) above in respect of any income (hereafter referred to as " the original income "), and subsequently, by reason of the enactments relating to cessation, income arising in a non-basis period from the same source as the original income is not assessed to income tax, then, if the amount of credit allowed against income tax in respect of the original income under this Part of this Act (including this section) for all years of assessment for which credit is so allowable exceeds the aggregate of the following amounts — a the amount of the credit against income tax which would have been allowed apart from subsection (1) above for all those years in respect of the original income, and b the amount of the overseas tax for which, under this Part of this Act, credit would have been allowable against income tax in respect of income arising in the non-basis period from the same source as the original income, the person chargeable in respect of income (if any) from the same source in the year of assessment following the non-basis period shall be treated as having received in that year a payment chargeable under Case VI of Schedule D of an amount such that income tax thereon at the standard rate is equal to the excess: Provided that any payment which any person is treated by virtue of this subsection as having received shall not on that account constitute income of his for any of the purposes of the Income Tax Acts other than this subsection, and, in particular, no part thereof shall constitute profits or gains brought into charge to income tax for the purposes of section 52 of this Act. 6 Any claim for relief by way of credit under subsection (1) above against income tax for any year of assessment shall be made within six years of the end of that year, or, where there is more than one year of assessment in respect of which such relief may be given, within six years of the end of the later of them. 7 In this section — " overseas tax " means tax under the law of a territory outside the United Kingdom, " non-basis period " means a period the income arising in which is, by reason only of the operation of the enactments relating to cessations, not chargeable to United Kingdom income tax for any year of assessment, " United Kingdom period of assessment " and " foreign period of assessment ", in relation to any income, mean respectively a year or other period for which under the relevant law the income falls to be charged to the relevant tax, " years of commencement ", in relation to income from any source, means the first three years of assessment for which income from that source falls to be assessed to income tax, and also, in the case of profits or gains chargeable to tax under Case I or Case II of Schedule D, the whole of any period falling partly within those years such that the profits or gains arising in the period fall to be assessed to income tax for a year of assessment later than those years, references to the enactments relating to cessations are references to sections 118, 121, 124 and 154 of this Act, and references to income arising in any year include, in relation to income the income tax on which is to be computed by reference to the amount of income received in the United Kingdom, references to income received in that year. Elections against credit 511 Credit shall not be allowed under any arrangements against the United Kingdom taxes chargeable in respect of any income of any person if he elects that credit shall not be allowed in respect of that income. Time limit for claims etc. 512 1 Subject to subsection (2) below and section 510(6) above, any claim for an allowance under any arrangements by way of credit for foreign tax in respect of any income shall be made not later than six years from the end of the chargeable period for which the income falls to be charged to income tax or corporation tax, or would fall so to be charged if any income tax or corporation tax were chargeable in respect thereof. 2 Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in the United Kingdom or under the laws of any other territory, nothing in the Tax Acts limiting the time for the making of assessments or claims for relief shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than six years from the time when all such assessments, adjustments and other determinations have been made, whether in the United Kingdom or elsewhere, as are material in determining whether any, and if so what, credit falls to be given. CHAPTER III Other Provisions Relief under agreements with Republic of Ireland 513 1 The repeals effected by this Act shall not affect the confirmation by any enactment of any agreement in force at the passing of this Act between the United Kingdom and the Republic of Ireland, and accordingly, subject to subsection (2) below, the agreement of 14th April 1926 set out in Part I of Schedule 12 to this Act, as modified by the agreements of 25th April 1928, 4th April 1959 and 23rd June 1960 there set out, shall, for any year of assessment for which, under the law of the Republic of Ireland, it has effect with respect to exemption and relief from Republic of Ireland income tax, have effect with respect to exemption or relief to be granted from United Kingdom income tax. 2 In paragraph (1) of the Article substituted for Article 2 of the said agreement of 1926 by Article 2 of the said agreement of 1928, the references to section 27 of the Finance Act 1920 shall be taken to be references to that section as set out in Part II of the said Schedule 12 with amendments made therein by subsequent enactments and certain omissions and adaptations of provisions and phrases which have become inapt or unnecessary, or are unnecessary, inapplicable or unsuitable in the case of the Republic of Ireland. 3 For the purpose of giving effect to the agreements to which this section applies, the Income Tax Acts, in relation to — a persons resident in the United Kingdom, whether or not also resident in the Republic of Ireland, and b persons entrusted with payment to persons so resident, and c claims by persons resident in the Republic of Ireland, shall, for any year for which the said agreements are in force, have effect subject to the provisions of Part III of the said Schedule 12. 4 The deduction to be given to an individual under section 22 of this Act (reduced rate relief) shall not, where relief is given under section 27 of the Finance Act 1920 as set out in Part II of the said Schedule 12, be less than it would have been if that relief had not been given. 5 The power to make regulations conferred by subsection (7) of the said section 27 as so set out shall be deemed for the purposes of section 1 of the Statutory Instruments Act 1946 to be a power conferred by an Act passed after the commencement of that Act, and shall be exercisable by statutory instrument. 6 For the purpose of carrying out any obligation of the Government of the United Kingdom under Article 2 of the said agreement of 1960, Her Majesty may by Order in Council direct that any provisions of the Income Tax Acts specified in the Order (being provisions affecting in any way exemptions from income tax of persons resident in the United Kingdom) shall not affect, and be deemed not to have affected, exemptions from income tax which persons enjoy as not resident in the United Kingdom but resident in the Republic of Ireland. 7 Nothing in this section or the said Schedule 12 applies for the purposes of corporation tax. Relief under agreements about shipping, air transport and agency profits 514 1 If Her Majesty in Council is pleased to declare — a that any profits or gains arising from the business of shipping or from the business of air transport which are chargeable to United Kingdom income tax are also chargeable to income tax payable under the law in force in any territory outside the United Kingdom, and b that arrangements, as specified in the declaration, have been made with the government of that territory with a view to the granting of relief in cases where such profits and gains are chargeable both to United Kingdom income tax and to the income tax payable in that territory, then, unless and until the declaration is revoked by Her Majesty in Council, the arrangements specified therein shall, so far as they relate to the relief to be granted from United Kingdom tax, have effect as if enacted in this Act, but only if and so long as the arrangements, so far as they relate to the relief to be granted from the income tax payable in the said territory, have the effect of law in that territory. In this subsection " the business of shipping" means the business carried on by an owner of ships, and " the business of air transport" means the business carried on by an owner of aircraft, and for the purpose of these definitions " owner" includes any charterer. 2 If Her Majesty in Council is pleased to declare — a that any profits or gains arising directly or indirectly to a person resident in any territory outside the United Kingdom through an agency in the United Kingdom, or to a person resident in the United Kingdom through an agency in any such territory, are chargeable both to United Kingdom income tax and to income tax payable under the law in force in that territory, and b that arrangements, as specified in the declaration, have been made with the government concerned with a view to the granting of relief from such double taxation, then, unless and until the declaration is revoked by Her Majesty in Council, the arrangements specified therein shall, so far as they relate to the relief to be granted from United Kingdom tax, have effect as if enacted in this Act, but only if and so long as the arrangements, so far as they relate to the relief to be granted from the income tax payable in the said territory, have the effect of law in that territory: Provided that no arrangements made under this subsection shall exempt from United Kingdom tax any profits or gains which either — i arise from the sale of goods from a stock in the United Kingdom, or ii accrue to a person resident in the United Kingdom, or iii accrue to a person not resident in the United Kingdom directly or indirectly through any branch or management in the United Kingdom, or through any agency in the United Kingdom where the agent has, and habitually exercises, a general authority to negotiate and conclude contracts. 3 Any declaration made by Her Majesty in Council under this section shall be subject to annulment in pursuance of a resolution of the House of Commons. 4 In this section, and in any arrangements made under any earlier enactment corresponding to this section, references to income tax include references to corporation tax; and any reference in any such arrangements to British income tax shall be deemed for the purposes of this section to be a reference to United Kingdom income tax. Postponement of capital allowances to secure double taxation relief 515 1 Where a person chargeable to tax in respect of a trade under Case I of Schedule D is liable to overseas tax in respect of any income arising from the trade, being overseas tax for which relief may be given by way of credit, repayment or set-off under the preceding provisions of this Part of this Act, and the conditions specified in subsection (2) below are satisfied, he may, in claiming the relief in respect of that income, claim a postponement under this section of the relevant capital allowances operating to reduce that income for the purposes of tax for any chargeable period. 2 The said conditions are — a that the law under which the overseas tax is chargeable provides for deductions or allowances to be given corresponding to capital allowances, but on a different basis such that they operate to reduce the income in question (if at all) to a less extent than the capital allowances to which the claim relates, but are calculated to operate to a greater extent than the corresponding capital allowances to reduce income arising subsequently, and b that the relief falling to be given as aforesaid in respect of the income in question is less than it would be if the capital allowances to which the claim relates operated to reduce the income to the same extent only as the deductions or allowances so provided for. 3 Where a person claims a postponement under this section of capital allowances for any chargeable period, then, for the purpose of making the assessment for that period, the amount of those allowances shall be reduced by such amount as may be necessary to secure that they operate to reduce the income only to the extent mentioned in subsection (2) (b) above (or such less amount as the claimant may require), and, for the purpose of making the assessment for the following period, that amount shall be added to the amount of the allowances for that period, and shall be deemed to be part of those allowances or, if there are no such allowances for that period, shall be deemed to be the allowances for that period. 4 For the purposes of any claim under this section there shall be taken into account such only of the relevant capital allowances, and the deductions or allowances operating to reduce the income in question for purposes of the overseas tax, as are calculated to give relief in respect of the same expenditure or the same assets. 5 In this section " overseas tax " means tax chargeable under the laws of any territory outside the United Kingdom, and " relevant capital allowances ", in relation to any trade, means capital allowances falling to be made in taxing the trade; and the reference in subsection (1) above to tax for a chargeable period shall be construed, in relation to corporation tax, as referring to the tax for any financial year which is chargeable in respect of that period. 6 This section applies (with any necessary adaptations) in relation to a profession, employment, vocation or office, and in relation to the occupation of woodlands the profits or gains of which are assessable under Schedule D, as it applies in relation to a trade. Deduction for foreign tax where no credit allowable 516 1 For the purposes of the Tax Acts, the amount of any income arising in any place outside the United Kingdom shall, subject to subsection (2) below, be treated as reduced by any sum which has been paid in respect of tax on that income in the place where the income has arisen (that is to say, tax payable under the law of a country outside the United Kingdom). 2 Subsection (1) above — a shall not apply to income the tax on which is to be computed by reference to the amount of income received in the United Kingdom, and b shall not affect the proviso to section 27(2) of this Act (computation of personal reliefs for non-residents by reference to total income, including income not taxed in United Kingdom), and this section has effect subject to section 503(2) above (no deduction for foreign tax if credit allowable therefor). Power to make regulations for carrying out s. 497 517 1 The Board may from time to time make regulations generally for carrying out the provisions of section 497 above or any arrangements having effect thereunder, and may in particular by those regulations provide — a for securing that relief from taxation imposed by the laws of the territory to which any such arrangements relate does not enure to the benefit of persons not entitled thereto, and b for authorising, in cases where tax deductible from any payment has, in order to comply with any such arrangements, not been deducted, and it is discovered that the arrangements did not apply to that payment, the recovery of the tax by assessment on the person entitled to the payment or by deduction from subsequent payments. The power conferred by this subsection to make regulations shall be exercisable by statutory instrument. 2 The giving of relief under this Part of this Act in respect of income tax under Schedule F by authorising, pursuant to regulations under subsection (1) above, the making of distributions of amounts exceeding what would otherwise be distributed shall not affect the provisions of paragraph 2 of Schedule F (which determines the amount of income tax under that Schedule chargeable in respect of any distribution), and references in the said paragraph 2 to the amount of the distribution shall be taken as references to that amount apart from any increase made in pursuance of such regulations. Disclosure of information 518 1 Where, under the law in force in any territory outside the United Kingdom, provision is made for the allowance, in respect of the payment of United Kingdom income tax or corporation tax, of relief from tax payable under that law, the obligation as to secrecy imposed by the Tax Acts upon persons employed in relation to Inland Revenue shall not prevent the disclosure to the authorised officer of the government of the territory in question of such facts as may be necessary to enable the proper relief to be given under the law thereof. Section 498(6) above shall apply to the interpretation of this subsection as it applies to the interpretation of that section. 2 Where any arrangements have effect by virtue of section 497 above, the obligation as to secrecy imposed by any enactment shall not prevent the Board, or any authorised officer of the Board, from disclosing to any authorised officer of the government with which the arrangements are made such information as is required to be disclosed under the arrangements. 3 Where a person beneficially entitled to income from any securities as defined by section 24 of the Taxes Management Act 1970 (information as to income from securities) is resident in a territory to which arrangements having effect under the said section 497 with respect to income tax or corporation tax relate, subsection (3) of the said section 24 shall not exempt any bank from the duty of disclosing to the Board particulars relating to the income of that person. 4 The obligation as to secrecy imposed by any enactments with regard to income tax or corporation tax shall not prevent the disclosure, to any authorised officer of any country to which a declaration under section 514 above relates, of such facts as may be necessary to enable relief to be duly given in accordance with the arrangements specified in the declaration. PART XIX Supplemental Deductions not to be allowed in computing profits or gains 519 1 In arriving at the amount of profits or gains for tax purposes — a no other deductions shall be made than such as are expressly enumerated in the Tax Acts, and b no deduction shall be made on account of any annuity or other annual payment (not being interest) to be paid out of such profits or gains in regard that a proportionate part of income tax is allowed to be deducted on making any such payment. 2 In arriving at the amount of profits or gains from any property described in the Tax Acts, or from any office or employment, no deduction shall be made on account of diminution of capital employed, or of loss sustained, in any trade, or in any profession, employment or vocation. 3 Interest payable to the Land Commission under section 51 of the Land Commission Act 1967 at the rate determined by the Betterment Levy (Rate of Interest) (No. 2) Order 1969 or by any subsequent order made under section 51(2) of that Act shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes. Income tax provisions Application of Income Tax Acts from year to year 520 In order to ensure the collection in due time of income tax which may be granted for any year commencing on 6th April, all such provisions contained in the Income Tax Acts as were in force on the preceding day shall have full force and effect with respect to tax which may be so granted, in the same manner as if the said tax had been atcually granted by Act of Parliament and the said provisions had been applied thereto by the Act. Under-deductions from payments made before passing of annual Act 521 1 Where, in any year of assessment, any half-yearly or quarterly payments have been made on account of any interest, dividends or other annual profits or gains, previously to the passing of the Act imposing income tax for that year, and tax has not been charged thereon or deducted therefrom, or has not been charged thereon or deducted therefrom at the rate ultimately imposed for the said year, the amount not so charged or deducted shall be charged under Schedule D in respect of those payments, as profits or gains not charged by virtue of any other Schedule, under Case VI of Schedule D, and the agents entrusted with the payment of the interest, dividends or other annual profits or gains shall furnish to the Board a list containing the names and addresses of the persons to whom payments have been made and the amount of those payments, upon a requisition made by the Board in that behalf. 2 Any person liable to pay any rent, interest or annuity, or to make any other annual payment, shall be authorised to make any deduction on account of income tax for any year of assessment which he has failed to make previously to the passing of the Act imposing the tax for that year, or to make up any deficiency in any such deduction which has been so made, on the occasion of the next payment of the rent, interest or annuity or making of the other annual payment after the passing of the Act so imposing the tax, in addition to any other deduction which he may be by law authorised to make, and shall also be entitled, if there is no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt due from the person as against whom the deduction could originally have been made if the Act imposing the tax for the year had been in force. 3 Subsection (2) above shall apply with respect to — a any preference dividend from which a deduction of tax may be made under section 232(3) of this Act (Schedule F), and b any payment for or in respect of copyright to which section 391 of this Act (copyrights owned by persons whose usual place of abode is abroad) applies, and c any royalty or other sum paid in respect of the user of a patent, and d any rent, royalty or other payment which by section 156 or 157 of this Act (mining etc. rents and royalties) is declared to be subject to deduction of tax under Part II of this Act as if it were a royalty or other sum paid in respect of the user of a patent, as it applies with respect to any rent, interest, annuity or any other annual payment. Over-deductions from interest on loan capital or preference dividends made before passing of annual Act 522 If, in any year of assessment, a resolution having statutory effect under the Provisional Collection of Taxes Act 1968 provides for the charging of income tax at a standard rate lower than that charged for the previous year, the following provisions shall have effect with respect to deductions in respect of income tax by any body corporate, from payments of interest on any of its securities, or under section 232(3) of this Act from payments of preference dividends on any of its shares — a any deduction, which was made before the expiration of one month from the passing of the resolution and which would, if the tax had been renewed at the rate imposed for the previous year, have been a legal deduction, shall be deemed to be a deduction rendered legal by section 2 of the Provisional Collection of Taxes Act 1968, and the said section 2 shall, subject to the provisions of this section, apply accordingly; b any over-deduction to be made good under the said section 2 may be made good by a reduction of the amount of tax deducted from the next payment of like nature made on the security or share in question after the passing of the Act imposing the tax for the year: Provided that the preceding provision shall not authorise the retention of any part of the amount over-deducted for more than one year from the passing of the Act so imposing the tax ; c any amount made good under the said section 2 shall — i in the case of an over-deduction which is made good under paragraph (b) of this section, enure to the benefit of the person entitled to the payment on the occasion of which the over-deduction is made good; and ii in any other case, enure to the benefit of the person entitled to the security or share in question at the date when the amount is made good, irrespective, in either case, of whether or not he is the person who was entitled to the payment, or to the security or share, at the date when the original deduction was made. In this section " share " includes stock. Adjustment of reliefs where reliefs not all given at the same time 523 Where, under the provisions of the Income Tax Acts, an individual is entitled to claim relief from income tax (other than relief in respect of fife insurance premiums), by repayment or otherwise, in respect of — a any amount which is paid or borne by him out of his income or which is allowable or may be deducted therefrom; or b any reduction of an assessment relating to his income or any part thereof; or c any adjustment or set-off with regard to a loss, and claims that relief for any year of assessment, any relief granted shall not extend so as to make the total income tax paid or payable by him for that year less than it would have been if the amount in respect of which relief is claimed had been deducted in computing his total income for that year and the amount of any other deductions or reliefs to which he is entitled for that year had been determined accordingly. Application of Income Tax Acts to public departments 524 1 Subject to subsection (2) below, all the provisions of the Income Tax Acts relating to the assessment, charge, deduction and payment of income tax shall apply in relation to public offices and departments of the Crown: Provided that nothing in those provisions shall require the payment by any such office or department of any tax which would be ultimately borne by the Crown. 2 Subsection (1) above shall not apply to public offices and departments of any country, state, province or colony within paragraph (b) or (c) of section 372(2) of this Act (Commonwealth Agents-General, and official agents, etc.), and nothing in subsection (1) above shall exempt any Government from taxation to which it is liable in connection with any office or department by virtue of section 25 of the Finance Act 1925 (liability of Governments of places within, and certain places outside, Her Majesty's dominions to taxation in respect of trading operations). No exemption from tax under letters patent or statutes 525 1 No letters patent granted or to be granted by the Crown to any person, city, borough or town corporate of any liberty, privilege, or exemption from subsidies, tolls, taxes, assessments or aids, and no statute which grants any salary, annuity or pension to any person free of any taxes, deductions or assessments, shall be construed or taken to exempt any person, city, borough or town corporate, or any inhabitant of the same, from income tax, and all non-obstantes in any such letters patent or statute made or to be made to the contrary effect shall be void. 2 This section shall apply in relation to tax chargeable in pursuance of Part III of the Finance Act 1965 (tax on chargeable gains) as it applies in relation to income tax. Interpretation Definitions for income tax and corporation tax 526 1 In this Act and in any other Act, except in so far as the context otherwise requires — a " the Corporation Tax Acts " means — i Parts X and XI of this Act (including provisions relating to income tax), and ii all other provisions of this or any other Act relating to corporation tax or to any other matter dealt with in Part X or Part XI of this Act, and iii all the provisions of Part IV of the Finance Act 1965 and of any other enactment which, at the passing of this Act, formed part of or was to be construed with the Corporation Tax Acts, b " the Income Tax Acts " means all enactments relating to income tax, including any provisions of the Corporation Tax Acts which relate to income tax. 2 In this Act, and in any Act passed after this Act, " the Tax Acts ", except in so far as the context otherwise requires, means this Act and all other provisions of the Income Tax Acts and the Corporation Tax Acts. 3 Except in so far as the context otherwise requires, in this Act, and in any enactment passed after this Act which by any express provision is to be construed as one with the Tax Acts, " tax ", where neither income tax nor corporation tax is specified, means either of those taxes. 4 Subsection (3) above is without prejudice to the provisions of section 250 of this Act which apply income tax law for certain purposes of corporation tax, and accordingly the employment of " income tax " rather than " tax " in any provision of this Act is not a conclusive indication that that provision is not applied to corporation tax by the said section 250. 5 In the Tax Acts, except in so far as the context otherwise requires — " Act " includes an Act of Parliament of Northern Ireland and " enactment" shall be construed accordingly, " the Board " means the Commissioners of Inland Revenue, " body of persons " means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons whether corporate or not corporate, " capital allowance " means any allowance under the Capital Allowances Act 1968, including, as being provisions to be construed as one with that Act, section 78, section 306 and Chapter I of Part XIV of this Act, " chargeable gain " has the same meaning as in Part III of the Finance Act 1965, " chargeable period " means an accounting period of a company or a year of assessment, " close company " has the meaning given by sections 282 and 283 of this Act, " collector " means any collector of taxes, " company " means, subject to subsection (6) below, any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association, " farm land " means land in the United Kingdom wholly or mainly occupied for the purposes of husbandry, but excluding any dwelling or domestic offices, and excluding market garden land, and " farming " shall be construed accordingly, " franked investment income " shall be construed in accordance with section 240 of this Act (but subject to section 256(1) of this Act), and any reference to a " surplus of franked investment income " is a reference to such a surplus as is referred to in section 240(1) of this Act, " inspector " means any inspector of taxes, " interest " means both annual or yearly interest and interest other than annual or yearly interest, " local authority " and " local authority association " have the meanings given by section 353 of this Act, " market garden land " means land in the United Kingdom occupied as a nursery or garden for the sale of the produce (other than land used for the growth of hops), and " market gardening " shall be construed accordingly, " ordinary share capital ", in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the standard rate of income tax, but have no other right to share in the profits of the company, " preference dividend " means a dividend payable on a preferred share or preferred stock at a fixed gross rate per cent. or, where a dividend is payable on a preferred share or preferred stock partly at a fixed gross rate per cent. and partly at a variable rate, such part of that dividend as is payable at a fixed gross rate per cent., but it does not include any dividend or part of a dividend which is paid without deduction of income tax (and for this purpose a payment shall be treated as made without deduction of income tax unless either there is made from it the full deduction authorised by section 232(3) of this Act or the payment is, before the passing of an Act imposing income tax for the year of assessment, made subject to deduction of tax by reference to a standard rate less than that ultimately imposed), " trade " includes every trade, manufacture, adventure or concern in the nature of trade, " year of assessment " means, with reference to any income tax, the year for which such tax was granted by any Act granting income tax, " the year 1970-71 " means the year of assessment beginning on 6th April 1970, and any corresponding expression in which two years are similarly mentioned means the year of assessment beginning on 6th April in the first mentioned of those two years. 6 The definition of " company " above is subject to section 354 of this Act (authorised unit trusts), and does not apply in the following provisions of this Act, that is — Chapter I of Part XVII; sections 486 to 489 ; section 533; and Schedule 12, (and also does not apply where the context otherwise requires because some other definition of " company " applies). Interpretation of Corporation Tax Acts 527 1 For the purposes of the Corporation Tax Acts, except in so far as the context otherwise requires — " accounting date " means the date to which a company makes up its accounts and " period of account " means the period for which it does so, " allowable loss " does not include, for the purposes of corporation tax in respect of chargeable gains, a loss accruing to a company in such circumstances that if a gain accrued the company would be exempt from corporation tax in respect of it, " branch or agency " means any factorship, agency, receivership, branch or management, " charges on income " has the meaning given by section 248 of this Act, " distribution " has the meaning given by Part X of this Act with sections 284 and 285, " the financial year 1970 " means the financial year beginning with April 1970, and similarly with references embodying other dates, " group income " shall be construed in accordance with section 256 of this Act, " group relief " has the meaning given by section 258 of this Act, a source of income is " within the charge to " corporation tax or income tax if that tax is chargeable on the income arising from it, or would be so chargeable if there were any such income, and references to a person, or to income, being within the charge to tax, shall be similarly construed. 2 Section 238(4) of this Act (definition of "profits" and " trade " for purposes of Part XI of this Act) shall also apply for the purposes of the following provisions of this Act, that is to say — Chapter II of Part VII, sections 304 and 305, section 346, sections 483 and 484, and sections 73 and 74 of the Capital Allowances Act 1968. 3 For all purposes of the Corporation Tax Acts dividends shall be treated as paid on the date when they become due and payable, except in so far as section 354(1) of this Act (authorised unit trusts) makes other provision as to amounts treated under that section as dividends. 4 Except as otherwise provided by the Corporation Tax Acts, any apportionment to different periods which falls to be made under the Corporation Tax Acts shall be made on a time basis according to the respective lengths of those periods. "Total income" in Income Tax Acts 528 1 In the Income Tax Acts "total income", in relation to any person, means the total income of that person from all sources estimated, as the case may be, either in accordance with the provisions of the Income Tax Acts as they apply to income tax chargeable at the standard rate or in accordance with those provisions as they apply to surtax. 2 Any person who, on his own behalf or on behalf of another person, delivers a statement of the amount of his or that other person's total income shall observe the rules and directions contained in Schedule 13 to this Act. 3 In estimating the total income of any person — a any income which is chargeable with income tax by way of deduction at the standard rate in force for any year shall be deemed to be income of that year, and b any deductions which are allowable on account of sums payable under deduction of income tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year, notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year. 4 Where an assessment has become final and conclusive for the purposes of income tax at the standard rate for any year of assessment, that assessment shall also be final and conclusive in estimating total income, and no allowance or adjustment of liability, on the ground of diminution of income or loss, shall be taken into account in estimating total income unless that allowance or adjustment has previously been made on an application under the special provisions of the Income Tax Acts relating thereto. 5 The provisions of subsection (4) above shall, for the purpose of estimating total income for the purposes of surtax, apply in relation to — a any relief under any of sections 57 to 60 and 62 of this Act (interest set off against income subject to income tax), b any relief by reason of the operation of an election for the herd basis under Schedule 6 to this Act (farm animals), and c any allowance under Part I of the Capital Allowances Act 1968 to be given by way of discharge or repayment of tax and to be available or available primarily against a specified class of income (that is to say any capital allowance to which section 71 of the Capital Allowances Act 1968 applies or, as provided by section 387(1), any capital allowance to which section 385(2) of this Act applies), as they apply in relation to allowances or adjustments on the ground of diminution of income or loss. "Highest part of income": effect of top-slicing relief 529 For the purposes of any provision of the Income Tax Acts (other than section 400 of, or Schedule 3 to, this Act) 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 — a any payment chargeable to tax by virtue of section 187 of this Act (payments on retirement or removal from office or employment), or b any amount included in his total income by virtue of section 399(1)(a) of this Act (gains from insurance policies), or c any chargeable sum as defined in paragraph 2 of Schedule 3 to this Act (premiums under leases, etc.). "Earned income" in Income Tax Acts 530 1 Subject to subsections (2) and (3) below, in the Income Tax Acts, " earned income " means, in relation to any individual — a any income arising in respect of any remuneration from any office or employment held by the individual, or in respect of any pension, superannuation or other allowance, deferred pay or compensation for loss of office, given in respect of the past services of the individual or of the husband or parent of the individual in any office or employment or given to the individual in respect of the past services of any deceased person, whether the individual or husband or parent of the individual shall have contributed to such pension, superannuation allowance or deferred pay or not, and b any income from any property which is attached to or forms part of the emoluments of any office or employment held by the individual, and c any income which is charged under Schedule A, Schedule B or Schedule D and is immediately derived by the individual from the carrying on or exercise by him of his trade, profession or vocation, either as an individual or, in the case of a partnership, as a partner personally acting therein. In cases where the income of a wife is deemed to be income of the husband, any reference in this subsection to the individual includes either the husband or the wife. 2 Without prejudice to the generality of the provisions of subsection (1) above, in the Income Tax Acts, except so far as is otherwise expressly provided, " earned income " also includes, in relation to any individual — a any income arising in respect of Civil List pensions granted under the Civil List Act 1837 as amended by any subsequent enactment, and b any annuity, pension or annual payment to which section 113(2) or section 182 of this Act (voluntary pensions) applies, and c any payments chargeable to income tax under Schedule E by virtue of section 219(1) of this Act (family allowances and other social security benefits), and d any sum payable by way of annuity to an individual by virtue of a scheme under section 27 of the Agriculture Act 1967 (grants for relinquishing occupation of uncommercial agricultural units), unless the annuity was granted to the individual by reason of his having relinquished occupation before attaining the age of fifty-five. 3 The provisions of this section are without prejudice to any other provision of the Income Tax Acts directing income to be treated as earned income. "Annual value" of land 531 1 For the purposes of, and subject to, the provisions of the Tax Acts which apply this section, the annual value of land 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 23 of the General Rate Act 1967 (adjustment of gross value by reference to provision of or payment for services, etc.) shall apply for the purpose of subsection (1) above, and in relation to land in Scotland or Northern Ireland shall apply as if it extended to the whole of the United Kingdom. 3 Where any question arises as to the annual value of land it shall be determined by the General Commissioners, and those Commissioners shall hear and determine the question in like manner as an appeal. Subsidiaries 532 1 For the purposes of the Tax Acts a body corporate shall be deemed to be — a a " 51 per cent. subsidiary " of another body corporate if and so long as more than 50 per cent. of its ordinary share capital is owned directly or indirectly by that other body corporate, b a " 75 per cent. subsidiary " of another body corporate if and so long as not less than 75 per cent. of its ordinary share capital is owned directly or indirectly by that other body corporate, c a " 90 per cent. subsidiary " of another body corporate if and so long as not less than 90 per cent. of its ordinary share capital is directly owned by that other body corporate. 2 In subsection (1)(a) and (b) above "owned directly or indirectly " by a body corporate means owned, whether directly or through another body corporate or other bodies corporate or partly directly and partly through another body corporate or other bodies corporate. 3 In this section references to ownership shall be construed as references to beneficial ownership. 4 For the purposes of this section the amount of ordinary share capital of one body corporate owned by a second body corporate through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate, shall be determined in accordance with the following provisions of this section. 5 Where, in the case of a number of bodies corporate, the first directly owns ordinary share capital of the second and the second directly owns ordinary share capital of the third, then, for the purposes of this section, the first shall be deemed to own ordinary share capital of the third through the second, and, if the third directly owns ordinary share capital of a fourth, the first shall be deemed to own ordinary share capital of the fourth through the second and third, and the second shall be deemed to own ordinary share capital of the fourth through the third, and so on. 6 In this section — a any number of bodies corporate of which the first directly owns ordinary share capital of the next and the next directly owns ordinary share capital of the next but one and so on, and, if they are more than three, any three or more of them, are referred to as " a series " ; b in any series — i that body corporate which owns ordinary share capital of another through the remainder is referred to as " the first owner " ; ii that other body corporate the ordinary share capital of which is so owned is referred to as " the last owned body corporate " ; iii the remainder, if one only, is referred to as an " intermediary" and, if more than one, are referred to as "a chain of intermediaries"; c a body corporate in a series which directly owns ordinary share capital of another body corporate in the series is referred to as an " owner "; d any two bodies corporate in a series of which one owns ordinary share capital of the other directly, and not through one or more of the other bodies corporate in the series, are referred to as being directly related to one another. 7 Where every owner in a series owns the whole of the ordinary share capital of the body corporate to which it is directly related, the first owner shall be deemed to own through the intermediary or chain of intermediaries the whole of the ordinary share capital of the last owned body corporate. 8 Where one of the owners in a series owns a fraction of the ordinary share capital of the body corporate to which it is directly related, and every other owner in the series owns the whole of the ordinary share capital of the body corporate to which it is directly related, the first owner shall be deemed to own that fraction of the ordinary share capital of the last owned body corporate through the intermediary or chain of intermediaries. 9 Where — a each of two or more of the owners in a series owns a fraction, and every other owner in the series owns the whole, of the ordinary share capital of the body corporate to which it is directly related; or b every owner in a series owns a fraction of the ordinary share capital of the body corporate to which it is directly related; the first owner shall be deemed to own through the intermediary or chain of intermediaries such fraction of the ordinary share capital of the last owned body corporate as results from the multiplication of those fractions. 10 Where the first owner in any series owns a fraction of the ordinary share capital of the last owned body corporate in that series through the intermediary or chain of intermediaries in that series, and also owns another fraction or other fractions of the ordinary share capital of the last owned body corporate, either — a directly, or b through an intermediary or intermediaries which is not a member or are not members of that series, or c through a chain or chains of intermediaries of which one or some or all are not members of that series, or d in a case where the series consists of more than three bodies corporate, through an intermediary or intermediaries which is a member or are members of the series, or through a chain or chains of intermediaries consisting of some but not all of the bodies corporate of which the chain of intermediaries in the series consists, then, for the purpose of ascertaining the amount of the ordinary share capital of the last owned body corporate owned by the first owner, all those fractions shall be aggregated and the first owner shall be deemed to own the sum of those fractions. Connected persons 533 1 For the purposes of, and subject to, the provisions of the Tax Acts which apply this section, any question whether a person is connected with another shall be determined in accordance with the following provisions of this section (any provision that one person is connected with another being taken to mean that they are connected with one another). 2 A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife. 3 A person, in his capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, with any person who is connected with such an individual and with a body corporate which, under section 454 of this Act is deemed to be connected with that settlement (" settlement" and " settlor " having for the purposes of this subsection the meanings assigned to them by subsection (3) of that section). 4 Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he is in partnership, and with the husband or wife or a relative of any individual with whom he is in partnership. 5 A company is connected with another company — a if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him, have control of the other, or b if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected. 6 A company is connected with another person, if that person has control of it or if that person and persons connected with him together have control of it. 7 Any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company. 8 In this section — " company " includes any body corporate or unincorporated association, but does not include a partnership, and this section shall apply in relation to any unit trust scheme (as defined in section 26(1) of the Prevention of Fraud (Investments) Act 1958 or section 22 of the Prevention of Fraud (Investments) Act (Northern Ireland) 1940) as if the scheme were a company and as if the rights of the unit holders were shares in the company, " control " shall be construed in accordance with section 302 of this Act, " relative " means brother, sister, ancestor or lineal descendant. Meaning of "control" in certain contexts 534 For the purposes of, and subject to, the provisions of the Tax Acts which apply this section, " control", in relation to a body corporate, means the power of a person to secure — a by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or b by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person, and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership "Recognised stock exchange" 535 1 In the Corporation Tax Acts "recognised stock exchange " has the same meaning as in the Prevention of Fraud (Investments) Act 1958, except that it includes — a the Belfast Stock Exchange, and b any such stock exchange outside the United Kingdom as is for the time being designated for the purposes of this section as a recognised stock exchange by order made by the Board. 2 An order made by the Board under this section — a may designate a stock exchange by name, or by reference to any class or description of stock exchanges, including a class or description framed by reference to any authority or approval given in a country outside the United Kingdom, b may contain such transitional and other supplemental provisions as appear to the Board to be necessary or expedient, and c may be varied or revoked by a subsequent order so made. PART XX General Commencement 536 1 Except as otherwise provided by the following provisions of this section, this Act shall come into force in relation to tax for the year 1970-71 and subsequent years of assessment, and for companies' accounting periods ending after 5th April 1970. 2 Except as otherwise provided by the following provisions of this section, such of the provisions of this Act as relate to capital gains tax (including the provisions of Part XVIII of this Act as applied to capital gains tax by section 39 of the Finance Act 1965) shall come into force in relation to that tax for the year 1970-71 and subsequent years of assessment. 3 The following provisions of this Act, that is — a so much of any provision of this Act as authorises the making, variation or revocation of any Order in Council or regulation or other instrument, b so much of any provision of this Act as relates to the making of a return, the furnishing of a certificate or the giving of any other information, including any such provision which imposes a duty on the Board or an officer of the Board as well as any such provision which imposes a duty on any other person, c so much of any provision of this Act as imposes any penalty, d except where the tax concerned is all tax for years of assessment before the year 1970-71 or accounting periods ending before 6th April 1970, so much of any other provision of this Act as confers any power or imposes any duty the exercise or performance of which operates or may operate in relation to tax for more than one chargeable period, shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by this Act. 4 This section has effect except as otherwise provided by any other provision of this Act. Savings, transitory provisions and consequential amendments 537 1 Schedule 14 to this Act, which contains savings and transitory provisions, shall have effect, and the repeals made by section 538 below have effect subject to that Schedule. 2 For the avoidance of doubt it is hereby declared that this Act and the Taxes Management Act 1970 have effect subject to those provisions of the Tax Acts and the enactments relating to chargeable gains which are not repealed by this Act, and, with a view to preserving the existing effect of such enactments and instruments as are mentioned in Schedule 15 to this Act, they shall be amended in accordance with that Schedule. 3 The provisions of the said Schedule 15, and the other provisions of this Part of this Act, are without prejudice to the provisions of the Interpretation Act 1889 as respects the effect of repeals; and section 38(1) of the Interpretation Act 1889 shall have effect as if the Taxes Management Act 1970 formed part of this Act. 4 This section and the said Schedules 14 and 15 shall come into force on the passing of this Act. Repeals 538 1 The enactments mentioned in Schedule 16 to this Act are hereby repealed to the extent specified in the third column of that Schedule. 2 Subject to the following provisions of this section, the said repeals shall come into force in accordance with subsections (1) and (2) of section 536 above. 3 Subsection (2) above has effect subject to section 119(1) of the Taxes Management Act 1970, to section 536(3) above and to any other provision of this Act by which any provision is brought into force to the exclusion of the corresponding enactments repealed by this Act. 4 No provision mentioned in subsection (3) above shall be taken as bringing a repeal into force except to the extent that the repealed enactment is being superseded, and in particular where part of the effect of any repealed enactment is reproduced in this Act, or is not reproduced, nothing in section 119(1) of the Taxes Management Act 1970 shall be taken as bringing the repeal into force except so far as the enactment is reproduced in the Taxes Management Act 1970. 5 In this section " enactments" includes any statutory instrument mentioned in Schedule 16 to this Act, and references in this Act and the Taxes Management Act 1970 to the enactments repealed by this Act shall be construed accordingly. Continuity and construction of references to old and new law 539 1 The continuity of the operation of the Tax Acts and of the law relating to chargeable gains shall not be affected by the substitution of this Act and of the Taxes Management Act 1970 (in this section referred to as " the new Acts " ) for the repealed enactments. 2 Any reference, whether express or implied, in any enactment, instrument or document (including the new Acts and any enactment amended by Schedule 15 to this Act) to, or to things done or falling to be done under or for the purposes of, any provision of the new Acts shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or as the case may be to things done or falling to be done under or for the purposes of. that corresponding provision, 3 Any reference, whether express or implied, in any enactment, instrument or document (including the repealed enactments and enactments, instruments and documents passed or made after the passing of this Act) to, or to things done or falling to be done under or for the purposes of, any of the repealed enactments shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of the new Acts has effect, a reference to, or as the case may be to things done or deemed to be done or falling to be done under or for the purposes of, that corresponding provision. 4 Any reference to Case VIII of Schedule D, whether a specific reference or one imported by more general words, in any enactment, instrument or document shall, in relation to the chargeable periods to which section 536(1) above applies, be construed as a reference to Schedule A, and for the purposes of subsection (2) above Schedule A in this Act shall be treated as corresponding to Case VIII of Schedule D in the repealed enactments, and any provision of the new Acts referring to Schedule A shall be construed accordingly. 5 The repeals made by this Act shall not affect any instrument made or other thing done under the repealed enactments and, if it was made or done under an enactment reproduced in the new Acts, the new Acts shall have effect as if it had also been made or done under the corresponding provision in the new Acts. 6 In this section " the repealed enactments" means the enactments repealed by this Act, and such of the enactments repealed by the Income Tax Act 1952 or the Capital Allowances Act 1968 as correspond to the provisions of those Acts of 1952 and 1968 so repealed. Short title and construction 540 1 This Act may be cited as the Income and Corporation Taxes Act 1970. 2 This Act, so far as it relates to capital gains tax, shall be construed as one with Part III of the Finance Act 1965. 3 Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended or applied by or under any other enactment, including this Act. SCHEDULES SCHEDULE 1 Life Policies : Qualification for Relief on Premiums Sections 19, 394(2) and 404(1). PART I Qualifying Conditions General rules applicable to whole life and term assurances 1 1 Subject to the following provisions of this Part of this Schedule, if a policy secures a capital sum which is payable only on death, or one payable either on death or on earlier disability, it is a qualifying policy if — a it satisfies the conditions appropriate to it under sub-paragraphs (2) to (4) below, and b except to the extent permitted by sub-paragraph (5) below it does not secure any other benefits. 2 If the capital sum referred to in sub-paragraph (1) above is payable whenever the event in question happens, or if it happens at any time during the life of a specified person — a the premiums under the policy must be payable at yearly or shorter intervals, and either — i until the happening of the event, or, as the case may require, until the happening of the event or the earlier death of the specified person, or ii until the time referred to in sub-paragraph (i) above or the earlier expiry of a specified period ending not earlier than ten years after the making of the insurance, and b the total premiums payable in any period of twelve months must not exceed — i twice the amount of the total premiums payable in any other such period, or ii one-eighth of the total premiums which would be payable if the policy were to continue in force for a period of ten years from the making of the insurance, or, in a case falling within paragraph (a)(ii) above, until the end of the period therein referred to. 3 If the capital sum referred to in sub-paragraph (1) above is payable only if the event in question happens before the expiry of a specified term ending more than ten years after the making of the insurance, or only if it happens both before the expiry of such a term and during the life of a specified person — a the premiums under the policy must be payable at yearly or shorter intervals, and either — i until the happening of the event or the earlier expiry of the said term, or, as the case may require, until the happening of the event or, if earlier, the expiry of the term or the death of the specified person, or ii as in sub-paragraph (i) above, but with the substitution for references to the term of references to a specified shorter period, being one ending not earlier than ten years after the making of the insurance or, if sooner, the expiry of three-quarters of the said term, and b the total premiums payable in any period of twelve months must not exceed — i twice the amount of the total premiums payable in any other such period, or ii one-eighth of the total premiums which would be payable if the policy were to continue in force for the term referred to in paragraph (a)(i) above, or, as the case may require, for the shorter period referred to in paragraph (a)(ii) above. 4 If the capital sum referred to in sub-paragraph (1) above is payable only if the event in question happens before the expiry of a specified term ending not more than ten years after the making of the insurance, or only if it happens both before the expiry of such a term and during the life of a specified person, the policy must provide that any payment made by reason of its surrender during the period is not to exceed the total premiums previously paid thereunder. 5 Notwithstanding sub-paragraph (1)(6) above, if a policy secures a capital sum payable only on death, it may also secure benefits (including benefits of a capital nature) to be provided in the event of a person's disability; and no policy is to be regarded for the purposes of that provision as securing other benefits by reason only of the fact that it confers a right to participate in profits, that it carries a guaranteed surrender value, that it gives an option to receive payments by way of annuity, or that it makes provision for the waiver of premiums by reason of a person's disability, or for the effecting of a further insurance or insurances without the production of evidence of insurability. 6 In applying sub-paragraph (2) or (3) above to any policy — a no account shall be taken of any provision for the waiver of premiums by reason of a person's disability, and b if the term of the policy runs from a date earlier, but not more than three months earlier, than the making of the insurance, the insurance shall be treated as having been made on that date, and any premium paid in respect of the period before the making of the insurance, or in respect of that period and a subsequent period, as having been payable on that date. 7 References in this paragraph to a capital sum payable on any event include references to any capital sum, or series of capital sums, payable by reason of that event; and a policy secures a capital sum payable either on death or on disability notwithstanding that the amount payable may vary with the event General rules applicable to endowment assurances 2 1 Subject to the following provisions of this Part of this Schedule, a policy which secures a capital sum payable either on survival for a specified term or on earlier death, or earlier death or disability, including a policy securing the sum on death only if occurring after the attainment of a specified age not exceeding sixteen, is a qualifying policy if it satisfies the following conditions — a the term must be one ending not earlier than ten years after the making of the insurance, b premiums must be payable under the policy at yearly or shorter intervals, and — i until the happening of the event in question, or ii until the happening of that event, or the earlier expiry of a specified period shorter than the term but also ending not earlier than ten years after the making of the insurance, or iii if the policy is to lapse on the death of a specified person, until one of those times or the policy's earlier lapse, c the total premiums payable under the policy in any period of twelve months must not exceed — i twice the amount of the total premiums payable in any other such period, or ii one-eighth of the total premiums which would be payable if the policy were to run for the specified term, d the policy — i must guarantee that the capital sum payable on death, or on death occurring after the attainment of a specified age not exceeding sixteen, will, whenever that event may happen, be equal to three-quarters at least of the total premiums which would be payable if the policy were to run for that term, disregarding any amounts included in those premiums by reason of their being payable otherwise than annually, and ii if it is a policy which does not secure a capital sum in the event of death before the attainment of a specified age not exceeding sixteen, must not provide for the payment in that event of an amount exceeding the total premiums previously paid thereunder, and e the policy must not secure the provision (except by surrender) at any time before the happening of the event in question of any benefit of a capital nature other than a payment falling within paragraph (d)(ii)) above, or benefits attributable to a right to participate in profits or arising by reason of a person's disability. 2 For the purposes of sub-paragraph (1)(d)(i) above, 10 per cent. of the premiums payable under any policy issued in the course of an industrial assurance business as defined in section 1(2) of the Industrial Assurance Act 1923 shall be treated as attributable to the fact that they are not paid annually. 3 Sub-paragraphs (6) and (7) of paragraph 1 above shall, with any necessary modifications, have effect for the purposes of this paragraph as they have effect for the purposes of that paragraph. Special types of policy (i) Friendly Society policies 3 A policy issued by any friendly society, or branch of a friendly society, in the course of its tax exempt life or endowment business, as defined in section 337(3) of this Act, is a qualifying policy notwithstanding that it does not comply with the conditions specified in paragraph 1 or 2 above. (ii) Industrial Assurance policies 4 1 A policy issued in the course of an industrial assurance business, as defined in section 1(2) of the Industrial Assurance Act 1923, and not constituting a qualifying policy by virtue of paragraph 1 or 2 above, is nevertheless a qualifying policy if — a the sums guaranteed by the policy, together with those guaranteed at the time the assurance is made by all other policies issued in the course of such a business to the same person and not constituting qualifying policies apart from this paragraph, do not exceed £1,000, b it satisfies the conditions with respect to premiums specified in paragraph 1(2) above, c except by reason of death or surrender, no capital sum other than one falling within paragraph (d) below can become payable under the policy earlier than ten years after the making of the assurance, and d where the policy provides for the making of a series of payments during its term — i the first such payment is due not earlier than five years after the making of the assurance, and the others, except the final payment, at intervals of not less than five years, and ii the amount of any payment, other than the final payment, does not exceed four-fifths of the premiums paid in the interval before its payment, and iii if the first such payment is due earlier than ten years after the making of the assurance, or any other such payment except the last is due earlier than ten years after the preceding one, the sums guaranteed by the policy, together with the other sums referred to in paragraph (a) above so far as guaranteed by policies the payments under which also fall within this sub-paragraph, do not exceed £500. 2 For the purposes of this paragraph, the sums guaranteed by a policy do not include any bonuses, or, in the case of a policy providing for a series of payments during its term, any of those payments except the first, or any sum payable on death during the term by reference to one or more of those payments except so far as that sum is referable to the first such payment. (iii) Family income policies and mortgage protection policies 5 1 The following provisions apply to any policy which is mot a qualifying policy apart from those provisions, and the benefits secured by which consist of or include the payment on or after a person's death of — a one capital sum which does sot vary according to the date of death, plus a series of capital sums payable if the death occurs during a specified period, or b a capital sum, the amount of which is less if the death occurs in a later part of a specified period than if it occurs in an earlier part of that period. 2 A policy falling within sub-paragraph (1)(a) above is a qualifying policy if — a it would be one if it did not secure the series of capital sums there referred to, and the premiums payable under the policy were such as would be chargeable if that were in fact the case, and b it would also be one if it secured only that series of sums, and the premiums thereunder were the balance of those actually so payable. 3 A policy falling within sub-paragraph (1)(b) above is a qualifying policy if — a it would be one if the amount of the capital sum there referred to were equal throughout the period to its smallest amount, and the premiums payable under the policy were such as would be chargeable if that were in fact the case, and b it would also be one if it secured only that capital sum so far as it from time to time exceeds its smallest amount, and the premiums payable thereunder were the balance of those actually so payable. Other special provisions (i) Exceptional mortality risk 6 For the purpose of determining whether any policy is a qualifying policy, there shall be disregarded — a so much of any premium thereunder as is charged on the grounds that an exceptional risk of death is involved, and b any provision under which, on those grounds, any sum may become chargeable as a debt against the capital sum guaranteed by the policy on death. (ii) Connected policies 7 Where the terms of any policy provide that it is to continue in force only so long as another policy does so, neither policy is a qualifying policy unless, if they had constituted together a single policy issued in respect of an insurance made at the time of the insurance in respect of which the first-mentioned policy was issued, that single policy would have been a qualifying policy. (iii) Premiums paid out of sums due under previous policies 8 1 Where, in the case of a policy under which a single premium only is payable, liability for the payment of that premium is discharged in accordance with sub-paragraph (2) below, the policy is a qualifying policy notwithstanding anything in paragraph 1(2) or 1(3) above, or in paragraph (b) or (c) of paragraph 2(1); and where, in the case of any other policy, liability for the payment of the first premium thereunder, or of any part of that premium, is so discharged, the premium or part shall be disregarded for the purposes of paragraph 1(2)(b) and 1(3)(b)) above, and of paragraph (c) of paragraph 2(1). 2 Liability for the payment of a premium is discharged in accordance with this sub-paragraph if it is discharged by the retention by the company with whom the insurance is made of the whole or a part of any sum which has become payable on the maturity of, or on the surrender more than ten years after its issue of the rights conferred by, a policy — a previously issued by the company to the person making the insurance, or, if it is made by trustees, to them or any predecessors in office, or b issued by the company when the person making the insurance was an infant, and securing a capital sum payable either on a specified date falling not more than one month after his attaining twenty-five, or on the anniversary of the policy immediately following his attainment of that age, being, unless it is a policy falling within paragraph (b) above and the premium in question is a first premium only, a policy which was itself a qualifying policy, or which would have been a qualifying policy had it been issued in respect of an insurance made after 19th March 1968. (iv) Substitutions and variations 9 1 Where one policy (hereafter referred to as "the new policy ") is issued in substitution for, or on the maturity of and in consequence of an option conferred by, another policy (hereafter referred to as " the old policy " ), the question whether the new policy is a qualifying policy shall, to the extent provided by the rules in sub-paragraph (2) below, be determined by reference to both policies. 2 The said rules (for the purposes of which, the question whether the old policy was a qualifying policy shall be determined in accordance with this Part of this Schedule, whatever the date of the insurance in respect of which it was issued), are as follows — a if the new policy would apart from this paragraph be a qualifying policy, but the old policy was not, the new policy is not a qualifying policy unless the person making the insurance in respect of which it is issued was an infant when the old policy was issued, and the old policy was one securing a capital sum payable either on a specified date falling not later than one month after his attaining twenty-five or on the anniversary of the policy immediately following his attainment of that age ; b if the new policy would apart from this paragraph be a qualifying policy, and the old policy was also a qualifying policy, the new policy is a qualifying policy unless — i it takes effect before the expiry of ten years from the making of the insurance in respect of which the old policy was issued, and ii the highest total of premiums payable thereunder for any period of twelve months expiring before that time is less than one half of the highest total paid for any period of twelve months under the old policy, or under any related policy issued less than ten years before the issue of the new policy ("related policy" meaning any policy in relation to which the old policy was a new policy within the meaning of this paragraph, any policy in relation to which that policy was such a policy, and so on); c if the new policy would not apart from this paragraph be a qualifying policy, and would fail to be so by reason only of paragraph 1(2) or 1(3) above or of paragraph (a), (b) or (c) of paragraph 2(1), it is nevertheless a qualifying policy if the old policy was a qualifying policy and — i the old policy was issued in respect of an insurance made more than ten years before the taking effect of the new policy, and the premiums payable for any period of twelve months under the new policy do not exceed the smallest total paid for any such period under the old policy, or ii the old policy was issued outside the United Kingdom, and the circumstances are as specified in sub-paragraph (3) below. 3 The said circumstances are — a that the person in respect of whom the new insurance is made became resident in the United Kingdom during the twelve months ending with the date of its issue, b that the issuing company certify that the new policy is in substitution for the old, and that the old was issued either by a branch or agency of theirs outside the United Kingdom or by a company outside the United Kingdom with whom they have arrangements for the issue of policies in substitution for ones held by persons coming to the United Kingdom, and c that the new policy confers on the holder benefits which are substantially equivalent to those which he would have enjoyed if the old policy had continued in force. 10 1 Subject to the provisions of this paragraph, where the terms of a policy are varied, the question whether the policy after the variation is a qualifying policy shall be determined in accordance with the rules in paragraph 9 above, with references in those rules to the new policy and the old policy construed for that purpose as. references respectively to the policy after the variation and the policy before the variation, and with any other necessary modifications. 2 In applying any of those rules by virtue of this paragraph, the question whether a policy after a variation would be a qualifying policy apart from the rule shall be determined as if any reference in paragraphs 1 to 7 of this Schedule to the making of an insurance, or to a policy's term, were a reference to the taking effect of the variation or, as the case may be, to the term of the policy as from the variation. 3 This paragraph does not apply by reason of — a any variation which, whether or not of a purely formal character, does not affect the terms of a policy in any significant respect, or b any variation effected before the end of the year 1968 for the sole purpose of converting into a qualifying policy any policy issued (but not one treated by virtue of section 19(5) of this Act as issued) in respect of an insurance made after 19th March 1968. PART II Certification of Qualifying Policies 11 1 Subject to sub-paragraph (3) below, a body issuing any policy of life insurance which is in its opinion a qualifying policy within the meaning of Part I of this Schedule shall, within three months of the date of issue, give to the policy holder a duly authenticated certificate to that effect, specifying in the certificate the name of the policy holder, the name of the person whose life is assured, the reference number or other means of identification allocated to the policy, the capital sum or sums assured, and the amounts and dates for payment of the premiums. 2 Subject to the said sub-paragraph (3), where a policy of life insurance is varied, and is in the opinion of the body by whom it was issued a qualifying policy after the variation, that body shall, within three months of the making of the variation, give to the policy holder a like certificate with respect to the policy as varied. 3 Where, in the case of any policy, or any policy after a variation, the total premiums payable in any period of twelve months do not exceed £26, a certificate need be given under sub-paragraph (1) or (2) above only if requested in writing by the policy holder, and, if so requested, shall be given within three months of receipt of the request; and sub-paragraph (2) above shall not apply by reason of — a any variation which, whether or not of a purely formal character, does not affect the terms of a policy in any significant respect, or b any variation of a policy issued in respect of an insurance made on or before 19th March 1968, other than a variation by virtue of which the policy falls, under section 19(5) of this Act, to be treated as issued in respect of an insurance made after that date. SCHEDULE 2 Restrictions on Schedule A Deductions Section 71. Expenditure before 1964-65: deductions from rents 1 1 Except as provided by sub-paragraphs (2) and (3) below, no payment shall be deductible under sections 72 and 73 of this Act if made before the beginning of the year 1964-65. 2 Where, by virtue of paragraph 11 of Schedule 4 to the Finance Act 1963 as amended by section 16(2) of the Finance Act 1965 (excess of maintenance etc. costs during five years ending 5th April 1964 over available reliefs), any amount fell to be treated as a payment in relation to premises made by a person in the year 1964-65 in respect of dilapidation attributable to that year, the amount shall be similarly treated for the purposes of the said sections 72 and 73. 3 If, in respect of any payment such as is mentioned in subsection (1) of the said section 72 made by a person in relation to any premises before the beginning of the year 1964-65, a loss was carried forward to that year by virtue of section 346 of the Income Tax Act 1952 (relief in respect of losses under Case VI of Schedule D) the amount of the loss shall be treated for the purposes of the said sections 72 and 73 as if it were a like payment made by that person in respect of the premises in, and in respect of, that year. 4 A deduction falling to be made by virtue of sub-paragraph (3) above shall be made notwithstanding anything in section 176(3) or 179(1) of this Act (Case VI losses for income tax and corporation tax respectively: relief to be given as far as possible from the first subsequent Case VI assessment); and relief shall not be given under either of those sections in respect of the loss insofar as a deduction in respect of it is made under this paragraph. Expenditure before 1964-65: deductions from other receipts 2 1 Subject to sub-paragraph (2) below, no payment shall be deductible under section 74 of this Act if made before the beginning of the year 1964-65. 2 Sub-paragraph (1) above shall not prevent the deduction of a payment in so far as a loss in respect thereof was carried forward to the year 1964-65 by virtue of section 346 of the Income Tax Act 1952 (relief in respect of losses under Case VI of Schedule D). 3 Paragraph 1(4) above shall apply in the case of a deduction falling to be made by virtue of sub-paragraph (2) above as it applies in the case of one falling to be made by virtue of sub-paragraph (3) of that paragraph. Expenditure before 1964-65: sea walk 3 1 Section 76 of this Act shall apply in relation to expenditure in respect of which an allowance under section 94(1)(c) of the Income Tax Act 1952 would, but for its repeal, have fallen to be made in respect of any premises for the year 1964-65 as if the expenditure had been incurred in the year of assessment following that in which it was actually incurred and, so far as it was incurred in repairing an embankment, had been incurred in making it: Provided that if, by reason of a claim made under the proviso to paragraph 16(3) of Schedule 4 to the Finance Act 1963, any expenditure incurred before the beginning of the year 1964-65 in repairing an embankment fell to be treated for the purposes of that Schedule as if it had been an amount paid by the claimant, in and in respect of that year, in respect of the maintenance of the premises preserved or protected by the embankment, the expenditure shall be similarly treated for the purposes of sections 71 to 77 of this Act. 2 Subject as aforesaid, the said section 76 shall not apply to expenditure incurred before the beginning of the year 1964-65. Tithe redemption annuities 4 No part of any payment made as an instalment, or part of an instalment, of an annuity within the meaning of the Tithe Acts 1936 and 1951 shall be included among the deductions allowable under sections 71 to 77 of this Act. SCHEDULE 3 Premiums etc. Taxable under Schedules A and D: Special Relief for Individuals Section 85. 1 A claim for relief under this Schedule shall be made to the Board if it relates to surtax, or if the claimant is not resident in the United Kingdom. 2 The relief shall be computed in accordance with paragraphs 3 to 6 below, and in those paragraphs — " chargeable sum " means an amount to which, under subsection (1), (2), (3) or (4) of section 80 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 81 or 82 of this Act, chargeable to income 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 82) 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. 3 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, in accordance with paragraph 4 below, by reference to the yearly equivalent of that sum, or, as the case may be, of each sum comprised in that aggregate, and the relief shall consist of a reduction or repayment of tax equal to the difference between those amounts. 4 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 3(b) above as follows — a from the yearly equivalent of that sum there shall be deducted such amounts as, following the principle set out in paragraph 3(a)(iii) above, 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 3(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 sub-paragraph (1) above, but so that — 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, and 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, and 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. 5 A provision of paragraph 3 or 4 above 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 — a not to include any amount in respect of which he is chargeable to tax under section 187 of this Act (payments on retirement or removal from office or employment), and b to include, in respect of any amount which would otherwise be included therein by virtue of section 399 (1)(a) of this Act (gains arising in connection with life policies etc.), no greater amount than the appropriate fraction thereof within the meaning of section 400 of this Act. 6 A provision of paragraph 3 or 4 above shall apply in relation to any part of the claimant's total income (as computed for the purposes of that provision) as respects which he would be entitled under Chapter II of Part I of this Act (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 22 of this 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. SCHEDULE 4 Schedules A and D: Allowances for Betterment Levy Sections 88 and 158. PART I Premiums etc. 1 1 Subject to paragraph 5 of this Schedule, for the purposes of section 80(1) of this Act (taxation of premium on grant of lease), the amount of any premium payable to the landlord shall be reduced by the amount of any betterment levy charged on the premium, and that reduction shall be made before the reduction under the said section 80(1) depending upon the length of the lease. 2 In applying subsection (6) of the said section 80 (premiums payable by instalments: claim for treatment as rent) to a premium which falls to be reduced under sub-paragraph (1) above (looking at the fraction by which it is reduced before any reduction depending on the length of the lease), a reduction by that fraction shall be made in the amount of each instalment. 3 For the purposes of sub-paragraph (1) above, the amount of betterment levy charged- on a premium is the principal amount of the betterment levy under Case B charged in respect of the grant of the lease, reduced by applying the fraction A B (if less than unity) where — A is the capital value of the premium payable to the landlord as brought into account under paragraph 7 of Schedule 4 to the Land Commission Act 1967, and B is the aggregate amount of consideration as computed for the purposes of charging betterment levy. 4 Sub-paragraphs (1) and (3) above shall also apply as respects any amounts brought into section 80(1) of this Act as a premium by subsection (2) of that section (landlord's benefit from tenant's obligation to carry out work on premises) so far as the benefit to the landlord is brought into account under the said paragraph 7 of Schedule 4 to the Land Commission Act 1967 ; and references to premiums in this paragraph shall be construed accordingly. 5 For the purposes of sub-paragraph (1) above, the amount of betterment levy charged on any sum brought into the said section 80(1) as a premium by subsection (4) of that section (consideration for the variation or waiver of the terms of a lease) is the principal amount of the betterment levy under Case E or Case F charged in respect of the disposition for which that sum is consideration, but subject to a proportionate reduction as under sub-paragraph (3) above where the sum forms part only of the consideration brought into account in assessing the betterment levy in respect of the disposition, and where the levy is under Case F, subject to such adjustments of the consideration so brought into account as may be appropriate ; and references to a premium in this paragraph shall be construed accordingly. 2 Subject to paragraph 5 of this Schedule, any taxable amount under section 81 or 82 of this Act (assignment of lease at undervalue, and sale with right to reconveyance) shall be reduced by so much of the principal amount of any betterment levy under Case A charged on the assignment or sale on which the charge to tax arises as is attributable to the said taxable amount, and that reduction shall be made before any reduction under the said section 81 depending on the length of the lease, or any reduction under the said section 82 depending on the time between the sale and a subsequent reconveyance. 3 Any reduction to be effected under any of the provisions of paragraphs 1 and 2 above shall be disregarded in arriving at "the amount chargeable on the superior interest" in section 83 of this Act (premiums paid, etc: deduction from premiums and rents received) and " the amount chargeable " in section 134 of this Act (allowance of trading deduction where premium etc. paid). 4 1 Where for the purposes of Part III of the Land Commission Act 1967 a notice of assessment of betterment levy results in an operative assessment of levy, it shall become final and conclusive for the purposes of this Part of this Schedule, but subject to any adjustment under section 54 or 55 of that Act (mistake of fact and further notice of assessment of levy), or under any other provision of that Act. 2 Where betterment levy is chargeable in respect of land part only of which is the relevant land for the purposes of the charge to tax under Schedule A or Case VI of Schedule D, or where part of the consideration for a disposition is payable to a person other than the grantor in the circumstances mentioned in section 36(3) of the Land Commission Act 1967, the levy shall be apportioned in such manner as may be appropriate in the circumstances. 3 Any question arising in any appeal against an assessment to tax as to the application of the preceding provisions of this Part of this Schedule shall be determined on a reference to the Lands Tribunal. 4 The Land Commission shall afford to the inspector and to the Lands Tribunal such information as they may require for the purpose of this Part of this Schedule. 5 In relation to land in Scotland, for any reference in this paragraph to the Lands Tribunal there shall be substituted a reference to the Lands Tribunal for Scotland: Provided that until sections 1 to 3 of the Lands Tribunal Act 1949 come into force as regards Scotland, this sub-paragraph shall have effect as if for the reference to the Lands Tribunal for Scotland there were substituted a reference to a person selected from the panel of referees appointed under Part I of the Finance (1909-1910) Act 1910. PART II Mining Leases 5 Part I of this Schedule shall not apply to betterment levy which is charged on any payment in accordance with regulations made in accordance with section 40(2) of the Finance Act 1968 (rents, royalties and other payments, including premiums, under mining leases). 6 Where betterment levy is charged as mentioned in paragraph 5 above on a payment which is charged to tax under Schedule A, the amount of betterment levy so charged shall for the purposes of Schedule A be treated as a payment made by the landlord in respect of management of the property in the chargeable period in which he becomes entitled to the payment: Provided that where the amount of the payment is reduced under section 80 of this Act (treatment of premiums etc. as rent), the amount of the betterment levy charged thereon shall be treated for the purposes of this paragraph as reduced in the same proportion. 7 Where betterment levy is charged as mentioned in paragraph 5 above on any payment which is charged to tax under Schedule D by virtue of section 156 of this Act (rent etc. payable in connection with mines, quarries and similar concerns), the amount of betterment levy so charged shall be treated — a for the purposes of section 158(1) of this Act (income tax: management expenses of owner of mineral rights), as a sum disbursed as an expense of management in the year of assessment for which the tax is charged, and b for the purposes of subsection (2) of the said section 158 (corresponding provision for corporation tax), as a sum so disbursed in the accounting period in which the payment falls to be taken into account for corporation tax. 8 The Land Commission shall afford to any officer of the Board such information as he may require for the purposes of this Part of this Schedule. SCHEDULE 5 Machinery for Assessment, Charge and Payment of Income Tax under Schedule C, and, in certain cases, Schedule D Sections 94 and 159. PART I Public Revenue Dividends, etc., payable to the Bank of England and the Bank of Ireland, or entrusted for payment to the Bank of England, the Bank of Ireland or the National Debt Commissioners 1 The Bank of England and the Bank of Ireland, as respects the dividends and the profits attached thereto payable to them out of the public revenue of the United Kingdom, or payable out of any public revenue and entrusted to them for payment and distribution, and the National Debt Commissioners, as respects the dividends payable by them or of which they have the distribution, shall, when any payment becomes due, deliver to the Board true accounts, in books provided for the purpose, of — a the amounts of the dividends and profits attached thereto payable to the Bank, and b all dividends entrusted to the Bank or to the National Debt Commissioners for payment to the persons entitled thereto, and c the amount of income tax chargeable thereon at the standard rate in force at the time of payment, without any other deduction than is allowed by the Income Tax Acts. 2 1 In the case of dividends and profits attached thereto payable to the Bank of England out of the public revenue of the United Kingdom, the Bank of England shall set apart the income tax in respect of the amount payable to them. 2 In the case of dividends and profits attached thereto entrusted to the Bank of England for payment and distribution, dividends payable by the Bank of Ireland at its principal office in Belfast, and dividends payable by the National Debt Commissioners or of which the National Debt Commissioners have the distribution — a the Bank of England, the Bank of Ireland and the National Debt Commissioners respectively shall, before any payment is made by them, retain the amount of the income tax for the purposes of the Income Tax Acts, and b the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends, and shall be allowed by them on the receipt of the residue thereof, and c the Bank of England, the Bank of Ireland and the National Debt Commissioners respectively shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid. 3 In relation to dividends payable to the Bank of Ireland out of the public revenue of the United Kingdom, and public revenue dividends which are entrusted to the Bank of Ireland for payment and distribution and are not payable by that Bank at its principal office in Belfast, the following provisions shall have effect — a the money which, but for the provisions of this subparagraph, would be issuable to the Bank of Ireland under section 14 of the National Debt Act 1870, or otherwise payable to the Bank of Ireland for the purpose of dividends on securities of the United Kingdom Government entered in the register of the Bank of Ireland in Dublin, shall be issued and paid to the Bank of England, and b the Bank of England shall set apart and retain out of moneys so issued and paid to them the amount of the income tax on the dividends payable to the Bank of Ireland, and on the dividends on the securities of the United Kingdom Government entered in the register of the Bank of Ireland in Dublin, and c the Bank of England shall pay to the Bank of Ireland the residue of the moneys so issued and paid to them, to be applied by the Bank of Ireland to the payment of the dividends, and d the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends, and shall be allowed by them on the receipt of the residue thereof, and the Bank of England and the Bank of Ireland shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid. 3 Money set apart or retained under paragraph 2 above, and the amount of any tax charged on the trading profits of the Bank of England or the Bank of Ireland, shall be paid into the general account of the Board at the Bank of England or the Bank of Ireland. 4 No deduction of income tax under this Part of this Schedule shall be made from any dividends payable in respect of stock, securities or annuities standing in the name of the official custodian for charities, nor from any dividends in respect of which there is given to the Bank of England a certificate from the Charity Commissioners that the dividends are subject only to charitable trusts and are exempt from tax. PART II Public Revenue Dividends payable by Public Offices and Departments 5 Where any payment is made of public revenue dividends payable by any public office or department of the Crown, the appropriate officer shall retain the income tax charged and pay the same into the general account of the Board at the Bank of England or the Bank of Ireland. PART III Other Public Revenue Dividends, Foreign Dividends, and Proceeds of Coupons 6 The following persons are chargeable persons for the purposes of this Part of this Schedule — a every person (other than the National Debt Commissioners or the Bank of England or the Bank of Ireland) who is entrusted with the payment of any dividends which are payable out of the public revenue of Northern Ireland, or which are payable to any persons in the United Kingdom out of any public revenue other than that of the United Kingdom or Northern Ireland, b every person in the United Kingdom who is entrusted with the payment of any foreign dividends within the meaning of section 159 of this Act, c every banker or other person in the United Kingdom who obtains payment of any dividends in such circumstances that the dividends are chargeable to tax under Schedule C, or, in the case of foreign dividends as above defined, under Schedule D, and d every banker in the United Kingdom who sells or otherwise realises coupons, and every dealer in coupons in the United Kingdom who purchases coupons, in such manner that the proceeds of the sale or realisation are chargeable to tax under Schedule C, or, in the case of foreign dividends as above defined, under Schedule D ; and every such person shall deliver to the Board — i on demand by the Board, true and perfect accounts of the amount of all such dividends or proceeds, and ii not later than twelve months after paying any dividends or effecting any other transaction in respect of which he is a chargeable person, and unless within that time he delivers an account with respect to the dividends or proceeds in question under paragraph (i) above, a written statement specifying his name and address and describing those dividends or proceeds. 7 The Board shall have all necessary powers in relation to the examining, auditing, checking and clearing of the books and accounts of dividends or proceeds delivered under paragraph 6 above, and shall assess and charge the dividends or proceeds at the standard rate of tax in force at the time of payment, but reduced by the amount of the exemptions (if any) allowed by them, and shall give notice of the amount so assessed and charged to the chargeable person. 8 The chargeable person shall out of moneys in his hands pay the income tax on the dividends or proceeds on behalf of the persons entitled thereto, and shall be acquitted in respect of all such payments, and the provisions of the Income Tax Acts shall apply as in the case of dividends payable out of the public revenue of the United Kingdom and entrusted to the Bank of England for payment and distribution. 9 The chargeable person shall pay the income tax into the general account of the Board at the Bank of England or the Bank of Ireland, and, in default of payment, it shall be recovered from him in the same manner as other tax assessed and charged upon him may be recovered. 10 A chargeable person who does all such things as are necessary to enable the tax to be assessed and paid shall receive as remuneration an allowance, to be calculated by reference to the amount of the dividends or proceeds paid from which tax has been deducted, and to be fixed by the Treasury at a rate not being less than thirteen shillings and sixpence for every £1,000 of that amount: Provided that this paragraph shall not apply to any person entrusted with the payment of dividends payable out of the public revenue of Northern Ireland. 11 Nothing in the preceding provisions of this Part of this Schedule shall impose on any banker the obligation to disclose any particulars relating to the affairs of any person on whose behalf he may be acting. 12 Where income tax in respect of the proceeds of the sale or realisation of any coupon has been accounted for under this Part of this Schedule by any banker or dealer, and the coupon has been subsequently paid in such manner that income tax has been deducted from the payment under any of the provisions of this Schedule, the tax so deducted shall be repaid. A claim under this paragraph shall be made to the Board. 13 1 Without prejudice to the generality of paragraph 7 above, the Board may, by notice in writing served on any chargeable person, require that person, within such time as may be specified in the notice, to make available at his premises for inspection by an officer authorised by the Board all such books and other documents in the possession or control of that person as the officer may reasonably require for the purpose of determining whether any accounts delivered by that person under paragraph 6 above are correct and complete. 2 The Board may grant a certificate exempting any chargeable person from the provisions of sub-paragraph (1) above, and while the certificate is in force the powers conferred by that sub-paragraph shall not be exercisable in relation to that person; and any such certificate may be revoked at any time by the Board, and may contain such terms and conditions as they think proper. PART IV Interpretation of Parts I to III above 14 Section 107 of this Act (which defines, amongst other expressions, " dividends ", " public revenue ", " public revenue dividends ", " banker" and " coupons ") shall apply for the interpretation of Parts I to III of this Schedule as it applies for the interpretation of Part V of this Act: Provided that, in Part III of this Schedule, " dividends " shall include any such interest and other payments as are foreign dividends within the meaning of section 159 of this Act. SCHEDULE 6 Schedule D, Case I: Treatment of Farm etc. Animals Section 139. Farming: the general rule 1 1 Subject to the provisions of this Schedule, in computing profits or gains under Case I of Schedule D, animals kept by a fanner for the purposes of his fanning shall be treated as trading stock. 2 Animals forming part of production herds with respect to which an election under paragraph 2 below has effect shall not be so treated, but shall be treated instead in accordance with the rules set out in paragraph 3 below. 3 An election under the said paragraph 2 is in this Schedule referred to as " an election for the herd basis ". Farming: election for the herd basis 2 1 An election for the herd basis shall apply to all production herds of a particular class kept by the farmer making the election, including herds which he has ceased to keep before the making of the election, or first begins to keep after the making thereof. 2 An election for the herd basis must be made in writing to the inspector, and must specify the class of herds to which it relates. 3 Subject to paragraph 6 below, an election for the herd basis shall be valid only if it is made not later than two years after the end of the first chargeable period for which the farmer making the election is chargeable under Case I of Schedule D to tax in respect of the profits or gains of his farming, or is given relief under section 168 or 177(2) of this Act (set off of trading losses against general income) in respect of his farming, being profits or gains or relief the amount of which is computed by reference to the facts of a period during the whole or some part of which the farmer kept a production herd of the class in question. 4 An election for the herd basis shall be irrevocable and, subject to paragraph 6 below, shall have effect for the said first chargeable period and all subsequent chargeable periods. 3 1 Where an election for the herd basis has effect, the consequences for the purpose of computing profits or gains under Case I of Schedule D shall be as provided by this paragraph. 2 The initial cost of the herd and, subject to the provisions of this paragraph as to replacements, the cost of any animal added to the herd shall not be deducted as an expense, and the value of the herd shall not be brought into account. 3 Where an animal which has theretofore been treated as part of the farmer's trading stock is added to the herd otherwise than by way of replacement, there shall be included as a trading receipt — a in the case of an animal bred by the farmer, a sum equal to the cost of breeding it and rearing it to maturity, and b in any other case, a sum equal to the initial cost to the farmer of acquiring the animal, together with any cost incurred by him in rearing it to maturity. 4 Where an animal forming part of the herd dies, or ceases to form part thereof, and is replaced therein by another animal — a any proceeds of sale of the animal which dies or ceases to form part of the herd shall be included as a trading receipt, and b the cost of the animal which replaces it, except in so far as that cost consists of such costs as are allowable apart from the provisions of this Schedule as deductions in computing profits or gains of farming under Case I of Schedule D, shall be deducted as an expense: Provided that — i where the second-mentioned animal is of better quality than the animal which it replaces, the amount deducted shall not exceed the amount which it would have been necessary to expend in order to acquire an animal of the same quality as the one replaced, and ii where the animal which is replaced was slaughtered by the order of any Ministry, government department or local or public authority under the law relating to diseases of animals, and the animal which replaces it is of worse quality, the amount included as a trading receipt shall not exceed the amount allowable as a deduction. 5 Where the herd is sold as a whole, and another production herd of the same class is acquired, sub-paragraphs (1) to (4) above shall apply as though there had been sold from the original herd, and replaced therein, a number of animals equal to the number in the original herd or in the newly acquired herd, whichever is the less. 6 If (either all at once or over a period not exceeding twelve months) either — a the whole of a herd is sold in circumstances in which subparagraph (5) above does not apply, or b a part of a herd is sold on a substantial reduction being made in the number of animals in the herd, any profit or loss arising from the transaction shall not be taken into account: Provided that where, within five years of the sale, the seller acquires or begins to acquire another production herd of the class in question or, as the case may be, acquires or begins to acquire animals to replace the part of the herd in question — i sub-paragraphs (4) and (5) above shall apply to the acquisition or replacement, except that, if the sale was one which the seller was compelled to effect by causes wholly beyond his control, the amount included as a trading receipt in respect of any animal sold which is replaced by an animal of worse quality shall not exceed the amount allowable as a deduction in respect of that animal of worse quality, and ii for the purposes of the application of those sub-paragraphs, the proceeds of sale of the animals comprised in the original herd or part of a herd shall be brought into account as if they had been respectively received at the times of the corresponding acquisitions. 7 If an animal forming part of the herd is sold, and neither sub-paragraph (4) nor (5) nor (6) above applies, any profit or loss arising from the transaction shall be included or deducted, as the case may be ; and for the purposes of this sub-paragraph, the said profit or loss shall be computed by comparing with the proceeds of sale — a in the case of an animal bred by the farmer, the cost of breeding it and rearing it to maturity, and b in any other case, a sum equal to the initial cost to the farmer of acquiring the animal (or, in the case of an animal acquired otherwise than for valuable consideration, its market value when the farmer acquired it) together, in both cases, with any cost incurred by him in rearing it to maturity. 8 Where the herd is sold as a whole, and another production herd of the same class is acquired, and the number of animals in the newly acquired herd is less than the number in the original herd, then, if the difference is not substantial, sub-paragraph (6) above shall not apply, and sub-paragraph (7) above shall apply to a number of animals in the original herd equal to the difference. 9 The preceding provisions of this paragraph shall apply in relation to the death or destruction of animals as they apply in relation to their sale, as if any insurance or compensation moneys received by reason of the death or destruction were proceeds of sale, and any reference in this paragraph to the proceeds of sale of an animal includes a reference to any proceeds of sale of its carcase or any part thereof. Farming : provisions applicable to special cases 4 A farmer who, having kept a production herd of a particular class, ceases altogether to keep herds of that class for a period of at least five years shall, as respects production herds kept by him after the end of that period, be treated as if he had never kept any production herds of that class before the end of that period. 5 1 Where a farmer transfers to another person all or any of the animals which form part of a production herd otherwise than by way of sale, or by way of sale but for a price other than that which they would have fetched if sold in the open market, and either — a the transferor is a body of persons over whom the transferee has control, or the transferee is a body of persons over whom the transferor has control, or both the transferor and the transferee are bodies of persons and some other person has control over both of them, or b it appears with respect to the transfer, or with respect to transactions of which the transfer is one, that the sole or main benefit, or one of the main benefits, which (apart from the provisions of this paragraph) might have been expected to accrue to the parties or any of them was a benefit resulting from the obtaining of a right to make an election for the herd basis, or from such an election having effect or ceasing to have effect, or from such an election having a greater effect or a less effect, the like consequences shall ensue, in relation to all persons concerned, for the purpose of computing profits or gains under Case I of Schedule D as would have ensued if the animals had been sold for the price which they would have fetched if sold in the open market. 2 In this paragraph " body of persons " includes a partnership, and " control" has the meaning given by section 534 of this Act. 6 1 Where the whole or a substantial part of a production herd kept by a farmer for the purposes of his fanning is slaughtered by the order of any Ministry, government department or local or public authority under the law relating to diseases of animals in such circumstances that compensation is payable in respect of it, an election for the herd basis thereupon made by the farmer in relation to that herd and any other production herds of the same class so kept by him shall, subject to sub-paragraph (2) below, be valid notwithstanding that it is not made within the time required by paragraph 2(3) of this Schedule. 2 An election for the herd basis made by virtue of sub-paragraph (1) above shall only be valid if made not later than two years after the end of the first chargeable period for which the tax chargeable on the farmer in respect of the profits or gains of his farming finally falls to be computed by reference to the facts of a period in which the compensation is relevant: Provided that, for income tax (but not corporation tax) purposes, if that chargeable period is the second year of assessment within the meaning of section 117 of this Act (basis of assessment for second and third years after commencement), and notice is given under subsection (2) of that section, the election shall be valid if made not later than the giving of that notice. 3 An election for the herd basis made by virtue of sub-paragraph (1) above shall, notwithstanding paragraph 2(4) of this Schedule, have effect only for the chargeable period mentioned in sub-paragraph (2) above and subsequent chargeable periods: Provided that, for income tax (but not corporation tax) purposes, the election shall have effect for earlier chargeable periods for the purposes of any claim under section 168 of this Act (set off of trading losses against general income) which is made by the farmer for relief in respect of his farming, if the relief falls to be computed wholly or partly by reference to the facts of a period in which the compensation is relevant. 4 For the purposes of this paragraph, compensation shall be deemed to be relevant in any period if, but only if, it falls (or would but for an election under this paragraph fall) to be taken into account as a trading receipt in computing the profits or gains or losses of that or an earlier period. Exclusion of working animals, and interpretation of preceding provisions 7 Nothing in this Schedule applies to any animals kept wholly or mainly for the work they do in connection with the carrying on of the farming. 8 1 In this Schedule " herd " includes a flock, and any other collection of animals, however named. 2 For the purposes of this Schedule, immature animals kept in a herd shall not be treated as forming part of the herd unless — a the land on which the herd is kept is such that animals which die or cease to form part of the herd cannot be replaced except by animals bred and reared on that land, and b the immature animals in question are bred in the herd, are maintained therein for the purpose of replacement, and are necessarily maintained for that purpose, and references in this Schedule to herds shall be construed accordingly, and references therein to an animal being added to a herd include references to an immature animal which is kept in the herd becoming a mature animal: Provided that not more immature animals shall in any case be treated as forming part of a herd than are required to prevent a fall in the numbers of the herd. Female animals shall be treated for the purposes of this Schedule as becoming mature when they produce their first young. 3 In this Schedule " a production herd" means, in relation to a farmer, a herd of animals of the same species (irrespective of breed) kept by him wholly or mainly for the sake of the products which they produce for him to sell, being products obtainable from the living animal. In this sub-paragraph "product obtainable from the living animal" means — a the young of the animal, or b any other product obtainable from the animal, not being a product obtainable only by slaughtering the animal itself. 4 For the purposes of this Schedule, production herds kept by a fanner shall be deemed to be of the same class if, and only if, all the animals kept in the herds are of the same species (irrespective of breed) and the products produced for him to sell for the sake of which (either wholly or mainly) the herds are kept by him are of the same kinds in the case of all the herds ; and elections for the herd basis shall be framed accordingly. 5 Any reference in this Schedule to profits or gains chargeable to tax under Schedule D includes a reference to profits or gains which would be so chargeable if there were any such profits or gains for the chargeable period in question. Application of preceding provisions to trades other than farming, creatures other than animals, and animals and creatures kept singly 9 1 The preceding provisions of this Schedule shall, with the necessary adaptations, apply in relation to trades other than farming, and trades consisting only in part of farming, as they apply in relation to fanning, and references to fanners shall be construed accordingly. 2 The said provisions (both in relation to farming and in relation to other trades) shall apply in relation to living creatures other than animals as they apply in relation to animals. Laying birds shall be treated for the purposes of this Schedule as becoming mature when they first lay. 3 The provisions of this Schedule shall (both in relation to farming and in relation to other trades) apply, with the necessary adaptations, in relation to animals or other creatures kept singly as they apply in relation to herds. 4 Nothing in this Schedule shall apply in relation to any animal or other creature kept wholly or mainly for public exhibition, or for racing or other competitive purposes. Supplemental 10 Where an election for the herd basis is made, every person carrying on any farming or other trade affected by the election shall, if required to do so by notice from the inspector, make and deliver to the inspector, within the time specified in the notice, such returns as to, and as to the products of, the animals or other creatures kept by him for the purposes of the trade as may be required by the notice. 11 Where an election for the herd basis has effect for any chargeable period after an assessment for that period has become final and conclusive, any such assessment or, on a claim therefor, repayment of tax shall be made as may be necessary to give effect to the election SCHEDULE 7 Schedule D, Case VII: Miscellaneous Rules Section 167(6). Discharge and assignment of contracts; options and other conditional contracts, etc. 1 1 Save as provided by paragraph 2 below, a person's acquisition or disposal of an asset by a contract in that behalf shall be disregarded for the purposes of Case VII if — a the contract is discharged by mutual consent or by operation of law, or b default is made in carrying out the contract and, by reason of that default, there is no conveyance or transfer to implement the contract, whether by or to the person originally making the contract or another, or c the contract is conditional and the condition is not satisfied. 2 Where a person disposes of an asset, and the whole or part of the consideration is irrecoverable, the amount irrecoverable shall be disregarded in so far as it is not realised by the disposal in whole or in part of the right to the consideration ; and if the consideration is abated for any error in or default under the contract, Chapter VIII of Part VI of this Act shall apply as if the abated consideration had originally been contracted for. 3 If, in the case of a conditional contract to acquire or dispose of an asset, the condition is satisfied (and, in particular, if in the case of a contract conferring an option the option is exercised), then, subject to sub-paragraphs (4) to (6) below, the acquisition or disposal of the asset by the contract shall be treated as taking place at the time when the condition is satisfied. 4 If the disposal of an asset by a conditional contract is made for a consideration not depending wholly or mainly on the value of the asset at the time the condition is satisfied, the contract shall in relation to the disposal be treated (on the condition being satisfied) as if it had never been conditional. 5 Where a contract for the disposal of an asset is discharged by mutual consent, but is replaced by a new contract for its disposal to the same person or to another in his place, the disposal by the new contract shall be treated as if it had taken place at the time when the disposal by the previous contract is to be treated as having taken place, and, if the previous contract was a conditional contract, the condition shall for that purpose be treated as satisfied by the making of the new contract. 6 Nothing in sub-paragraphs (3) to (5) above shall apply in relation to a contract entered into before 10th April 1962. 2 1 Subject to paragraph 21 of this Schedule, a person acquiring a right under a subsisting contract to acquire or dispose of an asset shall be treated as thereby acquiring or disposing of the asset to the like extent as if he had then entered into a new contract conferring that right (his undertaking the obligations under the subsisting contract not being treated as consideration given by him for the acquisition of the right, but any consideration so given being treated, in relation to his acquisition and disposal of the asset, as an expense of acquiring or disposing of it). 2 Notwithstanding anything in section 162(1) of this Act, a person disposing of the right under a subsisting contract to acquire or dispose of an asset shall not be treated as thereby disposing of the asset nor, in a case not within sub-paragraph (3) below, as having acquired or disposed of it by that contract. 3 Subject to paragraph 21 of this Schedule, where a person disposes of an asset to another subject to and with the benefit of any subsisting contract for its disposal to a third person, then, if the contract is not conditional or the condition is satisfied at the time of the later disposal — a he shall not be treated as thereby making any new disposal of the asset except to the extent to which it was not disposed of by that contract, and so much of the consideration for the later disposal as is attributable to the right to receive the consideration under that contract shall be disregarded, and b he shall be treated as thereby completing the disposal by that contract, and that disposal shall not under paragraph 1 above be treated as affected by any subsequent discharge of or default under the contract or abatement of the consideration. 4 A person's right under a contract entered into by him to acquire or dispose of an asset shall, in relation to any disposal by him of that right, be treated as having been acquired by him on the making of the contract for any consideration given by him for having that right (other than his agreement to acquire or dispose of the asset); and where a person gives any consideration to be discharged from a contract to acquire or dispose of an asset, the person to whom it is given shall be treated as disposing for that consideration of his right under the contract to dispose of or acquire the asset. 5 Where a person dies after entering into a conditional contract for the acquisition or disposal of an asset (the condition not being satisfied at the time of his death), then — a in the case of a contract to acquire the asset, nothing in this paragraph shall apply so as to treat any other person as acquiring the asset by reason of that contract on the condition being satisfied, except that sub-paragraph (1) shall apply in relation to any person acquiring from the personal representatives or legatee the right under the contract to acquire the asset, and b in the case of a contract to dispose of the asset, nothing in this paragraph or paragraph 1 above shall apply so as to treat him as disposing of the asset under the contract on the condition being satisfied. Gifts, settled property and bargains not at arm's length 3 1 Where a person resident and ordinarily resident in the United Kingdom either — a disposes by way of gift of an asset previously acquired by him, but does so without there being, within the meaning of Case VII, an acquisition and disposal by him, or b disposes by way of gift of an asset acquired by him only as legatee, then, so far as relates to the interest taken by the donee, the donee shall be treated as if the donor's acquisition of the asset had been his acquisition of it. 2 Where, in a case not falling within sub-paragraph (1)(a) or (1)(b) above, a person resident and ordinarily resident in the United Kingdom disposes by way of gift of an asset acquired or to be acquired by him, and the donee is also resident and ordinarily resident in the United Kingdom, then, on an election being made in that behalf — a the donor shall not be chargeable under Case VII in respect of any acquisition and disposal by reference to that disposal, and b the donee shall be treated as if the donor's acquisition of the asset had been his acquisition of it, but so that the amount of the consideration for which he is treated as acquiring the asset shall not by virtue of this sub-paragraph be increased. 3 An election under sub-paragraph (2) above shall be made by the donor and donee jointly, except that it may be made by the donee alone if the donor would not, apart from that sub-paragraph, be chargeable to tax under Case VII in respect of the gain (if any) treated as accruing to him from his acquisition and disposal of the asset. 4 A person shall not be chargeable under Case VII in respect of any acquisition and disposal by reference to a disposal made to any charity if the disposal is by way of gift for the purposes of the charity. In this sub-paragraph "charity" means any body of persons or trust established for charitable purposes only. 4 1 Section 162(4) of this Act and paragraph 3 above shall apply in relation to a gift in settlement as a gift to the trustees of the settlement, and shall so apply notwithstanding that the settlor is one of the trustees, or the sole trustee, of the settlement; but if the settlor or the settlor's wife or husband has, or can by any means (whether or not requiring any consent or concurrence) obtain for the settlor or for the settlor's wife or husband any beneficial interest in the settled property or the income from it, no loss treated as accruing to the settlor by reason of the gift in settlement shall be allowable under Case VII. 2 Subject to sub-paragraph (3) below, where under a settlement a person becomes absolutely entitled as against the trustee to settled property (whether alone or jointly with another), he shall be chargeable by reference to any subsequent disposal of the property by him as if its acquisition by the trustees had been his acquisition of it. 3 Where for a consideration in money or money's worth a person becomes absolutely entitled as against the trustee to settled property, or two or more persons jointly become so entitled, either by the exercise of a power of appointment under the settlement or by acquiring the interests of persons who were together so entitled and acted in concert in disposing of their interests to him or them, then, notwithstanding anything in section 163(4) of this Act — a the person or persons becoming so entitled shall, on disposing of the property, be chargeable under Case VII by reference to that acquisition of it, if there is an acquisition and disposal by him or them, and b the person exercising the power, or persons disposing of their interests under the settlement, shall be chargeable under that Case by reference to that disposal of the property, as if its acquisition by the trustees had been his or their acquisition of it. 5 1 Subject to sub-paragraph (4) below, where a person resident and ordinarily resident in the United Kingdom disposes otherwise than by way of bargain at arm's length (but not by way of gift) of an asset acquired or to be acquired by him so that there is an acquisition and disposal of the asset by him, and the person acquiring the asset on that disposal is also resident and ordinarily resident in the United Kingdom, then, on an election being made in that behalf, the person disposing of the asset and the person acquiring it on that disposal shall be treated as doing so for a consideration equal to whichever is the higher of — a the actual consideration, and b such amount as will secure that neither a gain nor a loss accrues to the person disposing of the asset from his acquisition and disposal of it: Provided that this sub-paragraph shall not apply so as to increase the amount of the consideration for which those persons are respectively treated as disposing of and acquiring the asset. 2 An election under this paragraph shall be made jointly by the person disposing of the asset and the person acquiring it, except that an election may be made by the person disposing of the asset alone if the person acquiring it would not, on disposing of it, be chargeable to tax under Case VII in respect of the gain (if any) accruing to him from his acquisition and disposal of it. 3 In a case falling within section 162(4)(b) of this Act, the amount referred to in paragraph (b) of sub-paragraph (1) above shall be taken to be higher than the actual consideration referred to in paragraph (a) of that sub-paragraph. 4 This paragraph shall not apply to a disposal of assets by a company by way of distribution in respect of shares in the company. 6 1 Where, in the case of a man and his wife living with him, the man disposes of an asset acquired or to be acquired by him to the wife, or the wife disposes of an asset acquired or to be acquired by her to the man, then — a the one making the disposal shall not be chargeable under Case VII in respect of an acquisition and disposal by reference to that disposal, and b the one to whom the disposal is made shall be treated as if the other's acquisition of the asset had been his or her acquisition of it: Provided that this sub-paragraph shall not apply in relation to a disposal of an asset if, until the disposal, the asset formed part of the trading stock of a trade carried on by the one making the disposal, or if the asset is acquired as trading stock for the purposes of a trade carried on by the one acquiring it. 2 Where a person disposes of an asset to a company of which he has control, no loss accruing to him from the acquisition and disposal of the asset shall be allowable under Case VII otherwise than by deduction from any gain accruing on the disposal of assets to the company while he has control of it; and, for the purposes of this sub-paragraph, an individual shall be treated as having control of a company if the individual's wife or husband has control of it, or if they together have control of it. Appropriations to and from stock in trade 7 1 Subject to sub-paragraph (3) below, where an asset acquired by a person otherwise than as trading stock of a trade carried on by him is appropriated by him for the purposes of the trade as trading stock (whether on the commencement of the trade or otherwise) and, if he had then sold the asset for its market value, a gain or loss chargeable or allowable under Case VII would have accrued to him, he shall be treated as having thereby disposed of the asset by selling it for its then market value. 2 Where an asset forming part of the trading stock of a person's trade is appropriated by him for any other purpose, or is retained by him on his ceasing to carry on the trade, he shall be treated as having acquired it for a consideration equal to the amount brought into the accounts of the trade in respect of it for tax purposes on the appropriation or on his ceasing to carry on the trade, as the case may be. 3 Sub-paragraph (1) above shall not apply in relation to a person's appropriation of an asset for the purposes of a trade if he is chargeable to tax in respect of the profits of the trade under Case I of Schedule D and elects that, instead, the market value of the asset at the time of the appropriation shall, in computing the profits of the trade for the purposes of tax, be treated as reduced by the amount of the gain, or increased by the amount of the loss, referred to in that sub-paragraph; and where that sub-paragraph does not apply by reason of such an election, the profits of the trade shall be computed accordingly: Provided that if a person making an election under this sub-paragraph is at the time of the appropriation carrying on the trade in partnership with others, the election shall not have effect unless concurred in by the others. Identification of shares etc. disposed of 8 1 Subject to paragraph 9 below, where a person disposes of shares, the shares disposed of shall be identified in accordance with the rules contained in this paragraph with the shares acquired by him which could be comprised in that disposal, and shall be so identified notwithstanding that they are otherwise identified by the disposal, or by a transfer or delivery giving effect to the disposal (but so that, where a person disposes of shares in one capacity, they shall not be identified with shares which he holds or can dispose of only in some other capacity). 2 The identification under this paragraph of the shares disposed of on any occasion shall have effect not only for determining the gain or loss accruing by reason of that disposal, but for all the purposes of Case VII, including its operation in relation to other disposals by the same person and, in a case where that person's acquisition of the shares is or may be relevant to the person acquiring from him, its operation in relation to the last-mentioned person. 3 Shares disposed of on an earlier date shall be identified before shares disposed of on a later, and the identification of the shares first disposed of shall accordingly determine the shares which could be comprised in the later disposal. 4 Shares disposed of for transfer or delivery on a particular date, or in a particular period — a shall not be identified with shares acquired for transfer or delivery on a later date, or in a later period, and b shall be identified with shares acquired for transfer or delivery on or before that date, or in or before that period, but on or after the date of the disposal, rather than with shares not so acquired. 5 The shares disposed of shall be identified with shares not acquired as legatee rather than with shares acquired as legatee. 6 The shares disposed of shall be identified — a with shares acquired within the twelve months preceding the disposal rather than with shares not so acquired, and with shares so acquired on an earlier date rather than with shares so acquired on a later, and b subject to paragraph (a) above, with shares acquired on a later date rather than with shares acquired on an earlier, and c with shares acquired at different times on any one day in as nearly as may be equal proportions. 7 The preceding rules shall have priority according to the order in which they are stated. 8 Notwithstanding anything in sub-paragraphs (3) to (6) above, where, under arrangements designed to postpone the transfer or delivery of shares disposed of, a person by a single bargain acquires shares for transfer or delivery on a particular date, or in a particular period, and disposes of them for transfer or delivery on a later date, or in a later period, then — a the shares disposed of by that bargain shall be identified with the shares thereby acquired, and b shares previously disposed of which, but for the operation of paragraph (a) above in relation to acquisitions for transfer or delivery on the earlier date or in the earlier period, would have been identified with the shares acquired by that bargain — i shall, subject to sub-paragraph (3) above, be identified with any available shares acquired for such transfer or delivery (that is to say, any shares so acquired other than shares to which paragraph (a) above applies, and other than shares with which shares disposed of for such transfer or delivery would be identified apart from this sub-paragraph), and ii in so far as they cannot be so identified, shall be treated as disposed of for transfer or delivery on the later date, or in the later period, above-mentioned. 9 This paragraph, and paragraph 9 below, shall apply in relation to a disposal of any assets as they apply in relation to a disposal of shares, where the assets are of a nature to be dealt in without identifying the particular assets disposed of or acquired. 9 1 Where, in the case of a man and his wife living with him, one of them — a disposes of shares to his wife or her husband after 10th April 1968, and b disposes of other shares, of the same kind as those disposed of to the wife or husband, to another person (in this paragraph called " a third party "), the provisions of this paragraph shall have effect as respects any shares acquired by the person making those disposals which, but for the provisions of paragraph 8 above, could have been comprised in either of those disposals. 2 If, but for the provisions of this sub-paragraph, shares disposed of to a third party — a would not be taxable shares, and b but for the disposal to the wife or husband would be taxable shares, the identification shall be reversed so that the shares disposed of to the third party (or, if the quantity disposed of to the third party was greater than the quantity disposed of to the wife or husband, a part of them equal to the quantity disposed of to the wife or husband) shall be taxable shares. 3 If there is more than one disposal to the wife or husband, or more than one disposal to a third party, the provisions of this paragraph shall be applied to shares disposed of on an earlier date before being applied to shares disposed of on a later date, and the re-identification of the shares first disposed of shall accordingly determine the way in which this paragraph applies to the shares comprised in the later disposal. 4 In this paragraph " taxable shares " are shares the disposal of which, together with their acquisition, constitutes an acquisition and disposal within the meaning of Case VII. Re-acquisition of shares etc. after sale at a loss 10 1 Subject to sub-paragraph (3) below, where a loss accrues to a person from his acquisition and disposal of any shares, and he re-acquires the same shares within one month after the disposal or, in the case of a re-acquisition otherwise than through a stock exchange, within six months after it, that loss shall not be allowable under Case VII otherwise than by deduction from any gain accruing to him from an acquisition and disposal of the shares beginning with the re-acquisition. For the purposes of this sub-paragraph, shares acquired for transfer or delivery after the date of transfer or delivery of the shares sold shall be deemed to have been acquired after the disposal of the shares sold. 2 Subject to sub-paragraph (3) below, where a person disposes of shares and afterwards acquires the like shares within the period referred to in sub-paragraph (1) above, he is to be treated for the purposes of this paragraph as re-acquiring the shares disposed of (or, if the quantity disposed of was greater than the quantity acquired, a part of them equal to the quantity acquired), but so that — a there cannot be in relation to the same disposal more than one re-acquisition of the same share, nor be by the same acquisition of a share a re-acquisition in relation to more than one disposal, and b an acquisition of shares shall, where there has been more than one relevant disposal, be treated as a re-acquisition of shares disposed of on an earlier date rather than of shares disposed of on a later, and as a re-acquisition of shares disposed of at different times on the same date in as nearly as may be equal proportions, and c where there is more than one acquisition of shares relevant to a previous disposal, shares acquired on an earlier date shall be treated in relation to that disposal as the shares re-acquired rather than shares acquired on a later date, and, as between shares acquired on any one date, those subsequently disposed of on an earlier date shall be so treated rather than those subsequently disposed of on a later date, and those subsequently disposed of on any one day shall be so treated in as nearly as may be equal proportions, and d where a person disposes of shares in one capacity, shares which he acquires in some other capacity shall be disregarded. 3 Where a person acquires shares and, under paragraph 8 above, shares previously disposed of by him are identified with those shares, then — a this paragraph shall not apply in relation to any loss accruing from that acquisition and disposal, and b that acquisition shall not be treated for the purposes of this paragraph as a re-acquisition of any shares. 4 Where, under paragraph 8(8) above, shares disposed of are identified with shares acquired by the same bargain, sub-paragraph (3) of this paragraph shall apply as if the disposal had preceded the acquisition. 5 Where — a under arrangements designed to postpone the acceptance of shares acquired, a person by a single bargain disposes of shares for transfer or delivery on a particular date, or in a particular period, and acquires them for transfer or delivery on a later date, or in a later period, and b under paragraph 8 above — i the shares disposed of by that bargain are identified with shares previously acquired for transfer or delivery on the earlier date, or in the earlier period, and ii shares disposed of afterwards, but within six months of the date of that bargain, are identified with the shares acquired by that bargain, then, subject to sub-paragraph (6) below, sub-paragraph (3) of this paragraph shall apply as if the disposal by that bargain had preceded the acquisition of the shares so identified with those disposed of. 6 Where an acquisition of shares is more than once continued by such a bargain as is referred to in paragraph (a) of sub-paragraph (5) above, that sub-paragraph shall apply in relation to each bargain continuing the acquisition, but so that, in relation to each such bargain, paragraph (b)(ii) of that sub-paragraph shall have effect as if the references to the date of the bargain and the shares thereby acquired were references to the date of the last of the bargains and the shares thereby acquired; and, for the purposes of this sub-paragraph, an acquisition continued by one bargain shall be treated as further continued by a later bargain in so far as the shares disposed of by the later bargain are identified under paragraph 8 above with the shares acquired by the earlier. 7 This paragraph, and paragraph 11 below, shall apply in relation to acquisitions or disposals of any assets as they apply in relation to acquisitions or disposals of shares, where the assets are of a nature to be dealt in without identifying the particular assets disposed of or acquired. 11 1 Where, in the case of a man and his wife living with him, a loss accrues to one of them from his or her acquisition and disposal of any shares, and the other of them is to be treated in accordance with this paragraph as acquiring the same shares within the prescribed period after the disposal, that loss shall be allowable under Case VII by deduction from any gain accruing to the other (that is to say, the wife or husband of the person to whom the loss accrued) from an acquisition and disposal of the shares beginning with that acquisition by the other, but shall not be so allowable by deduction from any other gain accruing to either of them. 2 Shares disposed of by the husband or wife shall not for the purposes of this paragraph be treated as the same as shares acquired by the other if, for the purposes of paragraph 10 above — a the person disposing of the shares is to be treated as having re-acquired the same shares, or b the person acquiring the shares is to be treated as thereby re-acquiring shares disposed of, or if the person acquiring the shares acquires them from her husband or his wife. 3 Subject to sub-paragraph (2) above, where the husband or wife disposes of shares and the other afterwards acquires the like shares within the prescribed period from the disposal, the other is to be treated for the purposes of this paragraph as acquiring the same shares as those disposed of (or, if the quantity disposed of was greater than the quantity acquired, a part equal to the quantity acquired) and, so far as necessary, the rules in paragraphs (a) to (d) of paragraph 10(2) above shall apply for the purpose of determining which are the same shares, as if the husband and wife were one person, and disregarding all shares excluded by sub-paragraph (2) above. 4 For the purposes of this paragraph, shares acquired by the wife or husband for transfer or delivery after the date of transfer or delivery of the shares sold by the other shall be deemed to have been acquired after the disposal of the shares sold. 5 Where the husband or wife acquires shares and, under paragraph 8 above, shares previously disposed of by him or her are identified with those shares, then — a this paragraph shall not apply in relation to any loss accruing from that acquisition and disposal, and b that acquisition shall not be treated for the purposes of this paragraph as an acquisition of the same shares as any shares disposed of by the other, and sub-paragraphs (4) to (6) of paragraph 10 above shall apply as if references in those sub-paragraphs to sub-paragraph (3) of the said paragraph 10 included references to this sub-paragraph. 6 In this paragraph " the prescribed period " means — a in the case of an acquisition of shares through a stock exchange, one month, and b in the case of an acquisition of shares otherwise than through a stock exchange, or in the case of an acquisition of some other kind of asset, six months. Reorganisation or reduction of share capital 12 1 This paragraph shall apply in relation to any reorganisation or reduction of a company's share capital; and for the purposes of this paragraph — a references to a reorganisation of a company's share capital include — i any case where persons are, whether for payment or not, allotted shares in or debentures of the company in respect of and in proportion to (or as nearly as may be in proportion (a) their holdings of shares in the company or of any class of shares in the company, and ii any case where there are more than one class of share and the rights attached to shares of any class are altered, and b " original shares " means shares held before and concerned in the reorganisation or reduction of capital, and " new holding" means, in relation to any original shares, the shares in and debentures of the company which, as a result of the reorganisation or reduction of capital, represent the original shares (including such, if any, of the original shares as remain). 2 Subject to the following sub-paragraphs, a reorganisation or reduction of a company's share capital shall not be treated as involving any disposal of the original shares, or any acquisition of the new holding or any part of it, but the original shares and the new holding shall be treated as the same asset acquired as the original shares were acquired. 3 Where, on a reorganisation or reduction of a company's share capital, a person gives or becomes liable to give any consideration for his new holding or any part of it, that consideration shall, in relation to any disposal of the new holding or any part of it, be treated as having been given for the original shares, and, if the new holding or part of it is disposed of with a liability attaching to it in respect of that consideration, the consideration given for the disposal shall be adjusted accordingly: Provided that there shall not be treated as consideration given for the new holding or any part of it any surrender, cancellation or other alteration of the original shares or of the rights attached thereto, or any consideration consisting of any application in paying up the new holding or any part of it of assets of the company or of any dividend or other distribution declared out of those assets but not made. Notwithstanding the above proviso, in applying this sub-paragraph in relation to the issue of share capital to which subsection (1) of section 236 of this Act (stock dividend options) applies (as involving a reorganisation of the company's share capital) there shall be allowed, as consideration given for the new holding which includes that share capital, the sum referred to in that subsection less income tax at the standard rate. 4 Where, on a reorganisation or reduction of a company's share capital, a person receives or becomes entitled to receive in respect of his original shares any capital distribution from the company not forming part of the new holding, he shall be treated as if the new holding resulted from his having, in consideration of that distribution, disposed of an interest in the original shares of a market value equal to that of the distribution (but without prejudice to the original shares and the new holding being treated in accordance with sub-paragraph (2) above as the same asset). References in this sub-paragraph to any capital distribution from the company include references to any consideration given by any person other than the company in respect of the original shares. 5 Subject to paragraph 13 below, where, for the purpose of computing the gain or loss accruing to a person from the acquisition and disposal of any part of the new holding, it is necessary to apportion the cost of acquisition of any of the original shares between what is disposed of and what is retained, the apportionment shall be made by reference to market value at the date of the disposal (with such adjustment of the market value of any part of the new holding as may be required to offset any liability attaching thereto but forming part of the cost to be apportioned); and any corresponding apportionment for the purposes of sub-paragraph (4) above shall be made in like manner. 6 Where, on a reorganisation of a company's share capital, a person receives, or becomes entitled to receive, in respect of any shares a provisional allotment of shares in or debentures of the company, then, unless he neither accepts the allotment nor disposes of his rights before or after the making of the allotment, those rights shall be treated in relation to him and any person acquiring them directly or indirectly from him as if they were the shares or debentures to which they relate, and as if the consideration to be given for the shares or debentures were a liability attaching to the rights. 7 References in this paragraph to a reduction of share capital do not include the paying off of redeemable share capital, and where shares in a company are redeemed by a company otherwise than by the issue of shares or debentures (with or without other consideration) and otherwise than in a liquidation, the shareholder shall be treated as disposing of the shares at the time of the redemption. 13 1 This paragraph applies to a new holding, as defined in paragraph 12(1)(b) above — a if it consists of more than one class of shares in or debentures of the company, and one or more of those classes is of shares or debentures which, at any time not later than the end of the period of three months beginning with the date on which the reorganisation or reduction of capital took effect, or of such longer period as the Board may by notice in writing allow, had quoted market values on a recognised stock exchange in the United Kingdom or elsewhere, or b (in a case where the operation of that paragraph is extended by section 167(3) of this Act) if it consists of more than one class of rights of unit holders, and one or more of those classes is of rights the prices of which were published daily by the managers of the scheme at any time not later than the end of that period of three months (or longer if so allowed). 2 Where, for the purpose of computing the gain or loss accruing to a person from the acquisition and disposal of the whole or any part of any class of shares or securities or rights of unit holders forming part of a new holding to which this paragraph applies, it is necessary to apportion costs of acquisition between what is disposed of and what is retained, the cost of acquisition of the new holding shall first be apportioned between the entire classes of shares or debentures or rights of which it consists by reference to market value on the first day (whether that day fell before the reorganisation or reduction of capital took effect or later) on which market values or prices were quoted or published for the shares, debentures or rights as mentioned in sub-paragraph (1)(a) or (1)(b) above (with such adjustment of the market value of any class as may be required to offset any liability attaching thereto but forming part of the cost to be apportioned); and this sub-paragraph shall have effect notwithstanding sub-paragraph (5) of the said paragraph 12. 3 Sub-paragraphs (1) and (2) above shall have effect as if contained in the said paragraph 12. 4 For the purposes of this paragraph, the day on which a reorganisation of share capital involving the allotment of shares or debentures or unit holders' rights takes effect is the day following the day on which the right to renounce any allotment expires. Conversion of securities 14 1 Subject to sub-paragraph (2) below, paragraphs 12 and 13 of this Schedule shall apply with any necessary adaptations in relation to the conversion of securities as they apply in relation to the reorganisation or reduction of a company's share capital. 2 Where securities are converted on an exchange effected under any arrangement which is being carried out under section 2 of the National Loans Act 1939, or section 14 of the National Loans Act 1968, and any additional consideration is given to the holder of the securities, paragraph 12(4) above shall not apply to the additional consideration, but it shall, in relation to any disposal of the new holding or any part of it, be treated as reducing the consideration given for the original securities. 3 For the purposes of this paragraph — a " conversion of securities " includes — i a conversion of securities of a company into shares in the company, and ii a conversion at the option of the holder of the securities converted as an alternative to the redemption of those securities for cash, and iii any exchange of securities effected in pursuance of the Iron and Steel Act 1967, or any other enactment (whenever passed) which provides for the compulsory acquisition of any shares or securities and the issue of securities or other securities instead, and b " security" includes any loan stock or similar security, whether of the Government of the United Kingdom or of any other government, or of any public or local authority in the United Kingdom or elsewhere, or of any company, and whether secured or unsecured. Company amalgamations 15 1 Subject to sub-paragraph (2) below, where a company issues snares or debentures to a person in exchange for shares in or debentures of another company, paragraphs 12 and 13 of this Schedule shall apply with any necessary adaptations as if the two companies were the same company and the exchange were a reorganisation of its share capital. 2 This paragraph shall apply only where the company issuing the shares or debentures has, or in consequence of the exchange will have, control of the other company, or where the first-mentioned company issues the shares or debentures in exchange for shares as the result of a general offer made to members of the other company or any class of them (with or without exceptions for persons who are, within the terms of section 533 of this Act, connected with the first-mentioned company), the offer being made in the first instance on a condition such that if it were satisfied the first-mentioned company would have control of the other company. 16 1 Where under any arrangement between a company and the persons holding shares in or debentures of the company, or any class of such shares or debentures, being an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation — a another company issues shares or debentures to those persons in respect of and in proportion to (or as nearly as may be in proportion (a) their holdings of the first-mentioned shares or debentures, but b the first-mentioned shares or debentures are either retained by those persons or cancelled, then those persons shall be treated as exchanging the first-mentioned shares or debentures for those held by them in consequence of the arrangement (any shares or debentures retained being for this purpose regarded as if they had been cancelled and replaced by a new issue): Provided that paragraph 15(2) above shall not apply. 2 Sub-paragraph (1) above shall apply in relation to a company which has no share capital as if references to shares in or debentures of a company included references to any interests in the company possessed by members of the company, and paragraphs 12 and 15 of this Schedule shall apply accordingly. 3 Where any scheme of reconstruction or amalgamation involves the transfer of the whole or part of a company's business to another company, and the first-mentioned company receives no part of the consideration for the transfer (otherwise than by the other company taking over the whole or part of the liabilities of the business), then the first-mentioned company shall not be chargeable under Case VII by reference to the transfer in respect of its acquisition and disposal of any assets included in the transfer. 4 In this paragraph " scheme of reconstruction or amalgamation " means a scheme for the reconstruction of any company or companies, or for the amalgamation of any two or more companies, and references to shares or debentures being retained include then-being retained with altered rights, or in an altered form, whether as the result of reduction, consolidation, division or otherwise. Debts 17 1 Subject to paragraph 18 below, where a person incurs a debt to another, the creditor shall not be treated as thereby acquiring the debt, except in the case of the debt on a security as defined in paragraph 14 of this Schedule. 2 In the case of the debt on a security as defined in paragraph 14 of this Schedule, or of a debt acquired by the creditor from a previous creditor, the satisfaction of the debt or part of it shall, subject to paragraphs 14 and 15 of this Schedule, be treated as a disposal of the debt or of that part by the creditor made at the time when the debt or that part is satisfied. 3 Where property is acquired by a creditor in satisfaction of his debt or part of it, then, subject to the said paragraphs 14 and 15, the property shall not be treated as disposed of by the debtor or acquired by the creditor for a consideration greater than its market value at the time of the creditor's acquisition of it; but if (in a case not falling within either of those paragraphs) the satisfaction of the debt or that part of it is not to be treated as a disposal of it by the creditor, and he becomes chargeable under Case VII in respect of gains accruing from his acquisition and disposal of the property, the amount on which tax is chargeable shall (where necessary) be reduced so as not to exceed the amount on which tax would have been chargeable if he had acquired the property for a consideration equal to the amount of the debt or that part of it. 18 1 Subject to sub-paragraph (2) below, paragraph 17(1) above shall not apply to a debt owed by a bank which is not in sterling and which is represented by a sum standing to the credit of a person in an account in the bank, and accordingly the satisfaction of the debt or part of it shall be treated as a disposal of the debt or of that part by the creditor (that is, the bank's customer) made at the time when the debt or that part is satisfied. 2 Sub-paragraph (1) above shall not apply to a sum in an individual's bank account representing currency acquired by the holder for the personal expenditure outside the United Kingdom of himself or his family or dependants (including expenditure on the provision or maintenance of any residence outside the United Kingdom). Disposals of land to authorities with compulsory powers 19 1 A person shall not be chargeable under Case VII in respect of an acquisition and disposal of land by reference to a disposal to an authority exercising or having compulsory powers if that person had neither — a acquired the land at a time when he knew, or might reasonably have known, that it was likely to be acquired by the authority, nor b taken any steps by advertisement or otherwise to dispose of the land, or to make his willingness to dispose of it known to the authority or others. 2 In this paragraph " authority exercising or having compulsory powers " means, in relation to any disposal of land, a person or body of persons acquiring the land compulsorily, or who has or have been or could be authorised to acquire it compulsorily for the purposes for which it is acquired, or for whom another person or body of persons has or have been or could be authorised so to acquire it. Additional provisions as to computation of gains 20 1 Where a single bargain comprises two or more transactions whereby assets are disposed of, those transactions shall be treated for the purposes of section 164 of this Act as a single disposal; and where separate considerations are agreed, or purport to be agreed, for any two or more transactions comprised in one bargain (whether transactions whereby assets are disposed of or not), those considerations shall be treated as together constituting an entire consideration for the transactions, and shall be apportion-able between them accordingly. 2 Where an individual and the wife or husband of that individual, or a body of persons and a person having control of it, or two bodies of persons under common control, enter into associated transactions, sub-paragraph (1) above shall apply as if the transactions were comprised in a single bargain (" body of persons " for this purpose including a partnership): Provided that this sub-paragraph shall not apply so as to treat considerations given or received by different persons as an entire consideration unless they are given to or received from a single person or persons in relation to whom they can by virtue of this sub-paragraph be treated as an entire consideration. 3 In the case of an acquisition and disposal of land, no deduction shall be made in respect of maintenance expenditure incurred by any person — a in computing the gain accruing to that person from the acquisition and disposal for the purposes of paragraph 7(3) of this Schedule, or b in computing for any purpose of this Schedule the amount which would secure that neither a gain nor a loss accrued to that person on his disposal of the land ; and maintenance expenditure incurred by the person chargeable which falls to be taken into account for other purposes of Case VII shall not be taken into account in computing his profits or gains for the purposes of Schedule A, but, where it has been taken into account in computing those profits or gains, any necessary adjustment of that person's liability to tax may be made by means of an assessment or otherwise, and, for that purpose, the amount of any tax repaid by reason of its having been taken into account may be charged on him under Case VI of Schedule D and recovered accordingly. In this sub-paragraph, references to maintenance expenditure incurred by any person are references to any payments made by him which are deductible in computing his profits or gains for the purposes of Schedule A. 4 Paragraph 11(1) of Schedule 19 to the Finance Act 1969 (capital gains tax: compensation paid on compulsory acquisition) shall apply with respect to the apportionments to be made under section 164(4) of this Act as it applies to apportionments to be made for the purposes of Schedule 6 to the Finance Act 1965. 5 Where, in the case of any asset, the person chargeable receives or is entitled to claim any capital allowances with reference to expenditure relating to the asset, the amount of the allowances shall be treated for the purpose of computing the gain as a trading receipt of the adventure in so far as it exceeds the amount or aggregate amount on which any balancing charges fall to be made on him in respect of the allowances (subject, however, to a just apportionment where the adventure does not relate to the whole of his interest in the asset). In this sub-paragraph "capital allowance" does not include an allowance under Part II of the Capital Allowance Act 1968, or an investment allowance. Treatment of one person's acquisition as another's 21 1 Where under this Schedule a person acquiring an asset is to be treated as if another's acquisition of it had been his acquisition, that person shall be treated as having acquired the asset at the time when the other acquired it and for a consideration of such amount as would secure that, on the other's disposal to that person, neither a gain nor a loss would accrue to the other (that amount being calculated as it would be for the purpose of a charge under Case VII then falling on the other by reference to that acquisition); and where there have been more than one acquisition by the other of different interests in the asset, this provision shall apply in relation to each such acquisition: Provided that — a a person shall be treated as if another's acquisition of an asset had been his acquisition of it only if and in so far as the interest taken by that person would be treated for the purpose of such a charge as aforesaid as deriving from that acquisition, and b that person shall be treated as acquiring the asset as legatee, and not for any consideration, in so far as the said interest would be so treated as deriving from an acquisition by the other as legatee. 2 Where a person acquires an asset subject to and with the benefit of any subsisting contract for its disposal to a third person and is under this Schedule to be treated as if another's acquisition of it had been his acquisition, sub-paragraphs (1) and (3) of paragraph 2 of this Schedule shall not apply in relation to the acquisition by or disposal to him of the asset (he being treated as if the other's acquisition of the right had been his acquisition). Supplementary 22 1 Where any sum falls to be apportioned for the purposes of Case VII and, at the time of the apportionment, it appears that it is material as respects the liability to tax of two or more persons, any question which arises as to the manner in which the sum is to be apportioned shall be determined for the purposes of the tax on all those persons — a in a case where the same body of General Commissioners have jurisdiction with respect to all those persons, by those Commissioners, unless all those persons agree that it shall be determined by the Special Commissioners, b in a case where different bodies of Commissioners have jurisdiction with respect to those persons, by such of those bodies as the Board may direct, unless all those persons agree that it shall be determined by the Special Commissioners, and c in any other case, by the Special Commissioners, and any such Commissioners shall determine the question in like manner as if it were an appeal: Provided that all the said persons shall be entitled to appear and be heard by the Commissioners who are to make the determination, or to make representations to them in writing. 2 This paragraph applies in relation to any determination of market value for the purposes of Case VII as it applies in relation to apportionments. 23 1 An election under this Schedule shall be made by notice in writing, signed by the person or persons making the election and the persons (if any) whose concurrence is required, and delivered to the inspector within the relevant period. 2 A notice so delivered with respect to property disposed of by way of gift shall be of no effect unless within the relevant period there is also delivered to the inspector a statement signed by the donor and giving such particulars as are necessary to establish the time at which, and the consideration for which, the donee is to be treated as having acquired the property, in so far as those particulars may be material in relation to any acquisition and disposal by the donee. 3 Any election which a person may make or concur in under this Schedule may be made or concurred in instead by his personal representatives if he has died, or by any person assessable on his behalf, and similarly with a statement required by sub-paragraph (2) above. 4 For the purposes of this paragraph, the relevant period — a in the case of a gift, is the period ending with the year of assessment following that in which the gift is made or, where an election may be made by the donee alone, the period ending with the year of assessment following that in which he first disposes of the property comprised in the gift or any part of it, and b in the case of an election under paragraph 7 of this Schedule, is the period ending with the year of assessment following that in which is made the appropriation of the asset for the purposes of the trade; and in this paragraph, references to a gift include any disposal otherwise than by way of bargain at arm's length, and references to the donor and the donee shall be construed accordingly. SCHEDULE 8 Schedule E: Relief as Respects Tax on Payments on Retirement or Removal from Office or Employment Section 188. Preliminary 1 Relief shall be allowed in accordance with the following provisions of this Schedule in respect of tax chargeable by virtue of section 187 of this Act, where a claim is made under section 188(4) of this Act. 2 A person shall not be entitled to relief under this Schedule in so far as such relief, together with any relief allowed under Chapter II of Part I of this Act (personal reliefs), would reduce the amount of income on which he is chargeable at the standard rate below the amount income tax on which he is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he is liable to make to any other person. Relief by reduction of sums chargeable 3 In computing the charge to tax in respect of a payment chargeable to tax under section 187 of this Act, not being a payment of compensation for loss of office, there shall be deducted from the payment a sum equal to the amount (if any) by which the standard capital superannuation benefit for the office or employment in respect of which the payment is made exceeds £5,000. 4 In this Schedule " the standard capital superannuation benefit", in relation to an office or employment, means a sum arrived at as follows, that is to say — a there shall be ascertained the average for one year of the holder's emoluments from the office or employment for the last three years of his service before the relevant date (or for the whole period of his service if less than three years); b one-twentieth of the amount ascertained at (a) shall be multiplied by the whole number of complete years of the service of the holder in the office or employment; and c there shall be deducted from the product at (b) a sum equal to the amount, or, as the case may be, to the value at the relevant date, of any lump sum (not chargeable to tax) received or receivable by the holder in respect of the office or employment in pursuance of any such scheme or fund as is described in subsections (1) and (2) of section 221 of this Act: Provided that no account shall be taken for the purposes of this paragraph of the service of any person as an officer or employee of a body corporate at any time while he was a controlling director (as defined in section 224(1) of this Act) of that body. 5 Where tax is chargeable under section 187 of this Act in respect of two or more payments to which paragraph 3 above applies, being payments made to or in respect of the same person in respect of the same office or employment or in respect of different offices or employments held under the same employer or under associated employers, then — a the said paragraph 3 shall apply as if those payments were a single payment of an amount equal to their aggregate amount and, where they are made in respect of different offices or employments, as if the standard capital superannuation benefit were an amount equal to the sum of the standard capital superannuation benefits for those offices or employments, and b where the payments are treated as income of different chargeable periods, the relief to be granted under that paragraph in respect of a payment chargeable for any such period shall be the amount by which the relief computed in accordance with the preceding provision in respect of that payment and any payments chargeable for previous chargeable periods exceeds the relief in respect of the last-mentioned payments, and where the standard capital superannuation benefit for an office or employment in respect of which two or more of the payments are made is not the same in relation to each of those payments, it shall be treated for the purposes of this paragraph as equal to the higher or highest of those benefits. 6 In computing the charge to tax in respect of a payment chargeable to tax under section 187 of this Act, being a payment made in respect of an office or employment in which the service of the holder includes foreign service and not being a payment of compensation for loss of office, there shall be deducted from the payment (in addition to any deduction allowed under the preceding provisions of this Schedule) a sum which bears to the amount which would be chargeable to tax apart from this paragraph the same proportion as the length of the foreign service bears to the length of the service before the relevant date. Relief by reduction of tax 7 In the case of any payment in respect of which tax is chargeable under section 187 of this Act, the following relief shall be allowed by way of deduction from the tax chargeable by virtue of that section, that is to say, there shall be ascertained — a the amount of tax which would be chargeable apart from this paragraph in respect of the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income, b the amount of tax which would be so chargeable if the payment had not been made, and c the difference between the respective amounts of tax which would be so chargeable on the assumptions — i that the appropriate fraction only of the payment (after deducting any relief applicable thereto under the preceding provisions of this Schedule) had been made, and ii that no part of the payment had been made, and disregarding, in each case, any other emoluments of the office or employment, and the amount to be deducted shall be the difference between the amount ascertained at (a) and the sum of the amount ascertained at (b) and the appropriate multiple of the difference ascertained at (c). 8 1 Where the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income includes income, income tax on which he is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he is liable to make to any other person, the amounts referred to in sub-paragraphs (a) to (c) of paragraph 7 above shall be calculated as if that tax were not chargeable in respect of that income. 2 Where for any year of assessment an individual claims relief under paragraph 7 above, and also under section 400 of this Act (gains arising in connection with life policies etc.) or Schedule 3 thereto (premiums etc. taxable under sections 80 to 82), or under both that section and that Schedule, then, in computing the relief under paragraph 7 above, his income shall be deemed to include — a in respect of any amount which would otherwise be included therein by virtue of section 399(1)(a) of this Act, no greater amount than the appropriate fraction thereof within the meaning of the said section 400, and b in respect of any chargeable sum within the meaning of the said Schedule 3 (including two or more sums treated for the purposes of paragraph 3 of that 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. 9 In this Schedule " the appropriate fraction " (except in paragraph 8(2)(a) above) and " the appropriate multiple ", in relation to any payment, mean respectively — a where the payment is not a payment of compensation for loss of office, one-sixth and six, and b where the payment is a payment of compensation for loss of office, one divided by the relevant number of years of unexpired service, and that number of years, and for the purposes of this paragraph " the relevant number of years of unexpired service " means the number of complete years taken into account in calculating the amount of the payment, being years for which the holder of the office or employment would have been entitled (otherwise than by virtue of arrangements made in contemplation of his retirement or removal or of any relevant change in the functions or emoluments of the office or employment) to retain the office or employment or its full emoluments, and where the period taken into account as aforesaid is less than one complete year or exceeds an exact number of years, it shall be treated for the purposes of this paragraph as one complete year or as the next higher number of complete years, as the case may be. 10 Where tax is chargeable under section 187 of this Act in respect of two or more payments to or in respect of the same person in respect of the same office or employment and is so chargeable for the same chargeable period, those payments shall be treated for the purposes of paragraph 7 above as a single payment of an amount equal to their aggregate amount: Provided that, where the appropriate fraction and the appropriate multiple are not the same for each of the payments, the calculations of relief under the said paragraph 7 shall be made separately in relation to each payment or payments having a different appropriate fraction and multiple, and in any such calculation — a any payment for which the appropriate multiple is lower shall be left out of account for all the purposes of the said paragraph 7, and b in ascertaining the difference at (c) of that paragraph it shall be assumed that the appropriate fraction only of any payment for which the appropriate multiple is higher had been made, and the relief to be allowed shall be the sum of the reliefs so calculated in respect of the payments respectively. 11 Where tax is chargeable under section 187 of this Act in respect of two or more payments to or in respect of the same person in respect of different offices or employments, and is so chargeable for the same chargeable period, paragraphs 7 to 10 above shall apply as if those payments were made in respect of the same office or employment and as if any emoluments of any of those offices or employments were emoluments of the same office or employment. Supplemental 12 Any reference in the preceding provisions of this Schedule to a payment in respect of which tax is chargeable under section 187 of this Act is a reference to so much of that payment as is chargeable to tax after deduction of the relief applicable thereto under section 188(3) of this Act. 13 In this Schedule — " payment of compensation for loss of office " means a payment made — in pursuance of an order of a court in proceedings for wrongful dismissal or otherwise for breach of a contract of employment, or by way of settlement of such proceedings or of a claim in respect of which such proceedings could have been brought, or by way of compensation for the extinguishment of any right the infringement of which would be actionable in such proceedings, and any question whether, and to what extent, a payment is or is not a payment of compensation for loss of office shall be determined according to all the circumstances and not (or not exclusively) by reference to the terms on which it is expressed to be made. 14 Any reference in this Schedule to the emoluments of an office or employment is a reference to those emoluments exclusive of any payment chargeable to tax under section 187 of this Act; and in calculating for any purpose of this Schedule the amount of such emoluments — a there shall be included any balancing charge to which the holder of the office or employment is liable under section 33 of the Capital Allowances Act 1968, and b there shall be deducted any allowances under Chapter II of Part I of that Act, and any allowances for expenses under section 189 or 192 of this Act, to which he is entitled, and any such charges or allowances as aforesaid for a chargeable period shall, for the purpose of ascertaining the amount of the emoluments for any year of service, be treated as accruing from day to day, and shall be apportioned in respect of time accordingly. 15 In this Schedule "the relevant date" means, in relation to a payment not being a payment in commutation of annual or other periodical payments, the date of the termination or change in respect of which it is made and, in relation to a payment in commutation of annual or other periodical payments, the date of the termination or change in respect of which those payments would have been made. 16 In this Schedule "foreign service", in relation to an office or employment, means service such that tax was not chargeable in respect of the emoluments of the office or employment — a in the case of the year 1956-57 or any subsequent chargeable period, under Case I of Schedule E, b in the case of any preceding year of assessment, under Schedule E. 17 Any reference in this Schedule to the amount of tax to which a person is or would be chargeable is a reference to the amount of tax to which he is or would be chargeable either by assessment or by deduction. SCHEDULE 9 Income Tax Payable by Companies on Distributions, Etc Sections 232(2), 240(6), 256(4). Liability of company for income tax on distributions and other payments made by it 1 1 Any income tax for which a company resident in the United Kingdom is liable to account in respect of distributions made by it in any year of assessment, or in respect of any payments made by it in any year other than distributions, shall in accordance with paragraph 2 below be accounted for and paid during or on the expiration of the year, subject to such set off as is available to the company under paragraph 3 below against income tax on franked investment income or on payments received subject to deduction of tax other than franked investment income. 2 If it appears after the end of any year of assessment either — (a) that in respect of distributions made by the company in the year the company is liable to account for income tax to an amount greater than the income tax (if any) borne by it on franked investment income received in the year and on any surplus of franked investment income carried forward to the year; or b that in respect of payments made by the company in the year other than distributions the company is liable to account for income tax to an amount greater than the income tax (if any) borne by it by deduction on payments received in the year other than franked investment income ; and the amount paid by and not repaid to the company in respect of the year in accordance with sub-paragraph (1) above is less than the amount of the excess referred to in paragraph (a) or (b) of this sub-paragraph, the company shall be liable to pay the difference between the two last-mentioned amounts. 3 The amount which a company is liable to pay for any year of assessment under sub-paragraph (2) above, if or in so far as it is not agreed between the company and the inspector, shall be recovered by means of an assessment made on the company. 4 Where the amount of any tax payable in accordance with sub-paragraph (2) above is agreed between the company and the inspector — a it shall be due within fourteen days after it is so agreed, b the making of an assessment charging that tax, or an appeal against the assessment, shall not affect the date given by paragraph (a) above, c the power of making an assessment under sub-paragraph (3) above shall include power to make an assessment of the tax on that company if that tax, or any part of it, is not paid within the said fourteen days (whether or not it has been paid when the assessment is made). 5 Nothing in this Schedule shall apply to income tax for which a company is liable to account under section 204 (pay as you earn) of this Act. Payments made in course of year 2 1 A company shall from time to time make to the collector returns of all distributions and payments made by it to which paragraph 1 above applies, and shall in any such return specify any amount of dividends included therein which has been paid under deduction of tax notwithstanding that an election under section 256(1) of this Act was in force in relation thereto. 2 A return under this paragraph of distributions and payments made in any month shall be made within fourteen days from the end of the month; and any claim under paragraph 3 below shall be made at the like times. In this sub-paragraph "month" means a month of a year of assessment, that is to say, a month beginning with the sixth day of a month of the calendar year. 3 Subject to sub-paragraph (7) below, income tax in respect of any payment required to be included in a return under this paragraph shall be due at the time by which the return is to be made, and income tax so due shall be payable by the company without the making of any assessment. 4 Income tax which has become due in accordance with sub-paragraph (3) above may be assessed on the company (whether or not it has been paid when the assessment is made) if that tax, or any part of it, is not paid on or before the due date. 5 Income tax in respect of distributions included in a return, not being payments, shall be assessed on the company; and if it appears to the inspector that there are distributions (of whatever description), or payments to which paragraph 1 above applies which are not distributions, which ought to have been and have not been included in a return, or if the inspector is dissatisfied with any return, he may make an assessment on the company to the best of his judgment. 6 Any tax assessable under any one or more of the provisions of this paragraph may be included in one assessment if the tax so included is all due on the same date. 7 Where a company is liable to pay income tax in respect of any payment if, but only if, it amounts to or involves a distribution, and it is not in the circumstances apparent whether or how far it does so, then — a particulars of the payment shall be included in the return under this paragraph ; but b sub-paragraph (3) above shall not apply to the payment and income tax in respect of it shall be assessed as in the case of distributions other than payments. Set-off of income tax borne on company income against tax payable 3 1 Where in any year of assessment a company resident in the United Kingdom receives franked investment income, or receives any payment on which it bears income tax by deduction, the company may make a claim to have the income tax thereon brought into account under this paragraph. 2 If on the making of any such claim it is shown by the required evidence that income tax has been or will be paid in respect of any franked investment income or payment included in the claim, that tax shall be set against any income tax which the company has paid or is liable to pay in respect of distributions or other payments included in returns made under paragraph 2 above for the same year of assessment, and (where necessary) income tax paid by the company before the claim is allowed shall be repaid accordingly. 3 Where, on a claim made under this paragraph for any year of assessment, account would be taken of distributions made by the company in the year, and the company has a surplus of franked investment income carried forward to that year (and not already dealt with under this paragraph), the claim shall so state and the income tax on the surplus shall under sub-paragraph (2) above be set against income tax on distributions made by the company (but not against income tax on other payments). 4 1 Where a claim has been made under paragraph 3 above no proceedings for collecting tax which would fall to be discharged if the claim were allowed shall be instituted pending the final determination of the claim, but this sub-paragraph shall not affect the date when the tax is due. 2 When the claim is finally determined any tax underpaid in consequence of sub-paragraph (1) above shall be paid. 3 Where proceedings are instituted for collecting tax assessed, or interest on tax assessed, under any provision of paragraph 2 above, effect shall not be given to any claim made after the institution of the proceedings so as to affect or delay the collection or recovery of the tax charged by the assessment or of interest thereon, until the claim has been finally determined. 4 When the claim is finally determined any tax overpaid in consequence of sub-paragraph (3) above shall be repaid. 5 References in this paragraph to proceedings for the collection of tax include references to proceedings by way of distraint or pointing for tax. 5 Income tax set against other tax under paragraph 3 above shall be treated as paid or repaid, as the case may be, and the same tax shall not be taken into account both under this Schedule and under section 240(5) of this Act; but for the purposes of the said section 240(5) any amount paid by a company by virtue of paragraph 1(2)(a) above shall be treated as if it were income tax borne by deduction on a payment not being franked investment income, and as if that payment had been received at the end of the year of assessment for which the said amount is paid, and the said amount shall be set off against corporation tax or repayable accordingly. Assessment and due date of tax 6 1 All the provisions of the Income Tax Acts as to the time within which an assessment may be made, so far as they refer or relate to the year of assessment for which an assessment is made, or the year to which an assessment relates, shall apply to an assessment under this Schedule notwithstanding that, under this Schedule, the assessment may be said to relate to a month rather than to a year of assessment, and the provisions of sections 36 and 37 of the Taxes Management Act 1970 as to the circumstances in which an assessment may be made out of time shall apply accordingly on the footing that any such assessment relates to the year of assessment the standard rate for which is the rate at which tax is charged by the assessment. 2 Income tax assessed on a company under this Schedule shall be due within fourteen days after the issue of the notice of assessment (unless due earlier under paragraph 2(3) above). 3 Sub-paragraph (2) above has effect subject to any appeal against the assessment, but no such appeal shall affect the date when tax is due under paragraph 2(3) above. 4 On the determination of an appeal against an assessment under this Schedule any tax overpaid shall be repaid. Saving 7 Nothing in the preceding provisions of this Schedule shall be taken to prejudice any powers conferred by the Income Tax Acts for the recovery of income tax by means of an assessment or otherwise. Regulations 8 Subject to the provisions of this Schedule, the Board may by statutory instrument make regulations with respect to the procedure to be adopted for giving effect to sections 240 and 256 of this Act, and as to the information and evidence to be furnished by a company in or in connection with any return or claim made for the purposes thereof. SCHEDULE 10 Underwriters Section 330. PART I Special Reserve Funds 1 If, in the case of Lloyd's or any approved association of underwriters — a arrangements are made for the setting up, in relation to each underwriting member who elects to take advantage of the arrangements, of such a special reserve fund as is referred to in this Part of this Schedule, and b the arrangements comply with the requirements of this Part of this Schedule, are approved by the Commissioners of Inland Revenue and are certified by the Board of Trade to be in the public interest, then, subject to the provisions of paragraph 14 below relating to the cancellation by the said Commissioners or the Board of Trade of their approval or certificate, the provisions of this Part of this Schedule relating to taxation shall have effect in relation to any such underwriting member who duly elects as aforesaid. Adherence to, and withdrawal from, arrangements 2 1 The arrangements must provide that an underwriting member who wishes to elect to take advantage of the arrangements shall do so by giving notice in writing to the inspector and to such other persons as may be specified in the arrangements. 2 Any such notice as aforesaid is referred to in the following provisions of this Schedule as a notice of adherence, and, in the said provisions, " the underwriter " means an underwriting member who has given such a notice. 3 1 The arrangements must enable the underwriter, if he thinks fit so to do, by giving notice in writing to the inspector and to such other persons as may be specified in the arrangements, to withdraw from the arrangements to the extent appearing from the following provisions of this Schedule. 2 Any such notice as aforesaid is referred to in the following provisions of this Schedule as a notice of withdrawal. 4 Where the underwriter has given a notice of withdrawal, he shall not be entitled to give another notice of adherence. Setting up and management of, and payments into and out of, special reserve funds 5 The arrangements must provide for the setting up, in relation to the underwriter, of a special reserve fund vested in trustees who have control over it and power to invest the capital thereof and to vary the investments: Provided that where part of the business of the underwriter is carried on through an underwriting agent and part thereof is not so carried on, or where different parts of his business are carried on through different underwriting agents, the arrangements may provide for separate special reserve funds being constituted in relation to the different parts of his business. 6 The arrangements must provide for the income arising from the investments of the underwriter's special reserve fund or funds being held on trust for the underwriter, his personal representatives or assigns. 7 1 The arrangements must be such as to secure that if, for an underwriting year corresponding to a year of assessment to which this paragraph applies, the underwriter makes a profit from his business, he has the right to make, into his special reserve fund or funds, payments the gross amount of which is not in the aggregate greater than £7,000 or 50 per cent. of that profit, whichever is the less, or such less sum as may be specified in the arrangements: Provided that — a no such payment shall be made after the expiration of six months from the date as at which the accounts of the business for that underwriting year are deemed by the Commissioners of Inland Revenue for the purposes of the arrangements to be closed, or such longer period as those Commissioners may allow ; b where the underwriter carries on his business during part only of that year of assessment, the maximum gross amount of the said payments shall be reduced by the application thereto of the proportion which the part of that year of assessment for which he is entitled to profits from the business bears to a full year. 2 Subject to the provisions of paragraph 14 of this Schedule (which relates to the effect of the cancellation by the Commissioners of Inland Revenue or the Board of Trade of their approval or certificate with respect to the arrangements), the years of assessment to which this paragraph applies are all years of assessment during the whole or any part of which the underwriter continues to carry on his business subsequent to the year of assessment during which the notice of adherence is given: Provided that — a in no case shall this paragraph apply to the year of assessment in which the underwriter commences to carry on his business or to the year of assessment next following that year; b where the underwriter gives a notice of withdrawal, the last year of assessment to which this paragraph applies shall, subject to the provisions of the said paragraph 14, be the year of assessment corresponding to the underwriting year the accounts for which are deemed by the Commissioners of Inland Revenue for the purposes of the arrangements to be closed as at a date falling within the year of assessment preceding that in which the notice of withdrawal is given. 3 In sub-paragraph (1) of this paragraph, " profit" means a profit computed in the manner in which the profits or gains of the business of the underwriting year in question would fall to be computed under Case I of Schedule D if — a income arising from the investments forming part of the premiums trust fund of the underwriter, his special reserve fund or funds and any other fund required or authorised by the rules of Lloyd's or the association in question, or required by the underwriting agent through whom the business or any part thereof is carried on, to be kept in connection with the business fell to be taken into account, and b all shares of the profits of the business and all charges related to those profits or to the said income, being shares and charges payable to persons other than the underwriter and not otherwise taken into account, fell to be deducted. 4 In sub-paragraph (3)(a) above the reference to income arising from the investments forming part of the funds mentioned in the said sub-paragraph (3)(a) shall include the amount of the gains chargeable to tax under Case VII of Schedule D which accrue in the underwriting year in question from the acquisition and disposal of any such investments, after deducting from those gains losses accruing before the end of that year from any chargeable acquisition and disposal (within the meaning of Case VII of Schedule D) of any such investments so far as those losses are not under this sub-paragraph deductible from gains accruing in a previous underwriting year. 8 1 The arrangements must be such as to secure that, if it is certified that the underwriter has sustained a loss in his business for an underwriting year subsequent to that which corresponds to the first year of assessment to which paragraph 7 of this Schedule applies, there shall be made into his premiums trust fund, out of the capital of his special reserve fund or funds, payments the gross amount of which is equal in the aggregate to the certified amount of the loss: Provided that if the capital of his special reserve fund or funds, reduced by so much thereof as represents sums paid into it or them as a consequence of a profit for a year later than the year of the loss, is less than the net amount of the payments required to be made by this sub-paragraph, the said payments shall be reduced so that the net amount thereof is equal to the capital of the said fund or funds as so reduced. 2 In this paragraph, " loss" means a loss computed in the manner in which the profits or gains of the business of the underwriting year in question would fall to be computed under paragraph 7(3) above: Provided that where, under any arrangement between the underwriter and another person which provides for the sharing of losses, any amount is paid to the underwriter by that person as that person's share of a loss for that year, the loss, as computed for the purposes of this paragraph, shall be reduced by that amount. 3 In this paragraph, " certified " means certified by a certificate of the inspector: Provided that — a no certificate shall be given by the inspector until thirty days have elapsed from the date on which he has given to the underwriter or his personal representatives notice in writing stating his intention to give a certificate and stating the amount which he proposes to specify therein as the amount of the loss ; b the underwriter or his personal representatives may, on giving notice in writing to the inspector within the said thirty days, appeal to the Special Commissioners ; c where notice is so given by the underwriter or his personal representatives, the inspector shall not without the consent of the underwriter or his personal representatives give any certificate until after the hearing of the appeal; and d on the hearing of the appeal, the Special Commissioners may direct the inspector not to give a certificate or to give it with such an amount specified therein as the amount of the loss as may be specified in the direction. 9 1 The arrangements may authorise the making of payments pursuant to paragraph 8(1) above on a provisional basis before the amount of the loss has been finally ascertained and certified by the inspector. 2 The amount so withdrawn shall not exceed such proportion of the estimated loss as may be specified in the arrangements. 3 When the amount of the loss has been certified by the inspector such adjustments shall be made by repayment to the underwriter's special reserve fund or funds, or by further withdrawal of sums for payment into the underwriter's premiums trust fund, as will secure that the net amount withdrawn from the underwriter's special reserve fund or funds in respect of the loss is that required pursuant to paragraph 8(1) above ; and no tax consequences shall ensue on the withdrawal of sums in respect of a loss until the amount of the loss has been so certified and any such adjustments have been made. 10 The arrangements must provide that, on the underwriter ceasing to carry on his business, the capital of his special reserve fund or funds, so far as not required for giving effect to the requirements of paragraph 8 above, shall be paid over to the underwriter or his personal representatives or assigns. Income tax consequences 11 1 Where such a payment as is mentioned in paragraph 7(1) above is made into a special reserve fund of an underwriter by reason of the making by him of a profit for an underwriting year — a the payment shall be deemed for all income tax purposes to be an annual payment chargeable to income tax by way of deduction and payable and paid in the year of assessment corresponding to that underwriting year ; and b the sum actually paid shall be deemed for the purposes of this Part of this Schedule and for all income tax purposes to be a net amount corresponding to a gross amount from which income tax has been duly deducted at the standard rate for that year of assessment. 2 Where such a payment as is mentioned in paragraph 8(1) above is made out of a special reserve fund of an underwriter into a premiums trust fund of his by reason that he has sustained a loss for an underwriting year then, subject to paragraph 9(3) above — a the payment shall be deemed for all income tax purposes — i to be an annual payment chargeable to income tax by way of deduction and paid out of profits or gains brought into charge to income tax ; and ii to have been payable and paid to the underwriter ; and iii to have been payable and paid to him on the last day of the year of assessment which immediately preceded the year of assessment corresponding to that underwriting year or, if he ceased to carry on his business before that day, on the last day on which he carried on his business ; and b the sum actually paid shall be deemed for the purposes of this Part of this Schedule and for all income tax purposes to be a net amount corresponding to a gross amount from which income tax has been duly deducted at the standard rate for the year of assessment in which the payment is deemed as aforesaid to have been payable and paid. 3 Where the underwriter ceases to carry on his business before his death and, under so much of the arrangements as gives effect to paragraph 10 of this Schedule, a sum is paid to him or his personal representatives or assigns — a the payment shall be deemed for all income tax purposes — i to be an annual payment chargeable to income tax by way of deduction and paid out of profits or gains brought into charge to income tax ; and ii to have been payable and paid to the underwriter ; and iii to have been payable and paid to him on the last day on which he carried on his business ; and b the sum actually paid shall be deemed for the purposes of this Part of this Schedule and for all income tax purposes to be a net amount corresponding to a gross amount from which income tax has been duly deducted at the standard rate for the year of assessment in which the payment is deemed as aforesaid to have been payable and paid. 4 Neither the arrangements, nor any disposition, trust, covenant, agreement or arrangement entered into for the purposes thereof, shall be treated as included in the expression " settlement" for the purposes of Chapter LTI or Chapter IV of Part XVI of this Act, and nothing in section 31 of this Act (surtax relief where income for a period exceeding a year is received in a year) shall be construed as applying to the payments referred to in sub-paragraphs (2) and (3) of this paragraph. 12 1 In this paragraph "the lower limit" means the limit which would be imposed by paragraph 7(1) above if the words " £5,000 or 35 per cent. of that profit, whichever is the less " stood in that sub-paragraph in place of the words " £7,000 or 50 per cent. of that profit, whichever is the less ". 2 Where an underwriter dies while carrying on his business and, after giving effect to the requirements of paragraph 8 above, his special reserve fund or funds include an amount which represents an excess in the payments made into the fund or funds for any underwriting year over the lower limit — a he shall be deemed for all income tax purposes to have received in the year of assessment corresponding to the said underwriting year a payment of the said amount — i which was an annual payment chargeable to income tax by way of deduction and paid out of profits or gains brought into charge to income tax, and ii which was payable in the year of assessment in which it is deemed to have been paid, and b the payment (to the said actual amount) shall be deemed for the purposes of this Part of this Schedule and for all income tax purposes to be a net amount corresponding to a gross amount from which tax has been duly deducted at the standard rate for the year of assessment in which the amount is deemed as aforesaid to have been payable and paid. 3 Where, to give effect to the requirements of the said paragraph 8 as to the meeting of a loss, any withdrawal was made at any time from the capital of the underwriter's special reserve fund or funds, the amount withdrawn shall be regarded for the purposes of sub-paragraph (2) above — a as having been met out of payments made into the fund or funds for underwriting years before that in which the loss was incurred, and as having been met before any withdrawal to meet a loss for a later underwriting year, and b as having been met out of so much of the payments made for any underwriting year as was not in excess of the lower limit, rather than out of such part of the payments made for any underwriting year as was in excess of the lower limit, and c subject to that, as having been met out of payments in excess of the lower limit for a later year rather than out of payments in excess of the lower limit for an earlier year, and, where payments have been made into the underwriter's special reserve fund or funds for any underwriting year in excess of the lower limit, his fund or funds shall be deemed at all subsequent times to include an amount representing that excess except to the extent that any withdrawal is, under the provisions of this sub-paragraph, to be regarded as having been met out of that amount. 4 Any tax chargeable by virtue of this paragraph shall be assessed and charged upon the underwriter's personal representatives and tax so charged shall be a debt due from and payable out of his estate; and, notwithstanding section 34(1) of the Taxes Management Act 1970 (which requires assessments to be made not later than six years after the end of the year to which they relate), assessments in respect of tax so chargeable may be made at any time not later than three years after the end of the year of assessment in which the underwriter died. 5 References in this paragraph to payments made into a special reserve fund or funds for any underwriting year are references to payments made, as described in paragraph 7(1) above, by reference to the profits made for that underwriting year. Supplemental 13 The arrangements may from time to time be varied with the consent of the Commissioners of Inland Revenue and the Board of Trade. 14 If, after giving notice in writing of their intention so to do to the Committee of Lloyd's or the managing body of whatever other association of underwriters is in question, the Commissioners of Inland Revenue or the Board of Trade cancel the approval or certificate which they have given with respect to the arrangements — a no underwriting member may give a notice of adherence to the arrangements after the date of the cancellation ; and b paragraph 7 of this Schedule shall not apply, in the case of any underwriter, to any year of assessment after the year of assessment in which the approval or certificate is cancelled. PART II Short Term Capital Gains 15 1 An underwriting member of Lloyd's or of an approved association of underwriters shall be treated for the purposes of Chapter VIII of Part VI of this Act, and in particular of section 163(1) of this Act (persons absolutely entitled to assets held by nominees or trustees), as absolutely entitled as against the trustees to the investments of his premiums trust fund, his special reserve fund (if any) and any other trust fund required or authorised by the rules of Lloyd's or the association in question, or required by the underwriting agent through whom his business or any part of it is carried on, to be kept in connection with the business. 2 The trustees of any such fund shall (subject to sub-paragraph (3) below) be assessed and charged to income tax at the standard rate as if sub-paragraph (1) above had not been passed, and may, notwithstanding anything in any enactment or in the trusts of the fund, out of any gain accruing from the acquisition and disposal of an investment of the fund make good to the underwriting member any increase in the surtax borne by him which is attributable to that gain. 3 The assessment to be made on the trustees of a fund by virtue of this paragraph for any year of assessment shall not take account of losses accruing in any previous year of assessment, and if for that or any other reason the tax paid on behalf of an underwriting member for any year of assessment by virtue of assessments so made exceeds the tax for which he is liable, the excess shall be repaid on a claim being made by him. PART III Interpretation 16 1 In this Schedule — " approved association of underwriters " means an association of underwriters approved by the Board of Trade for the purposes of Part II of the Companies Act 1967 or by the Ministry of Commerce for Northern Ireland for the purposes of section 3 of the Insurance Companies Act (Northern Ireland) 1968, " business ", in relation to an underwriter, means his underwriting business as a member of Lloyd's or of whatever other association of underwriters is in question, whether carried on personally or through an underwriting agent, and does not include any other business carried on by him, and in particular, where he is himself an underwriting agent, does not include his business as such an agent, " net amount " and " gross amount ", in relation to any payment, mean respectively the sum actually paid and the sum which, after deduction of income tax, is equal to the sum actually paid, " premiums trust fund " means such a trust fund as is referred to in paragraph 1 of Schedule 1 to the Insurance Companies Act 1958, or paragraph 1 of Schedule 1 to the Insurance Companies Act (Northern Ireland) 1968, " underwriting year " means, in relation to the business of an underwriter as a member of Lloyd's the calendar year, and, in relation to the business of an underwriter as a member of any other association of underwriters, the period of twelve months for which, under the rules or practice of that association, the accounts of the business of the underwriter fall to be made up. 2 For the purpose of construing any reference in this Schedule to the year of assessment which corresponds to an underwriting year or to the underwriting year which corresponds to a year of assessment, an underwriting year and a year of assessment shall be deemed to correspond to each other in the case of an underwriter if, assuming that there were no question arising in connection with the commencement or cessation of the business of that underwriter, that underwriting year is the period on the profits or gains of which income tax for that year of assessment would fall to be computed under Case I of Schedule D in respect of that business. SCHEDULE 11 Tax reliefs in connection with redundancy schemes Sections 408 and 410. PART I Preliminary 1 1 In this Schedule — " scheme " means a scheme which is for the time being certified or has at any time been certified by the Board of Trade under section 406 of this Act; " payment " means a payment made under a scheme, being a payment made to a person carrying on a trade to which the scheme relates and not being a payment made by way of repayment of contributions ; " the person chargeable " means, in relation to any such payment, the person liable to pay any tax which may fall to be paid by reason of the receipt of the payment; " damage " includes any loss, liability, expense or other burden, and references to the amount of any damage are references to the sum which would be fair compensation for that damage; " contribution " includes part of a contribution, and " deductible contribution " means a contribution allowed to be deducted under the said section 406, any reduction thereof under Part III of this Schedule being left out of account; and " asset " includes a part of an asset. 2 For the purposes of this Schedule, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on. PART II Relief in Respect of Certain Payments 2 The question whether any, and if so, what, relief is to be given shall be determined separately in relation to each payment made under the scheme in respect of the trade, but for the purpose of determining that question regard shall be had, as hereinafter provided, to the sum (hereafter in this Schedule referred to as "the total payment") produced by adding the amount of the payment to the amount of any payments previously so made. 3 No relief shall be given in respect of the payment unless the person chargeable shows — a the amount of the damage in respect of which the total payment has been made ; and b how much of that amount is referable to damage in respect of which no relief may be given under the Tax Acts. 4 No relief shall be given in respect of the payment unless the total payment, or the amount of the damage in respect of which the total payment has been made, whichever is the smaller, exceeds the aggregate amount of the deductible contributions which have been paid in furtherance of the scheme in respect of the trade in question before the payment is made, exclusive of any contributions which have been repaid before the payment is made. 5 The amount of the reduction to be made in respect of the payment shall be arrived at by — a ascertaining the sum which bears to the excess mentioned in paragraph 4 above the same proportion that the amount mentioned in paragraph 3(b) above bears to the amount mentioned in paragraph 3(a); and b deducting from the said sum the total amount of any reductions which have been or fall to be made under this Schedule in respect of payments previously made under the scheme in respect of the trade. 6 1 For the purposes of this Schedule, damage shall be deemed to be damage in respect of which relief may be given under the Tax Acts if and only if — a the damage is attributable to any of the following events, that is to say, the demolition, destruction or putting out of use of any asset, or the disposition or termination of an interest in any asset, and, by reason of that event, an allowance falls to be made under Chapter I or Chapter II of Part I of the Capital Allowances Act 1968 in taxing the trade; or b the damage consists of any loss, liability, expense or other burden in respect of which an allowance may be made in computing the profits or gains of the trade for the purposes of the Tax Acts ; Provided that where an allowance under the said Chapter I in respect of any damage falls to be reduced in the proportion specified in section 3(4) of the Capital Allowances Act 1968, only a proportionately reduced amount of the damage shall be treated as being referable to damage in respect of which relief may be given under the Tax Acts. 2 Where any event occurs which would give rise to an allowance under the Tax Acts in respect of any asset in taxing, or computing the profits or gains of, a trade but for any of the following matters, that is to say — a that there are no profits or gains against which the allowance could be made: or b that account is required to be taken of allowances previously made or deemed to have been made in respect of the asset; or c that account is required to be taken of any sum which falls to be written off the expenditure incurred on the asset for the purpose of determining whether any and if so what allowance may be given by reason of the event; or d that account is required to be taken of any sum falling to be taken into account as sale, insurance, salvage or compensation moneys, the like consequences shall ensue under this Schedule as if an allowance had fallen to be made by reason of that event. 3 Where any damage is attributable to a permanent change in the purposes for which an asset is used, or the temporary or permanent putting out of use of an asset, the question whether the damage is damage in respect of which relief may be given under the Tax Acts shall be determined as if the damage had been attributable to a sale of the asset on the date upon which the change or putting out of use took place. PART III Exclusion of Relief in respect of Contributions Paid after Relief has been given under Part II of this Schedule 7 The provisions of this Part of this Schedule shall have effect where — a a contribution is paid under a scheme in respect of a trade ; and b before the contribution is paid, payments have been made under the scheme to the person carrying on the trade ; and c reductions have been made, under the preceding provisions of this Schedule, in the amounts which, by reason of those payments, are to be treated as trading receipts of the trade. 8 There shall be ascertained — a the total amount of the said reductions ; and b the sum by which that total would have been decreased if the contribution, and any previous contributions to which this Part of this Schedule applies, had been paid before any of the payments were made. 9 For the purpose of determining what deduction is to be made in respect of the contribution under section 406 of this Act, the contribution shall be deemed to be reduced by the sum specified in paragraph 8(6) above, but — a for the purpose of the application of the said paragraph 8 in relation to contributions subsequently paid under the scheme in respect of the trade, the total amount of the reductions referred to in that paragraph shall be treated as decreased by that sum ; and 6 for the purpose of the application of paragraph 5 above in relation to payments subsequently made under the scheme in respect of the trade, the total amount of the reductions referred to in paragraph 5 above shall be treated as decreased by the said sum. 10 When two or more contributions are paid at the same time, the provisions of this Part of this Schedule shall have effect as if they were a single contribution. SCHEDULE 12 Double Taxation Relief : Republic of Ireland Section 513. PART I Text of Agreements Agreement of 14th April 1926 AGREEMENT MADE THE 14TH APRIL, 1926, BETWEEN THE BRITISH GOVERNMENT AND THE GOVERNMENT OF THE IRISH FREE STATE IN RESPECT OF DOUBLE INCOME TAX. The British Government and the Government of the Irish Free State, being desirous of concluding an Agreement for the reciprocal exemption from income tax and super-tax of persons who are resident in Great Britain (including Northern Ireland) or in the Irish Free State but are not resident in both countries and for the reciprocal granting of relief from double taxation in respect of income tax (including super-tax) to persons who are resident in both countries, and being desirous of making such supplemental consequential and incidental provisions as appear necessary or proper for the purposes of such Agreement, have agreed as follows: — 1 a Any person who proves to the satisfaction of the Commissioners of Inland Revenue that for any year he is resident in the Irish Free State and is not resident in Great Britain or Northern Ireland shall be entitled to exemption from British income tax for that year in respect of all property situate and all profits or gains arising in Great Britain or Northern Ireland and to exemption from British super-tax for that year. b Any person who proves to the satisfaction of the Revenue Commissioners that for any year he is resident in Great Britain or Northern Ireland and is not resident in the Irish Free State shall be entitled to exemption from Irish Free State income tax for that year in respect of all property situate and all profits or gains arising in the Irish Free State, and to exemption from Irish Free State super-tax for that year. c Exemption under this Article may be given either by discharge or by repayment of tax, or otherwise, as the case may require. [ Note. — Article 2, which was superseded by Article 2 of the agreement of 25th April 1928, is omitted. ] 3 a Any person who is entitled to exemption from British income tax by virtue of Article 1(a) of this Agreement in respect of property situate and profits or gains arising in Great Britain or Northern Ireland shall, if and so far as the Oireachtas of the Irish Free State so provides, and subject to any exemption or relief to which he may be entitled under the laws in force in the Irish Free State, be chargeable to Irish Free State income tax in respect of such property profits or gains. b Any person who is entitled to exemption from Irish Free State income tax by virtue of Article 1(b) of this Agreement in respect of property situate and profits or gains arising in the Irish Free State shall, if and so far as the British Parliament so provides, and subject to any exemption or relief to which he may be entitled under the laws in force in Great Britain and Northern Ireland, be chargeable to British income tax in respect of such property profits or gains. c Any person who is entitled to relief by virtue of Article 2 of this Agreement shall, subject to such relief, be chargeable, if and so far as the British Parliament so provides, to British income tax in respect of property situate and profits or gains arising in the Irish Free State in like manner in all respects as if he were resident in Great Britain or Northern Ireland but not resident in the Irish Free State and shall, subject to such relief as aforesaid, be chargeable, if and so far as the Oireachtas of the Irish Free State so provides, to Irish Free State income tax in respect of property situate and profits or gains arising in Great Britain or Northern Ireland in like manner in all respects as if he were resident in the Irish Free State but not resident in Great Britain or Northern Ireland. 4 For the purpose of this Agreement a company, whether incorporated by or under the laws of Great Britain or of Northern Ireland or of the Irish Free State or otherwise, shall be deemed to be resident in that country only in which its business is managed and controlled. 5 The Commissioners of Inland Revenue and the Revenue Commissioners may from time to time make arrangements generally for carrying out this Agreement and may in particular make such arrangements as may be practicable to avoid the collection of both British and Irish Free State income tax on the same income without allowance for any relief due under this Agreement, and the Commissioners of Inland Revenue and the Revenue Commissioners may make such regulations as they respectively think fit for carrying out such arrangements. 6 The obligation as to secrecy imposed by any enactment with regard to income tax shall not prevent the disclosure by any authorised officer of the British Government to any authorised officer of the Government of the Irish Free State or by any authorised officer of the Government of the Irish Free State to any authorised officer of the British Government of such facts as may be necessary to enable full effect to be given to this Agreement. 7 Any question that may arise between the parties to this Agreement as to the interpretation of this Agreement or as to any matter arising out of or incidental to the Agreement shall be determined by such tribunal as may be agreed between them, and the determination of such tribunal shall, as between them, be final. 8 This Agreement shall be subject to confirmation by the British Parliament and by the Oireachtas of the Irish Free State and shall have effect only if and so long as legislation confirming the Agreement is in force both in Great Britain and Northern Ireland and in the Irish Free State. Dated this fourteenth day of April, nineteen hundred and twenty-six. (signed) WINSTON S. CHURCHILL, EARNÁN DE BLAGHD, Chancellor of the Exchequer. Minister for Finance, Saorstat Eireann. Agreement of 25th April 1928 AGREEMENT MADE THE 25TH DAY OF APRIL, 1928, BETWEEN THE BRITISH GOVERNMENT AND THE GOVERNMENT OF THE IRISH FREE STATE AMENDING THE AGREEMENT MADE ON THE 14TH DAY OF APRIL, 1926, BETWEEN THE SAID GOVERNMENTS IN RESPECT OF DOUBLE INCOME TAX. With a view to making such alterations in the Agreement made the 14th April, 1926, between the British Government and the Government of the Irish Free State in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Act, 1927, and of the alterations contemplated in the Irish Free State Income Tax Acts, it is hereby agreed between the said Governments that the said Agreement shall be amended as follows: — 1 a In Article 1(a) of the said Agreement the words " British income tax " shall as respects the year 1928-29 and any subsequent year be construed as meaning British income tax charged or chargeable at the standard rate and the expression " British super-tax " shall for the year 1928-29 include British sur-tax and shall for subsequent years mean British sur-tax. b In Article 1(b) of the said Agreement the expression "Irish Free State super-tax " shall for the year 1928-29 include Irish Free State sur-tax and shall for subsequent years mean Irish Free State sur-tax. 2 The following Article shall be substituted for Article 2 of the said Agreement: — 2 1 Relief from double taxation in respect of income tax (including sur-tax) in the case of any person who is resident both in Great Britain or Northern Ireland and in the Irish Free State shall be allowed from British income tax and Irish Free State tax respectively in accordance with and under the provisions of section 27 of the Finance Act, 1920, provided that — a the rate of relief to be allowed from British income tax shall be one-half of that person's appropriate rate of British income tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower ; b the rate of relief to be allowed from Irish Free State tax shall be one-half of that person's appropriate rate of British income tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower ; c the appropriate rate of British income tax for any year shall in the case of a person whose income is chargeable to British income tax at the standard rate only be a rate ascertained by dividing the amount of tax payable by him for that year in respect of his total income (before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of Section 27 of the Finance Act, 1920, as amended by this Article) by the amount of his total income and shall in the case of a person part of whose total income is chargeable to British income tax at a rate or rates in excess of the standard rate be the sum of the following rates: — i the rate which would have been the appropriate rate in the case of that person if his income had been chargeable at the standard rate only, and ii the rate ascertained by dividing the amount of the British sur-tax payable by that person for that year by the amount of his total income for that year; d the appropriate rate of Irish Free State tax for any year shall in the case of a person whose income is chargeable in the Irish Free State to income tax only be a rate ascertained by dividing the amount of tax payable by him for that year in respect of his total income (before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of Section 27 of the Finance Act, 1920, as amended by this Article) by the amount of his total income, and shall in the case of a person whose income is chargeable to Irish Free State sur-tax be the sum of the following rates: — i the rate which would have been the appropriate rate in the case of that person if his income had been chargeable to income tax only, and ii the rate ascertained by dividing the amount of the Irish Free State sur-tax payable by that person for that year by the amount of his total income for that year ; e relief under this Article from British income tax allowable to any person for any year shall be given as to such an amount as would be due if his income for the year were chargeable to British income tax at the standard rate only and to Irish Free State income tax only by repayment of or set off against the tax at the standard rate payable by him for that year, and as to any balance by repayment of or set off against any British sur-tax payable by him for that year ; f relief under this Article from Irish Free State tax allowable to any person for any year shall be given as to such an amount as would be due if his income for the year were chargeable to British income tax at the standard rate only and to Irish Free State income tax only by repayment of or set off against the income tax payable by him for that year, and as to any balance by repayment of or set off against any Irish Free State sur-tax payable by him for that year. [ Note. — Paragraph (2) of this Article, which related only to supertax for the year 1928-29, is omitted. ] 3 For the purposes of this Article references to Section 27 of the Finance Act, 1920, shall in relation to British taxation be construed as references to that section subject to the amendments thereof effected by the British Finance Act, 1927, other than the amendment of the said section numbered (iv) in Part II of the Fifth Schedule to the said Act of 1927. 3 This Agreement shall be subject to confirmation by the British Parliament and by the Oireachtas of the Irish Free State and shall have effect only if and so long as legislation confirming the Agreement is in force both in Great Britain and Northern Ireland and in the Irish Free State. Dated this 25th day of April, nineteen hundred and twenty-eight. (signed) WINSTON S. CHURCHILL, EARNÁN DE BLAGHD, Chancellor of the Exchequer. Minister for Finance, Saorstat Eireann. Agreement of 4th April 1959 [ Note. — (1) The agreement of 21st July 1947 referred to in italics in Article 1 of this agreement is not reproduced. It related solely to provisions of the Finance (No. 2) Act 1945 which, as re-enacted in section 350 of the Income Tax Act 1952, were repealed for years after 1965-66 by the Finance Act 1965. (2) Other passages italicised in the agreement are inoperative for years after 1965-66 by reason of the repeal for such years, by the Finance Act 1965, of section 4 of the Finance (No. 2) Act 1955.] AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM AND THE GOVERNMENT OF THE REPUBLIC OF IRELAND WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX. The Government of the United Kingdom and the Government of the Republic of Ireland, Considering the Agreement of the 14th April, 1926, between the British Government and the Government of the Irish Free State, in pursuance of which exemptions from tax are conferred on persons resident in one only of the countries from tax under the law of the other, Considering that doubts have arisen as to the effect on the said exemptions of the provisions of subsection (2) of Section four of the United Kingdom Finance (No. 2) Act, 1955 (hereinafter called " the Act of 1955 ") and subsection (2) of Section fifty-one of the Irish Republican Finance Act, 1958 (hereinafter called "the Act of 1958") (which relate to purchases of shares by persons exempted from tax), Desiring to remove these doubts for the year 1959-60 and subsequent years, Have agreed as follows: — Article 1 1 The said exemptions fall within, and are subject to, the said provisions of the Act of 1955 and the Act of 1958. 2 Subject as aforesaid the said Agreement of 1926 as amended by Agreements made on the 25th April, 1928, and the 21st July, 1947, continues in force. 3 Paragraph (1) of this Article does not relate to cases where the dividend in respect of which exemption is claimed is one on a holding of shares or stock acquired by the person claiming exemption, or regarded as having been acquired by him, before the eighth day of April, nineteen hundred and fifty-nine except in so far as that dividend is one falling within subsection (2) of the said Section four or subsection (2) of the said Section fifty-one by reason (directly or indirectly) that in respect of another dividend, received by a body corporate other than the person claiming exemption from a holding of shares or stock acquired, or regarded as acquired, by the body corporate on or after the said eighth day of April, a deduction is to be made in determining the income of that body corporate arising after a given date ; but this paragraph is without prejudice to any question as to the application of the said provisions of the Act of 1955 and the Act of 1958 in circumstances to which paragraph (1) of this Article does not relate. Article 2 This Agreement shall become effective on the exchange of notes confirming that the necessary steps have been taken to give it the force of law in the United Kingdom and the Republic of Ireland, and thereafter shall remain effective only so long as it has the force of law in both countries. Dated this fourth day of April, 1959. For the Government of the United Kingdom For the Government of the Republic of Ireland D. HEATHCOAT AMORY SÉAMAS O RIAIN Agreement of 23rd June 1960 [ Note. — See paragraph (1) of note to agreement of 4th April 1959. ] AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM AND THE GOVERNMENT OF THE REPUBLIC OF IRELAND WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX. The Government of the United Kingdom and the Government of the Republic of Ireland, Considering the Agreement of the 14th April, 1926, between the British Government and the Government of the Irish Free State in pursuance of which exemptions from tax are conferred on persons resident in one only of the countries from tax under the law of the other, Considering that legislation may be enacted in either country to maintain the proper incidence of liability to income tax and to prevent the obtaining of undue tax advantages, Considering that such legislation may be insufficiently effective unless, as well as applying to persons resident in the country where it is enacted, it applies also to persons not so resident but resident in the other of the two countries and accordingly affects exemptions from tax conferred in pursuance of the said Agreement of 1926, Recognising that the legislation which was the subject of the Agreement of the 4th April, 1959, made between the two Governments affected the said exemptions in particular ways, and desiring to supplement that Agreement by a more general Agreement, Desiring to declare that save as provided by this Agreement the continuance in force of the said Agreement of 1926 shall not be affected by the enactment of such legislation, Have agreed as follows: — Article 1 Legislation enacted in either country at any time after the date of this Agreement and affecting in any way exemptions from income tax of that country of persons resident in that country shall, except as otherwise provided by the legislation and subject to the next following Article of this Agreement, have the like effect on exemptions from that tax which persons enjoy as not resident in that country but resident in the other of the two countries, and the enactment of such legislation shall not affect the continuance in force of the said Agreement of 1926, as amended by Agreements of the 25th April, 1928, the 21st July, 1947, and the 4th April, 1959, and this Agreement. Article 2 If the Government of either country represents that any provisions of legislation enacted in the other country, being provisions falling within Article 1 of this Agreement, are nevertheless not within the intention of the Agreement, the two Governments shall consult and if they agree that Article 1 ought not to apply the Government of the country in which the legislation was enacted shall take the necessary steps to secure that the said provisions shall not affect, or be deemed to have affected, exemptions from the income tax of that country which persons enjoy as not resident therein but resident in the other country. Article 3 This Agreement shall become effective on the exchange of notes confirming that the necessary steps have been taken to give it the force of law in the United Kingdom and the Republic of Ireland, and thereafter shall remain effective only so long as it has the force of law in both countries. Dated this 23rd day of June, 1960. For the Government of the United Kingdom For the Government of the Republic of Ireland D. HEATHCOAT AMORY SÉAMAS O RIAIN PART II Section 27 of the Finance Act 1920 as it applies in the United Kingdom in relation to Republic of Ireland Income Tax 27 1 If any person who has paid, by deduction or otherwise, or is liable to pay, United Kingdom income tax for any year of assessment on any part of his income proves that he has paid Republic of Ireland income tax for that year in respect of the same part of his income, he shall be entitled to relief from United Kingdom income tax paid or payable by him on that part of his income at a rate thereon to be determined in accordance with the provisions in that behalf of Article 2 of the agreement dated 25th April 1928 set out in Part I of Schedule 12 to the Income and Corporation Taxes Act 1970. 2 Where a person has not established his claim to relief under this section for any year of assessment before the 1st January in that year, the relief shall be granted by way of repayment of tax. . . . . . . . . . . 4 Notwithstanding anything in the provisions of the Income and Corporation Taxes Act 1970 and, in particular, notwithstanding anything in section 516 of that Act, no deduction shall be made on account of the payment of Republic of Ireland income tax in estimating income for the purposes of United Kingdom income tax, and where income tax has been paid or is payable in the Republic of Ireland either on the income out of which income subject to United Kingdom income tax arises or is received, or as a direct charge in respect of that income, the income so subject to United Kingdom income tax shall be deemed to be income arising or received after deduction of Republic of Ireland income tax, and an addition shall, in estimating income for the purposes of the United Kingdom income tax, be made to that income of the proportionate part of the income tax paid or payable in the Republic of Ireland in respect of the income out of which that income arises or is received, together with the full amount of any Republic of Ireland income tax directly charged or chargeable in the Republic of Ireland in respect of that income: Provided that where any income arising or received as aforesaid consists of dividends which are entrusted to any person in the United Kingdom for payment and the Board are satisfied that the person so entrusted is not in a position to ascertain the amount of the addition to be made under this subsection, the assessment and charge may be made on the amount of the dividends as received by the person so entrusted, but in any such case the amount of the addition shall be chargeable on the recipient of the dividends under Case VI of Schedule D. In the above proviso, the expression " dividends" includes any interest, annuities, dividends, shares of annuities or other annual payments in respect of which tax is charged under Schedule C, or under section 159 of the Income and Corporation Taxes Act 1970; and the jurisdiction of the Special Commissioners on any appeal shall include jurisdiction to review any decision of the Board under that proviso. . . . . . . . . . . 7 The Board may from time to time make regulations generally for carrying out the provisions of this section, and may in particular by those regulations provide — a for making such arrangements with the Government of the Republic of Ireland as may be necessary to enable the appropriate relief to be granted, and b for prescribing the year which, in relation to any Republic of Ireland income tax, is, for the purposes of relief under this section, to be taken as corresponding to the year of assessment for the purposes of United Kingdom income tax. PART III Provisions for giving effect to Agreements set out in Part I of this Schedule 1 The provisions of this Part of this Schedule shall have effect for any year for which the agreements set out in Part I of this Schedule are in force, and the other provisions of the Income Tax Acts shall be modified accordingly. 2 1 Notwithstanding anything in sections 122 or 123 of this Act, but subject to the provisions of this paragraph, income tax chargeable under Case IV or Case V of Schedule D shall, in the case of property situated and profits or gains arising in the Republic of Ireland, be computed on the full amount of the income arising in the year of assessment, whether the income has been or will be received in the United Kingdom or not, subject in the case of income not received in the United Kingdom — a to the same deductions and allowances as if it had been so received, and b to a deduction on account of any annuity or other annual payment (not being interest) payable out of the income to a person not resident in the United Kingdom, and c to a deduction on account of any annual interest payable out of the income to a person not resident in the United Kingdom, being interest paid before 6th April 1975 on a debt incurred on or before 15th April 1969. 2 Sub-paragraph (1) above shall not apply — a to any income which is immediately derived by a person from the carrying on by him of any trade, profession or vocation, either solely or in partnership, or b to any income which arises from any pension, but the tax in respect of any such income arising in the Republic of Ireland shall be computed either on the full amount thereof arising in the year of assessment, or on the full amount thereof on an average of such period as the case may require and as may be directed by the inspector, so that, according to the nature of the income, the tax may be computed on the same basis as that on which it would have been computed if the income had arisen in the United Kingdom, and subject in either case to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the United Kingdom ; and the person chargeable and assessable shall be entitled to the same allowances, deductions and reliefs as if the income had arisen in the United Kingdom. The jurisdiction of the General or Special Commissioners on any appeal shall include jurisdiction to review the inspector's decision under this sub-paragraph. 3 1 Any duties of an office or employment performed in the Republic of Ireland by a person resident in the United Kingdom shall be treated for the purposes of Cases I and II of Schedule E as performed in the United Kingdom, but there shall be deducted from any emoluments chargeable by virtue only of this paragraph any annuity or other annual payment (not being interest) payable out of the emoluments to a person not resident in the United Kingdom. 2 A person resident in the Republic of Ireland, but not resident in the United Kingdom, shall not be chargeable to tax under Case II of Schedule E. 3 The emoluments excepted from Cases I and II of Schedule E as foreign emoluments shall not include the emoluments of a person resident in the United Kingdom from an office or employment under or with a person, body of persons or partnership resident in the Republic of Ireland. 4 Any claim for exemption from tax on the ground that the claimant is resident in the Republic of Ireland and is not resident in the United Kingdom shall be made to the Board: Provided that a claimant shall not be entitled to the exemption in respect of any income the income tax on which he is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he is liable to make to any other person. 5 1 Any claim under section 27 of the Finance Act 1920, as set out in Part II of this Schedule, shall be made to the Board. 2 The Special Commissioners, in determining any appeal on such a claim, shall have power to determine the rate at which relief is to be given, the amount of the relief to be given, and all questions whatsoever incidental to the determination of the matters as aforesaid. 6 1 Any person who is entrusted with the payment of any interest, dividends or other annual payments which are payable to any persons in the United Kingdom out of the public revenue of the Republic of Ireland, or out of or in respect of the stocks, funds, shares or securities of any Republic of Ireland company, society, adventure or concern, shall be relieved from the obligation imposed on him under Schedule 5 to this Act, to pay income tax thereon on behalf of the persons entitled thereto as regards any such interest, dividends or other annual payments in respect of which he furnishes to the Board, in such form and subject to such conditions as they may prescribe, a list containing — a a full description of the interest, dividends or other annual payments, and b the name and address of each person who is entitled thereto, and c the amount thereof to which each such person is entitled. 2 Any person entrusted with payment who, by virtue of sub-paragraph (1) above, is relieved from the obligation to pay income tax on interest, dividends or other annual payments, shall be entitled to the like remuneration to which, if he had paid tax thereon, he would have been entitled under paragraph 10 of Schedule 5 to this Act. 3 Any interest, dividends or other annual payments in respect of which the person entrusted with payment is relieved from the obligation to pay income tax by virtue of the said sub-paragraph (1) shall be assessable and chargeable under Case IV or Case V of Schedule D, as the case may be. 4 The Board may make such regulations as may be necessary for the purposes of this paragraph. SCHEDULE 13 Returns of Total Income Section 528. First. — Declaration of the amount of profits or gains returned, or for which the person in question has been or is liable to be assessed. Second. — Declaration of the amount of rents, interest, annuities or other annual payments, in respect of which the person in question is liable to allow the tax, with the names of the respective persons by whom such payments are to be made, distinguishing the amount of each payment. Third. — Declaration of the amount of annuities or other annual payments (not being interest) to be made out of the property or profits or gains assessed on the person in question, distinguishing each source. Fourth. — Statement of the amount of income derived according to the three preceding declarations. Fifth. — Statement of any tax which the person in question may be entitled to deduct, retain or charge against any other person. SCHEDULE 14 Savings and Transitory Provisions Sections 84(4), 437(2) and 537. Personal reliefs: income accumulated under trusts 1 The repeals made by this Act shall not be taken as affecting section 228 of the Income Tax Act 1952 or the limitation of that section by section 11(5) of the Finance Act 1969 (no relief for 1969-70 or later years of assessment), or by sections 400(4) and 406(6) of the Income Tax Act 1952 (settlements). Interest on debt secured on land in Scotland 2 The repeals made by this Act shall not be taken as altering the effect of section 18(8) of the Finance Act 1969 or, so far as it relates to interest paid not later than 15th August 1970, of section 169(5) of the Income Tax Act 1952. Duration of leases 3 1 Subject to sub-paragraph (2) below, section 84 of this Act has effect — a as respects a lease granted after 12th June 1969, and b so far as it relates to section 80(4) of this Act, as respects a variation or waiver the contract for which is entered into after that date. 2 So far as relates to relief under — a section 171 or section 177(1) of this Act (carry forward of trading losses), or b section 168(1) of this Act as applied by subsection (2) of the same section (set-off of trading loss against general income of succeeding year), or c section 72(1) of this Act (sums deductible from rent), given by setting a loss against, or making a deduction from, income of — i the year 1969-70 or any subsequent year of assessment, or ii a company's accounting period ending after 5th April 1969, the said section 84 shall be deemed to have had effect as from the passing of the Finance Act 1963, and as respects leases granted at any time. 3 In applying sub-paragraph (2) above it shall be assumed — a that all relief which could not be affected by the operation of that sub-paragraph was given (for all years of assessment and accounting periods before or after the passing of this Act) before relief which could be affected by the operation of that sub-paragraph, and b that, in particular, any loss which would not have been sustained if the said section 84 had always had effect was postponed to any other loss in giving relief against income of a year of assessment before the year 1969-70, or of a company's accounting period ending on or before 5th April 1969. This sub-paragraph shall have effect notwithstanding the provisions of section 77 of this Act or any other enactment governing the order in which reliefs are given. 4 All such adjustments shall be made, whether by way of assessment or discharge or repayment of tax, as are required to give effect to the said section 84 with this paragraph. 4 1 Where section 84 of this Act does not have effect, the following provisions of this paragraph shall apply in ascertaining the duration of a lease for the purposes of sections 80 to 82 of this Act. 2 Subject to sub-paragraph (4) below, where the terms of the lease include provision for the determination thereof by notice given either by the landlord or by the tenant, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice. 3 Subject to sub-paragraph (4) below, where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date. 4 Where the duration of a lease falls to be ascertained after the date on which the lease has for any reason come to an end, the duration shall be taken to have extended from its commencement to that date, and where the duration falls to be ascertained at a time when the lease is subsisting the preceding provisions of this paragraph shall be applied in accordance with circumstances prevailing at that time. 5 In relation to Scotland the expression " term " in this paragraph, where referring to the duration of a lease, means " period ". 6 This paragraph shall be construed as one with Part III of this Act. Allowance of interest as a business expense 5 1 In computing for the purposes of income tax for the year 1970-71 or any subsequent year of assessment the profits or gains arising from a trade, profession or vocation in a basis period falling wholly or partly before 6th April 1970, there may, subject to section 57(10) and section 130 of this Act, be deducted — a the gross amount of any annual interest paid before that date under deduction of tax, and b the amount of any interest paid to a bank, stockbroker or discount house relief for which was allowed under section 200 of the Income Tax Act 1952 for the year of assessment in which the payment was made, and c the amount of any interest paid to a building society relief for which was allowed under section 445(3) of the Income Tax Act 1952 for the year of assessment in which the payment was made. 2 It is hereby declared that, subject to sub-paragraph (1) above, relief in respect of any payment of interest cannot be given both under the said section 200 and in computing the profits or gains of a trade, profession or vocation. 3 In this paragraph " basis period ", in relation to any year of assessment, means the period the profits or gains of which are taken into account in charging income tax under Case I or Case II of Schedule D on the profits or gains of the trade, profession or vocation for that year of assessment. 4 In this paragraph " building society " includes any company within section 445(6) of the Income Tax Act 1952. Repeal of section 136 of the Income Tax Act 1952: allowance of annual value of land as a business expense 6 1 This paragraph has effect for allowing deductions by reference to those which would have fallen to be made if section 136 of the Income Tax Act 1952 had applied for the years 1963-64 and 1964-65. 2 Subject to the provisions of this paragraph, an allowance under this paragraph 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. 3 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 Income Tax Act 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 the Finance Act 1963 and the repeal by that 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 the said Act of 1963, 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 said Act of 1952, so far as made in respect of that period. 4 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 sub-paragraph (5) below, and b allowing deductions accordingly in computing the profits or gains of the trade chargeable under Case I of Schedule D for any chargeable period the profits or gains for which fall to be computed by reference to a period including the period defined in sub-paragraph (5) below or any part thereof. 5 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 fell 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 fell to be computed as fell before the beginning of the year 1963-64. 6 No allowance shall be made under this paragraph 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 chargeable period in which he permanently ceases to carry on the trade, or b the said person not being a company, 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. 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 paragraph as not having been in occupation of the land at any time before it occurred. 8 Where there has been a change in the persons carrying on the trade, but by virtue of section 154 of this Act, or section 17(1) of the Finance Act 1954 (company reconstructions before introduction of corporation tax), 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 paragraph (including this sub-paragraph) shall apply as if any occupation of the land before the change occurred by the persons carrying on the trade immediately before it occurred were occupation by the persons carrying on the trade immediately after it occurred. 9 Where section 252(1) of this Act (company reconstructions) applies, then for the purposes of this paragraph any occupation of land for the purposes of the trade by the predecessor shall be treated as having been the occupation of the successor. Subsection (6) of the said section 252 shall apply to this sub-paragraph as it applies to subsections (2) to (5) of that section, and in this sub-paragraph " predecessor " and " successor" have the same meaning as in that section. 10 Where section 352 of this Act (harbour reorganisation schemes) has effect, then for the purposes of this paragraph any occupation of land for the purposes of the trade by the transferor shall be treated as having been the occupation of the transferee. This sub-paragraph shall be construed as one with the said section 352, and as if it were referred to in subsection (1(3)(b) of that section. 11 The preceding provisions of this paragraph shall apply in relation to a profession or vocation as they apply in relation to a trade, but as if the reference in sub-paragraph (4) to Case I of Schedule D were a reference to Case II of that Schedule. Case VII of Schedule D 7 1 Section 164(3) of this Act (disallowance of interest in computing gains) shall not apply to interest paid in the year 1969-70, being — a bank, discount house or stock exchange interest paid in respect of any period ending before 1st July 1969, or b interest on any debt incurred before 16th April 1969, not being bank, discount house or stock exchange interest, and shall not apply to interest paid before the year 1969-70. 2 In this paragraph "bank, discount house or stock exchange interest" means interest paid without deduction of tax in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom, or from a person bona fide carrying on business as a member of a stock exchange in the United Kingdom, or bona fide carrying on the business of a discount house in the United Kingdom, and the reference to such interest in respect of a period ending before 1st July 1969 applies whether or not interest continues to run on or after that date. 8 Where, on or before 19th June 1969 — a paragraph 7(2) of Schedule 7 to the Finance Act 1965 (transfer of business on amalgamation or reconstruction to be on a no-gain, no-loss basis in certain cases) applied on the transfer of the whole or part of a business to a body which is not a company as defined in section 526(5) of this Act (with section 354 of this Act), but b all or any of the assets included in the transfer were not disposed of by that body, then any disposal by that body after that date of any of the assets referred to in paragraph (b) above shall be disregarded for the purposes of Chapter VIII of Part VI of this Act. Carry forward and backward of losses, etc. 9 1 The substitution of this Act for the corresponding enactments repealed by this Act shall not alter the effect of any provision enacted before this Act (whether or not there is a corresponding provision in this Act) so far as it determines whether and to what extent — a losses or expenditure incurred in, or other amounts referable to, a chargeable period earlier than those to which this Act applies may be taken into account for any tax purposes in a chargeable period to which this Act applies, or b losses or expenditure incurred in, or other amounts referable to, a chargeable period to which this Act applies may be taken into account for any tax purposes in a chargeable period earlier than those to which this Act applies. 2 Without prejudice to sub-paragraph (1) above, the repeals made by this Act shall not affect the following enactments (which are not re-enacted): — a section 27(4) of the Finance Act 1952 (restrictions on removal of six year time limit on carry forward of trading losses), b section 29(3) of the Finance Act 1953 (Isles of Scilly), c section 17 of, and Schedule 3 to, the Finance Act 1954 so far as in force by virtue of the saving in Part IV of Schedule 22 to the Finance Act 1965, and section 80(8) of the Finance Act 1965 (which amends the said Schedule 3), d section 82(4) of the Finance Act 1965 (losses allowable against chargeable gains), e section 85 of the Finance Act 1965 (carry forward of surplus of franked investment income: dividends paid out of pre-1966-67 profits) and the enactments amending that section, f Part II of Schedule 15 to the Finance Act 1965 (introduction of corporation tax: continuity of loss relief and other matters), g paragraph 7 of Schedule 16 to the Finance Act 1965 (company ceasing to be overseas trade corporation by operation of Part IV of that Act), in so far as those enactments may be relevant to tax for any chargeable period to which this Act applies. Interest paid by companies 10 1 Sections 248(6) and 300 of this Act shall not apply to interest paid in the year 1969-70, being — a bank, discount house or stock exchange interest paid in respect of any period ending before 1st July 1969, or b interest on any debt incurred before 16th April 1969, not being bank, discount house or stock exchange interest, and as respects interest paid in the year 1969-70 which is within paragraph (a) or paragraph (b) above, subsection (2) of section 296 of this Act shall apply as if the words "not being interest" in that subsection were omitted. 2 In this paragraph "bank, discount house or stock exchange interest" means interest paid without deduction of tax in the United Kingdom on an advance from a bank carrying on a bona fide banking business in the United Kingdom or from a person bona fide carrying on business as a member of a stock exchange in the United Kingdom, or bona fide carrying on the business of a discount house in the United Kingdom, and the reference to such interest in respect of a period ending before 1st July 1969 applies whether or not interest continues to run on or after that date. Company reconstruction or amalgamation: transfer of assets 11 The repeal by this Act of paragraph 7(2) of Schedule 7 to the Finance Act 1965, and of the other provisions re-enacted in section 267 of this Act, shall apply only where the transfer referred to in the said paragraph 7(2) takes effect after 5th April 1970. Meaning of "distribution" for close companies 12 Section 285 of this Act shall apply in relation to any accounting period ending after 5th April 1970 ; but for that purpose an accounting period beginning on or before, and ending after, 15th April 1969 shall be treated as two separate accounting periods the first of which ended with 15th April 1969, and in relation to the said first period paragraph 9(1)(a) of Schedule 11 to the Finance Act 1965 (which was superseded by the provisions re-enacted in the said section 285) shall apply notwithstanding the repeals made by this Act. Tax on close companies at standard rate of income tax 13 1 For the avoidance of doubt it is hereby declared that — a sections 286 to 288 of this Act come into force for the year 1970-71 and subsequent years of assessment, and b section 289 of this Act, and the other provisions about close companies' shortfalls, come into force for accounting periods ending after 5th April 1970. 2 In the case of an accounting period beginning on or before 15th April 1969 the relief to be given under section 290(5) of this Act shall be subject to such adjustment, if any, as may be required by the proviso to paragraph 3(7) of Schedule 14 to the Finance Act 1969. Directors' remuneration: provisions repealed by Finance Act 1969 14 1 The repeal by this Act of section 28 of the Finance Act 1969 (which is not re-enacted in this Act) has effect only as respects accounting periods ending after 31st December 1970, and the following provisions of this paragraph have effect only as respects earlier accounting periods (and then only so far as the said section 28 applies to any such period). 2 The repeals made by this Act shall not affect — a in the Finance Act 1965, sections 74 and 89(5) (with the enactments applied by that subsection), and paragraph 6(3) of Schedule 18, b in the Finance Act 1967 paragraph 9 of Schedule 11 as it applies to the said paragraph 6(3). 3 For the purposes of section 289 of this Act the distributions of a close company for an accounting period shall be taken to consist (in addition to the dividends and distributions mentioned in section 291(1) of this Act) of any amount by which the directors' remuneration paid for the period exceeds the deduction allowed for it in computing the company's income for the period. 4 No deduction shall be made under section 289(5) of this Act from the distributions for any accounting period so as to reduce those distributions below the amount of the directors' remuneration included in the distributions in computing them for the purposes of section 289. 5 At the end of section 298(2) of this Act (before the proviso) there shall be added the words " or amounts treated as such for the purposes of section 289 above ". 15 Any power which the Board may exercise under section 301 of this Act for the purposes of sections 296 to 300 may be exercised by the inspector for the purposes of section 74 of the Finance Act 1965. Close company's distributable income 16 As respects accounting periods beginning before the year 1971-72, at the end of section 291(2)(a) of this Act insert and iii any deduction made by virtue of section 87 of the Finance Act 1965 by way of allowance in respect of any source of income . Close companies: meaning of "associate" 17 1 As respects any time before 15th April 1969 proviso (ii) to section 303(3) of this Act shall have effect as if after the words " individual in question " there were inserted " is not in receipt of remuneration from the company of more than £4,000 per annum and ". 2 In the amendment so made " remuneration " has the meaning given by paragraph 18(3) of Schedule 5 to the Finance Act 1966. Children's settlements: irrevocable dispositions made before 22nd April 1936 18 1 This paragraph shall not apply in relation to any settlement, as defined for the purpose of Chapter II of Part XVI of this Act, except a settlement made or entered into before 22nd April 1936 which, immediately before that date, was an irrevocable settlement within the meaning of the said Chapter II. 2 Subject to the provisions of this paragraph, any income which, by virtue or in consequence of any disposition made, directly or indirectly, by any person after 5th April 1914, is payable to or applicable for the benefit of a child of that person for some period less than the life of the child shall, if and so long as the child is an infant and unmarried, be deemed for all the purposes of the Income Tax Acts to be the income of the person, if living, by whom the disposition was made and not to be the income of any other person. 3 This paragraph shall not apply as regards any income which is derived from capital which, at the end of the period during which that income is payable to or applicable for the benefit of the child, is required by the disposition to be held on trust absolutely for, or to be transferred to, the child, or any income which is payable to or applicable for the benefit of a child during the whole period of the life of the person by whom the disposition was made. 4 Income shall not be deemed, for the purposes of this paragraph, to be payable to or applicable for the benefit of a child for some period less than its life by reason only that the disposition contains a provision for the payment to some other person of the income in the event of the bankruptcy of the child, or of an assignment thereof, or a charge thereon, being executed by the child. 5 In this paragraph, unless the context otherwise requires — " child " includes a stepchild or illegitimate child, and " disposition " includes any trust, covenant, agreement or arrangement. 6 Sections 435 and 436 of this Act shall apply as if this paragraph were contained in Chapter I of Part XVI of this Act, and this paragraph, notwithstanding that it is referred to in Chapter II of Part XVI of this Act, shall not be construed as one with that Chapter. Cancellation of tax advantages and transfer of assets abroad 19 1 In paragraph A(a) of section 461 of this Act the reference to any exemption from tax shall, in relation to any distribution made after 29th April 1969, include a reference to any limitation (as well as any exemption) applied by section 31(2) of the Finance Act 1966 (transitory provisions for dividends paid to non-residents) to the amount of income tax under Schedule F chargeable in respect of a dividend. This sub-paragraph shall be construed as one with Chapter I of Part XVII of this Act. 2 As respects years of assessment before the year 1966-67, in subsection (3) of section 481 of this Act, for the words from " The bodies corporate mentioned" to the end of that subsection there shall be substituted the words " The bodies corporate mentioned in the preceding provisions of this section are bodies corporate resident or incorporated outside the United Kingdom which are, or, if they were incorporated in the United Kingdom, would be, investment companies to which section 245 of the Income Tax Act 1952 applies ; and ' investment companies' here has the meaning given by section 257 of that Act ". Dividend stripping and bond washing 20 With respect to distributions made before 30th April 1969, the repeals made by this Act shall not affect section 65 of the Finance Act 1965 (dividend stripping), or any other enactment which, except with respect to such distributions, is repealed by Part IV of Schedule 21 to the Finance Act 1969, or section 31(4)(a) of the Finance Act 1966 (which amends the said section 65). Tax avoidance: provisions repealed by Finance Act 1969 21 1 This paragraph applies to the following provisions (which by virtue of section 32(15) of the Finance Act 1969 ceased to have effect as respects any transaction or event carried out or occurring on or after 15th April 1969). The said provisions are — a in the Finance Act 1960, sections 21 to 24, all of section 25 except subsection (4), and section 26, and b in the Finance Act 1962, sections 23 and 24 and in section 25 subsection (1) except so far as it relates to section 28, and subsection (2). 2 As respects transactions or events carried out or occurring before 15th April 1969 the repeals made by this Act shall not affect the said provisions, or any enactment relating to those provisions. 3 Relief under subsection (4) of the said section 21 of the Finance Act 1960 shall be given on the making of a claim to the Board, and any appeal on the claim shall he to the General Commissioners unless the appellant elects that it shall lie instead to the Special Commissioners. 4 For the purpose of section 292(1) of this Act any such amount as, in relation to a company, is directed by section 21(2), section 25(1) or section 26(2) of the Finance Act 1960, or section 24(11) of the Finance Act 1962, to be treated as investment income, shall be deemed to be income of the company and to be investment income, and references in any enactment to the definition of " trading company " in the said section 292(1) shall be construed accordingly. Disallowance of interest as a deduction 22 As respects annual interest paid before 6th April 1970 on a debt incurred before 16th April 1969 section 519(1)(b) of this Act shall have effect as if the words " (not being interest)" in that paragraph were omitted. Transitional relief for companies existing in 1965 with overseas trading income 23 1 In section 84 of the Finance Act 1965 " trade " has the same meaning as in Part XI of this Act. 2 If under paragraph 3(4)(b) of Schedule 20 to the Finance Act 1965 the appropriate fraction of a loss incurred by one company is set off (for the purposes of subsection (3) of the said section 84) against the income of another company, any group relief in respect of that part of the loss shall be left out of account in any computation under the said subsection (3) as respects that other company or any other company. 3 In subsection (5) of the said section 84 the reference to section 48 of the Finance Act 1965 shall include a reference to section 256 of this Act, and in subsection (8)(b) of the said section 84 the reference to Part XIII of the Income Tax Act 1952 shall include a reference to Part XVIII of this Act. 4 In paragraph 3(4)(a) of Schedule 20 to the Finance Act 1965 the reference to section 62 of the Finance Act 1965 shall include a reference to sections 254 and 255 of this Act. Transitional relief for companies existing in 1965 on cessation of trade, etc. 24 1 In section 87(7) of the Finance Act 1965 the reference to section 430(1) of the Income Tax Act 1952 shall include a reference to section 316(1) of this Act. 2 In paragraph 3(8) of Schedule 21 to the Finance Act 1965 " control" shall be construed in accordance with section 302 of this Act, and the reference to Schedule 18 to the Finance Act 1965 shall be omitted. Investment allowances 25 Nothing in the repeals made by this Act shall affect the operation of any enactment relating to investment allowances in respect of expenditure incurred before 17th January 1966, or in respect of such expenditure as is referred to in section 35(2) of the Finance Act 1966 (existing contracts).. Capital allowances: free depreciation 26 Nothing in the repeals made by this Act shall affect section 38 or section 39 of the Finance Act 1963, or any enactment supplementing or amending those sections, so far as those sections remain in force by virtue of the saving in Part V of Schedule 13 to the Finance Act 1966. Expired taxes 27 1 Nothing in the repeals made by this Act shall affect any enactment or instrument as it applies to or for the purposes of excess profits tax, excess profits levy, the profits tax or the special contribution. 2 Sub-paragraph (1) above shall not apply to — a section 504 of the Income Tax Act 1952 (re-enacted in section 105 of the Taxes Management Act 1970), b paragraphs 9 and 10 of Schedule 6 to the Finance Act 1966 (re-enacted in section 39 of the said Act of 1970), or c section 43 of the Finance Act 1967 (re-enacted in section 45 of the said Act of 1970). 3 Subsections (1) and (3) of section 45 of the Taxes Management Act 1970 shall not apply to proceedings under paragraph 9 of Schedule 7 to the Finance Act 1960 (profits tax penalties). 4 In section 105 of the said Act of 1970 " tax " shall include excess profits tax and the profits tax. Functions of the Minister for the Civil Service 28 If and so far as any functions conferred on the Minister for the Civil Service by this Act, or by the Taxes Management Act 1970, are not comprised in the descriptions of functions transferred to the said Minister from the Treasury by the Minister for the Civil Service Order 1968, those functions shall be exercisable by the Treasury, and not by the said Minister. Validity of subordinate legislation 29 So far as this Act or the Taxes Management Act 1970 re-enacts any provision contained in a statutory instrument made in exercise of powers conferred by any Act, it shall be without prejudice to the validity of that provision, and any question as to its validity shall be determined as if the re-enacted provision were contained in a statutory instrument made under those powers. SCHEDULE 15 Consequential Amendments Section 537. Betterment levy 1 In section 51 of the Land Commission Act 1967 (interest on betterment levy), after subsection (2) insert — 2A Interest payable to the Commission by virtue of this section at the rate determined by the Betterment Levy (Rate of Interest) (No. 2) Order 1969, or by any subsequent order under subsection (2) above, shall be paid without deduction of income tax. . Reserved taxes for purposes of Government of Ireland Act 1920 2 In the Government of Ireland Act 1920, after section 22(1) insert — 1A This Act shall have effect as if the capital gains tax and corporation tax were included among the taxes mentioned in subsection (1) above. Friendly societies and trade unions 3 1 In section 26(2) of the Finance Act 1956, for the words from the beginning to " ceases to be paid " substitute — 2 If, in the event of a dissolution of any registered friendly society or registered trade union, any approved annuity as defined in section 226(13) of the Income and Corporation Taxes Act 1970 ceases to be paid, . 2 For section 29(9) of the Finance Act 1966 substitute — 9 Part II of Schedule 8 to this Act shall be construed in accordance with subsections (2) and (3) of section 337 of the Income and Corporation Taxes Act 1970. . 3 For paragraph 5(4)(b) of Schedule 8 to the Finance Act 1966 substitute — b any approved annuities as defined in section 226(13) of the Income and Corporation Taxes Act 1970. . Post-war credits 4 In the Income Tax (Repayment of Post-War Credits) Act 1959, after section 1(6) insert — 6A Notwithstanding any other enactment relating to summary jurisdiction, proceedings for an offence under subsection (6) above may be commenced at any time within three years from the time when the offence was committed. Capital allowances 5 1 The Capital Allowances Act 1968 shall be amended as follows. 2 In section 6(5)(a), for " Case VIII of Schedule D " substitute " Schedule A ". 3 For section 12(3) substitute — 3 The reference in this section to the permanent discontinuance of a trade does not include a reference to the happening of any event which, by virtue of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax), is to be treated as equivalent to the discontinuance of the trade. 4 At the end of section 15 add — 4 Section 42 of the Taxes Management Act 1970 shall apply to any claim under this section for relief from corporation tax, but, without prejudice to section 71(3) of this Act, not to any other claim under this section. 5 In section 48(1), for paragraphs (a) and (b) substitute " of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) ". 6 In section 67(3), for the words from the beginning to " permanently discontinued " substitute — 3 For the purposes of this section, a trade shall not be treated by virtue of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) as permanently discontinued . 7 In section 69, in the definitions of " agricultural income " and " forestry income", for " Case VIII of Schedule D" substitute " Schedule A ". 8 At the end of section 70(3) add — Section 42 of the Taxes Management Act 1970 shall not apply to any such claim. . 9 In section 71(3), for the words from "made to the inspector" to the end of the proviso substitute " (that is to say, a claim to which section 42 of the Taxes Management Act 1970 applies) ". 10 In section 74(3), for " may claim" substitute " may, on making a claim (to which section 42 of the Taxes Management Act 1970 applies), require ". 11 In section 74(4), for "Part IV of the Finance Act 1965 " substitute " the Corporation Tax Acts ". 12 In section 79(1), for paragraphs (a) and (b) substitute " of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) ". 13 At the end of section 100 add — 5 In this Act " the principal Act" means the Income and Corporation Taxes Act 1970. . 14 In paragraph 8(1)(a) of Schedule 2, before " Schedule D" insert " Schedule A or ". Chargeable gain 6 1 In section 39 of the Finance Act 1965 — a in subsection (1), for " sections 347 and 348 of the Income Tax Act 1952 (double taxation relief and unilateral relief), with Schedules 16 and 17 to that Act" substitute " Chapters I and II of Part XVIII of the Income and Corporation Taxes Act 1970 as they apply for the purposes of income tax ", b in subsection (2), for " the said section 347" substitute " section 347 of the Income Tax Act 1952 ", c in subsection (3), for " the said provisions of the Income Tax Act 1952" substitute " the said Chapters I and II ", and for " those provisions of the Income Tax Act 1952 " substitute " those Chapters, " and d in subsection (4), for "Section 353 of the Income Tax Act 1952" substitute " Section 518 of the Income and Corporation Taxes Act 1970 ". 2 In section 45(1) of the Finance Act 1965, insert the following definitions (after those of " company " and " control " respectively) — ' close company ' has the meaning given by sections 282 and 283 of the Income and Corporation Taxes Art 1970 ; ' inspector ' means any inspector of taxes ; . 3 At the end of paragraph 4 of Schedule 6 to the Finance Act 1965 add — 3 Except as provided by section 269 of the Income and Corporation Taxes Act 1970 (companies: interest charged to capital), no payment of interest shall be allowable under this paragraph, . 4 In paragraph 6(b) of Schedule 13 to the Finance Act 1967, for " paragraph 2(1) of Schedule 13 to that Act" substitute " section 273(1) of the Income and Corporation Taxes Act 1970 " ; and (in consequence), in paragraph 6(c) of that Schedule, for " that Act" substitute " the Finance Act 1965 ". 5 In paragraph 23(1) of Schedule 12 to the Finance Act 1968, for paragraph (b) substitute the following — b ' group ' shall be construed in accordance with subsections (1) (without paragraph (a)), (3) and (4) of section 272 of the Income and Corporation Taxes Act 1970. 6 In paragraph 22(3) of Schedule 19 to the Finance Act 1969, for " the said paragraph 7(2) of Schedule 7 " substitute " paragraph 7(2) of Schedule 7 to the Finance Act 1965 or section 267 of the Income and Corporation Taxes Act 1970 ". 7 Section 207 of this Act (residence) shall apply in relation to capital gains tax as it applies for the purposes mentioned in that section. Estate Duty 8 In section 37(3) of the Finance Act 1958, for the reference to subsection (1) of that section substitute a reference to section 215(1) of this Act. 9 1 In section 88(2) of the Finance Act 1965 (consequential amendments for estate duty), for the reference to Part IV of the Finance Act 1965 substitute a reference to the Corporation Tax Acts. 2 Nothing in this Act shall affect the operation of section 58(1) of the Finance Act 1940. General powers of amendment in Acts relating to overseas countries 10 Where under any Act passed before this Act and relating to a country or territory outside the United Kingdom there is a power to affect Acts passed or in force before a particular time, or instruments made or having effect under such Acts, and the power would, but for the passing of this Act or the Taxes Management Act 1970, have included power to change the law which is reproduced in, or is made or has effect under, this Act or the said Taxes Management Act, then that power shall include power to make such provision as will secure the like change in the law reproduced in, or made or having effect under, this Act or the said Taxes Management Act, notwithstanding that neither Act is an Act passed or in force before that time. Translation of references to enactments repealed and re-enacted 11 In the enactments specified in column 1 of the following Table, for the words in column 2 substitute the words in column 3, adding, except as otherwise indicated — a for those in Part I of the Table, " of the Taxes Management Act 1970 ", and b for those in Part II, " of the Income and Corporation Taxes Act 1970 ", or, in the case of enactments contained in the Capital Allowances Act 1968, " of the principal Act ", (but in all cases saying " to ", instead of " of", if the substituted words refer to a Schedule rather than a section). TABLE PART I Enactment amended Words to be replaced Corresponding provision of the Taxes Management Act 1970 The Post Office Savings Bank Act 1954 (1954 c. 62) In the Post Office Savings Bank Act 1954 section 10(2) subsection (3) of section twenty-nine of the Income Tax Act 1952. section 17(3). The Finance Act 1965 (1965 c. 25) In the Finance Act 1965 section 45(1) section 373 of the Income Tax Act 1952. section 82. Schedule 10 paragraph 3(3) section 7 or section 9(6) of the Income Tax Management Act 1964. section 8 or 42(5). 4(1) sections 495 to 497 of the Income Tax Act 1952 as applied by this Schedule. Part IX (except sections 87 and 88). The National Insurance Act 1965 (1965 c. 51) In the National Insurance Act 1965 section 15(3) Sections 46 and 47 of the Finance Act 1960. Section 98. The Finance Act 1966 (1966 c. 18) In the Finance Act 1966 Schedule 6 paragraph 23(3) Section 50 of the Finance Act 1960. Section 99. 23(4) Sections 47(3) and 48(3) of the Finance Act 1960. Subsections (1) and (2) of section 97. the said section 47. section 95 of that Act (without adding more words). 23(5) Section 58 of the Finance Act 1960. Section 88. The National Insurance Act (Northern Ireland) 1966 (1966 c. 6 (N.I.)) In the National Insurance Act (Northern Ireland) 1966 section 14(3) Sections 46 and 47 of the Finance Act 1960. Section 98. The Finance Act 1968 (1968 c. 44) In the Finance Act 1968 section 43(11) Part III of the Finance Act 1960. Part X. column 2 of Schedule 6 to that Act column 1 of the Table in section 98 of that Act (without adding more words). the said Part III the said Part X (without adding more words). 46(4) section 9 of the Income Tax Management Act 1964. section 42. 50(4) Part III of the Finance Act 1960. Part X. column 2 of Schedule 6 to that Act column 1 of the Table in section 98 of that Act (without adding more words). the said Part III. the said Part X (without adding more words). PART II Enactment amended Words to be replaced Corresponding provision of this Act The Finance Act 1952 (1952 c. 33) In the Finance Act 1952 section 30(4) section one hundred and fifty-seven of the Income Tax Act 1952 (or section one of the Income Tax (Employments) Act 1943). section 204. The Ministerial Salaries and Members' Pensions Act 1965 (1965 c. 11) In the Ministerial Salaries and Members' Pensions Act 1965 section 13(1)(a) section 379 of the Income Tax Act 1952. section 208. The Finance Act 1965 (1965 c. 25) In the Finance Act 1965 section 20(2) proviso. Part XHI of the Income Tax Act 1952. Part XVIII. 21(2) section 525(1)(b) of the Income Tax Act 1952. section 530(1)(b). Part VIII of the Income Tax Act 1952. Chapter II of Part I. sections 219 and 225. sections 19 and 20 (without adding more words). 27(2) section 17(6) of this Act. section 166(1). 34(6) paragraph 8 of Schedule 18 to this Act. section 292(1). 37(1) section 67 of this Act. section 357. 38(2) section 36(1) of this Act. section 208(2). provisions of section 67. provisions of section 357. within section 67(1) of this Act. an authorised unit trust within the meaning of section 358. 41(5)(c) section 50(2)(6) of this Act. section 246(2)(b). 42(7) the same meanings as in Chapter HI of Part XVUI of the Income Tax Act 1952. the meanings given by section 454(3). 45(1) paragraph 3 of Schedule 18 to this Act. section 302. section 423(4) of the Income Tax Act 1952. section 432(4). section 143(4) of the Income Tax Act 1952 as extended by section 35(5) of the Finance Act 1960. section 137(4). 45(3) section 361(1)(2) of the Income Tax Act 1952. section 42(1)(2). 45(6) section 24 of the Finance Act 1953. subsections (4) to (7) of section 122. it would apply for purposes of section 132(3) of the Income Tax Act 1952. they would apply for purposes of subsection (3) of the said section 122 (without adding more words). 45(7)(c) section 147 of the Income Tax Act 1952. section 153(1)(2). 45(8) authorised unit trust scheme within the meaning of section 71 of the Finance Act 1960. authorised unit trust within the meaning of section 358. 93(6) section 43 of the Finance Act 1963. section 341. 94(1) section 12(5) of the Finance Act 1962. section 163(1). 94(3) Chapter II of Part II of the Finance Act 1962. Chapter VIII of Part VI. Schedule 6 paragraph 3(2)(a) Schedule 9 to the Finance Act 1962. Schedule 7. 3(3)(a) the said Schedule 9. the said Schedule 7 (without adding more words). 3(4) the said Schedule 9. the said Schedule 7 (without adding more words). 3(7) section 13(3) of the Finance Act 1962. section 164(4). section 13(5). section 164(6) (without adding more words). 6(4)(a) section 313 of that Act. section 79(1). 6(4)(b) paragraph 16 of Schedule 4 to the Finance Act 1963. section 76. 6(4)(c) section 22 of the Finance Act 1954. section 141. 18(1) section 249 of the Income Tax Act 1952 (under which, as extended by section 78(7) of this Act, individuals may be assessed to surtax in respect of sums apportioned under Chapter III of Part IX of the Income Tax Act 1952 or under Part IV of this Act). section 297 (consequences of apportioning close company's income for purposes of surtax). 18(2) subsection (5) of the said section 249. subsection (8) of the said section 297 (without adding more words). 18(5) the said section 249. the said section 297 (without adding more words). 26(5) Schedule 9 to the Finance Act 1962. Schedule 7. Schedule 7 paragraph 2(4) Schedule 9 to the Finance Act 1962. Schedule 7. 21(3) section 411(4) of the Income Tax Act 1952. section 454. Chapter III of Part XVIII of the Income Tax Act 1952). subsection (3) of the said section 454) (without adding more words). Schedule 8 paragraph 5(1) section 22 of the Finance Act 1963. section 80. 5(2) the said section 22. the said section 80 (without adding more words). 5(3) section 22(6) of the said Act. subsection (6) of the said section 80 (without adding more words). 5(4) section 24 of the Finance Act 1963. section 82. 5(5) section 22 of the Finance Act 1963. section 80. 5(6) Chapter II of Part II of the Finance Act 1963. Part III. 6(1) paragraph 9(1) of Schedule 4 to the Finance Act 1963. section 83(2). 6(2) section 23 of the Finance Act 1963. section 81. 6(3) section 24(2)(6) of the Finance Act 1963. section 82(2)(6). 7 section 22(2) of the Finance Act 1963. section 80(2). 9(2) section 17 of the Finance Act 1964. section 492. Schedule 10 paragraph 3(4) Section 359 (collection from wife of tax assessed on husband attributable to her income) and section 360 (right of husband to disclaim liability for tax on deceased wife's income) of the Income Tax Act 1952. Section 40 (collection from wife of tax assessed on husband attributable to her income) and section 41 (right of husband to disclaim liability for tax on deceased wife's income). The National Insurance Act 1965 (1965 c. 51) In the National Insurance Act 1965 section 15(1) section 157 (pay as you earn) of the Income Tax Act 1952. section 204 (pay as you earn). 15(2)(b) the said section 157. the said section 204 (without adding more words). 15(3) the said section 157. the said section 204 (without adding more words) The National Insurance Act (Northern Ireland) 1966 (1966 c. 6 (N.I.)) In the National Insurance Act (Northern Ireland) 1966 section 14(1) section 157 (pay as you earn) of the Income Tax Act 1952. section 204 (pay as you earn). 14(2)(b) the said section 157. the said section 204 (without adding more words). 14(3) the said section 157. the said section 204 (without adding more words). The Land Commission Act 1967 (1967 c. 1) In the Land Commission Act 1967 Schedule 13 paragraph 5(8)(b) Chapter III of Part XVUI of the Income Tax Act 1952. section 454(3). 5(8)(c) paragraph 3 of Schedule 18 to the Finance Act 1965. section 302. The Forestry Act 1967 (1967 c. 10) In the Forestry Act 1967 Schedule 1 paragraph 9(2)(b) section 384 of the Income Tax Act 1952. section 210. The Housing Subsidies Act 1967 (1967 c. 29) In the Housing Subsidies Act 1967 section 26(4) section 43 of the Finance Act 1963. section 341. subsection (1)0) of the said section 43. section 341(1)0). paragraph 2 of Schedule 10 to the said Act of 1963. section 341(10). 32(1) section 43 of the Finance Act 1963. section 341. The Finance Act 1967 (1967 c. 54) In the Finance Act 1967 Schedule 13 paragraph 5(1) paragraph 2(1) of Schedule 13 to that Act. section 273(1). Schedule 14 paragraph 8(b) paragraph 2(1) of Schedule 13 to that Act. section 273(1). The Provisional Collection of Taxes Act 1968 (1968 c. 2) In the Provisional Collection of Taxes Act 1968 section 5(1)(c) section 49(6) of the Finance Act 1965. section 243(6). 5(2) the said section 49(6) and section 492 of the Income Tax Act 1952. the said section 243(6) and section 522. The Capital Allowances Act 1968 (1968 c. 3) In the Capital Allowances Act 1968 section 15(3) section 59 of the Finance Act 1965. section 178. section 59 (twice). section 178 (without adding more words). 33(2)(6) Chapter II of Part VI of the Income Tax Act 1952. Chapter II of Part VIII. 34(3) Chapter II of Part VI of the Income Tax Act 1952. Chapter II of Part VIII. 34(4) Chapter II of Part VI of the Income Tax Act 1952. Chapter II of Part VIH. 47(4) paragraph 2 of Schedule 2 to the Finance Act 1956. section 189(2). 48(6)(a) section 19 of the Finance Act 1953. section 154. 60(10) Schedule 9 to the Finance Act 1963 section 134. paragraph 5 of that Schedule. subsection (5) of the said section 134 (without adding more words). 60(11) section 127 of the Income Tax Act 1952. section 115. 67(3) section 61(2) of the Finance Act 1965. section 252(2). 69 section 125 of the Income Tax Act 1952. section 111. 70(5) section 20 of the Finance Act 1954. section 169. 72(2) section 127 of the Income Tax Act 1952. section 115. 79(4) section 19 of the Finance Act 1953. section 154. 80(3)(b) section 342 of the Income Tax Act 1952 or section 58(1) of the Finance Act 1965. section 171 or 177(1). 82(1) Chapter I of Part VII of the Income Tax Act 1952. section 52 or 53. 82(2) section 15(1)(c) of the Finance Act 1965. section 411(1)(c). 85(4) section 125 of the Income Tax Act 1952. section 111. 90 section 137 of the Income Tax Act 1952. section 130. 91(3) section 127 of the Income Tax Act 1952. section 115. 100(2) section 63(5) of the Finance Act 1965. section 250(5). Schedule 2 paragraph 8(1)(c) section 72(2) of the Finance Act 1960. section 78(1) or 306(1). Schedule 10 paragraph 1(5) section 127 of the Income Tax Act 1952. section 115. The Finance Act 1968 (1968 c. 44) In the Finance Act 1968 section 23(3) subsection (1) above (twice). section 236(1). Schedule 11 paragraph 1(4)(b) paragraph 2(1) of Schedule 13 to that Act. section 273(1). 2(5) paragraph 1 of Schedule 13 to the Finance Act 1965. subsections (1) and (2) of section 272. Schedule 12 paragraph 3(3) section 26(2) of the Finance Act 1952. section 140(2). 10(2)(b) Schedule 9 to the Finance Act 1962. Schedule 7. 11(4) section 13(4) of the Finance Act 1962. section 164(5). 11(6) section 13(8)0) of the Finance Act 1962. section 164(9)0). 12(2) paragraph 18(1) of Schedule 9 to the Finance Act 1962. paragraph 21(1) of Schedule 7. 22(2) Part I of Schedule 13 to the Finance Act 1965 (group of companies resident in the United Kingdom) without paragraph 1 (definition of company and group) and without paragraph 7 (recovery of tax), Sections 273 to 275 and 276(1). 22(3) Paragraphs 18 and 19 above shall apply for the said purposes as if for any reference in those paragraphs. Sections 278 and 279 of the said Act shall apply for the said purposes as if for any reference therein (without adding more words). The Finance Act 1969 (1969 c. 32) In the Finance Act 1969 section 52(1) section 9 of the Finance Act 1956. section 414. 58(1)(a) section 157 of the Income Tax Act 1952. section 204. Schedule 18 paragraph 4(3) Schedule 9 to the Finance Act 1962. Schedule 7. Schedule 19 paragraph 10(1)(b) paragraph 2 of Schedule 13 to that Act. section 273(1). 15(1)(7) Chapter II of Part II of the Finance Act 1962. Chapter VIII of Part VI. The Trustee Savings Banks Act 1969 (1969 c. 50) In the Trustee Savings Banks Act 1969 section 82(3) section 384 of the Income Tax Act 1952. section 210. Amendments converting references about capital allowances to references to the Capital Allowances Act 1968 12 1 In Schedule 6 to the Finance Act 1965 — a in paragraph 2(2), for " Part X or Part XI of the Income Tax Act 1952 (capital allowances)" substitute " the Capital Allowances Act 1968 (including the provisions of the Income and Corporation Taxes Act 1970 which under that Act are to be treated as contained in the said Act of 1968) ", b in paragraph 6(3), for " Schedule 14 to the Income Tax Act 1952" substitute " Schedule 7 to the Capital Allowances Act 1968 ", and for " paragraph 6 or paragraph 7 of Schedule 6 to the Finance Act 1952 " substitute " section 35(2) to (4) or section 48(2) of that Act ", c in paragraph 6(4)(a), for "Part X or Part XI of the Income Tax Act 1952" substitute " the Capital Allowances Act 1968 (including the provisions of the Income and Corporation Taxes Act 1970 which under that Act are to be treated as contained in the said Act of 1968) " , and d in paragraph 6(6), for " section 296 of the Income Tax Act 1952 " substitute " section 40 of the Capital Allowances Act 1968 ". 2 In section 99(1) of the Capital Allowances Act 1968 (construction of future enactments) after " past or future " insert " (including any amendment made by any such provision in any enactment or instrument passed or made before the passing of this Act) ". Regulations about double taxation relief 13 In Regulation 6 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1966, the references to section 170 of the Income Tax Act 1952 shall include a reference to section 54 of this Act. SCHEDULE 16 Repeals Section 538(1). Chapter Short title Extent of repeal 15 & 16 Geo. 6 and 1 Eliz. 2. c. 10 . The Income Tax Act 1952. The whole Act. 15 & 16 Geo. 6 and 1 Eliz. 2. c. 33 . The Finance Act 1952. Part III, except section 30. Sections 67 and 70. Section 76(4). In Schedule 6, Part I1, and paragraph 18(2). 1 & 2 Eliz. 2. c. 34 . The Finance Act 1953. Part III. In section 35, subsection (4)(a)(6). 2 & 3 Eliz. 2. c. 32 . The Atomic Energy Authority Act 1954. Section 6(2). 2 & 3 Eliz. 2. c. 44 . The Finance Act 1954. Part III, except section 15. Section 35(4). Schedules 2 to 4. 2 & 3 Eliz. 2. c. 62 . The Post Office Savings Bank Act 1954. In section 10(2), the words " by a post office savings bank ". 3 & 4 Eliz. 2. c. 15 . The Finance Act 1955. The whole Act. 4 & 5 Eliz. 2. c. 17 . The Finance (No. 2) Act 1955. The whole Act. 4 & 5 Eliz. 2. c. 54 . The Finance Act 1956. Part II, but, in the case of section 19, only as respects deaths occurring after 3rd June 1969. Part III except section 26(2). In section 40, subsection (1) except paragraph (b); subsection (3); and subsection (6). In section 41, the words " Part XIX of the Income Tax Act 1952, and ". Section 44(3). Schedules 2 and 3. 5 & 6 Eliz. 2. c. 48 . The Electricity Act 1957. Section 24. 5 & 6 Eliz. 2. c. 49 . The Finance Act 1957. Part III. Section 42(2)(c). 6 & 7 Eliz. 2. c. 56 . The Finance Act 1958. Part III. Section 37(1), and, in section 37(4), the words "employment in the public services of an overseas territory and to ". Section 40(2)(c). Schedules 5 and 6. 6 & 7 Eliz. 2. c. 72 . The Insurance Companies Act 1958. In section 33(1), the definition of '' life assurance business ". 7 & 8 Eliz. 2. c. 58 . The Finance Act 1959. Part III. Section 37(2)(c). Schedules 4 to 7. 8 & 9 Eliz. 2. c. 44 . The Finance Act 1960. Parts II and III. Sections 68 to 72. In section 73, in subsection (1), the words "income tax and from"; in subsection (3), the words " either of income tax or " and the proviso; in subsection (6), paragraph (b) and the word "and" preceding it. In section 79, subsection (2), from " and in Part II" to the end; and subsection (3)(6). Schedules 4 to 7. 8 & 9 Eliz. 2. c. 58 . The Charities Act 1960. In Schedule 6, the entry relating to Schedule 8 to the Income Tax Act 1952. 9 & 10 Eliz. 2. c. 36 . The Finance Act 1961. Part II. In section 37, subsection (2) from "and in Part II" to the end; and subsection (3) from " and Part II " to the end. 10 & 11 Eliz. 2. c. 44 . The Finance Act 1962. Part II. In section 34(2), the words from " Part II" to the second " the profits tax ". Schedules 9 and 10. 1963 c. 24 . The British Museum Act 1963. In Schedule 2, paragraph 3 from the beginning to " Trustees of the British Museum and ". 1963 c. 25 . The Finance Act 1963. Part II. In section 73, subsection (3) from " and in Part I1" to the end, and subsection (4) from " Part I1" to " Income Tax Acts ". Schedules 4 to 10, and Part I (except paragraph 1) of Schedule 12. 1964 c. 37 . The Income Tax Management Act 1964. The whole Act. 1964 c. 49 . The Finance Act 1964. Part II. Section 26(3) from "and Part II" to the end. Schedule 7. In Schedule 8, paragraphs 4 to 7. 1964 c. 92 . The Finance (No. 2) Act 1964. Section 1. Section 10(2) from the beginning to " Income Tax Acts and ". 1965 c. 4 . The Science and Technology Act 1965. In Schedule 2, the entry relating to section 449(1)(a) of the Income Tax Act 1952. 1965 c. 11 . The Ministerial Salaries and Members' Pensions Act 1965. Sections 4(5), 13(2) and 18. In Schedule 4, the entry relating to section 385(2) of the Income Tax Act 1952. 1965 c. 25 . The Finance Act 1965. Part II, except section 17(15). In section 20(3), the words " and subject to section 82 of this Act". In section 35, subsection (2) from " notwithstanding " to " assessments"; and subsections (3) to (5). Section 36. Section 37, except subsection (1). In section 41, in subsection (1)(b), the words " as denned by Schedule 18 to this Act"; and in subsection (9), the words " as defined in Schedule 18 to this Act". In section 44, subsections (6) to (8). Section 45(11). Sections 46 to 83. In section 84(7), the words " to the inspector" and " to his satisfaction ", and from " Section 9 " to the end. Sections 85, 86 and 89. In section 94, subsections (4) to (8). Section 96. Section 97(2). In Schedule 6, paragraph 29(4). In Schedule 7, paragraph 7(2); and in paragraph 18, the words " as defined in Schedule 18 to this Act" in sub-paragraph (1), and the words " as so defined " in sub-paragraph (3). In Schedule 10, paragraphs 1 and 2, and 5 to 11; paragraph 12(2) from " but the provisions " to the end; and paragraphs 14, 16, 17 and 18. Schedules 11 to 19. In Schedule 21, in paragraph 2(2)(a), the words " (within the meaning of Schedule 14 to this Act)"; and paragraph 3(8) from " (control" to the end. 1966 c. 18 . The Finance Act 1966. Part II. Sections 26 and 28. In section 29, subsections (1) to (3) ; subsection (4) from " and so much" to the end; subsections (5) to (8); subsections (10) and (11); and in subsection (12), paragraphs (a) and (c). Section 30. Sections 33 and 34. Part IV. In section 45, subsections (1) to (4) ; subsection (6) from the definition of "limited liability company " to the end; and subsection (7). Sections 49 to 51. So much of section 53(2) as relates to Parts II and IV of the Act. Schedules 4 to 7, except paragraph 19 of Schedule 5 and paragraphs 14 and 23 of Schedule 6. Part I of Schedule 8. In Schedule 10, paragraphs 3, 14 and 15. Schedule 12. 1967 c. 17 . The Iron and Steel Act 1967. Section 26(8)(b). 1967 c. 54 . The Finance Act 1967. Parts II and III. In section 34(1), from " allowance " to " and ". In section 35, subsections (1) and (4). Section 36. Section 37, from " and a sum so payable " to the end. In section 38, subsections (1) to (3); and, in subsection (6), from the first" for " to " years, and ". Sections 39 to 41. Section 43. In section 45(3), paragraphs (d) and (e), and paragraph (h) from first " with " to " income tax, and ". Schedules 10 and 11. In Schedule 13, paragraph 7 and Part II. In Schedule 14, paragraph 7(4). In Schedule 15, paragraph 1. 1968 c. 3 . The Capital Allowances Act 1968. In section 47(4), the words from the beginning to " this Act". In section 70(5), the words from the beginning to " this Act". In section 81(1), the words (after paragraph (c)) "against an assessment under Schedule D ". In section 82, in subsection (1), the words " interest and other "; and in subsection (2), the words from the beginning to the first " this Act". In section 87(1), the definition of " company ". In section 94(2), the definition of " company ". Section 98(2). Schedule 12. 1968 c. 13 . The National Loans Act 1968. Section 16(5). 1968 c. 44 . The Finance Act 1968. Sections 11 to 22. In section 23, subsections (1) and (2); in subsection (3), paragraph (b), the word " and " preceding that paragraph, and the words " and the proviso to the said paragraph 10(3)"; and subsections (4) and (5). Sections 24 to 30. Section 33. In section 34, the words " and Schedule 13 to this Act (tax on short-term capital gains)". In section 40, subsections (4) to (7); paragraphs (b) and (c) of subsection (8); and subsection (9). In section 53, subsection (1) from the beginning to " 1952 and "; and subsection (2) from " and in particular " to the end. Section 61(4). Schedules 8 to 10. In Schedule 12, paragraphs 13, 15(3) and 18 to 21; and, in paragraph 23, sub-paragraph (1)(c), and sub-paragraphs (2) to (6). Schedule 13. 1968 c. 73 . The Transport Act 1968. Section 161(2). 1969 c. 32 . The Finance Act 1969. Part II, except subsections (1) and (2) of section 16. In section 41, subsections (4) to (6). Section 53. Section 61(3)(c). Schedules 13 to 16. In Schedule 17, paragraph 21 of Part III as respects deaths occurring after 3rd June 1969. Part II of Schedule 18. In Schedule 19, paragraph 3(2); in paragraph 6(1), the words "and section 16(1) of the Finance Act 1962"; in paragraph 8(3), the words " and of the proviso to section 12(6) of the Finance Act 1962"; in paragraph 9, the words " and in Chapter II of Part II of the Finance Act 1962 "; paragraph 11(2); paragraph 13; paragraph 16(6); paragraphs 18 to 21; and sub-paragraphs (1) and (2) of paragraph 22. Schedule 20, except paragraphs 11, 26 and 28(2), and paragraph 30(4) in its application to paragraph 11. 1969 c. 48 . The Post Office Act 1969. In section 109, the words from " and, accordingly " to the end. In Part III of Schedule 6, the entries relating to section 29 of the Income Tax Act 1952, section 9 of the Finance Act 1956 and section 20 of the Finance Act 1966. Paragraph 21 of Schedule 9. 1969 c. 50 . The Trustee Savings Banks Act 1969. Subsections (1) and (2) of section 93. 1970 c. . The Radiological Protection Act 1970. Section 2(7). Statutory Instrument S.I. 1969 No. 535 . The Income Tax (Interest on Unpaid Tax) Order 1969. The whole Order.

The Transport Act 1968 (Commencement No. 7) Order 1970 The Minister of Transport hereby makes this Order in exercise of his powers under section 166 of the Transport Act 1968 and of all other enabling powers: — 1 This Order may be cited as the Transport Act 1968 (Commencement No.7) Order 1970. 2 Subsections (1) to (9) and (11) of section 96 (in so far as they relate to passenger vehicles) and section 165 (in so far as it relates to the provisions of Part III of Schedule 18 which refer to sections 73 (as respects passenger vehicles) and 250(3) of the Road Traffic Act 1960 and to Schedule 4 to the Road Traffic Act 1962) of the Transport Act 1968 shall come into force on the 15th March 1970. Sealed with the Official Seal of the Minister of Transport the 11th March 1970. T. L. Beagley An Under Secretary of the Ministry of Transport

Sea Fish Industry Act 1970 PART I White Fish Industry The Authority, the Scottish Committee and the Advisory Council Constitution and general functions of White Fish Authority 1 1 There shall continue to be a White Fish Authority (in this Act referred to as " the Authority ") which shall have the functions of reorganising, developing and regulating the white fish industry, and of keeping generally under review matters relating to that industry, and such other functions as are mentioned in this Act. 2 The Authority shall consist of such number of members appointed by the Ministers and the Secretary of State concerned with the sea fishing industry in Wales as the Ministers and the said Secretary of State may from time to time determine, and of those members one shall be appointed by the Ministers and the said Secretary of State to be chairman and one to be deputy chairman of the Authority. 3 The provisions of Part I of Schedule 1 to this Act shall have effect with respect to the Authority. The Scottish Committee of the Authority 2 1 There shall continue to be a committee (in this Act referred to as " the Scottish Committee ") for the purpose of giving advice to the Authority about the exercise and performance of their functions as respects Scotland, and matters particularly affecting Scotland, and of exercising such of the Authority's functions as respects Scotland and matters particularly affecting Scotland, as may from time to time be delegated to the committee by the Authority. 2 Subject to this Act, the Scottish Committee shall consist of a chairman, who shall be such member of the Authority as may from time to time be appointed by the Ministers, and four other members so appointed. 3 The provisions of Part II of Schedule 1 to this Act shall have effect with respect to the Scottish Committee. The White Fish Industry Advisory Council 3 1 For the purpose of giving advice to the Authority about the exercise and performance of their functions generally, there shall continue to be a White Fish Industry Advisory Council. 2 The Advisory Council shall consist of a chairman who shall be such member of the Authority as may from time to time be appointed by the Authority, and of such other members as may be appointed by the Ministers and the Secretary of State concerned with the sea fishing industry in Wales to represent the interests of the different sections of the white fish industry and any such other interests (including those of persons employed in the industry) as the Ministers and the said Secretary of State may consider to be affected. 3 Before appointing to the Advisory Council a member to represent any such interests as aforesaid, the Ministers and the said Secretary of State shall consult such bodies, if any, as appear to them to be representative of the interests concerned. 4 The Authority shall appoint a person employed by them to act as secretary to the Advisory Council. 5 The provisions of Schedule 2 to this Act shall have effect with respect to the Advisory Council. Duties and powers of Authority Duties of Authority 4 1 The Authority, for the purpose of their general functions of reorganising, developing and regulating the white fish industry, shall have regard to the interest of consumers in a plentiful supply of white fish at reasonable prices, as well as to the interests of the different sections of the white fish industry. 2 The Ministers may, after consultation with the Authority, give the Authority such directions of a general character as to the exercise and performance by the Authority of their functions as appear to the Ministers to be requisite in the national interest and the Authority shall give effect to any such directions. The Ministers shall publish in such manner as they think fit any direction given by them under this subsection as soon as practicable after it is given, unless in their opinion it is against the national interest to do so. 3 Any directions under subsection (2) above in connection with the Authority's functions under section 44 of this Act shall be given by the Secretary of State concerned with the sea fishing industry in Wales as well as by the Ministers, and references to the Ministers in that subsection shall be construed accordingly. 4 It shall be the duty of the Authority, if so required by any Minister of the Crown, to act as his agent in matters relating to white fish. Powers of Authority 5 1 For the purpose of their general functions of reorganising, developing and regulating the white fish industry, the Authority shall have power to do all or any of the following things: — a to carry on research and experiment either alone or in collaboration with others and for that purpose provide or acquire, equip and operate vessels or plants, and to give financial assistance to others carrying on research or experiment; b to encourage persons engaged in the white fish industry to make voluntary arrangements on a co-operative basis for the selling of white fish or the buying of materials and other requisites for the industry (including in particular gear, fuel and stores for vessels to which this Part of this Act applies), and to give financial or other assistance in bringing any such arrangements into operation or in continuing or extending any such arrangements; c to undertake as agents, in any locality in which the Authority think it necessary so as to secure proper provision for the needs of the fishing industry, the first sale of white fish landed in Great Britain and, where it appears to the Authority likely to promote efficiency and economy, to undertake as principals the buying and selling of such materials and requisites as aforesaid; d to promote the export of white fish by establishing, or by encouraging and giving financial or other assistance for the establishment of, selling agencies and storage facilities outside the United Kingdom, and by other means; e to provide or acquire and equip vessels to which this Part of this Act applies to be operated under charter from the Authority; f to provide or acquire, equip or operate plants for processing white fish in Great Britain or for making ice in Great Britain in any locality in which the Authority think it necessary so as to secure proper provision for the needs of the fishing industry ; g to give financial assistance by way of loan to others to meet capital expenditure incurred in providing, acquiring, reconditioning or improving — i vessels to which this Part of this Act applies or their gear, or ii plants for processing white fish in Great Britain; h to give financial assistance by way of loan to others to meet capital expenditure incurred in providing, acquiring, reconditioning or improving plants for making ice in Great Britain, if the Authority think it necessary to give such assistance to promote the interests of the fishing industry ; i to give financial assistance by way of grant for the maintenance while taking a course of specialised training or education of persons engaged or employed in the white fish industry or intending to be so; j to encourage, by means of publicity and by advice and instruction, the improvement of conditions in the white fish industry and the greater consumption of white fish. 2 For the purpose of their general functions of reorganising, developing and regulating the white fish industry, the Authority may take or acquire shares or similar interests in any company where a substantial part of the company's business consists or is to consist in carrying on any activities which the Authority have power to carry on under subsection (1) above or in operating vessels to which this Part of this Act applies for the catching or processing of white fish or for transporting white fish or the products of white fish. 3 The Authority may themselves operate any vessel for catching or processing white fish or for transporting white fish or the products of white fish where they acquire control of the vessel under or in consequence of any agreement relating to financial assistance given or to be given by them and they are for the time being unable to dispose of the vessel or make other arrangements on terms satisfactory to them. Power to make regulations about handling, etc. of white fish, and for other purposes 6 1 With a view to improving the marketing and distribution of white fish, and the condition in which white fish are offered for sale, the Authority, after consultation with such bodies, if any, as appear to them to be representative of the interests concerned, may make regulations for all or any of the following purposes: — a for regulating the handling and stowage of white fish on vessels to which this Part of this Act applies, being vessels registered in Great Britain, and for regulating the handling of white fish during or at any time after landing; b for timing landings of white fish so as to secure regularity in the supply and prevent congestion in harbours, and for that purpose requiring vessels proposing to land their catch in Great Britain to land or delay landing it if so directed in accordance with the regulations; c for regulating the sale of white fish, including the conditions of sale other than the price ; d for prescribing standards of quality for white fish and limiting the purposes for which fish of any of the standards may be used. 2 Without prejudice to the generality of subsection (1) above, the regulations may include provision for securing economy or speed in handling white fish in markets and in the transportation of white fish, and the regulations — a may for the purposes of paragraph (a) of that subsection regulate — i the construction and equipping of holds in vessels to which this Part of this Act applies; ii the construction, size, layout and equipping of the parts of such vessels used for processing white fish; iii the equipping of vehicles used for transporting white fish; iv the size and material of containers of white fish; b may for the purposes of paragraph (c) of that subsection require disputes with respect to, or arising out of, any sale to be settled by arbitration in accordance with the regulations; c may contain such incidental and supplementary provisions as appear to the Authority to be necessary or expedient for the purposes of the regulations. 3 The Authority may also make regulations for prescribing anything required or authorised by this Part of this Act to be prescribed. 4 Regulations made by the Authority under this Part of this Act may be made so as to apply either generally or to particular cases or classes of case and may make different provisions for different cases or classes of case, and in particular regulations under subsection (1) above may — a make different provision for different areas or for fish of different descriptions; b provide for granting exemptions (subject or not to conditions) for the purpose of paragraph (a) of that subsection. 5 Regulations made by the Authority under this Part of this Act shall be of no effect unless confirmed by order of the Ministers, and any such order shall be subject to annulment by resolution of either House of Parliament. 6 The provisions of Schedule 3 to this Act shall have effect with respect to the making and confirmation of such regulations. 7 If any person contravenes the provisions of any regulations under subsection (1) above, he shall be guilty of an offence against this Part of this Act, and if a contravention of any such provision occurs in relation to any vessel to which this Part of this Act applies every person who is an owner, charterer or master of the vessel at the time of the contravention shall be guilty of such an offence. Schemes for reorganisation, development or regulation of the white fish industry 7 1 If it appears to the Authority, after consultation with such bodies, if any, as appear to them to be representative of the interests concerned, that it is necessary or expedient to bring into force a scheme for the reorganisation, development or regulation of the white fish industry or any section of it, the Authority may submit to the Ministers a scheme containing any provisions which the Authority in their discretion think expedient for that purpose (including provisions conferring further functions on the Authority). 2 If the Ministers are satisfied, having regard to the interest of consumers in a plentiful supply of white fish at reasonable prices as well as to the interests of the different sections of the white fish industry, that the bringing into force of the scheme will conduce to the better organisation, development or regulation of the white fish industry or the section of it to which the scheme relates, and that it is expedient that the scheme should have effect, then (subject to subsection (7) below) they may confirm the scheme by order and thereupon the scheme shall have effect. 3 The provisions of Schedule 3 to this Act shall have effect with respect to the submission to the Ministers and confirmation of schemes. 4 A scheme may include provisions making persons guilty of an offence against this Part of this Act, where there is a contravention of the scheme. 5 The Ministers may (subject to subsection (7) below) by order revoke a scheme if it appears to them, after consultation with such bodies, if any, as appear to them to be representative of the interests concerned and with the Authority, that the scheme is not serving the purposes for which it was made, or that the continued operation of the scheme would be contrary to the public interest, but the revocation of the scheme shall be without prejudice to anything previously done under the scheme or to the making, submission or confirmation of a new scheme. 6 Any scheme varying or revoking a previous scheme, and any order of the Ministers revoking a scheme, may include provision for any transitional or other consequential matters, including in particular the winding up of any body constituted by the scheme varied or revoked and the disposal of any assets of any body so wound up which remain after the payment of its debts and liabilities and of the costs and expenses of the winding up. 7 The Ministers shall not make an order confirming or revoking a scheme unless a draft of the order has been laid before Parliament and approved by resolution of each House. Registration and licensing Registration of persons engaged in the white fish industry 8 1 The Authority may keep such registers as they think fit of persons engaging in the white fish industry by carrying on any prescribed business, and the Authority on application made by any person to be registered as a person carrying on a prescribed business, and on payment of such fee not exceeding five shillings as may be prescribed (if any), shall register him in the appropriate register as a person carrying on that business. 2 Subject to any prescribed exemptions, no person shall after the expiration of the prescribed period engage in the white fish industry by carrying on a prescribed business unless he is registered under this section in the appropriate register as a person carrying on that business, and any person contravening this subsection shall be liable on summary conviction to a fine not exceeding £25. 3 The Authority may include in any register kept under this section particulars of the places where the persons registered carry on their business and the number of vessels to which this Part of this Act applies or vehicles kept for use in the business. 4 A person shall, on making application to be registered in any register kept under this section, and also on being required to do so by notice given to him by the Authority at any time while his name appears in any such register, furnish to the Authority such information as the Authority may require for the purpose of their powers under this section, and any person registered in any such register as carrying on a prescribed business shall, whenever required to do so as aforesaid, make to the Authority a written declaration stating whether or not he is carrying on that business as a nominee of another person and, if so, giving the name of that other person. 5 The Authority, on being satisfied that a person whose name is entered in any register kept under this section as a person carrying on a prescribed business has ceased to carry on that business, shall delete that entry in the register. 6 Registration in any register kept under this section in the name or style under which a business is carried on (whether or not the entry includes the names of those carrying it on) shall operate, so far as relates to that business, as the registration of any person who has given the Authority written notice that he is the person or one of the persons for the time being carrying it on; and the entry relating to the business shall be deleted under subsection (5) above if, but only if, the Authority are satisfied that the business is no longer carried on under that name or style by a person who has given them such a notice or is no longer such as to require registration in that register. 7 Any register kept under this section shall be kept at the Authority's office and, so far as is practicable, a duplicate of it shall be kept at the office used by the Scottish Committee in Scotland; and the register and duplicate shall at all reasonable times be open to public inspection. Licensing of fishing vessels 9 1 As from the prescribed date, no vessel to which this Part of this Act applies, being a vessel registered in Great Britain, shall be used in the white fish industry unless either there is in force in respect of the vessel a licence granted by the Authority under this section or the vessel is one to which this section does not apply by virtue of subsection (2) below; and if this subsection is contravened in the case of any vessel every person who is an owner or charterer of the vessel shall be guilty of an offence against this Part of this Act. 2 This section shall not apply to vessels which do not exceed forty feet in length measured from the fore part of the head of the stem to the after part of the head of the stern post or to other vessels of any class prescribed for the purpose of this subsection. 3 On application made by any person who is an owner or charterer of a vessel to which this Part of this Act applies for a licence under this section in respect of the vessel, and on his giving the Authority such particulars of the persons who are to be owners or charterers of it during the currency of the licence and such other information as the Authority may require for the purposes of this subsection, and on payment of such fee not exceeding £1 as may be prescribed (if any), the Authority shall, subject to subsection (4) below, grant the application. 4 The Authority may, if in all the circumstances of the case they think fit to do so, refuse to grant the licence in any case where they are satisfied that a person about whom an order under subsection (9) below has been made is to be concerned (whether as owner, charterer, master or otherwise) with the management of the vessel, but where they do so shall give the applicant notice of that fact informing him of the effect of subsection (5) below. 5 Where the Authority have refused an application for a licence under this section, any of the Ministers, after giving the applicant (if he so desires) an opportunity to be heard by a person appointed by that Minister and after taking into consideration the report of any such person and any written representations made by the applicant, may direct the Authority to grant the licence and the Authority shall comply with the direction. 6 A licence granted under this section shall be granted so as to have effect (subject to the provisions of this section) for a year or such less period as may be specified in the licence, but shall be valid only if and so long as no person is an owner or charterer of the vessel other than — a those named to the Authority when the licence was applied for; and b where any of them dies, anyone to whom his interest passes under his will or the law relating to the administration and distribution of property on death (including his personal representatives). 7 A licence granted under this section may be granted subject — a to such conditions as the Authority think fit to impose — i for preventing over-fishing ; ii in a case to which subsection (4) above applies, for securing that no person about whom an order has been made under subsection (9) below will be concerned in the management of the vessel in respect of which the licence is granted ; b to such conditions as the Ministers may require to be imposed for securing compliance with any agreements made by or on behalf of any Minister of the Crown or Her Majesty's Government, or with any legal obligations in relation to the vessel imposed on any of the persons concerned in its management otherwise than by this Part of this Act; c to such other conditions as may be authorised by any scheme. 8 If any condition of a licence granted under this section in respect of any vessel is contravened, every person who is an owner, charterer or master of the vessel at the time of the contravention shall be guilty of an offence against this Part of this Act. 9 Where a person is convicted of an offence under subsection (8) above, and the court is satisfied that conditions of licences under this section have been persistently disregarded in the case of any vessels to which this Part of this Act applies while he has been concerned in their management (whether as owner, charterer, master or otherwise), the court may make an order directing that a licence under this section need not be granted as of right in respect of a fishing vessel where he is to be concerned in its management. 10 Where, at the date of an order made under subsection (9) above on a person's conviction, he is concerned in the management of any vessels to which this Part of this Act applies, the order may direct that any licences granted under this section before that date in respect of those vessels, or such of those licences as may be specified in the order, shall be void as from the date of the order or such later date or dates as may be so specified (but without prejudice to any application for a new licence); and where a person other than the person convicted is aggrieved by any such direction he shall have the same right to appeal against the direction as the person convicted has to appeal against the whole of his sentence. 11 Where a licence granted under this section ceases to be in force (otherwise than by the expiration of the period for which it was granted), the person having possession of it shall within fourteen days surrender it to the Authority and if he fails to do so shall be liable on summary conviction to a fine not exceeding £25. 12 The provisions of this section shall be in addition to, and not in derogation of, the provisions of any other enactment by or under which any vessels are required to be licensed. 13 References in this section to the owner of a vessel do not apply to the Authority. Inquiries, information, notices, etc. Power of the Authority to hold inquiries 10 1 The Authority may hold such inquiries as they consider necessary or desirable for the discharge of any of their functions. 2 If the Ministers are satisfied that, for the purposes of any inquiry into a particular matter under the powers conferred by this section, it is necessary so to do, the Ministers may by order, specifying the matter to be inquired into, direct that in respect of any meeting of the Authority held for the purpose of inquiring into that matter, being a meeting at which not less than three members of the Authority are present, the Tribunals of Inquiry (Evidence) Act 1921 shall apply to the Authority as if it were a tribunal established in accordance with that Act and as if that Act had been applied to the Authority in the manner provided for by that Act. 3 Notwithstanding subsection (2) above, an order under that subsection shall not have the effect of applying to the Authority section 2(a) of the said Act of 1921 (tribunals to be open to the public unless this is contrary to the public interest), but the Authority may nevertheless refuse to allow the public or any portion of the public to be present at the proceedings of the Authority if and so far as it is, in the opinion of the Authority, necessary so to do for reasons connected with the subject matter of the inquiry or the nature of the evidence to be given. 4 Subsections (2) and (3) above shall apply in relation to any inquiry held on behalf of the Authority by the Scottish Committee with the substitution of references to the committee for the references to the Authority. 5 A draft of any order under this section shall be laid before Parliament. Inquiries held by Ministers 11 1 For the purpose of any inquiry which, in relation to any scheme or to any regulations under this Part of this Act, is held by direction of the Ministers, the person appointed to hold the inquiry may by summons require any person to attend, ait such time and place as is specified in the summons, to give evidence or to produce any documents in his possession or control which relate to any matter in question at the inquiry, and may take evidence on oath, and for that purpose administer oaths, or may, instead of administering an oath, require the person examined to make and subscribe a declaration of the truth of the matter respecting which he is examined; but no person shall be required, in obedience to such a summons, to go more than ten miles from his place of residence, unless the necessary expenses of his attendance are paid or tendered to him. 2 Every person who refuses or wilfully neglects to attend in obedience to a summons issued under this section, or to give evidence, or who wilfully alters, suppresses, conceals, destroys or refuses to produce any book or other document which he may be required to produce for the purpose of this section, shall be liable on summary conviction to a fine not exceeding £50 or to imprisonment for a term not exceeding three months or to both. 3 In the application of this section to Scotland, for any reference to a summons there shall be substituted a reference to an order. General provisions as to keeping of books, furnishing information, etc. 12 1 Any person engaged in the white fish industry shall keep such books and records as may be prescribed, and the Authority may from time to time give to any such person a notice requiring him to produce any such books or records to an officer authorised by the Authority or to furnish to the Authority such returns and other information specified in the notice as the Authority may require for the discharge of their functions. 2 At any time during the currency of a licence granted under this Act the person having possession of it shall, on being required to do so by an officer authorised as aforesaid and on the officer, if so required, showing his certificate, produce the licence to that officer; and any person concerned in the management of a vessel to which this Part of this Act applies in respect of which there is in force a licence so granted — a on being required to do so by such an officer and on the officer, if so required, showing his certificate, shall furnish to the officer the name and address of the person having possession of the licence ; b on being required to do so by a notice given to him by the Authority, shall furnish to the Authority that name and address. 3 If any person required by or under this section, or section 8 or 9 of this Act, or a scheme, to produce or furnish any document or information in his possession or control fails to comply with the requirement, he shall be liable on summary conviction to a fine not exceeding £25 ; and if in furnishing any information for the purposes of any of the sections aforesaid or of a scheme a person knowingly or recklessly makes any statement or representation which is false in a material particular, or if with intent to deceive a person produces or furnishes for the purposes aforesaid any document or information which is false in a material particular, he shall be liable on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding £100 or to both. Powers of entry, etc. 13 1 An officer authorised by the Authority shall, on showing (if so required) his certificate, have a right at all reasonable hours to go on board any vessel to which this Part of this Act applies, being a vessel registered in Great Britain, or enter any premises not used only as a private dwelling-house or any vehicle. — a for the purpose of ascertaining whether there is or has been on, or in connection with, the vessel, premises or vehicle any contravention of regulations under section 6(1) of this Act, or of a scheme, or of the conditions of a licence granted under this Act; and b generally for the purpose of the enforcement of any such regulations, scheme or conditions ; and to carry out an inspection of the vessel, premises or vehicle and to take such samples and carry out such tests as he may reasonably require to do for the purposes aforesaid. 2 If a justice of the peace on sworn information in writing — a is satisfied that there is reasonable ground for entry into any premises for any such purpose as aforesaid; and b is also satisfied either — i that admission to the premises has been refused, or a refusal is apprehended, and that notice of the intention to apply for a warrant has been given to the occupier; or ii that an application for admission, or the giving of such a notice, would defeat the object of the entry, or that the case is one of urgency, or that the premises are unoccupied or the occupier temporarily absent; the justice may by warrant under his hand authorise such an officer as aforesaid to enter the premises, if need be by force, and the warrant shall continue in force for a period of one month. 3 Any officer entering any premises by virtue of this section or of a warrant issued thereunder may take with him such other persons as may be necessary, and on leaving any unoccupied premises which he has entered by virtue of such a warrant shall leave them as effectively secured against trespassers as he found them. 4 Any officer authorised by the Authority may purchase samples of any white fish. 5 Every person who wilfully obstructs any person in the exercise of any powers conferred on him by this section shall be liable on summary conviction to a fine not exceeding £50. 6 If a person exposing any white fish for sale refuses to sell to an officer authorised by the Authority to purchase samples the quantity which he requires as a sample, after the officer has shown his certificate and has tendered the price for that quantity, or if a person having for the time being charge of any white fish refuses to allow an officer authorised by the Authority to take samples to take the quantity which he requires as a sample, after the officer has shown his certificate, then that person shall be deemed for the purposes of subsection (5) above to have wilfully obstructed the officer: Provided that where any white fish is exposed for sale in an unopened container, no person shall be required to sell it except in the unopened container in which it is contained. 7 In the application of this section to Scotland, any reference to a justice of the peace shall include a reference to a sheriff. Restrictions on disclosure of information 14 1 Subject to subsection (2) below, no information with respect to any particular undertaking which has been obtained under or by virtue of this Part of this Act shall, without the consent of the person carrying on that undertaking, be disclosed otherwise than in connection with the execution of this Part of this Act or the execution of any scheme or of any regulations under this Part of this Act. 2 Nothing in subsection (1) above shall apply to any disclosure of information made by the Authority to the Ministers or to the Secretary of State concerned with the sea fishing industry in Wales or to any of them or to any disclosure of information made for the purposes of any proceedings pursuant to this Part of this Act (including arbitrations), or any criminal proceedings, or for the purposes of any report of such proceedings as aforesaid. 3 If any person discloses any information in contravention of this section, he shall be liable on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding £50 or to both, or on conviction on indictment to imprisonment for a term not exceeding two years or to a fine not exceeding £100 or to both. Form and service of notices 15 1 Any notice to be given by the Authority under this Part of this Act, or under any scheme or any regulations under this Part of this Act, shall be in writing. 2 Any notice to be given as aforesaid to any person shall be deemed to have been duly given if it is addressed to him either by name or by a sufficient description of the character in which it is given to him, and is delivered at the proper address, and in the case of a notice to be given to the master of a vessel engaged in catching or processing sea fish or transporting sea fish or the products of sea fish shall be deemed to have been duly given to him if it is given to, or to the agent of, the owner or the charterer (if any) of the vessel together with a written request that it be transmitted to the master. 3 Subsection (2) above shall not be taken to prejudice any other method of giving notice. 4 For the purposes of this section, the proper address of any person to whom a notice is to be given as aforesaid shall be the address furnished by him for the purpose or, if no address has been so furnished, his last known address. Finance White Fish Industry Fund 16 There shall continue to be a fund called the White Fish Industry Fund under the control and management of the Authority, and (except as provided by this Act) all receipts and expenditure of the Authority shall be paid into and out of that fund. Authority's power to impose levies on white fish industry 17 1 The Authority shall have power for the purpose of financing the discharge of their functions. — a to impose a general levy on persons engaged in the white fish industry — i in respect of white fish landed in Great Britain, at a prescribed rate not exceeding 2d. for each stone of white fish so landed ; and ii in respect of white fish products so landed, at a prescribed rate in respect of each stone of the products; b to raise by means of special levies imposed on such persons for the purposes of schemes such additional sums as the schemes authorise. 2 The rate prescribed in relation to any white fish product for the purposes of subsection (1)(a)(ii) above shall not exceed an amount which in the opinion of the Authority would be yielded by a levy of 2d. on each stone of white fish required on average (whether alone or together with any other substance or article) to produce a stone of that product. 3 The Authority may prescribe different rates of general levy for fish of different descriptions and products of different descriptions. 4 The Ministers may by order provide that for references to 2d. in subsections (1) and (2) above there shall be substituted references to such larger sum as may be specified in the order. 5 No order shall be made under subsection (4) above unless a draft thereof has been laid before, and been approved by, both Houses of Parliament. 6 Any levy imposed by the Authority under this section shall be payable by such persons engaged in the white fish industry, in such proportions and at such times as may be prescribed or, in the case of a special levy, as may be provided by a scheme ; and the amount payable by any person on account of any levy so imposed shall be a debt from him to the Authority and recoverable accordingly. 7 For the purposes of subsections (1) and (6) above parts of white fish shall be treated as products of white fish and not as white fish, notwithstanding anything in the definition of white fish in section 59 of this Act. 8 References in subsections (1) and (6) above to persons engaged in the white fish industry shall be construed as including references to persons carrying on in Great Britain the business of buying the products of white fish by wholesale or of importing white fish or their products. Borrowing power of Authority 18 1 The Authority shall have power, subject to and in accordance with regulations made by the Ministers with the approval of the Treasury, for the purpose of financing the discharge of their functions, to borrow up to such amount as the Treasury may approve, so long as the amount outstanding at any time of the sums borrowed under this section and section 15 of the Sea Fish Industry Act 1951 does not exceed £30 million or such greater amount as may be specified by an order for the time being in force under subsection (2) below. 2 The limit on the amount outstanding at any time of the sums borrowed by the Authority under subsection (1) above may be raised from time to time, by an amount not exceeding £5 million at any one time, by an order made by the Ministers with the approval of the Treasury. 3 An order under subsection (2) above shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. Authority's power to charge fees and accept voluntary payments 19 The Authority shall have power for the purpose of financing the discharge of their functions: — a to charge fees for services rendered and such other matters as may be authorised by schemes; and b to accept payments voluntarily made to them by any person for the purpose of promoting all or any of the objects of the Authority. Expenses of the Advisory Council 20 The Authority may make such payments in respect of the expenses of the Advisory Council as the Ministers and the Treasury may approve. Authority's accounts and reports 21 1 The Authority shall keep proper accounts with respect to the White Fish Industry Fund, and shall prepare in respect of each financial year a statement of accounts in such form and giving such information as may be directed by the Ministers with the approval of the Treasury. 2 The accounts shall be audited and the statement certified by persons to be appointed in respect of each financial year by the Ministers, and the auditors shall be furnished by the Authority with copies of the said statement and shall report to the Ministers on the accounts and the said statement. 3 No person shall be qualified to be appointed auditor under this section unless he is a member of one or more of the following bodies: — The Institute of Chartered Accountants in England and Wales; The Institute of Chartered Accountants of Scotland ; The Association of Certified and Corporate Accountants; The Institute of Chartered Accountants in Ireland. 4 As soon as the accounts have been audited, the auditors shall send the Ministers copies of the statement of accounts and their certificate on it, and of their report. 5 As soon as possible after the end of any financial year, the Authority shall also prepare and submit to the Ministers a report of their proceedings in that year. 6 The Ministers shall lay before Parliament copies of the Authority's report for any financial year, together with copies of the statement of accounts and auditors' certificate and of the auditors' report for that year. 7 So long as the Secretary of State concerned with the sea fishing industry in Wales continues to exercise functions under section 22(6) of this Act, the references in this section to the Ministers shall be construed as including a reference to that Secretary of State. Exchequer loans to Authority 22 1 The Ministers may advance to the Authority, on such terms as the Treasury may approve, any sums required to be borrowed by the Authority for a purpose approved by the Ministers and the Treasury, so long as the amount outstanding at any time of the sums advanced under this section and section 17 of the Sea Fish Industry Act 1951 does not exceed £30 million, or such greater sum as may be specified by an order for the time being in force under subsection (3) below; but no such advance — a if it is for the purpose of enabling the Authority to give financial assistance by way of loan, shall be made unless the application for that assistance is approved by the Authority before the end of the year 1972, or b in any other case, shall be made after the end of the year 1972. 2 Subsection (1) above shall not be construed as extending the powers of the Authority to borrow money under section 18 of this Act. 3 The limit on the amount outstanding at any time of the sums advanced to the Authority under subsection (1) above may be raised from time to time, by an amount not exceeding £5 million at any one time, by an order made by the Ministers with the approval of the Treasury. 4 An order under this section shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. 5 Any sums received by the Ministers by way of interest on or repayment of any advances under this section shall, subject to section 24(2) of this Act, be paid into the Consolidated Fund. 6 Where the exercise by the Authority of any of their powers involves the expenditure of money advanced to them by the Ministers under subsection (1) above, the powers shall not be exercised except in accordance with arrangements approved by the Ministers and the Treasury, and, if the arrangements relate to Wales, by the Ministers, the Secretary of State concerned with the sea fishing industry in Wales and the Treasury, and the Authority's statement of accounts for any financial year shall deal specially with the application during that year of any money so advanced. Exchequer grants to Authority 23 1 The Ministers shall have power with the approval of the Treasury given before the end of the year 1972 to make grants to the Authority in respect of any expenditure of the Authority on research or experiment or any expenditure incurred by the Authority in the exercise of the powers conferred on them by section 5(1)(f) of this Act to provide or acquire, equip or operate plants for processing white fish or making ice. 2 The aggregate amount of any grants made under subsection (1) above and any grants made under section 17 of the Sea Fish Industry Act 1951 shall not exceed £2 million, but this limit may be raised from time to time by an amount not exceeding £1 million at any one time by an order made by the Ministers with the approval of the Treasury. 3 An order under this section shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. White Fish Marketing Fund 24 1 There shall continue to be a fund called the White Fish Marketing Fund under the control and management of the Ministers, and so much of any sums to be advanced to the Authority under section 22 of this Act as is required for the undertaking of operations involving the outlay of working capital shall be paid into that fund. 2 Notwithstanding section 22(5) of this Act, any sums received by the Ministers by way of repayment of principal of an advance made (whether before or after the commencement of this Act) out of the White Fish Marketing Fund shall, if received before the end of the year 1972 be paid into that fund ; but the Ministers may at any time repay out of the White Fish Marketing Fund into the Consolidated Fund any sums so paid into the White Fish Marketing Fund. 3 If it is shown to the satisfaction of the Ministers and the Treasury that any sum representing the principal of an advance made (whether before or after the commencement of this Act) out of the White Fish Marketing Fund or part of such an advance cannot be repaid, the Treasury may direct that the liability of the Authority to the Ministers shall be reduced to the extent of that sum. 4 The Minister of Agriculture, Fisheries and Food shall prepare, in such form and manner and at such times as the Treasury may direct, an account of the sums received into and paid out of the White Fish Marketing Fund in each financial year. 5 On or before 30th September in each year, the said account and, in a case where the Treasury have directed under subsection (3) above that the liability of the Authority to the Ministers shall be reduced, a statement of the reasons for that reduction, shall be transmitted to the Comptroller and Auditor-General, who shall examine and certify the account and lay copies thereof, together with his report thereon, before both Houses of Parliament. 6 As soon as may be after the end of the year 1972 the White Fish Marketing Fund shall be wound up in accordance with directions given by the Treasury and any sums then standing to the credit thereof shall be paid into the Consolidated Fund. Financial provision for Authority, etc. 25 There shall be paid out of moneys provided by Parliament — a such remuneration (whether by way of salaries or by way of fees) and such allowances to the members of the Authority or of the Scottish Committee, and such allowances to the members of the Advisory Council, as the Ministers, with the approval of the Minister for the Civil Service, may determine; b such sums as may from time to time be required by the Ministers for making advances or grants under this Part of this Act to the Authority ; c such expenses as may be incurred under this Part of this Act by the Ministers in relation to any inquiry held thereunder by their direction, and such other administrative expenses as may be so incurred by them. Offences Offences against Part I 26 1 A person guilty of an offence against this Part of this Act for which no fine is provided by the foregoing provisions thereof shall, subject to the following provisions of this section, be liable on summary conviction to a fine not exceeding £25 or, if he has been previously convicted of the like offence, to a fine not exceeding £100. 2 Subject to the following provisions of this section, the expression " the like offence " in subsection (1) above — a in relation to an offence under section 6 or section 9 of this Act means any offence under that section; b in relation to a contravention of a scheme, means any contravention of that scheme or of a scheme amended by or amending that scheme or re-enacted by or re-enacting it (with or without modifications). 3 Subject as aforesaid, where a person is convicted of any offence punishable under subsection (1) above, he shall, in addition to the fine mentioned in that subsection, be liable — a if the offence was committed in relation to any white fish, to a fine not exceeding the value of that fish ; and b if the offence was using a vessel in contravention of section 9(1) of this Act, to a fine not exceeding the value of the fish caught or transported by the vessel, or (as the case may be) the value of the products of the fish processed thereon or of the products transported thereby, while the vessel was so used, but if it appears to the court that the person convicted is the owner of the fish the court may instead of imposing a fine under this subsection order the fish to be forfeited. 4 Subject as aforesaid, where an offence against this Part of this Act is continued after a person has been convicted therefor, that person shall be guilty of a further offence and shall be liable on summary conviction to a fine not exceeding the following amount, that is to say, for every day on which the offence is so continued one-fifth of the maximum fine to which he was liable on the earlier conviction (disregarding any additional fine to which he was liable under subsection (3) above. 5 Regulations under section 6(1) of this Act or a scheme may modify subsections (1) to (4) above in relation to offences under any provision of the regulations or scheme — a by reducing the maximum amount of any fine ; b by excluding subsection (3) above ; c by limiting the meaning of the expression " the like offence " in subsection (1) above. 6 Summary proceedings for an offence against this Part of this Act which is alleged to have been committed at sea may be taken before the court having jurisdiction in any place where the person charged may be found. Interpretation Interpretation of Part I 27 1 In this Part of this Act, except in so far as the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say: — " certificate ", in relation to an officer authorised by the Authority to exercise any power conferred by this Act, means any duly authenticated document showing his authority to do so; " contravene " includes fail to comply with and " contravention " has a corresponding meaning; " fish " includes shellfish ; " prescribed " means prescribed by regulations of the Authority; " processing ", in relation to fish, includes preserving or preparing fish, or producing any substance or article wholly or partly from fish, by any method for human or animal consumption; " products ", in relation to fish, means anything produced by processing the fish ; " scheme " means a scheme under section 7 of this Act; " white fish industry " means the white fish industry in Great Britain; and, without prejudice to section 17(8) of this Act, a person shall be deemed to engage in the white fish industry if he carries on the business of operating vessels to which this Part of this Act applies for catching or processing white fish or for transporting white fish or the products of white fish, or if he carries on in Great Britain the business of selling white fish by wholesale or by retail or of processing white fish (including the business of a fish fryer). 2 Any reference in this Part of this Act to a vessel to which this Part of this Act applies is, subject to subsection (3) below, a reference to a vessel which either — a being registered in Great Britain is for the time being employed in the business of catching or processing sea fish or transporting sea fish or the products of sea fish, or b not being registered in Great Britain, is for the time being employed in the business of making voyages for the purpose of catching or processing sea fish, or transporting sea fish or the products of sea fish where (in any such case) it is part of the purpose of the voyage that the fish or the products of the fish are to be landed in Great Britain, whether by the vessel which caught them, or by another vessel. 3 For the purposes of the application of subsection (2) above to any enactment contained in this Part of this Act which relates to the provision, acquisition or equipment of vessels, paragraphs (a) and (b) of that subsection shall apply with the substitution, for the word " registered " , of the words " intended to be registered ", and for the words " is for the time being employed of the words " is to be employed ". Northern Ireland Application of Part I to Northern Ireland 28 1 Subject to subsection (2) below, this Part of this Act shall extend to Northern Ireland. 2 Her Majesty may, by an Order in Council made in pursuance of a resolution of both Houses of the Parliament of Northern Ireland direct — a that this Part of this Act shall cease to extend to Northern Ireland; b that this Part of this Act, in its application to Northern Ireland, shall have effect subject to such exceptions, adaptations and modifications as may be provided for by the Order in Council; and any such Order in Council may be varied or revoked by a subsequent Order in Council made in pursuance of such a resolution as aforesaid. 3 While this Part of this Act extends to Northern Ireland it shall have effect (without prejudice to the validity of anything previously done thereunder at any time when it did not so extend and subject to the terms of any such Order in Council as aforesaid) as if — a any reference to Great Britain were a reference to the United Kingdom; b the reference to summary proceedings in section 26(6) of this Act were a reference, in relation to Northern Ireland, to proceedings under the Summary Jurisdiction Acts; and c in the provisions relating to the Scottish Committee any reference to Scotland included a reference to Northern Ireland; and that committee shall include in addition to the five members provided for by section 2 of this Act a member appointed by the Ministers after consultation with such department of the Government of Northern Ireland as may appear to them to be appropriate. PART II Herring Industry The Board and the Advisory Council Constitution and functions of Herring Industry Board 29 1 There shall continue to be a Herring Industry Board (in this Act referred to as " the Board ") which shall have: — a such functions as may be conferred on it by a scheme under this Part of this Act; b the function of keeping generally under review matters relating to the herring industry, including the conditions of employment of persons employed therein ; and c such other functions as are mentioned in this Act. 2 The Board shall consist of a chairman appointed by the Ministers and the Secretary of State concerned with the sea fishing industry in Wales and such number of other members so appointed as the Ministers and the said Secretary of State may from time to time determine. 3 If it appears to the Board to be practicable and desirable to make provision for the election of members of the Board by persons engaged in the herring industry, the Board shall prepare and submit to the Ministers proposals for the variation of the composition of the Board so as to enable members to be so elected, and thereupon the Ministers shall lay the proposals before Parliament together with a report setting out their views thereon. 4 The provisions of Schedule 4 to this Act shall have effect with respect to the Board and their proceedings. 5 The Ministers may give the Board such directions of a general character as to the exercise and performance by the Board of their functions as appear to the Ministers to be requisite in the national interest, and the Board shall give effect to any such directions. 6 Any directions under subsection (5) above in connection with the Board's functions under section 45 of this Act shall be given by the Secretary of State concerned with the sea fishing industry in Wales as well as by the Ministers, and references to the Ministers in that subsection shall be construed accordingly. The Herring Industry Advisory Council 30 1 For the purpose of giving advice to the Board in the discharge of their functions, there shall continue to be a Herring Industry Advisory Council. 2 The Advisory Council shall consist of a chairman, who shall be such member of the Board as may from time to time be appointed by the Board, and of such other members as may be appointed by the Ministers and the Secretary of State concerned with the sea fishing industry in Wales to represent the interests of the different sections of the herring industry and any such other interests (including those of persons employed in the industry) as the Ministers and the said Secretary of State may consider to be affected. 3 Before appointing to the Council a member to represent any such interests as aforesaid, the Ministers and the said Secretary of State shall consult such bodies, if any, as appear to them to be representative of the interests concerned. 4 The Board shall appoint a person to act as secretary to the Council. 5 The provisions of Schedule 2 to this Act shall have effect with respect to the Advisory Council. Herring Industry Schemes Schemes for reorganisation, development and regulation of the herring industry 31 1 The Ministers may by order make a scheme with a view to effecting or better effecting the reorganisation, development and regulation of the herring industry, and any scheme so made may contain any provisions which the Ministers in their discretion think expedient with a view to effecting or better effecting those purposes. 2 Any such scheme may confer on the Board powers for all or any of the purposes mentioned in Part I of Schedule 5 to this Act, but nothing in the said Part I shall be construed as limiting the provisions that may be contained in any such scheme and in particular as limiting the powers that may be conferred on the Board by any such scheme to purchase herring or to fix prices of herring or products of herring. 3 The provisions of Part II of Schedule 5 to this Act shall have effect with respect to the making of any such scheme. 4 If it appears to the Ministers, after consultation with the Board, that any such scheme ought to be revoked (otherwise than for the purpose of being replaced by a new scheme) they may by order revoke that scheme and provide for the winding up of the Board, but an order shall not be made under this subsection unless a draft thereof has been laid before Parliament and approved by resolution of each House. Consumers' committee and committee of investigation 32 1 The Ministers shall appoint a consumers' committee and a committee of investigation. 2 A consumers' committee shall — a consist of a chairman and of not less than six other members, who shall be such persons as appear to the Ministers, after consultation with the Board of Trade and, as to one member, with the Co-operative Union, to represent the interests of the consumers of herring and their products ; and b be charged with the duty of considering and reporting to the Ministers on — i the effect of any scheme in force under this Part of this Act on consumers of herring and their products; and ii any complaint made to the committee as to the effect of a scheme in force under this Part of this Act on consumers of herring and their products. 3 A committee of investigation shall — a consist of a chairman and four other members, and b be charged with the duty, if the Ministers in any case so direct, of considering and reporting to the Ministers on any report made by a consumers' committee and any complaint made to the Ministers as to the operation of a scheme in force under this Part of this Act which, in the opinion of the Ministers, could not be considered by a consumers' committee under subsection (2) above. 4 For the purpose of enabling a consumers' committee or a committee of investigation to consider any matter which it is their duty to consider, the Board shall furnish the committee with such accounts and other information relating to the affairs of the Board as the committee may reasonably require, and shall be entitled to make representations to the committee with respect to the matter in such manner as may be prescribed by regulations made by the Ministers under subsection (9) below with respect to the procedure of the committee. 5 If a committee of investigation reports to the Ministers that any provision of a scheme in force under this Part of this Act, or any act or omission of the Board, is contrary to the interests of consumers of herring and their products, or is contrary to the interests of any person affected by the scheme, and is not in the public interest, the Ministers shall consider the report with a view to making such amendments in the scheme as they consider necessary or expedient for the purpose of rectifying the matter or to revoking the scheme; and in the event of the matter being one which it is within the power of the Board to rectify, may by order direct the Board to take such steps to rectify the matter as may be specified in the order, and thereupon it shall be the duty of the Board forthwith to comply with the order. 6 In considering for the purpose of this section whether any person represents the interests of consumers of herring and their products or whether any provision of a scheme in force under this Part of this Act or any act or omission of the Board is contrary to the interests of consumers of herring and their products, regard shall be had to the interests of persons who purchase herring and their products for their own consumption or use and not to the interests of persons who purchase herring and their products for the purpose of any trade or industry carried on by them. 7 The Ministers may appoint a secretary to a committee and a committee may employ such officers, agents and servants as the Ministers may, with the approval of the Minister for the Civil Service, determine. 8 The chairman and other members of a committee shall be appointed by the Ministers for such period and subject to such conditions as may be determined by them, and the meetings, quorum and procedure of a committee shall be regulated in accordance with regulations made by the Ministers for the purpose, and a committee shall have power to act notwithstanding any vacancy among the members thereof. 9 Orders and regulations made under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament. 10 In this section " products " has the same meaning as in Part I of this Act. Finance Borrowing power of the Board 33 1 The Board shall have power to borrow, subject to and in accordance with regulations made by the Ministers with the approval of the Treasury, any sums required by them for the purpose of their functions under this Part of this Act or a scheme in force thereunder, so long as the amount outstanding at any time of the principal sums borrowed under this section and section 7 of the Herring Industry Act 1935 does not exceed £4 million or such greater amount as may be specified by an order for the time being in force under subsection (2) below. 2 The limit on the amount outstanding at any time of the sums borrowed by the Board under subsection (1) above may be raised from time to time, by an amount not exceeding £500,000 at any one time, by an order made by the Ministers with the approval of the Treasury. 3 An order under this section shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. Expenses of the Advisory Council 34 The Board may make such payments in respect of the expenses of the Advisory Council as the Ministers and the Treasury may approve, and any such payments shall be deemed to be part of the general administrative expenses of the Board. Exchequer loans to Board 35 1 The Ministers may advance to the Board, on such terms as the Treasury may approve, any sums required to be borrowed by the Board for any purpose approved by the Ministers and the Treasury, so long as the amount outstanding at any time of the sums advanced under this section and section 7(2) of the White Fish and Herring Industries Act 1953 does not exceed £4 million or such greater amount as may be specified by an order for the time being in force under subsection (3) below; but no such advance — a if it is for the purpose of enabling the Board to give financial assistance by way of loan, shall be made unless the application for the assistance is approved by the Board before the end of the year 1972, or b in any other case, shall be made after the end of the year 1972. 2 Subsection (1) above shall not be construed as extending the powers of the Board to borrow money under section 33 of this Act. 3 The limit of the amount outstanding at any time of the sums advanced to the Board under subsection (1) above may be raised from time to time, by an amount not exceeding £500,000 at any one time, by an order made by the Ministers with the approval of the Treasury. 4 An order under this section shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. 5 Any sums received by the Ministers by way of interest on or repayment of any advances under this section shall, subject to section 37(2) of this Act, be paid into the Consolidated Fund. Exchequer grants to Board 36 1 The Ministers shall have power with the approval of the Treasury given before the end of the year 1972 to make grants to the Board in respect of any expenses incurred by the Board after 3rd August 1944 (being the date of the passing of the Herring Industry Act 1944) in the exercise of any powers exercisable by the Board — a for promoting the sale of herring or herring products, b for promoting market development, c for promoting schemes for the revival of winter fisheries, d for purchasing vessels and equipment for the purpose of being chartered or hired, e for promoting or carrying out schemes of research or experiment, or f for converting herring to oil and other products. 2 The aggregate amount of any grants made under subsection (1) above and any grants made under section 3 of the Herring Industry Act 1944 and section 5 of the White Fish and Herring Industries Act 1948 shall not exceed £4 million, but this limit may be raised from time to time, by an amount not exceeding £500,000 at any one time, by an order made by the Ministers with the approval of the Treasury. 3 An order under this section shall be of no effect unless it is approved by a resolution of the Commons House of Parliament. Herring Marketing Fund 37 1 There shall continue to be a fund called the Herring Marketing Fund under the control and management of the Ministers, and so much of any sums to be advanced to the Board under section 35 of this Act as is required for the making of loans in connection with export or for the undertaking of operations involving the outlay of working capital shall be paid into that fund. 2 Notwithstanding anything in section 35 of this Act, any sums received by the Ministers by way of repayment of the principal of sums advanced to the Board (whether before or after the commencement of this Act) out of the Herring Marketing Fund shall, if received before the end of the year 1972 be paid into that fund ; but the Ministers may at any time repay out of the Herring Marketing Fund into the Consolidated Fund any sums so paid into the Herring Marketing Fund. 3 If it is shown to the satisfaction of the Ministers and the Treasury that any sum representing the principal of an advance made (whether before or after the commencement of this Act) out of the Herring Marketing Fund or part of such an advance cannot be repaid, the Treasury may direct that the liability of the Board to the Ministers shall be reduced to the extent of that sum. 4 The Secretary of State concerned with the sea fishing industry in Scotland shall prepare, in such form and manner and at such times as the Treasury may direct, an account of the sums received into and paid out of the Herring Marketing Fund in each financial year. 5 On or before 30th September in each year, the said account and, in a case where the Treasury have directed under subsection (3) above that the liability of the Board to the Ministers shall be reduced, a statement of the reasons for that reduction, shall be transmitted to the Comptroller and Auditor-General, who shall examine and certify the account and lay copies thereof together with his report thereon, before both Houses of Parliament. 6 As soon as may be after the end of the year 1972 the Herring Marketing Fund shall be wound up in accordance with directions given by the Treasury and any sums then standing to the credit thereof shall be paid into the Consolidated Fund. Board's accounts and reports 38 1 A scheme under this Part of this Act shall provide — a for the establishment of a Fund, the payment into the Fund of all moneys received by the Board and the payment thereout of all their disbursements; b for the keeping by the Board of proper accounts, the audit of the accounts by an auditor approved by the Ministers and the submission of the audited accounts in every year by the Board to the Ministers together with the report of the Board's proceedings made under subsection (5) below ; and c for the submission to the Ministers of such audited statements as they may from time to time require with respect to the application of advances under section 7 of the White Fish and Herring Industries Act 1953 or section 35 of this Act. 2 The audit of the Board's accounts as aforesaid shall be carried out in accordance with such directions as may be given by the Ministers. 3 The said statements shall be transmitted to the Comptroller and Auditor-General, who shall lay copies thereof before both Houses of Parliament together with the report and accounts mentioned in section 37(5) of this Act. 4 No person shall be qualified to be appointed auditor unless he is a member of one or more of the following bodies: — The Institute of Chartered Accountants in England and Wales; The Institute of Chartered Accountants of Scotland; The Association of Certified and Corporate Accountants. 5 The Board shall also, not later than the expiration of three months from the last day of each financial year of the Board, make a report to the Ministers on the proceedings of the Board during that year, and the Ministers shall lay every such report before Parliament; but no information with respect to any individual business (other than a business carried on by or on behalf of the Board) shall, without the consent of the owner of that business, be included in any report so laid. Financial provision for Board, etc. 39 There shall be paid out of moneys provided by Parliament — a to the members of the Board such salaries and allowances as the Ministers, with the approval of the Minister for the Civil Service, may determine; b to the members of the Advisory Council such allowances as the Ministers, with the approval of the Minister for the Civil Service, may determine ; c to the members, officers and servants of the consumers' committee and the committee of investigation such remuneration (whether by way of salaries or by way of fees) as the Ministers, with the approval of the Minister for the Civil Service, may determine; d the amount necessary to defray such expenses of the said committees as the Ministers and the Treasury may approve; e such sums as may from time to time be required by the Ministers for making advances or grants under this Part of this Act to the Board. Legal proceedings and offences Recovery of levy 40 Any contribution leviable by virtue of a scheme in force under this Part of this Act shall be recoverable as a debt by and from the persons by and from whom the contribution is made leviable by virtue of the scheme. Offences against schemes 41 1 Any person who contravenes or fails to comply with any provision of, or having effect under, a scheme under this Part of this Act, not being a provision for the levying of contributions, shall, if the scheme provides that a contravention of, or a failure to comply with that provision is to be deemed to be an offence, be liable on summary conviction, in the case of a first offence to a fine not exceeding £5 and, in the case of a second or subsequent offence, to a fine not exceeding £20, and, in either case, to forfeit any herring or herring products in relation to which the offence is committed, or to an additional fine not exceeding the value thereof. 2 In Scotland the court by which a fine is imposed for an offence under this Part of this Act may, if the court thinks fit, having regard to the prejudicial effect which the commission of the offence has had, or is likely to have, on the operation of a scheme in force under this Part of this Act, direct that the whole or any part of the fine be paid to the Board. 3 Subsections (1) and (2) above shall have effect in addition to and not in derogation of any provision which may be made by a scheme for the enforcement, otherwise than by way of fine, forfeiture of goods or money or imprisonment, of any provision of, or having effect under, a scheme in force under this Part of this Act, not being a provision for the levying of contributions. Publication or disclosure of information 42 Any person who publishes or discloses any information obtained by him in the exercise of any power conferred by or under this Part of this Act, otherwise than for the purpose of the proper discharge of a duty in that behalf or to the Minister of Agriculture, Fisheries and Food or the Secretary of State, shall be liable — a on conviction on indictment, to imprisonment for a term not exceeding two years or a fine not exceeding £100, or to both; b on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding £50 or to both. Northern Ireland Application of Part II to Northern Ireland 43 1 This Part of this Act shall, for the purposes of section 6 of the Government of Ireland Act 1920, be deemed to be an Act passed before the appointed day. 2 Such sums paid out of the Exchequer of the United Kingdom in connection with the execution of this Part of this Act as may be determined by the Joint Exchequer Board to be properly payable by the Government of Northern Ireland shall be made good by means of deductions from the Northern Ireland residuary share of reserved taxes. PART III Grants and subsidies Grants towards new vessels, engines, etc. Grants by the White Fish Authority 44 1 The Authority may, in accordance with a scheme made by the Ministers with the approval of the Treasury after consultation with the Authority, make to persons engaged or proposing to become engaged in the white fish industry in Great Britain grants in respect of expenditure incurred — a in the acquisition of any vessel to which this section applies; b in the acquisition, installation, modification, renewal or replacement of any part of a vessel to which this section applies, or of an engine, or any part of an engine, of or for such a vessel, or of any relevant equipment required for, or installed or used on, such a vessel, of such amounts and subject to such conditions as may be determined by or under the scheme; but no such grant shall be made in respect of expenditure incurred in the acquisition of any secondhand vessel, or in the acquisition or installation of any secondhand engine, part, equipment or apparatus. 2 For the purposes of this section a person shall be deemed to be engaged in the white fish industry in Great Britain if he carries on the business of operating one or more vessels registered in Great Britain in carrying on any of the activities specified in subsection (3) below. 3 This section applies to any vessel registered or intended to be registered in Great Britain, being a vessel engaged or to be engaged in catching or processing white fish or transporting white fish or the products of white fish. 4 In relation to a vessel to which this section applies " relevant equipment" means equipment or apparatus of any description constructed or adapted for the purposes of the particular activities by virtue of which the vessel is one to which this section applies; and equipment constructed or adapted for the purpose of transferring white fish from one vessel to another shall be treated as equipment constructed or adapted for the purposes of those activities. Grants by the Herring Industry Board 45 1 The Board may, in accordance with a scheme made by the Ministers with the approval of the Treasury after consultation with the Board, make to persons engaged or proposing to become engaged in the herring industry in Great Britain grants in respect of expenditure incurred — a in the acquisition of any vessel to which this section applies; b in the acquisition, installation, modification, renewal or replacement of any part of a vessel to which this section applies, or of an engine, or any part of an engine, of or for such a vessel, or of any relevant equipment required for, or installed or used on, such a vessel, of such amounts and subject to such conditions as may be determined by or under the scheme; but no such grant shall be made in respect of expenditure incurred in the acquisition of any secondhand vessel, or in the acquisition or installation of any secondhand engine, part, equipment or apparatus. 2 For the purposes of this section a person shall be deemed to be engaged in the herring industry in Great Britain if he carries on the business of operating one or more vessels registered in Great Britain in carrying on any of the activities specified in subsection (3) below. 3 This section applies to any vessel registered or intended to be registered in Great Britain, being a vessel engaged or to be engaged in catching or processing herring or transporting herring or the products of herring. 4 In relation to a vessel to which this section applies " relevant equipment" means equipment or apparatus of any description constructed or adapted for the purposes of the particular activities by virtue of which the vessel is one to which this section applies; and equipment constructed or adapted for the purpose of transferring herring from one vessel to another shall be treated as equipment constructed or adapted for the purposes of those activities. Grants where expenditure shared 46 Where any expenditure in respect of which a grant may be made in pursuance of a scheme under section 44 or 45 of this Act is shared by two or more persons, the amount of the grant which may be so made to any one of those persons shall not exceed such fraction of the grant which could be made to him if he had incurred the whole of that expenditure as is proportionate to his actual share of that expenditure. Financial provision 47 Any sums required by the Authority or the Board for the payment of grants under this Part of this Act shall be paid out of moneys provided by Parliament, and any sums received by the Authority or the Board by way of refund of any such grants in accordance with conditions attached thereto shall be paid into the Consolidated Fund. Accounts 48 1 The Authority and the Board shall respectively keep such accounts with respect to grants made by them under section 44 or 45 of this Act as may be directed by the Ministers with the approval of the Treasury, and shall prepare in respect of each financial year a statement of the accounts in such form and giving such information as may be so directed. 2 The said accounts for each financial year shall be audited (in accordance with a scheme of audit approved by the Ministers), and the statements certified, by the persons appointed in respect of that year to audit the other accounts of the Authority or the Board, as the case may be ; and the auditors shall be furnished by the Authority and the Board with copies of their respective statements. 3 The auditors shall in each case furnish the Ministers with copies of the said statement of accounts together with their report thereon, and the copies and the report shall be sent by the Ministers to the Comptroller and Auditor-General not later than 30th September following the end of the financial year to which the accounts relate. 4 The Comptroller and Auditor-General shall examine the said statements of accounts and the reports sent to him under subsection (3) above and may inspect the accounts kept by the Authority or the Board with respect to grants made by them under section 44 or 45 of this Act, and shall certify each statement and lay a copy of it together with his report thereon before Parliament. White fish and herring subsidies General provisions as to white fish and herring subsidies 49 1 With a view to promoting the landing in the United Kingdom of a continuous and plentiful supply of white fish and herring and white fish products and herring products, the appropriate Minister may, in accordance with a scheme made by the Ministers with the approval of the Treasury, make to the owners or charterers of vessels registered in the United Kingdom, being vessels engaged in catching white fish or herring, or in processing or transporting white fish or herring caught by vessels registered in the United Kingdom or the products of any such white fish or herring, grants of such amounts, and subject to such conditions, as may be determined by or under the scheme. 2 The trans-shipment of white fish and herring and their respective products in a port in the United Kingdom or within the exclusive fishery limits shall be treated for the purposes of subsection (1) above as the landing of white fish and herring and their respective products in the United Kingdom. 3 Subject to the provisions of this section, a scheme made thereunder may provide for the payment of grants in the case of any vessel in respect of one or of a combination of all or any of the following: — a white fish or herring or white fish products or herring products landed from the vessel in the United Kingdom, or trans-shipped from the vessel in a port in the United Kingdom or within the exclusive fishery limits, or b voyages made by the vessel for any one or more of the following purposes, that is to say — i catching white fish or herring; ii processing white fish or herring, being fish caught wholly or mainly by the vessel in question, or by other vessels registered in the United Kingdom, or by the vessel in question and by other vessels so registered; iii transporting such fish as are mentioned in sub-paragraph (ii) above, or the products of such fish, where (in any such case) it is part of the purpose that the fish or the products of the fish are to be landed in the United Kingdom, whether by the vessel which caught them or by another vessel, or are to be transshipped in a port in the United Kingdom or within the exclusive fishery limits by the vessel which caught them or by another vessel, or c any such other matter as may be specified in the scheme. 4 No grant shall be made in pursuance of a scheme under this section unless an application therefor is received by the appropriate Minister before 1st January 1974. 5 Any expenses incurred by the appropriate Minister in the making of grants under this section shall be defrayed out of moneys provided by Parliament. 6 In this section " the appropriate Minister " — a in relation to England and Northern Ireland, means the Minister of Agriculture, Fisheries and Food ; b in relation to Scotland, means the Secretary of State concerned with the sea fishing industry in Scotland ; c in relation to Wales, means — i for the purpose of the actual making of any payment under this section, the Minister of Agriculture, Fisheries and Food, and ii for all the other purposes of this section, the said Minister and the Secretary of State concerned with the sea fishing industry in Wales acting jointly. 7 References in this section to white fish do not include shellfish and references to the exclusive fishery limits do not include waters within the fishery limits of the British Islands which are adjacent to -the Isle of Man or any of the Channel Islands. Offences in connection with subsidies 50 Any person who — a in furnishing any information in purported compliance with a requirement imposed by a scheme under section 49 of this Act or under section 5 of the White Fish and Herring Industries Act 1953 (white fish subsidy) or section 3 of the White Fish and Herring Industries Act 1957 (herring subsidy) makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular; b for the purpose of obtaining for himself or any other person any sum payable under such a scheme makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular; c in purported compliance with a requirement imposed by such a scheme produces a document which he knows to be false in a material particular or recklessly produces a document which is false in a material particular; or d wilfully refuses to supply any information, make any return or produce any document when required to do so by or under any such scheme, shall be liable, on summary conviction, to a fine not exceeding £400. Reimbursement of Isle of Man herring subsidies 51 1 This section applies to any grant made (whether before or after the commencement of this Act) by the Government of the Isle of Man to the owners or charterers of vessels registered in the United Kingdom, in respect of herring or herring products landed in the Isle of Man or trans-shipped in a port in the Isle of Man or within the exclusive fishery limits of the Isle of Man, or in respect of voyages made by the vessel in question for any one or more of the following purposes, that is to say — a catching herring; b processing herring caught wholly or mainly by the vessel in question, or by other vessels registered in the United Kingdom, or by the vessel in question and by other vessels so registered ; c transporting such herring as are mentioned in paragraph (b) above or the products of such herring, where (in any such case) it was part of the purpose that the herring or the products of the herring were to be landed in the Isle of Man, whether by the vessel which caught them or by another vessel, or were to be trans-shipped in a port in the Isle of Man or within the exclusive fishery limits of the Isle of Man by the vessel which caught them or by another vessel. 2 Subject to subsection (3) below, the Minister of Agriculture, Fisheries and Food and the Secretary of State concerned with the sea fishing industry in Scotland or either of them may repay to the Government of the Isle of Man out of moneys provided by Parliament the amount of any grant to which this section applies. 3 Where any such grant (in this subsection referred to as "the Isle of Man grant") has been made in respect of any herring or herring products landed in the Isle of Man, or in respect of any voyage made for a purpose specified in subsection (1) above. — a no repayment shall be made under this section unless a grant to the owners or charterers of the vessel could have been made in pursuance of a scheme under section 49 of this Act or section 3 of the White Fish and Herring Industries Act 1957 (herring subsidy), in force at the time of the Isle of Man grant, if the herring or herring products in question had been landed in the United Kingdom, or, as the case may be, the voyage had been made for the corresponding purpose specified in section 49(3) of this Act or section 3(2) of that Act as the case may be, and b the amount of the repayment shall not exceed the amount of the grant which could in those circumstances have been made in pursuance of that scheme. 4 In this section any reference to the Government of the Isle of Man includes a reference to any department or agency of that Government. 5 In this section " exclusive fishery limits of the Isle of Man " means waters within the exclusive fishery limits of the British Islands which are adjacent to the Isle of Man. Miscellaneous Schemes 52 1 A scheme under this part of this Act shall not be so varied or revoked under section 57 of this Act as to reduce or prevent the payment of a grant in pursuance of an application approved under the scheme before the coming into operation of the subsequent scheme. 2 A scheme under this Part of this Act shall be of no effect until it is approved by a resolution of each House of Parliament. Interpretation of Part III 53 In this Part of this Act — " the Ministers " includes the Secretary of State concerned with the sea fishing industry in Wales, but does not include the Secretary of State concerned with the sea fishing industry in Northern Ireland ; and " processing " and " products " have the same meanings as in Part I of this Act. Application of Part III to Northern Ireland 54 Sections 44 to 48 and 51 of this Act do not extend to Northern Ireland. PART IV General Directions for purposes of levy 55 The Ministers may direct that a substance or article which is capable of being produced wholly or partly from either white fish or herring or both shall be treated for the purposes of sections 17 and 31 of this Act and any instrument made under or by virtue of either of them as being wholly or partly produced from one of those descriptions of fish, and may also give directions with respect to the collection of sums payable by way of levy or contribution in respect of that substance or article in pursuance of any such instrument and the application of sums so paid in any manner specified in the directions, whether or not the application of those sums in that manner is authorised by the relevant provision or instrument. Offences by bodies corporate 56 Where an offence under this Act which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he as well as the body corporate shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Ministers' orders etc. 57 1 Any power of any Minister or Ministers to make orders, schemes or regulations (other than regulations under section 18(1) of this Act) under this Act shall be exercisable by statutory instrument. 2 Subject to section 52(1) of this Act and to subsection (3) below any power conferred by this Act to make an order or scheme includes power to vary or revoke the order or scheme by a subsequent order or scheme, as the case may be. 3 Subsection (2) above shall not apply to an order revoking a scheme under section 7(5) or section 31(4) of this Act or to an order under section 10(2) of this Act. The Ministers 58 1 In this Act the expression " the Ministers " means, subject to section 53 of this Act and to subsection (2) below, the Minister of Agriculture, Fisheries and Food, the Secretary of State concerned with the sea fishing industry in Scotland and the Secretary of State concerned with the sea fishing industry in Northern Ireland. 2 In Part I and section 55 of this Act the expression " the Ministers " does not include the Secretary of State concerned with the sea fishing industry in Northern Ireland at any time when Part I of this Act does not extend to Northern Ireland. White fish 59 1 In this Act the expression " white fish " means, subject to sections 17(7) and 49(7) of this Act, fish (whether fresh or preserved) of any kind found in the sea except herring, salmon and migratory trout, and also includes shellfish, and references to white fish shall be construed as including references to parts of white fish. 2 In subsection (1) above, " salmon" means any of the salmon species and " migratory trout" means any species of trout which migrates to and from the sea. General interpretation provisions 60 1 In this Act references to Wales include Monmouthshire. 2 Any reference in this Act to any enactment is a reference to it as amended by or under any other enactment. Repeals, savings etc. 61 1 The enactments specified in Parts I and II of Schedule 6 to this Act (of which those specified in Part II of that Schedule are obsolete enactments relating to herring) are hereby repealed to the extent specified in the third column of those Parts of that Schedule, and the Order specified in Part III of that Schedule is hereby revoked to the extent specified in the third column of that Part of that Schedule. 2 In so far as any instrument made or other thing whatsoever done under any enactment repealed and re-enacted by this Act could have been made or done under the corresponding enactment in this Act, it shall not be invalidated by the repeal of that enactment but shall have effect as if made or done under the corresponding enactment. 3 Where any Act or any document refers, either expressly or by implication, to an enactment repealed and re-enacted by this Act, the reference shall except where the context otherwise requires, be construed as referring, or as including a reference, to the corresponding enactment in this Act. 4 Nothing in the foregoing provisions of this section shall be taken as prejudicing the operation of section 38 of the Interpretation Act 1889 (which relates to the effect of repeals). Citation and commencement 62 1 This Act may be cited as the Sea Fish Industry Act 1970. 2 This Act shall, subject to subsection (3) below, come into force on the expiration of a period of two months beginning with the date on which it is passed. 3 The repeals by this Act of paragraph (b) and in paragraph (c) of the definition of " the Ministers " in section 33(2) of the Sea Fish Industry Act 1962 shall come into force upon the day appointed for the repeal of section 18 of that Act under section 23(2) of the Sea Fisheries Act 1968. SCHEDULES SCHEDULE 1 The White Fish Authority and the Scottish Committee Sections 1 and 2. PART I The White Fish Authority Constitution of the Authority 1 The Authority shall be a body corporate, with a common seal. 2 Every member of the Authority shall hold and vacate office in accordance with the terms of the instrument under which he is appointed ; but a person shall not hold office as a member of the Authority for more than five years under any one appointment. 3 Any member of the Authority may resign his office by a notice given under his hand to the Ministers and the Secretary of State concerned with the sea fishing industry in Wales. 4 A member of the Authority who ceases to hold office shall be eligible for reappointment. 5 It shall be the duty of the Ministers and the said Secretary of State to satisfy themselves, with respect to any person whom they propose to appoint to be a member of the Authority, that that person will have no such financial or commercial interest as is likely to affect him in the discharge of his functions as such a member, and also to satisfy themselves from time to time, with respect to any person who is a member of the Authority, that he has no such interest as aforesaid ; and any such person shall, whenever requested by the Ministers and the said Secretary of State so to do, furnish to them such information as they consider necessary for the performance of their duty under this paragraph. Meetings and Proceedings of the Authority 6 Unless and until the Authority otherwise determine, three shall be a quorum at any meeting of the Authority. 7 The Authority shall have power to act notwithstanding a vacancy among the members thereof. 8 If at any meeting of the Authority the votes are equally divided on any question, the person acting as chairman of the meeting shall have a second or casting vote. 9 All acts done at any meeting of the Authority shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment or qualifications of a person purporting to be a member of the Authority, be as valid as if that defect had not existed. 10 Minutes shall be kept of the proceedings of the Authority, and any such minutes shall, if signed by a person purporting to have acted as chairman of the meeting to which the minutes relate, or of a meeting at which they were read, be evidence of the proceedings at the first-mentioned meeting, and a meeting to which any such minutes relate shall, unless the contrary is proved, be deemed to have been regularly convened and constituted. 11 1 If a member of the Authority has any pecuniary interest, direct or indirect, in any contract or proposed contract or other matter, and is present at a meeting of the Authority at which the contract or other matter is the subject of consideration, he shall at the meeting, as soon as practicable after the commencement thereof, disclose the fact, and shall not take part in the consideration or discussion of, or vote on any question with respect to, the contract or other matter. 2 A general notice given in writing by a member of the Authority to the officer designated by them for the purpose to the effect that he is a member or in the employment of a specified company or other body, or that he is a partner or in the employment of a specified person, shall, unless and until the notice is withdrawn, be deemed to be a sufficient disclosure of his interest in any contract, proposed contract or other matter relating to that company or other body or to that person, which may be the subject of consideration after the date of the notice. 3 Any disclosure made under sub-paragraph (1) above shall be recorded in the minutes of the meeting at which it is made ; and any notice given under sub-paragraph (2) above shall be recorded in a book to be kept for the purpose. 12 Subject to paragraphs 1 to 11 of this Schedule, the Authority shall have power to regulate its own procedure. Incidental Duties and Powers of the Authority 13 The Authority shall have an office at which communications and notices will at all times be received, and shall notify to the Ministers and to the Secretary of State concerned with the sea fishing industry in Wales the address of that office and any change of that address. 14 The Authority may enter into such agreements, acquire such property, and do such things (including the employment from time to time of technical and professional agents), as may, in the opinion of the Authority, be necessary or desirable for the exercise or performance of any of their powers or duties and may dispose, as they think fit, of any property acquired by them. 15 The Authority may with the approval of the Minister for the Civil Service make arrangements for providing pensions to or in respect of any of their officers or servants, and any such arrangements may include the establishment and administration, by the Authority or otherwise, of a pension scheme with or without a pension fund, and may provide for receipts and expenses of the Authority attributable to their establishment and administration of a pension scheme being dealt with under the scheme instead of being paid into and out of the White Fish Industry Fund. Application of Seal 16 The application of the common seal of the Authority to any document shall be attested by at least one member of the Authority and by the person for the time being acting as secretary to the Authority. Instruments executed or issued by the Authority 17 Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not require to be under seal, may be entered into or executed on behalf of the Authority by any person generally or specially authorised by them for that purpose. 18 Any document purporting to be a document duly executed or issued under the seal of the Authority or on behalf of the Authority shall, until the contrary is proved, be deemed to be a document so executed or issued, as the case may be. PART II The Scottish Committee Constitution etc. and Expenses of the Scottish Committee 19 Paragraphs 2 to 12 of this Schedule shall apply in relation to the Scottish Committee with the substitution of references to the committee for references to the Authority and with the omission from paragraph 3 of the words " and the Secretary of State concerned with the sea fishing industry in Wales " and from paragraph 5 of the words " and the said Secretary of State " in both places where they occur. 20 The Scottish Committee may for the purpose of giving advice to the Authority incur on the Authority's behalf such expenses as may be generally or specially authorised by the Authority, and any such expenses, as well as expenses incurred by the committee in exercising any of the Authority's functions, shall be deemed for the purposes of this Act to be expenses of the Authority. The Scottish Seal 21 In addition to the common seal above referred to, the Authority shall have a seal (hereafter in this Schedule referred to as." the Scottish seal") for use in any case where a document is to be sealed on their behalf by the Scottish Committee. 22 Paragraph 16 of this Schedule shall not apply to the Scottish seal, and the application of the Scottish seal to any document shall be attested by at least one member of the Scottish Committee and by the person for the time being acting as secretary to the committee. SCHEDULE 2 The Advisory Councils Sections 3 and 30. 1 Every member of a Council other than the Chairman shall hold and vacate office in accordance with the terms of the instrument under which he is appointed ; but, notwithstanding anything in such an instrument, any such member of a Council may resign his office by a written notice given under his hand to the Ministers and the Secretary of State concerned with the sea fishing industry in Wales, and a member of a Council who ceases to hold office shall be eligible for reappointment. 2 Unless and until a Council otherwise determines, the quorum of that Council shall be such number as may be fixed by the Ministers. 3 A Council shall have power to act notwithstanding any vacancy among the members thereof. 4 Subject to any directions which may be given by the Ministers, a Council shall have power to regulate its own procedure. SCHEDULE 3 Authority's Regulations and Schemes (Preliminary Procedure) Sections 6 and 7. 1 At least twenty-eight days before making any regulations or submitting any scheme the Authority shall cause to be published in the London Gazette and the Edinburgh Gazette (and, while Part I of this Act extends to Northern Ireland, the Belfast Gazette) and in such other manner as they think best adapted for informing persons affected, a notice of the Authority's intention to do so — a specifying the place where the draft regulations or scheme may be inspected and copies thereof obtained, and the price (being a price approved by the Ministers) at which such copies will be supplied; and b stating that the Authority are prepared to receive and consider any objection to the proposed regulations or scheme which may be made to the Authority in writing within such period after the date of the publication of the notice, not being less than twenty-eight days, as may be specified in the notice ; and the Authority shall, before making the regulations or submitting the scheme, take into consideration any such objection so made to them before the end of the period specified in that behalf in the said notice. 2 When submitting any regulations or scheme to the Ministers, the Authority shall transmit to them any objection thereto which has been duly made to the Authority and has not been withdrawn, and the Ministers shall consider any objections so transmitted to them. 3 The order confirming any regulations or scheme shall set out the regulations or scheme ; but before making any such order or, in the case of a scheme, before laying a draft of the order before Parliament, the Ministers may, after holding such inquiries (if any) as they think fit, make such modifications in the regulations or scheme as they may, after consultation with the Authority, consider desirable: Provided that, if the Ministers decide to make any such modifications, they shall cause notice of the proposed modifications to be published in such manner as they think best adapted for informing persons affected. SCHEDULE 4 The Herring Industry Board Section 29. 1 The Board shall be a body corporate with a common seal. 2 Every member of the Board shall hold and vacate office in accordance with the terms of the instrument under which he is appointed. 3 A member of the Board may resign his office by notice in writing signed by him and given to the Secretary of State concerned with the sea fishing industry in Scotland or to the Secretary of State concerned with the sea fishing industry in Northern Ireland or to the Minister of Agriculture, Fisheries and Food and the Secretary of State concerned with the sea fishing industry in Wales, and his office shall become vacant at the expiration of seven days from the date of receipt of the notice. 4 A member of the Board, on vacating his office on the expiration or termination of the term thereof, shall be eligible for re-appointment. 5 It shall be the duty of the Ministers and the said Secretary of State to satisfy themselves with respect to any person whom they propose to appoint to be a member of the Board that that person will have no such financial or commercial interest as to be likely to affect him in the discharge of his functions as a member of the Board, and also to satisfy themselves from time to time, with respect to any person so appointed, that he has no such interest as aforesaid ; and any such person shall, whenever requested by the Ministers and the said Secretary of State so to do, furnish to them such information as they consider necessary for the performance of their duty under this paragraph. 6 If a member of the Board — a is detained for more than seven days in any place under any enactment in force in the United Kingdom relating to persons of unsound mind ; b becomes bankrupt or enters into a composition or arrangement with his creditors; c is convicted of a contravention of section 42 of this Act; or d is absent from six consecutive meetings of the Board except for some reason appearing to the Board to be sufficient excuse ; the Board shall forthwith declare his office to be vacant and his office shall become vacant on the date of the declaration. 7 The Ministers and the said Secretary of State may remove a member of the Board from his office for inability to perform his duties or for misbehaviour, and the office of a member so removed shall become vacant on such date as the Ministers and the said Secretary of State may direct. 8 The Board may act notwithstanding that the office of any member is vacant. 9 The Board may pay to the members of the Board such salaries, and may pay such of their travelling and other expenses, as the Board, with the concurrence of the Ministers and of the Minister for the Civil Service, may determine. 10 Subject to the provisions of this Schedule, the procedure and quorum of the Board shall be such as the Board may from time to time determine. 11 The Board may appoint such secretaries and other officers and such servants, and may pay to them such salaries and allowances as the Board may determine. 12 If the Board represent to the Ministers that any of the provisions of this Schedule ought to be varied, the Ministers may make an order for the variation thereof in accordance with the representation, save that an order shall not be made for the variation of paragraph 1, 2 or 5 of this Schedule, nor shall any order be made for the variation of paragraph 9 or 11 of this Schedule except with the concurrence of the Treasury. 13 An order under paragraph 12 above shall be subject to annulment in pursuance of a resolution of either House of Parliament. SCHEDULE 5 Herring Industry Schemes Section 31. PART I Particular Purposes for which a Herring Industry Scheme may Confer Powers on the Board 1 The promotion of sales and market development and the promotion and carrying out of schemes of research and experiment. 2 The making of loans for the provision, reconditioning and equipment of vessels. 3 The making of loans to any society or organisation formed for the purpose of acquiring nets and gear, fuel for vessels or other requisites for herring fishing, or requisites for the curing, kippering or processing of herring, and of selling or hiring any such requisites to the members of the society or organisation. 4 The making of loans in connection with export. 5 The purchase and disposal of redundant vessels. 6 The purchase of vessels and equipment for the purpose of being chartered or hired to persons desiring to engage in the herring industry, including in particular persons who have previously been engaged in that industry and persons who have served whole-time in the armed forces of the Crown or the mercantile marine. 7 The sale of any such vessels and equipment or shares therein to persons to whom they have previously been chartered or hired. 8 The disposal of any vessels and equipment or shares therein no longer required for the purpose of being chartered, hired or sold as aforesaid. 9 The giving of assistance for the revival of winter fisheries. 10 The limitation of the number, and control of the operations, of vessels, curers, salesmen, kipperers, processers, exporters and persons dealing wholesale in fresh herring at ports, by means of a licensing system having effect subject to any provisions which may be made by the scheme as respects any of those matters for exemption, compensation (including any such compensation as may be decided upon by the Board for regular members of the crews of efficient and redundant vessels) arbitration and appeal. 11 The regulation, by means of rules, of the manner and conditions in and subject to which sales may be conducted, of the charges by way of commission to be made by salesmen and exporters, of standards of curing, kippering and processing and of methods of packing and transport. 12 The prohibition, in accordance with rules and subject to any exemption for which provision may be made by the rules, of the sale, or the consignment, offer or exposure for sale, or the export, of herring of any description or quality defined in the rules, unless such designation, mark or other means for indicating that the herring are of the said description or quality as may be prescribed by the rules is used in relation to the herring, in such manner as may be so prescribed, and the prohibition, except in relation to herring of such description or quality as may be so defined, of the use, in any manner or circumstances specified in the rules, of such designation, mark or other means as may be so prescribed for indicating that such herring are of that description or quality. The rules shall be of no effect if and so far as they are inconsistent with any regulations made with regard to fishery produce under section 1 (power to prescribe grade designations) or 2 (power to prescribe grade designation marks) of the Agricultural Produce (Grading and Marking) Act 1928. 13 The regulation, by means of prohibitions or restrictions having effect for a limited period either generally or in particular cases, of fishing, curing, kippering and other processes, dealing wholesale in fresh herring at ports, sales and shipments, and the fixing of prices, with a view to meeting temporary or seasonal conditions detrimental to the industry. 14 The prohibition or restriction of the export of herring which do not comply with such standards of quality as may be prescribed by rules. 15 The purchase and sale as agents and, in special cases, as principals, of herring or herring products including — a in connection with the regulation of sales with a view to meeting temporary or seasonal conditions detrimental to the industry, the imposition on holders of stocks of cured herring of a duty to place them at the disposal of the Board with a view to the sale for export thereof by the Board as agents, and b in connection with sales for export of cured herring by the Board as principals, the compulsory purchase by the Board of cured herring and the imposition on persons having supplies of fresh herring of a duty to sell them to curers for the purpose of the purchase by the Board, and the fixing of prices in connection with the matters referred to in sub-paragraphs (a) and (b) above. In this paragraph " cured herring" means herring which have been pickled in salt or brine or in both and which have not been subjected to any process of smoking. 16 The making of arrangements for the refrigeration and processing, whether by persons engaged in the industry or by the Board, of such proportion of herring catches as the Board consider expedient with a view to providing supplies of herring of good quality throughout the year and meeting temporary and seasonal conditions detrimental to the industry. 17 The regulation, by means of rules, of the conditions subject to which herring may be refrigerated and the standard of quality of the herring before and after refrigeration. 18 The disposal of surplus herring by conversion into oil and other products. 19 The undertaking of arrangements for shipment for export. 20 The levying of contributions from persons engaged in the industry and from purchasers of herring or herring products wholesale and importers of herring or herring products. In this paragraph " products " has the same meaning as in Part I of this Act. 21 The charging of fees in respect of licences. 22 The levying of contributions, in respect of any port or area, out of the proceeds of first sales of fresh herring, and the making of payments to herring fishermen in that port or area in order to obviate so far as possible undue differences in their earnings. A scheme conferring power to levy any such contributions or make any such payments — a shall provide that those powers shall not be exercisable in respect of any port or area unless it appears to the Board that there exists among herring fishermen in that port or area a prevailing opinion in favour of the exercise of those powers; and b shall secure so far as practicable that the contributions levied in respect of any port or area are sufficient to meet payments due to herring fishermen in that port or area under the scheme and, if at any time the contributions are insufficient to meet those payments, the scheme shall require the Board to make such adjustments in the rate of contributions or payments as may be necessary to make good the deficiency. In this paragraph " first sales of fresh herring" means the first completed sales wholesale after the herring have been caught. 23 The entry on vessels and premises and the inspection thereof and of things found thereon. 24 The imposition on persons engaged in the industry of obligations to keep records and accounts and to furnish information. 25 The delegation of functions to committees and to other persons. PART II Preliminary Procedure 1 Before making a scheme the Ministers shall, after consultation with the Board and the Treasury, prepare a draft scheme and shall cause to be published, in the London Gazette and in the Edinburgh Gazette and in the Belfast Gazette, and in such other manner as they think best for informing persons affected, notice of their intention to make the scheme, specifying — a the place where copies of the draft scheme may be inspected and purchased ; and b the time (which shall be not less than twenty-eight days from the date on which the notice is first published) within which objections to the draft scheme should be made. 2 Every objection must be sent to one or other of the Ministers in writing and must state the grounds of objection, and the Ministers, before laying the draft scheme before Parliament, shall consider any objection duly made with respect to it and make such modifications (if any) in it as they think fit after consultation with the Board and the Treasury. 3 The Ministers shall not make a scheme unless a draft of the scheme has been laid before Parliament and approved by resolution of each House. SCHEDULE 6 Repeals and Revocation Section 61. PART I Miscellaneous Repeals Chapter Short Title Extent of Repeal 25 & 26 Geo. 5. c. 9 . The Herring Industry Act 1935. The whole Act except sub-paragraph (ii) of the proviso to section 3(gg) and section 11. 1 & 2 Geo. 6. c. 42 . The Herring Industry Act 1938. The whole Act. 7 & 8 Geo. 6. c. 32 . The Herring Industry Act 1944. The whole Act. 11 & 12 Geo. 6. c. 51 . The White Fish and Herring Industries Act 1948. The whole Act. 14 & 15 Geo. 6. c. 30 . The Sea Fish Industry Act 1951. Part I. Sections 24 and 28. Schedules 1 to 3. 1 & 2 Eliz. 2. c. 17 . The White Fish and Herring Industries Act 1953. The whole Act. 5 & 6 Eliz. 2. c. 22 . The White Fish and Herring Industries Act 1957. The whole Act. 8 Eliz. 2. c. 7 . The Sea Fish Industry Act 1959. The whole Act. 10 & 11 Eliz. 2. c. 31 . The Sea Fish Industry Act 1962. Section 1. Sections 3 to 9. Sections 29 and 30. Section 32. In section 33(1), the definitions of " fishery harbour ", " processing ", " products" and " white fish ". In section 33(2), the definition of " the appropriate Minister", paragraphs (a) and (b) of the definition of " the Ministers", and in paragraph (c) the words " in section seventeen of this Act." Section 33(4) and (5). Sections 34 and 35. Section 37(1), except paragraph (c). Section 37(2). Schedules 2 and 3. 1968 c. 77 . The Sea Fisheries Act 1968. Sections 1 to 4. In section 18(2) the words " except section 4(4) ". In section 19, the definition of " products ". Section 22(3) and (4). Schedule 1, Part I. PART II Repeals of Obsolete Enactments Relating to Herring Chapter Short Title Extent of Repeal 48 Geo. 3. c. 110 . The Herring Fishery (Scotland) Act 1808. In section 48, the words from " also for sorting the herrings taken " to " branded according to the true intent and meaning thereof ". In section 50, the words from the beginning to " or any mark or character in imitation thereof; or " and the words from " and every barrel or cask " to the end. 11 Geo. 4 & 1 Will. 4 c. 54 . The Fisheries (Scotland) Act 1830. The whole Act. 14 & 15 Vict. c. 26 . The Herring Fishery Act 1851. Section 2. 23 & 24 Vict. c. 92 . The Herring Fisheries (Scotland) Act 1860. In section 3, the words " and the branding of barrels containing the same ". 24 & 25 Vict. c. 72 . The White Herring Fishery (Scotland) Act 1861. In section 7, the words " and the branding of barrels containing the same ". 45 & 46 Vict. c. 78 . The Fishery Board (Scotland) Act 1882. In Schedule 1, the entries relating to the Fisheries Act 1824, the Fisheries (Scotland) Act 1830, the Herring Fisheries (Scotland) Act 1858, the Herring Fisheries (Scotland) Act 1865 and an Act of 37 & 38 Vict. (c. 25) to remove restrictions contained in the British White Herring Fishery Acts in regard to the use of fir wood for herring barrels. 48 & 49 Vict. c. 70 . The Sea Fisheries (Scotland) Amendment Act 1885. Section 9. 8 Edw. 7 c. 17 . The Cran Measures Act 1908. In section 6, the words " and the Branding of Herrings (Northumberland) Act, 1891" and the words from " and in any area " to the end. Section 7. 3 & 4 Geo. 5 c. 9 . The Herring Fishery (Branding) Act 1913. The whole Act. 22 & 23 Geo. 5. c. 11 . The Northern Ireland (Miscellaneous Provisions) Act 1932. Section 8. 25 & 26 Geo. 5. c. 9 . The Herring Industry Act 1935. In section 3, sub-paragraph (ii) of the proviso to paragraph igg). Section 11. PART III Order Revoked Reference Title Extent of revocation S.I. 1969/388 . The Transfer of Functions (Wales) Order 1969. In paragraph 1 of Schedule 2, sub-paragraphs (b) and (e). In paragraph 5 of Schedule 2, sub-paragraphs (h), (l) and (p)

The Isles of Scilly (Civic Amenities) Order 1970 The Minister of Housing and Local Government, after consultation with the Council of the Isles of Scilly, in exercise of his powers under section 29 of the Civic Amenities Act 1967 and of all other powers enabling him in that behalf, hereby makes the following order — 1 This order may be cited as the Isles of Scilly (Civic Amenities) Order 1970. 2 This order shall come into operation on 1st March 1970. 3 The Interpretation Act 1889 applies to the interpretation of this order as it applies to the interpretation of an Act of Parliament. 4 The Civic Amenities Act 1967, other than Part III, shall apply to the Isles of Scilly, with the modifications set out in the Schedule to this order, as if the Isles were a separate county. Given under the official seal of the Minister of Housing and Local Government on 17th February 1970. P.D. Coates Under Secretary Ministry of Housing and Local Government SCHEDULE For “the commencement of this Act” , wherever occurring, there shall be substituted “the coming into operation of the Isles of Scilly (Civic Amenities) Order 1970” . In section 30(1), for the definitions of “local authority” , “local planning authority” and “owner” there shall be substituted — “ local authority ” and “ local planning authority ” include the Council of the Isles of Scilly ; “ owner ” has the same meaning as that expression has for the purposes of the Planning Act ; Section 32(2) shall be omitted.

Local Employment Act 1970 PART I Intermediate Areas and Derelict Land Clearance Areas Intermediate areas and functions exercisable in relation thereto 1 1 Where the Minister of Technology (in this Act referred to as " the Minister ") is of opinion, with respect to a locality in Great Britain, that special measures are necessary for the purpose of encouraging the growth and proper distribution of industry therein, but that the economic problems thereof are not so acute that all the powers conferred by Part I of the Local Employment Act 1960 and by the Industrial Development Act 1966 in relation to development areas need be available for use in relation to the locality in order that that purpose may be achieved, he may specify it by order as an intermediate area. 2 Subject to subsection (3) of this section, the functions under Part I of the Local Employment Act 1960 of the Minister, the Secretary of State, the Minister in charge of a Government department, the Board of Trade and the Industrial Estates Corporations (except the power of the Minister under section 4 of that Act to make loans or grants to undertakings in development areas) and the functions under Part II of the Industrial Development Act 1966 of the Minister, the Minister of Housing and Local Government, the Secretary of State and the Industrial Estates Corporations shall be exercisable in relation to intermediate areas, former intermediate areas, and land therein, as they are exercisable in relation to development areas, former development areas, and land therein. 3 No grant shall be made, by virtue of this section, under section 3 of the Local Employment Act 1960 (building grants), towards the expenditure incurred in providing a building or extension in an intermediate area, in a case where any work on providing that building or extension, being work undertaken by or on behalf of the applicant, was done on the site before 25th June 1969; nor, where any work on providing a building or extension intended for occupation by an undertaking was so done, shall a grant be so made under that section in respect of a purchase of that building or extension for occupation by that undertaking. 4 In the application, by virtue of this section, of Part I of the Local Employment Act 1960 and Part II of the Industrial Development Act 1966 to intermediate areas, former intermediate areas, and land therein, for the fallowing references to a development area, that is to say, those in sections 1(1), 2, 3(1), 6(1), 7(1) and 14(2) of the first-mentioned Act and in sections 17(1), 19(4), 20(1) and 21(4) of the last-mentioned Act and the first reference in section 15(7) of the last-mentioned Act, there shall be substituted references to an intermediate area. 5 Where the Minister by order specifies, under subsection (1) above, as an intermediate area a locality that immediately before the order was made was a development area in which, by virtue of section 15(6) of the Industrial Development Act 1966, another locality fell to be treated as being included for the purposes of the provisions of the Local Employment Act 1960 and Part II of the first-mentioned Act, that other locality shall be treated for the purposes of those provisions as being included in the specified area. 6 In section 1(1) of the Local Employment Act 1960 and sections 15(7) and 21(4) of the Industrial Development Act 1966, as those provisions apply, by virtue of this section, to intermediate areas or former intermediate areas, references to section 4 of the first-mentioned Act (power of the Minister to make loans or grants to undertakings in development areas) and to assistance under that section shall be omitted. Derelict land clearance areas 2 1 Where the Minister is of opinion, with respect to a locality in Great Britain, that the economic situation in the locality is such that the exercise, in relation to land therein, of the powers conferred by section 20 of the Industrial Development Act 1966 (power of the Minister to acquire derelict land in a development area, and other land, and carry out works thereon, and power of the Minister of Housing and Local Government and of the Secretary of State to make grants to councils towards cost of acquiring and improving derelict land, &c.) would be particularly appropriate with a view to contributing to the development of industry in the locality, he may specify it by order as a derelict land clearance area, and that section shall have effect in relation to land in a derelict land clearance area as it has effect in relation to land in a development area. 2 The reference in section 14(2) of the Local Employment Act 1960 to land acquired by the Board of Trade or the Minister under Part I of that Act shall not, by virtue of section 31(2) of the Industrial Development Act 1966 (Part II of the Industrial Development Act 1966 to be construed as one with Part I of the Local Employment Act 1960) be construed as including a reference to land acquired by the Minister under section 20 of the Industrial Development Act 1966 by virtue of this section, but where land so acquired by virtue of this section is situated in a locality which is not a derelict land clearance area the Minister shall have power, so long as he owns the land, to carry out thereon such work as appears to him expedient for the purpose of enabling so much of the land as appears to him to be derelict, neglected or unsightly to be brought into use or of improving its appearance, with a view to contributing to the development of industry in the locality in which it is situated. 3 Where at any time a locality ceases to be a derelict land clearance area, the fact that it is no longer such an area shall not prejudice — a the completion by the Minister of works begun before that time in the locality under section 20 of the Industrial Development Act 1966, or the exercise by the Minister in relation to land in that locality of his powers under that section so far as may be necessary for the purpose of fulfilling any agreement entered into by the Minister before that time; b the making of a grant under that section in any case in which an application for the grant was received by the Minister of Housing and Local Government or the Secretary of State before that time ; or c the continued operation of any agreement relating to any such grant. Provisions as to orders under sections 1 and 2 3 1 Section 15(4) of the Industrial Development Act 1966 (description of a development area by reference to employment exchange areas) shall apply to an order under section 1 of this Act specifying a locality as an intermediate area or under section 2 of this Act specifying a locality as a derelict land clearance area as it applies to an order under section 15(2) of the Industrial Development Act 1966 specifying an area as a development area. 2 The powers conferred by sections 1 and 2 of this Act to make orders shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and the power conferred by each of those sections shall be construed as including power to vary or revoke an order made thereunder by a subsequent order. Grants towards costs incurred in connection with certain improvement work on derelict land begun before the commencement of this Act 4 1 Where, in the case of land in an intermediate area or a derelict land clearance area. — a the council of the county, county borough or county district in which the land is situated have carried out work on the land for the purpose of enabling it to be brought into use or of improving its appearance; and b it appears to the Minister of Housing and Local Government that, before the work was begun, the land was derelict, neglected or unsightly; and c it appears to the Minister that bringing the land into use or improving its appearance has contributed or is likely to contribute to the development of industry in the area; then, provided that the work was begun on the land after 24th April 1969 and before the commencement of this Act, the Minister of Housing and Local Government may, with the consent of the Treasury, make, out of moneys provided by Parliament, grants to the council — i towards any cost incurred by the council in acquiring the land, and any other land acquired by the council for the purpose of enabling the first-mentioned land to be brought into use or of improving its appearance; ii towards the cost of the carrying out by the council for that purpose of any work on the first-mentioned land or on any other land. 2 In this section "land " includes land covered with water. 3 In the application of this section to land in Scotland or in Wales or Monmouthshire, for any reference to the Minister of Housing and Local Government there shall be substituted a reference to the Secretary of State; and, in the application of this section to land in Scotland, for any reference to the council of the county, county borough or county district in which the land is situated there shall be substituted a reference to any local authority, as defined for the purposes of the Local Government (Scotland) Act 1947, within whose area the land is situated. Minor and consequential amendments of enactments 5 The enactments mentioned in column 1 of the Schedule to this Act shall have effect subject to the amendments respectively specified in relation thereto in column 2 thereof (being minor amendments or amendments consequential on this Part of this Act). Expenses and receipts 6 Expenses incurred under section 2(2) of this Act by the Minister, and expenses which, by virtue of this Part of this Act, are incurred under any other enactment by a Government department shall be defrayed out of moneys provided by Parliament, and sums which, by virtue of this Part of this Act, are received under any other enactment by a Government department shall be paid into the Consolidated Fund of the United Kingdom. PART II Withdrawal of Part of Selective Employment Premium in Development Areas Withdrawal of part of selective employment premium in development areas 7 1 The additions specified in paragraphs (a) to (d) of subsection (1) of section 1 (selective employment premium) of the Selective Employment Payments Act 1966 shall not be paid in respect of persons in respect of the contribution week beginning on 6th April 1970 or any subsequent contribution week, nor shall those additions be taken into account in determining under section 3 of that Act an amount to be paid to a public body in respect of persons employed by that body in respect of any such week as aforesaid; and, accordingly, — a in subsection (1) of the first-mentioned section, the words from " plus " onwards shall cease to have effect, except as respects contribution weeks beginning before 6th April 1970; b in subsection (2)(a) of the last-mentioned section, for the words from " the appropriate additions " to " this Act" there shall, as respects the contribution week beginning on 6th April 1970 and subsequent contribution weeks, be substituted the words " the appropriate increases for the time being specified in paragraphs (a) to (d) of subsection (1) or in subsection (2) of section 26 of the Finance Act 1967 "; and c except as respects contribution weeks beginning before 6th April 1970, subsection (3) of section 26 of the Finance Act 1967 shall cease to have effect, and in subsection (5)(b) of that section references to that section shall be construed as including references to section 3(2)(a) of the Selective Employment Payments Act 1966. 2 In this section " contribution week " has the same meaning as it has for the purposes of the National Insurance Act 1965. PART III Supplementary Interpretation 8 1 In this Act — " derelict land clearance area " means a locality for the time being specified as such under section 2 of this Act; " development area " means an area for the time being specified as such under section 15 of the Industrial Development Act 1966, and " former development area" means an area which was at one time so specified but is no longer at the time when a question arises as to the exercise, in relation to the area or land therein, of a function under Part I of the Local Employment Act 1960 or Part II of the Industrial Development Act 1966; and " intermediate area " means a locality for the time being specified as such under section 1 of this Act, and " former intermediate area " has the like meaning in relation to " intermediate area " as " former development area " has in relation to " development area ". 2 Except where the context otherwise requires, a reference in this Act to any other enactment shall be construed as referring to that enactment as amended, and as including a reference thereto as applied, by any other enactment (including an enactment contained in this Act). Short title, citation, commencement, repeal and extent 9 1 This Act may be cited as the Local Employment Act 1970. 2 Part I of this Act may be cited together with the Local Employment Acts 1960 to 1966 as the Local Employment Acts 1960 to 1970. 3 This Act shall come into force on the expiration of the period of seven days beginning with the day on which it is passed. 4 Section 26(2) of the Local Employment Act 1960 shall cease to have effect. 5 This Act does not extend to Northern Ireland. SCHEDULE Minor and consequential Amendments of Enactments Section 5. Enactment amended and Subject-matter thereof Amendment Section 60 of the Landlord and Tenant Act 1954 (special provisions as to premises provided under Distribution of Industry Acts). In subsection (1) for the words from the beginning to " said Acts " there shall be substituted the words " Where the property comprised in a tenancy consists of premises of which the Minister of Technology or an Industrial Estates Corporation is the landlord, being premises situated in a locality which is either — a development area or a locality treated, by virtue of section 15(6) of the Industrial Development Act 1966, as included in a development area; or an intermediate area or a locality treated, by virtue of section 1(5) of the Local Employment Act 1970, as included in an intermediate area; and the Minister of Technology certifies that it is necessary or expedient for achieving the purposes for which the powers conferred by Part I of the Local Employment Act 1960 are exercisable under section 1(1) of that Act"; in subsection (2), for the words " premises provided" there shall be substituted the words " any such premises ", and for the words " the Board of Trade certify " there shall be substituted the words " the Minister of Technology certifies " ; and the following subsection shall be added after subsection (2): — 3 In this section, ' development area ' means an area for the time being specified as such under section 15 of the Industrial Development Act 1966, and' intermediate area' means a locality for the time being specified as such under section 1 of the Local Employment Act 1970 . Section 7 of the Local Employment Act 1960 (power of Minister in charge of a Government department to give financial assistance for improvement of basic services). The section shall have effect in relation to a basic service within the meaning of the section for which the Board of Trade are responsible with the substitution, for references to the Minister in charge of any Government department and to the department of which he is in charge, of references to the Board of Trade. Section 9(7)(a) of the Local Employment Act 1960 (power of Industrial Estates Corporation to act as agent for the Minister or another Corporation). The reference to functions under that Act of the Minister shall be construed as including a reference to functions of his under Part II of the Industrial Development Act 1966. Section 23 of the Local Employment Act 1960 (annual report of the Minister). The reference to the Minister's functions under the Act shall be construed as including a reference to his functions under Part II of the Industrial Development Act 1966 and under this Act. Section 15(7) of the Industrial Development Act 1966 (considerations to be taken into account by the Minister in exercising his powers under certain provisions of the Local Employment Act 1960). In paragraph (b), for the words from " that development area " onwards there shall be substituted the words " that area and in any other area which is either a development area or a locality for the time being specified under section 1 of the Local Employment Act 1970 as an intermediate area or treated, by virtue of subsection (5) of that section, as included in an intermediate area ".

Fiji Independence Act 1970 Fully responsible status of Fiji 1 1 On and after 10th October 1970 (in this Act referred to as " the appointed day ") Her Majesty's Government in the United Kingdom shall have no responsibility for the government of Fiji. 2 No Act of the Parliament of the United Kingdom passed on or after the appointed day shall extend, or be deemed to extend, to Fiji as part of its law; and on and after that day the provisions of Schedule 1 to this Act shall have effect with respect to the legislative powers of Fiji. Consequential modifications of British Nationality Acts 2 1 On and after the appointed day the British Nationality Acts 1948 to 1965 shall have effect as if in section 1(3) of the British Nationality Act 1948 (Commonwealth countries having separate citizenship) there were added at the end the words " and Fiji ". 2 Except as provided by section 3 of this Act, any person who immediately before the appointed day is a citizen of the United Kingdom and Colonies shall on that day cease to be such a citizen if he becomes on that day a citizen of Fiji. 3 Section 6(2) of the British Nationality Act 1948 (registration as citizens of the United Kingdom and Colonies of women who have been married to such citizens) shall not apply to a woman by virtue of her marriage to a person who on the appointed day ceases to be such a citizen under subsection (2) of this section , or who would have done so if living on the appointed day. 4 In accordance with section 3(3) of the West Indies Act 1967, it is hereby declared that this and the next following section extend to all associated states. Retention of citizenship of United Kingdom and Colonies by certain citizens of Fiji 3 1 Subject to subsection (5) of this section, a person shall not cease to be a citizen of the United Kingdom and Colonies under section 2(2) of this Act if he, his father or his father's father — a was born in the United Kingdom or in a colony or an associated state; or b is or was a person naturalised in the United Kingdom and Colonies; or c was registered as a citizen of the United Kingdom and Colonies; or d became a British subject by reason of the annexation of any territory included in a colony. 2 A person shall not cease to be a citizen of the United Kingdom and Colonies under the said section 2(2) if either — a he was born in a protectorate or protected state, or b his father or his father's father was so born and is or at any time was a British subject. 3 A woman who is the wife of a citizen of the United Kingdom and Colonies shall not cease to be such a citizen under the said section 2(2) unless her husband does so. 4 Subject to subsection (5) of this section, the reference in subsection (1)(b) of this section to a person naturalised in the United Kingdom and Colonies shall include a person who would, if living immediately before the commencement of the British Nationality Act 1948, have become a person naturalised in the United Kingdom and Colonies by virtue of section 32(6) of that Act (persons given local naturalisation in a colony or protectorate before the commencement of that Act). 5 In this section — a references to a colony shall be construed as not including any territory which, on the appointed day, is not a colony for the purposes of the British Nationality Act 1948 as that Act has effect on that day, and accordingly do not include Fiji, and b references to a protectorate or protected state shall be construed as not including any territory which, on the appointed day, is not a protectorate or a protected state (as the case may be) for the purposes of that Act as it has effect on that day; and subsection (1) of this section shall not apply to a person by virtue of any certificate of naturalisation granted or registration effected by the Governor or Government of a territory which by virtue of this subsection is excluded from references in this section to a colony, protectorate or protected state. 6 Part III of the British Nationality Act 1948 (supplemental provisions) as in force at the passing of this Act shall have effect for the purposes of this section as if this section were included in that Act. Consequential modification of other enactments 4 1 Notwithstanding anything in the Interpretation Act 1889, the expression " colony " in any Act of the Parliament of the United Kingdom passed on or after the appointed day shall not include Fiji. 2 On and after the appointed day — a the expression " colony " in the Army Act 1955, the Air Force Act 1955 and the Naval Discipline Act 1957 shall not include Fiji, and b in the definitions of " Commonwealth force " in section 225(1) and 223(1) respectively of the said Acts of 1955, and in the definition of " Commonwealth country " in section 135(1) of the said Act of 1957, at the end there shall be added the words " or Fiji "; and no Order in Council made on or after the appointed day under section 1 of the Armed Forces Act 1966 which continues either of the said Acts of 1955 in force for a further period shall extend to Fiji as part of its law. 3 On and after the appointed day the provisions specified in Schedule 2 to this Act shall have effect subject to the amendments specified respectively in that Schedule. 4 Subsection (3) of this section, and Schedule 2 to this Act, shall not extend to Fiji as part of its law. Interpretation 5 1 In this Act, and in any amendment made by this Act in any other enactment, " Fiji" means the territories which immediately before the appointed day constitute the Colony of Fiji. 2 References in this Act to any enactment are references to that enactment as amended or extended by or under any other enactment. Short title 6 This Act may be cited as the Fiji Independence Act 1970. SCHEDULES SCHEDULE 1 Legislative Powers of Fiji Section 1. 1 The Colonial Laws Validity Act 1865 shall not apply to any law made on or after the appointed day by the legislature of Fiji. 2 No law and no provision of any law made on or after the appointed day by that legislature shall be void or inoperative on the ground that it is repugnant to the law of England, or to the provisions of any Act of the Parliament of the United Kingdom, including this Act, or to any order, rule or regulation made under any such Act, and accordingly the powers of that legislature shall include the power to repeal or amend any such Act, order, rule or regulation in so far as it is part of the law of Fiji. 3 The legislature of Fiji shall have full power to make laws having extra-territorial operation. 4 Without prejudice to the generality of the preceding provisions of this Schedule — a sections 735 and 736 of the Merchant Shipping Act 1894 shall be construed as if references therein to the legislature of a British possession did not include references to the legislature of Fiji; and b section 4 of the Colonial Courts of Admiralty Act 1890 (which requires certain laws to be reserved for the signification of Her Majesty's pleasure or to contain a suspending clause) and so much of section 7 of that Act as requires the approval of Her Majesty in Council to any rules of court for regulating the practice and procedure of a Colonial Court of Admiralty shall cease to have effect in Fiji. SCHEDULE 2 Amendments not Affecting the Law of Fiji Section 4. Diplomatic immunities 1 In section 1(6) of the Diplomatic Immunities (Commonwealth Countries and Republic of Ireland) Act 1952, before the word " and " in the last place where it occurs there shall be inserted the word " Fiji ". 2 In section 1(5) of the Diplomatic Immunities (Conferences with Commonwealth Countries and Republic of Ireland) Act 1961, before the word " and " in the last place where it occurs there shall be inserted the word " Fiji ". Financial 3 In section 2(4) of the Import Duties Act 1958, before the words " together with " there shall be inserted the word " Fiji ". Visiting forces 4 In the Visiting Forces (British Commonwealth) Act 1933, section 4 (attachment and mutual powers of command) shall apply in relation to forces raised in Fiji as it applies to forces raised in Dominions within the meaning of the Statute of Westminster 1931. 5 In the Visiting Forces Act 1952 — a in paragraph (a) of section 1(1) (countries to which that Act applies) at the end there shall be added the words " Fiji or "; b in section 10(1)(a), the expression " colony " shall not include Fiji; and, until express provision with respect to Fiji is made by an Order in Council under section 8 of that Act (application to visiting forces of law relating to home forces), any such Order for the time being in force shall be deemed to apply to visiting forces of Fiji. Ships and aircraft 6 In section 427(2) of the Merchant Shipping Act 1894, as set out in section 2 of the Merchant Shipping (Safety Convention) Act 1949, before the words " or in any " there shall be inserted the words " or Fiji ". 7 The Ships and Aircraft (Transfer Restriction) Act 1939 shall not apply to any ship by reason only of its being registered in, or licensed under the law of, Fiji; and the penal provisions of that Act shall not apply to persons in Fiji (but without prejudice to the operation with respect to any ship to which that Act does apply of" the provisions thereof relating to the forfeiture of ships). 8 In the Whaling Industry (Regulation) Act 1934, the expression " British ship to which this Act applies " shall not include a British ship registered in Fiji. 9 In section 2(7)(b) of the Civil Aviation (Licensing) Act 1960, the expression " colony" shall not include Fiji. Commonwealth Institute 10 In section 8(2) of the Imperial Institute Act 1925, as amended by the Commonwealth Institute Act 1958 (power to vary the provisions of the said Act of 1925 if an agreement for the purpose is made with the governments of certain territories which for the time being are contributing towards the expenses of the Commonwealth Institute) at the end there shall be added the words " and Fiji ".

The European Commission and Court of Human Rights (Immunities and Privileges) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before Parliament in accordance with section 10 of the International Organisations Act 1968 (hereinafter referred to as the Act) and has been approved by a resolution of each House of Parliament: Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 5 of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — PART I GENERAL Citation and Entry into Force 1 1 This Order may be cited as the European Commission and Court of Human Rights (Immunities and Privileges) Order 1970. 2 Parts I and II of this Order shall come into operation on the date when the Fourth Protocol to the General Agreement on Privileges and Immunities of the Council of Europe opened for signature in Paris on 16th December 1961 enters into force with respect to the United Kingdom, and Part III of this Order shall come into operation on the date when the European Agreement relating to Persons participating in Proceedings of the European Commission and Court of Human Rights opened for signature in London on 6th May 1969 enters into force with respect to the United Kingdom. These dates shall be notified in the London, Edinburgh and Belfast Gazettes. Interpretation 2 1 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 2 In this Order — “ the Convention ” means the Convention for the Protection of Human Rights and Fundamental Freedoms signed at Rome on 4th November 1950 ; “ the Commission ” means the European Commission of Human Rights established by Article 19 of the Convention or any Sub-Commission, member or members of the Commission carrying out their duties under the terms of the Convention or rules of the Commission; “ the Committee of Ministers ” means the Committee of Ministers of the Council of Europe when exercising its functions under Article 32 of the Convention; “ the Court ” means the European Court of Human Rights established by Article 19 of the Convention or any Chamber, judge or judges of the Court carrying out their duties under the terms of the Convention or the rules of the Court; “ judges of the Court ” means judges elected under Article 39 or appointed under Article 43 of the Convention; “ persons participating in proceedings ” means — agents of States parties to the European Agreement relating to Persons participating in Proceedings of the European Commission and Court of Human Rights opened for signature in Paris on 6th May 1969, and advisers and advocates assisting them; persons taking part in proceedings instituted before the Commission under Article 25 of the Convention, whether in their own name or as representatives of one of the applicants enumerated in the said Article 25; barristers, solicitors or professors of law, taking part in proceedings in order to assist one of the persons referred to in subparagraph (b) of this paragraph; persons chosen by the delegates of the Commission to assist them in proceedings before the Court; witnesses, experts and other persons called upon by the Commission or the Court to take part in proceedings before the Commission or the Court; any person mentioned in sub-paragraph (a) to (e) of this paragraph who is called upon to appear before or to submit written statements to the Committee of Ministers; “ tribunal to which this Order applies ” means the Commission, the Court or the Committee of Ministers. 3 For the purposes of this Order any petition, complaint or other communication which, with a view to action to be taken by or before a tribunal to which this Order applies, — a is made to the tribunal, or b is made to a person through whom, in accordance with the constitution, rules or practice of the tribunal, such a communication can be received by the tribunal, shall be deemed to be proceedings before the tribunal, and the person making any such communication shall be deemed to be a party to such proceedings. PART II THE COURT 3 The judges of the Court, the Registrar of the Court and the Deputy Registrar of the Court shall have inviolability in respect of their documents and papers in so far as they relate to the business of the Court. 4 Except in so far as in any particular case any privilege or immunity is waived by the Court sitting in plenary session, judges of the Court, the Registrar of the Court and, when he is acting as the Registrar, the Deputy Registrar of the Court shall enjoy: — a in respect of words spoken or written and all acts done or omitted to be done by them in their official capacity, the like immunity from suit and legal process as is accorded to the head of a diplomatic mission; b while exercising their functions and during journeys made in the exercise of their functions, the like immunity from personal arrest or detention as is accorded to the head of a diplomatic mission; c while exercising their functions and during journeys made in the exercise of their functions, the like exemptions and privileges in respect of their personal baggage as in accordance with Article 36 in Schedule 1 to the Diplomatic Privileges Act 1964 are accorded to a diplomatic agent; provided that the provisions of paragraph (c) of this Article shall not apply to any person who is a citizen of the United Kingdom and Colonies, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948. PART III PERSONS PARTICIPATING IN PROCEEDINGS 5 Except in so far as in any particular case any immunity is waived by the tribunal, persons participating in proceedings shall have: — a in respect of words spoken or written and documents or other evidence submitted by them before or to a tribunal to which this Order applies (but not where such words, documents or evidence or any part thereof are communicated by them or on their behalf outside the tribunal), the like immunity from suit and legal process as is accorded to the head of a diplomatic mission; b while passing in transit through the United Kingdom during their journeys to and from the proceedings or while in the United Kingdom for the purpose of such proceedings there, immunity from criminal proceedings and, except for the purpose of detaining a person who has escaped from legal custody, from personal arrest in respect of acts or convictions prior to the commencement of the journey, provided that their presence at the proceedings has been authorised in advance by the tribunal and that fifteen days have not elapsed from the date when their presence is no longer required by the tribunal. W.G. Agnew

The Civil Evidence Act 1968 (Commencement No. 3) Order 1970 The Lord Chancellor, in exercise of the powers conferred on him by section 20(4) of the Civil Evidence Act 1968, hereby makes the following order: — 1 This order may be cited as the Civil Evidence Act 1968 (Commencement No.3) Order 1970. 2 Part I and section 20(2) of the Civil Evidence Act 1968 shall come into force on 16th February 1970 for the purposes of civil proceedings (other than proceedings in bankruptcy) in a county court or the Mayor's and City of London Court. Gardiner, C Dated 9th January 1970

The Consular Relations (Privileges and Immunities) (Kingdom of Sweden) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) : Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Kingdom of Sweden) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer of the Kingdom of Sweden of which the Kingdom of Sweden or any person acting on its behalf is the owner or lessee. 4 A consular bag exchanged between a career consular officer of the Kingdom of Sweden in the United Kingdom and the Government, a diplomatic mission or another consular post of the Kingdom of Sweden shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964. W. G. Agnew

The Consular Relations (Merchant Shipping and Civil Aviation) (Socialist Republic of Romania) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by section 4 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping and Civil Aviation) (Socialist Republic of Romania) Order 1970 and shall come into operation on a date to be notified in the London, Edinburgh and Belfast Gazettes. 2 1 For the purposes of this Order a ship shall be treated as belonging to the Socialist Republic of Romania if it possesses Romanian nationality under Romanian law. 2 For the purposes of this Order an aircraft shall be treated as belonging to the Socialist Republic of Romania if it is registered in the Socialist Republic of Romania. 3 Nothing in this Order shall apply to any ship of war or military aircraft. 4 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or commander or a member of the crew of any ship or aircraft belonging to the Socialist Republic of Romania shall not be entertained by any court in the United Kingdom unless a consular officer of the Socialist Republic of Romania has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. W. G. Agnew

Fishing Vessels (Safety Provisions) Act 1970 Fishing vessel construction rules 1 1 The Board of Trade may make rules (in this Act referred to as " fishing vessel construction rules ") prescribing requirements for the hull, equipment and machinery of fishing vessels of any description registered in the United Kingdom (including any description framed by reference to the areas in which the vessels operate or the dates on which they were first registered in the United Kingdom or on which their construction was begun). 2 The Board of Trade may exempt any fishing vessel or description of fishing vessel from any requirement of the fishing vessel construction rules, either generally or for a specified time or with respect to a specified voyage or to voyages in a specified area, and may do so subject to any specified conditions. 3 A surveyor of ships may inspect any fishing vessel for the purpose of seeing that it complies with the fishing vessel construction rules, and for that purpose shall have all the powers of a Board of Trade inspector under the Merchant Shipping Act 1894. 4 If — a the fishing vessel construction rules are contravened with respect to any vessel; or b a vessel is, under subsection (2) of this section, exempted from any requirement subject to a condition and the condition is not complied with ; the owner or master of the vessel shall be liable on summary conviction to a fine not exceeding £400. Fishing vessel survey rules 2 1 The Board of Trade may make rules (in this Act referred to as " fishing vessel survey rules ") for the surveying and periodical inspection of fishing vessels registered in the United Kingdom, or any description of such fishing vessels, for the purpose of ensuring their compliance with the requirements of the fishing vessel construction rules, the rules for life-saving appliances, the radio rules, the rules for direction-finders and the rules for radio navigational aids applicable to them. 2 Section 275 of the Merchant Shipping Act 1894 (appeals to the court of survey) shall apply to surveys carried out under the fishing vessel survey rules with such modifications as may be prescribed by the rules. Fishing vessel certificates 3 1 If the Board of Trade or any person authorised by them for the purpose are satisfied, on receipt of a declaration of survey in respect of a fishing vessel surveyed under the fishing vessel survey rules, that the vessel complies with such of the requirements of — a the fishing vessel construction rules ; b the rules for life-saving appliances ; or c the radio rules, the rules for direction-finders and the rules for radio navigational aids ; as are or will be applicable to the vessel, then, subject to subsection (2) of this section, the Board or person shall, on the application of the owner, issue a certificate showing that the vessel complies with those requirements; and for this purpose any requirement from which the vessel has been exempted under section 1(2) of this Act or any other provision of the Merchant Shipping Acts shall be deemed not to be applicable to it. 2 Fishing vessel survey rules may require, in the case of such certificate to be issued under this section as may be specified in the rules, that the Board of Trade or person authorised to issue it shall not issue the certificate unless satisfied that the vessel in respect of which it is to be issued is provided with the lights, shapes and means of making fog signals required by the collision regulations. 3 A certificate issued under this section shall be in such form as may be prescribed by the fishing vessel survey rules; and those rules may make provision for the duration, extension or cancellation of any such certificate and for the endorsement on it of information relating to the inspection, in accordance with the rules, of the vessel to which it relates and of any extension of the period for which the certificate was issued. 4 Sections 280 to 282 of the Merchant Shipping Act 1894 (delivery up and posting up of certificates and penalty for forgery) shall apply in relation to any certificate provided for by this section as they apply in relation to a passenger steamer's certificate. 5 Any certificate issued under this section shall be admissible in evidence. Prohibition on going to sea without appropriate certificates 4 1 No fishing vessel required to be surveyed under the fishing vessel survey rules shall go to sea unless there are in force certificates issued under section 3 of this Act showing that the vessel complies with such of the requirements of the fishing vessel construction rules, the rules for life-saving appliances, the radio rules, the rules for direction-finders and the rules for radio navigational aids as are applicable to the vessel. 2 If any fishing vessel goes to sea or attempts to go to sea in contravention of this section, the owner or master of the vessel shall be liable on summary conviction to a fine not exceeding £200. 3 The master of any fishing vessel registered in the United Kingdom shall on demand produce to any officer of customs or of the Board of Trade any certificate required by this Act; and the fishing vessel may be detained until the certificate is so produced. 4 Where a fishing vessel is detained under this section, section 460(2) of the Merchant Shipping Act 1894 (which relates to the costs of detention) shall apply as if the vessel had been finally detained under that Act. Notice of alterations 5 1 Where a certificate issued under section 3 of this Act is in force in respect of a fishing vessel and — a the certificate shows compliance with requirements of the fishing vessel construction rules and an alteration is made in the vessel's hull, equipment or machinery which affects the efficiency thereof or the seaworthiness of the vessel; or b the certificate shows compliance with requirements of the rules for life-saving appliances and an alteration is made affecting the efficiency or completeness of the appliances or equipment which the vessel is required to carry by those rules ; or c the certificate shows compliance with requirements of the rules mentioned in section 3(1)(c) of this Act and an alteration is made affecting the efficiency or completeness of the equipment which the vessel is required to carry by those rules ; the owner or master shall, as soon as possible after the alteration is made, give written notice containing full particulars of it to the Board of Trade or, if the certificate was issued by another person, to that person ; and if the notice is not given as required by this section the owner or master shall be liable on summary conviction to a fine not exceeding £50. 2 In this section " alteration " in relation to anything includes the renewal of any part of it. Fees 6 The Board of Trade may with the consent of the Treasury make regulations prescribing fees to be paid in respect of the doing of any thing in pursuance of this Act, and any such fee shall be paid into the Consolidated Fund except — a a fee paid in respect of a survey or inspection carried out otherwise than by a surveyor of ships appointed under the Merchant Shipping Act 1894 ; and b a fee paid in respect of a certificate issued otherwise than by the Board of Trade. Regulations and rules 7 1 Any regulations or rules made under this Act shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. 2 Before making any rules under this Act the Board of Trade shall consult with organisations in the United Kingdom appearing to them representative of persons who will be affected by the rules. Power to extend Act to certain territories outside the United Kingdom, and to fishing vessels registered therein 8 Her Majesty may by Order in Council give with respect to any of the following territories, that is to say — a the Isle of Man ; b any of the Channel Islands ; c any colony; d any territory outside Her Majesty's dominions in which for the time being Her Majesty has jurisdiction ; either or both of the following directions — i that the provisions of this Act and of regulations and rules made thereunder shall apply to fishing vessels registered in that territory, with such exceptions, adaptations or modifications as may be specified in the Order, as they apply to fishing vessels registered in the United Kingdom; ii that the provisions of this Act and of any regulations and rules made thereunder shall extend to that territory, with such exceptions, adaptations or modifications as may be specified in the Order, as part of the law of that territory. Interpretation 9 1 In this Act — " collision regulations " means regulations made under section 418 of the Merchant Shipping Act 1894; " fishing vessel " means a vessel which is for the time being used for or in connection with sea fishing but does not include a vessel used for fishing otherwise than for profit; " fishing vessel construction rules " has the meaning assigned to it by section 1 of this Act; " fishing vessel survey rules " has the meaning assigned to it by section 2 of this Act; " radio rules " means rules made under section 3 of the Merchant Shipping (Safety Convention) Act 1949; " rules for direction-finders " means rules made under section 5 of the Merchant Shipping (Safety Convention) Act 1949; " rules for life-saving appliances " means rules made under section 427 of the Merchant Shipping Act 1894 ; " rules for radio navigational aids " means rules made under section 6 of the Merchant Shipping (Safety Convention) Act 1949 ; and " the Merchant Shipping Acts " means the Merchant Shipping Acts 1894 to 1967, the Merchant Shipping Act 1970 and this Act. 2 References in this Act to any enactment are references thereto as amended by any other enactment. Expenses 10 Any expenses incurred by the Board of Trade under this Act shall be defrayed out of moneys provided by Parliament. Citation, construction, commencement and extent 11 1 This Act may be cited as the Fishing Vessels (Safety Provisions) Act 1970. 2 This Act, the Merchant Shipping Acts 1894 to 1967 and the Merchant Shipping Act 1970 may be cited together as the Merchant Shipping Acts 1894 to 1970. 3 This Act shall be construed as one with the Merchant Shipping Acts 1894 to 1967 and the Merchant Shipping Act 1970. 4 This Act shall come into force on such day as the Board of Trade may by order made by statutory instrument appoint, and different days may be so appointed for different provisions and for different descriptions of fishing vessel. 5 This Act extends to Northern Ireland.

The Commons Registration (Finality of Undisputed Registrations) Regulations 1970 The Minister of Housing and Local Government and the Secretary of State, in exercise of their respective powers under sections 7(2) and 19(1)(k) of the Commons Registration Act 1965, as read with the Ministry of Land and Natural Resources (Dissolution) Order 1967 , and of all other powers enabling them in that behalf, hereby make the following Regulations: — 1 These Regulations may be cited as the Commons Registration (Finality of Undisputed Registrations) Regulations 1970, and shall come into operation on 1st October 1970. 2 1 The Interpretation Act 1889 applies for the interpretation of these Regulations as it applies for the interpretation of an Act of Parliament. 2 In these Regulations “ Model Entry ” followed by a number means one of the specimen entries so numbered and provided as examples in the Schedule to these Regulations. 3 Where by virtue of section 7 (Finality of undisputed registrations) of the Commons Registration Act 1965 a registration has become final the registration authority shall indicate that fact in the register in accordance with Model Entry 24, 25 or 26 as appropriate, with such adaptations and modifications (if any) as the circumstances may require. Given under the official seal of the Minister of Housing and Local Government on 11th September 1970. Peter Walker Minister of Housing and Local Government Given under my hand Peter Thomas One of Her Majesty's Principal Secretaries of State Welsh Office 15th September 1970 SCHEDULE MODEL ENTRIES Regulation 2 No. 24 For land section of register . The cross-reference “(See entry No. 2 below)” forms part of this model entry. No. and date of entry Description of the land, reference to the register map, registration particulars, etc. 1 10 Jan. 1967 (See entry No. 2 below) The tract of about 705 acres called Sheepwash Common in the parishes of Nutfield, Gilderdale and East Poppington, Barset, as marked with a green verge line inside the boundary on sheet 8 of the register map and distinguished by the number of this register unit. Registered pursuant to application No. 14 made 2nd January 1967 by the Commons, Open Spaces and Footpaths Preservation Society, Suite 4, 166 Shaftesbury Avenue, London, W.C.2. No. 24 2 7 Oct. 1970 The registration at entry No. 1 above, being undisputed, became final on 1st October 1970. No. 25 For rights section of register entry for use where a number of registrations have become final. In each of the registration entries affected, the words “(Registration provisional.)” must be struck through, and a cross-reference made to the entry of finality, as in Model Entries 24 and 26. 1 2 3 4 5 No. and date of entry No. and date of application Name and address of every applicant for registration, and the capacity in which he applied Particulars of the right of common, and of the land over which it is exercisable Particulars of the land (if any) to which the right is attached 112 20 Oct. 1970 The registrations at entries Nos. 71, 73 and 81 to 110 above, being undisputed, became final on 1st October 1970, and those at Nos. 69 and 72 above, being undisputed, became final on 17th and 19th October 1970 respectively. No. 26 For ownership section of register . The cross-reference “(See entry No. 4 below)” forms part of this model entry. No. and date of entry No. and date of application Name and address of person registered as owner Particulars of the land to which the registration applies 1 21 April 1967 (See entry No. 4 below) 306 15 April 1967 Francis Romford, Abbeyfield Hall, Firfield, Barset. The part of the land comprised in this register unit lying west of the line A–B on the register map. No. 26 4 6 Oct. 1970 The registration at entry No. 1 above, being undisputed, became final on 1st October 1970.

The Drivers' Hours (Passenger Vehicles) (Exemptions) (Amendment) Regulations 1970 The Minister of Transport, in exercise of his powers under section 96(10) of the Transport Act 1968 and of all other enabling powers, and after consultation with representative organisations in accordance with section 101(6) of the said Act of 1968, hereby makes the following Regulations: — 1 These Regulations shall come into operation on the 12th May 1970, and may be cited as the Drivers' Hours (Passenger Vehicles) (Exemptions) (Amendment) Regulations 1970. 2 The Drivers' Hours (Passenger Vehicles) (Exemptions) Regulations 1970 shall have effect as though, after Regulation 4, there were added the following Regulation: — 5 Any driver of a passenger vehicle who spends time on duty during a working day to meet a special need, that is to say work done in connection with the carriage of persons suffering from physical or mental disability to or from any place at which social or recreational facilities for them are specially provided, is hereby exempted from the requirements of section 96(3) in relation to that day, subject to the conditions that — a he is able to obtain rest and refreshment during that day for a period which is, or for periods which taken together are, not less than the time by which the working day exceeds 10 hours, b that day does not exceed 14 hours, and c he has not taken advantage of this exemption from the requirements of section 96(3) on more than one previous working day which forms part of the working week of which that day forms part. . Given under the Official Seal of the Minister of Transport the 30th April 1970. Fred Mulley Minister of Transport

The Transport Act 1968 (Commencement No. 5) Order 1970 The Secretary of State and the Minister of Transport make this Order acting in exercise of their respective powers under section 166 of the Transport Act 1968, as shown in the Schedule to this Order: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 5) Order 1970. 2 The provisions of the Transport Act 1968 (hereinafter referred to as “ the Act ”) specified in Schedules 1 and 2 to this Order shall come into force on the 1st March 1970 and the 1st September 1970 respectively. James Callaghan One of Her Majesty's Principal Secretaries of State Home Office Whitehall 6th February 1970 Sealed with the Official Seal of the Minister of Transport the 10th February 1970. Fred Mulley Minister of Transport SCHEDULE 1 PROVISIONS COMING INTO FORCE ON THE 1ST MARCH 1970 Provisions brought into force by the Secretary of State In Part IX of the Act Section 131 (other than subsection (1) thereof). SCHEDULE 2 PROVISIONS COMING INTO FORCE ON THE 1ST SEPTEMBER 1970 A. Provisions brought into force by the Secretary of State In Part IX of the Act Section 131(1). B. Provisions brought into force by the Minister of Transport In Part X of the Act Section 165 so far as it relates to the provision in Schedule 18 specified below. In Schedule 18 to the Act In Part II of that Schedule (Repeals in Road Traffic Regulation Act 1967 (1967c.76)) — the repeal of the words “left or parked” in section 80(1)(a) of that Act.

The British Transport (Southern Railway Superannuation Fund) Order 1970 The Minister of Transport makes this Order in exercise of his powers under section 74 of the Transport Act 1962, as read with section 136 of the Transport Act 1968, and of all other enabling powers: — 1 1 This Order shall come into operation on the 21st January 1970, and may be cited as the British Transport (Southern Railway Superannuation Fund) Order 1970. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 2 1 Notwithstanding the limits imposed by section 3 of the Southern Railway (Superannuation Fund) Act 1927 (as amended by sections 4 and 5 of the Southern Railway (Superannuation Fund) Act 1941, on the alterations which can be made to the rules of the pension fund established by the said Act of 1927, it shall be lawful for the said rules to be altered from time to time in accordance with the relevant provisions thereof so as to enable provision to be made for the payment from the said pension fund, with the agreement of the member concerned and the consent of the British Railways Board, of annuities payable during the joint lives of any member of the said pension fund and his wife or other dependant relative of his and during the life of the survivor of them, in lieu of any annuity or any other benefit to which the said member would otherwise be entitled under the said rules. 2 Nothing in this Order shall affect the application of Article 17 of the British Transport Reorganisation (Pensions of Employees) ( No. 3) Order 1962 (which relates to the payment of pensions by the authorities referred to in that Order) to any such alteration of the rules of the said pension fund as is mentioned in paragraph (1) of this Article. Sealed with the Official Seal of the Minister of Transport the 8th January 1970. Fred Mulley Minister of Transport

Administration of Justice Act 1970 PART I Courts and Judges High Court Redistribution of business among divisions of the High Court 1 1 The Probate, Divorce and Admiralty Division of the High Court shall be re-named the Family Division; and the principal probate registry shall be re-named the principal registry of the Family Division. 2 There shall be assigned to the Family Division all causes and matters involving the exercise of the High Court's jurisdiction in proceedings specified in Schedule 1 to this Act. 3 Causes and matters involving the exercise of the High Court's Admiralty jurisdiction, or its jurisdiction as a prize court, shall be assigned to the Queen's Bench Division. 4 As respects the exercise of the High Court's probate jurisdiction — a non-contentious or common form probate business shall continue to be assigned to the Family Division ; and b all other probate business shall be assigned to the Chancery Division. 5 In section 5 of the Supreme Court of Judicature (Consolidation) Act 1925 (which enables Her Majesty, on the recommendation of the judges, by Order in Council to alter the number of divisions of the High Court or of puisne judges to be attached to any division) for the reference to a report or recommendation of the council of judges there shall be substituted a reference to a recommendation of the Lord Chancellor, the Lord Chief Justice, the Master of the Rolls, the President of the Family Division and the Vice-Chancellor. 6 In accordance with the foregoing subsections — a the enactments specified in Schedule 2 to this Act (that is to say, the said Act of 1925 and other enactments relative to the High Court, its jurisdiction, judges, divisions and business) shall be amended as shown in that Schedule; and b references in any other enactment or document to the Probate, Divorce and Admiralty Division, the President of that division, the principal probate registry, the principal (or senior) probate registrar and a probate registrar shall, so far as may be necessary to preserve the effect of the enactment or document, be construed respectively as references to the Family Division and to the President, principal registry, principal registrar and a registrar of that division. 7 This section is not to be taken as affecting any of the following provisions of the said Act of 1925 — a section 55 (which provides for the distribution of business in the High Court to be regulated by rules); b section 57 (which enables the Lord Chancellor to assign or re-assign the jurisdiction of the court among divisions and judges); c section 58 (which provides for the assignment of causes and matters); d section 59 (which enables an action to be transferred at any stage from one division to another). 8 Notwithstanding anything in section 114(3) of the said Act of 1925 (appointment of officers attached to a division), the right of filling any vacancy in the office of the Admiralty registrar or assistant Admiralty registrar shall be vested in the Lord Chancellor; and any other officer of the Supreme Court who is to be employed in the Admiralty registry shall be appointed by the Lord Chancellor. Admiralty Court 2 1 There shall be constituted, as part of the Queen's Bench Division of the High Court, an Admiralty Court to take Admiralty business, that is to say causes and matters assigned to that division and involving the exercise of the High Court's Admiralty jurisdiction, or its jurisdiction as a prize court. 2 The judges of the Admiralty Court shall be such of the puisne judges of the High Court as the Lord Chancellor may from time to time nominate to be Admiralty Judges. 3 Nothing in this section is to be taken as prejudicing provisions of the Supreme Court of Judicature (Consolidation) Act 1925 which enable the whole jurisdiction of the High Court to be exercised by any judge of that court. 4 In section 1(1) of the Administration of Justice Act 1956 (which defines the Admiralty jurisdiction of the High Court) for the words " which is for the time being assigned by rules of court to the Probate, Divorce and Admiralty Division " there shall be substituted the words " which is for the time being assigned by rules of court to the Queen's Bench Division and directed by the rules to be exercised by the Admiralty Court ". 5 In the Prize Act 1948 — a in section 7(2) (determination of form and manner of advertising for claims in relation to the Supreme Court Prize Deposit Account), for the words " the President of the Probate Division of the High Court " there shall be substituted the words " such one of the Admiralty Judges of the High Court as the Lord Chancellor may nominate for the purposes of this section " and for the words " the said President" there shall be substituted the words " the said Admiralty Judge "; and b in section 8 (regulation of payments into and out of the said Account) for the words from " the President" onwards there shall be substituted the words " such one of the Admiralty Judges of the High Court as the Lord Chancellor may nominate for the purposes of this section ". Commercial Court 3 1 There shall be constituted, as part of the Queen's Bench Division of the High Court, a Commercial Court to take such causes and matters as may in accordance with rules of court be entered in the commercial list 2 The judges of the Commercial Court shall be such of the puisne judges of the High Court as the Lord Chancellor may from time to time nominate to be Commercial Judges. 3 Nothing in this section is to be taken as prejudicing provisions of the said Act of 1925 which enable the whole jurisdiction of the High Court to be exercised by any judge of that court. Power of judges of Commercial Court to take arbitrations 4 1 A judge of the Commercial Court may, if in all the circumstances he thinks fit, accept appointment as sole arbitrator, or as umpire, by or by virtue of an arbitration agreement within the meaning of the Arbitration Act 1950, where the dispute appears to him to be of a commercial character. 2 A judge of the Commercial Court shall not accept appointment as arbitrator or umpire unless the Lord Chief Justice has informed him that, having regard to the state of business in the High Court and at assizes, he can be made available to do so. 3 The fees payable for the services of a judge as arbitrator or umpire shall be taken in the High Court. 4 Schedule 3 to this Act shall have effect for modifying, and in certain cases replacing, provisions of the Arbitration Act 1950 in relation to arbitration by judges and, in particular, for substituting the Court of Appeal for the High Court in provisions of that Act whereby arbitrators and umpires, their proceedings and awards, are subject to control and review by the court. 5 Any jurisdiction which is exercisable by the High Court in relation to arbitrators and umpires otherwise than under the Arbitration Act 1950 shall, in relation to a judge of the Commercial Court appointed as arbitrator or umpire, be exercisable instead by the Court of Appeal. The Vice-Chancellor 5 1 The Lord Chancellor may, from among the puisne judges for the time being attached to the Chancery Division of the High Court, nominate one of them to be Vice-Chancellor, who shall be responsible to the Lord Chancellor (as president of the Chancery Division) for the organisation and management of the business of the division. 2 The Vice-Chancellor shall be included among the persons with power under section 99(4) of the Supreme Court of Judicature (Consolidation) Act 1925 to make rules of court; and in that subsection — a for the words " and four other judges " there shall be substituted the words " the Vice-Chancellor and three other judges "; and b for the words "The four" there shall be substituted the words " The three ". Divisional Courts 6 In paragraph (b) of the proviso to section 63(6) of the Supreme Court of Judicature (Consolidation) Act 1925 (which requires the president of a division of the High Court, in constituting a divisional court, to obtain the concurrence of other judges of his division, but only two of them in the case of the Queen's Bench Division), the words " with the concurrence of the other judges of the Division or a majority thereof, or in the case of the King's Bench Division " shall be omitted. Assizes and Central Criminal Court Extension of power to dispense with holding of assizes 7 1 An Order in Council under section 72 of the Supreme Court of Judicature (Consolidation) Act 1925 (regulation of circuits) may contain a direction that, notwithstanding any enactment or custom to the contrary, assizes shall no longer be held for such county or at such place as may be specified in the Order either at all or for the transaction of such class of business as may be so specified. 2 Where such an Order contains in relation to any county or place a direction authorised by this section, the Order may also contain such provisions as appear to Her Majesty to be necessary or expedient in consequence of the direction including, without prejudice to the generality of the foregoing provision or to the provisions of paragraphs (f), (g) and (h) of subsection (1) of the said section 72, provision — a for enabling business which would or might have been transacted at assizes held in or for that county or place to be transacted at other assizes and persons who would or might have been tried or dealt with by a court of assize held in or at that county or place to be tried or dealt with by a court of assize held elsewhere; b for assigning to such local authority as may be pre scribed by the Order liability in respect of the costs of cases taken at any assizes in consequence of a provision made by virtue of paragraph (a) above (so far as those costs are payable out of local funds under the Costs in Criminal Cases Act 1952) and in respect of such of the expenses of holding any court of assize at which cases are so taken as may be so prescribed; and c for the modification or amendment of any enactment (including an enactment extending to Scotland) relating to courts of assize and their jurisdiction. 3 In this section " county" has the same meaning as in the Supreme Court of Judicature (Consolidation) Act 1925. Sittings of Central Criminal Court 8 The Administration of Justice Act 1964 shall be deemed to have been enacted with the following paragraph in place of paragraph 14 of Schedule 1 (which Schedule relates to the constitution, jurisdiction, sittings, etc. of the Central Criminal Court): — 14 1 The Court may sit in more than one division simultaneously. 2 Any division of the Court may sit at any place in Greater London. . Court of Appeal Constitution of criminal division and powers of single judge 9 1 A court of the criminal division of the Court of Appeal shall, for the purpose of exercising any of its jurisdiction, be duly constituted if it consists of an uneven number of judges, not being less than three. 2 A court of the said division shall be duly constituted if it consists of two judges, but not for the purpose — a of determining an appeal; or b of determining an application for leave to appeal to the House of Lords; or c of refusing an application for leave to appeal to the criminal division, other than an application which has been refused by a single judge under section 31 of the Criminal Appeal Act 1968. 3 In section 45(2) of the said Act of 1968 (which defines " single judge ", for the purposes of sections 31 and 44 of the Act, as meaning any judge of the Court of Appeal or of the Queen's Bench Division of the High Court) the words " of the Queen's Bench Division of " shall be omitted. 4 In section 83(1) of the Criminal Justice Act 1967 (which enables the Secretary of State to make regulations about legal aid in criminal cases and, by paragraph (b), enables a court's powers in relation to legal aid to be made exercisable by a member or officer of the court) that paragraph shall have effect in relation to the criminal division of the Court of Appeal as if for the reference to a person entitled to sit as a member of the court there were substituted a reference to any judge of the court or of the High Court. Patents and Registered Designs Appeal Tribunals Temporary additional judges 10 1 If it appears to the Lord Chancellor expedient, having regard to the state of business pending before the Patents Appeal Tribunal or the Registered Designs Appeal Tribunal, he may appoint — a a judge of the Court of Appeal; or b a person who has held office as a judge of the Court of Appeal or of the High Court; or c one of Her Majesty's counsel, to sit and act as an additional judge of the Tribunal (either alone or with a judge of the High Court who is a judge of the Tribunal) for such period, or for the purpose of hearing such appeals, as the Lord Chancellor may specify. 2 A person appointed to either Tribunal under this section shall, while sitting and acting as aforesaid, have all the jurisdiction of, but shall not otherwise be deemed to be, a judge of the Tribunal. 3 The Lord Chancellor may pay to a person appointed to either Tribunal under this section (other than a judge of the Court of Appeal) such remuneration as he may determine with the approval of the Minister for the Civil Service ; and any such remuneration shall be included in the expenses of the Tribunal. 4 In this section " the Patents Appeal Tribunal " means the Appeal Tribunal constituted under section 85 of the Patents Act 1949 (as amended by section 24 of the Administration of Justice Act 1969); and " the Registered Designs Appeal Tribunal" means the Appeal Tribunal constituted under section 28 of the Registered Designs Act 1949 (as so amended). 5 In subsection (8) of the said section 85 and subsection (8) of the said section 28 (which confer power on the two Tribunals to make rules about procedure etc.), there shall in each case be inserted at the end of the subsection the words " including right of audience ". PART II Enforcement of Debt Provisions restricting sanction of imprisonment Restriction on power of committal under Debtors Act 1869 (c. 62) 11 The jurisdiction given by section 5 of the Debtors Act 1869 to commit to prison a person who makes default in payment of a debt, or instalment of a debt, due from him in pursuance of an order or judgment shall be exercisable only — a by the High Court in respect of a High Court maintenance order; and b by a county court in respect of — i a High Court or a county court maintenance order; or ii a judgment or order which is enforceable by a court in England and Wales and is for the payment of any of the taxes, contributions or liabilities specified in Schedule 4 to this Act. Restriction on magistrates' power of committal for civil debt 12 1 The power of a magistrates' court under section 64 of the Act of 1952 to issue a warrant to commit to prison a person who makes default in paying a sum adjudged to be paid by such a court shall be restricted in accordance with this section. 2 This section does not affect the court's power to issue such a warrant in the case of default in paying a sum adjudged to be paid by a conviction, or treated (by any enactment relating to the collection or enforcement of fines, costs, compensation or forfeited recognizances) as so adjudged to be paid; but in the case of a sum adjudged to be paid by an order the power shall be exercisable only in respect of default under — a a magistrates' court maintenance order; b an order for the payment of any of the taxes, contributions or liabilities specified in Schedule 4 to this Act; or c an order (in this Act referred to as a " legal aid contribution order") under section 76 of the Criminal Justice Act 1967 (contribution by legally assisted person to cost of his defence in a criminal case). Enforcement by attachment of earnings Courts with power to attach earnings 13 1 The High Court may make an attachment of earnings order to secure payments under a High Court maintenance order. 2 A county court may make an attachment of earnings order to secure — a payments under a High Court or a county court maintenance order; b the payment of a judgment debt, other than a debt of less than £5 or such other sum as may be prescribed by county court rules ; or c payments under an administration order. 3 In this Part of this Act, " judgment debt" means a sum payable under — a a judgment or order enforceable by a court in England and Wales (not being a magistrates' court); or b an order of a magistrates' court for the payment of money recoverable summarily as a civil debt; or c an order of any court which is enforceable as if it were for the payment of money so recoverable, but does not include any sum payable under a maintenance order or an administration order. 4 A magistrates' court may make an attachment of earnings order to secure — a payments under a magistrates' court maintenance order ; b the payment of any sum adjudged to be paid by a conviction or treated (by any enactment relating to the collection and enforcement of fines, costs, compensation or forfeited recognizances) as so adjudged to be paid; or c the payment of any sum required to be paid by a legal aid contribution order. 5 The following provisions of this Part of this Act apply, except where otherwise stated, to attachment of earnings orders made, or to be made, by any court; and in those provisions — a " the relevant adjudication ", in relation to any payment secured or to be secured by an attachment of earnings order, means the conviction, judgment, order or other adjudication from which there arises the liability to make the payment; and b " the debtor ", in relation to an attachment of earnings order, or to proceedings in which a court has power to make an attachment of earnings order, or to proceedings arising out of such an order, means the person by whom payment is required by the relevant adjudication to be made. 6 Any power conferred by this Part of this Act to make an attachment of earnings order includes a power to make such an order to secure the discharge of liabilities arising before the coming into force of this Part of this Act. Application for order and conditions of court's power to make it 14 1 The following persons may apply for an attachment of earnings order: — a the person to whom payment under the relevant adjudication is required to be made (whether directly or through an officer of any court); b where the relevant adjudication is an administration order, any one of the creditors scheduled to the order; c without prejudice to paragraph (a) above, where the application is to a magistrates' court for an order to secure maintenance payments, and there is in force an order under section 52(1) of the Act of 1952, or section 19(2) of the Maintenance Orders Act 1950, that those payments be made to the clerk of a magistrates' court, the clerk of that court; d in the following cases the debtor — i where the application is to a magistrates' court; or ii where the application is to the High Court or a county court for an order to secure maintenance payments. 2 An application for an attachment of earnings order to secure maintenance payments shall not be made, except by the debtor, unless at least fifteen days have elapsed since the making of the related maintenance order. 3 For an attachment of earnings order to be made on the application of any person other than the debtor it must appear to the court that the debtor has failed to make one or more payments required by the relevant adjudication. 4 Where proceedings are brought — a in the High Court or a county court for the enforcement of a maintenance order by committal under section 5 of the Debtors Act 1869 ; or b in a magistrates' court for the enforcement of a maintenance order under section 64 of the Act of 1952 (distress or committal), then, subject to subsection (5) below, the court may make an attachment of earnings order to secure payments under the maintenance order, instead of dealing with the case under section 5 of the said Act of 1869 or, as the case may be, section 64 of the Act of 1952. 5 The court shall not, except on the application of the debtor, make an attachment of earnings order to secure payments under a maintenance order if it appears to it that the debtor's failure to make payments in accordance with the maintenance order is not due to his wilful refusal or culpable neglect. 6 Where proceedings are brought in a county court for an order of committal under section 5 of the Debtors Act 1869 in respect of a judgment debt for any of the taxes, contributions or liabilities specified in Schedule 4 to this Act, the court may, in any circumstances in which it has power to make such an order, make instead an attachment of earnings order to secure the payment of the judgment debt. 7 A county court shall not make an attachment of earnings order to secure the payment of a judgment debt if there is in force an order or warrant for the debtor's committal, under section 5 of the Debtors Act 1869, in respect of that debt; but in any such case the court may discharge the order or warrant with a view to making an attachment of earnings order instead. 8 Where a county court makes an administration order in respect of a debtor's estate, it may also make an attachment of earnings order to secure the payments required by the administration order; and at any time when an administration order is in force a county court may (with or without an application) make an attachment of earnings order to secure the payments required by the administration order, if it appears to the court that the debtor has failed to make any such payment. 9 The power of a county court under subsection (8) above to make an attachment of earnings order to secure the payments required by an administration order shall, where the debtor is already subject to an attachment of earnings order to secure the payment of a judgment debt, include power to direct that the last-mentioned order shall take effect (with or without variation under section 18 of this Act) as an order to secure the payments required by the administration order. Effect and contents of order 15 1 An attachment of earnings order shall be an order directed to a person who appears to the court to have the debtor in his employment and shall operate as an instruction to that person — a to make periodical deductions from the debtor's earnings in accordance with Part I of Schedule 5 to this Act; and b at such times as the order may require, or as the court may allow, to pay the amounts deducted to the collecting officer of the court, as specified in the order. 2 For the purposes of this Part of this Act, the relationship of employer and employee shall be treated as subsisting between two persons if one of them, as a principal and not as a servant or agent, pays to the other any sums defined as earnings by section 26 of this Act. 3 An attachment of earnings order shall contain prescribed particulars enabling the debtor to be identified by the employer. 4 Except where it is made to secure maintenance payments, the order shall specify the whole amount payable under the relevant adjudication (or so much of that amount as remains unpaid), including any relevant costs. 5 The order shall specify — a the normal deduction rate, that is to say, the rate (expressed as a sum of money per week, month or other period) at which the court thinks it reasonable for the debtor's earnings to be applied to meeting his liability under the relevant adjudication; and b the protected earnings rate, that is to say the rate (so expressed) below which, having regard to the debtor's resources and needs, the court thinks it reasonable that the earnings actually paid to him should not be reduced. 6 In the case of an order made to secure payments under a maintenance order (not being an order for the payment of a lump sum), the normal deduction rate — a shall be determined after taking account of any right or liability of the debtor to deduct income tax when making the payments ; and b shall not exceed the rate which appears to the court necessary for the purpose of — i securing payment of the sums falling due from time to time under the maintenance order, and ii securing payment within a reasonable period of any sums already due and unpaid under the maintenance order. 7 For the purposes of an attachment of earnings order, the collecting officer of the court shall be (subject to later variation of the order under section 18 of this Act) — a in the case of an order made by the High Court, either — i the proper officer of the High Court, or ii the registrar of such county court as the order may specify; b in the case of an order made by a county court, the registrar of that court; and c in the case of an order made by a magistrates' court, the clerk either of that court or of another magistrates' court specified in the order. Compliance with order by employer 16 1 Where an attachment of earnings order has been made, the employer shall, if he has been served with the order, comply with it; but he shall be under no liability for noncompliance before seven days have elapsed since the service. 2 Where a person is served with an attachment of earnings order directed to him and he has not the debtor in his employment, or the debtor subsequently ceases to be in his employment, he shall (in either case), within ten days from the date of service or, as the case may be, the cesser, give notice of that fact to the court. 3 Part II of Schedule 5 to this Act shall have effect with respect to the priority to be accorded as between two or more attachment of earnings orders directed to a person in respect of the same debtor. 4 On any occasion when the employer makes, in compliance with the order, a deduction from the debtor's earnings — a he shall be entitled to deduct, in addition, one shilling or such other sum as may be prescribed by order made by the Lord Chancellor towards his clerical and administrative costs; and b he shall give to the debtor a statement in writing of the total amount of the deduction. As from the appointed day for the purposes of the Decimal Currency Act 1969, paragraph (a) of this subsection shall have effect with the substitution for " one shilling " of " five new pence ". 5 An order of the Lord Chancellor under subsection (4) (a) above — a may prescribe different sums in relation to different classes of cases; b may be varied or revoked by a subsequent order made under that paragraph ; and c shall be made by statutory instrument subject to annulment by resolution of either House of Parliament. Interrelation with alternative remedies open to creditor 17 1 Where an attachment of earnings order has been made to secure maintenance payments, no order or warrant of commitment shall be issued in consequence of any proceedings for the enforcement of the related maintenance order begun before the making of the attachment of earnings order. 2 Where a county court has made an attachment of earnings order to secure the payment of a judgment debt — a no order or warrant of commitment shall be issued in consequence of any proceedings for the enforcement of the debt begun before the making of the attachment of earnings order; and b so long as the order is in force no execution for the recovery of the debt shall issue against any property of the debtor without the leave of the county court. 3 An attachment of earnings order made to secure the payment of a judgment debt shall cease to have effect on the making of an order of commitment or the issue of a warrant of commitment for the enforcement of the debt. 4 An attachment of earnings order made to secure any payment specified in section 13 (4) (6) or (c) of this Act shall cease to have effect on the issue of a warrant committing the debtor to prison for default in making that payment. 5 Where an attachment of earnings order ceases to have effect under this section, the proper officer of the prescribed court shall give notice of the cessation to the person to whom the order was directed. Variation, lapse and discharge of orders 18 1 The court may make an order discharging or varying an attachment of earnings order. 2 Where an order is varied, the employer shall, if he has been served with notice of the variation, comply with the order as varied; but he shall be under no liability for noncompliance before seven days have elapsed since the service. 3 Rules of court may make provision — a as to the circumstances in which an attachment of earnings order may be varied or discharged by the court of its own motion; b in the case of an attachment of earnings order made by a magistrates' court, for enabling a single justice, on an application made by the debtor on the ground of a material change in his resources and needs since the order was made or last varied, to vary the order for a period of not more than four weeks by an increase of the protected earnings rate ; c excluding, in the case of any such application as is referred to in paragraph (b) above, the operation of section 20(2) of the Act of 1958 (which requires applications to be made by complaint). This subsection is without prejudice to any other power to make rules of court. 4 Where an attachment of earnings order has been made and the person to whom it is directed ceases to have the debtor in his employment, the order shall lapse (except as respects deduction from earnings paid after the cesser and payment to the collecting officer of amounts deducted at any time) and be of no effect unless and until the court again directs it to a person (whether the same as before or another) who appears to the court to have the debtor in his employment. 5 The lapse of an order under subsection (4) above shall not prevent its being treated as remaining in force for other purposes. 6 Where an attachment of earnings order — a ceases to have effect under section 9(2) of the Act of 1958 (registration of related maintenance order, committal of debtor for arrears, etc.) or under section 17 of this Act; or b is discharged under this section, the person to whom the order has been directed shall not incur any liability in consequence of his treating the order as still in force at any time before the expiration of seven days from the date when the notice required by the said section 9(2) or section 17 or, as the case may be, a copy of the discharging order is served on him. 7 Where, in the case of an attachment of earnings order made otherwise than to secure maintenance payments, the whole amount payable under the relevant adjudication has been paid, and also any relevant costs, the court shall give notice to the employer that no further compliance with the order is required Application of sums received by collecting officer 19 1 Subject to subsection (3) below, the collecting officer to whom a person makes payments in compliance with an attachment of earnings order shall, after deducting such court fees, if any, in respect of proceedings for or arising out of the order, as are deductible from those payments, deal with the sums paid in the same way as he would if they had been paid by the debtor to satisfy the relevant adjudication. 2 Any sums paid to the collecting officer under an attachment of earnings order made to secure maintenance payments shall, when paid to the person entitled to receive those payments, be deemed to be payments made by the debtor (with such deductions, if any, in respect of income tax as the debtor is entitled or required to make) so as to discharge — a first, any sums for the time being due and unpaid under the related maintenance order (a sum due at an earlier date being discharged before a sum due at a later date); and b secondly, any costs incurred in proceedings relating to the related maintenance order which were payable by the debtor when the attachment of earnings order was made or last varied. 3 Where a county court makes an attachment of earnings order to secure the payment of a judgment debt and also, under section 29(1) of this Act, orders the debtor to furnish to the court a list of all his creditors, sums paid to the collecting officer in compliance with the attachment of earnings order shall not be dealt with by him as mentioned in subsection (1) above, but shall be retained by him pending the decision of the court whether or not to make an administration order and shall then be dealt with by him as the court may direct. Power of court to obtain statements of earnings etc. 20 1 Where in any proceedings a court has power to make an attachment of earnings order, it may — a order the debtor to give to the court, within a specified period, a statement signed by him of — i the name and address of any person by whom earnings are paid to him ; ii specified particulars as to his earnings and anticipated earnings, and as to his resources and needs; and iii specified particulars for the purpose of enabling the debtor to be identified by any employer of his; b order any person appearing to the court to have the debtor in his employment to give to the court, within a specified period, a statement signed by him or on his behalf of specified particulars of the debtor's earnings and anticipated earnings. 2 Where an attachment of earnings order has been made, the court may at any time thereafter while the order is in force make such an order as is described in subsection (1)(a) or (b) above. 3 In the case of an application to a magistrates' court for an attachment of earnings order, or for the variation or discharge of such an order, the power to make an order under subsection (1) or (2) above shall be exercisable also, before the hearing of the application, by a single justice. 4 Without prejudice to subsections (1) to (3) above, rules of court may provide that where notice of an application for an attachment of earnings order is served on the debtor, it shall include a requirement that he shall give to the court, within such period and in such manner as may be prescribed, a statement in writing of the matters specified in subsection (1)(a) above and of any other prescribed matters which are, or may be, relevant under section 15 of this Act to the determination of the normal deduction rate and the protected earnings rate to be specified in any order made on the application. 5 In any proceedings in which a court has power to make an attachment of earnings order, and in any proceedings for the making, variation or discharge of such an order, a document purporting to be a statement given to the court in compliance with an order under subsection (1)(a) or (b) above, or with any such requirement of a notice of application for an attachment of earnings order as is mentioned in subsection (4) above, shall, in the absence of proof to the contrary, be deemed to be a statement so given and shall be evidence of the facts stated therein. Obligation of debtor and his employers to notify changes of employment and earnings 21 While an attachment of earnings order is in force — a the debtor shall from time to time notify the court in writing of every occasion on which he leaves any employment or becomes employed or re-employed not later (in each case) than seven days from the date , on which he did so ; b the debtor shall, on any occasion when he becomes employed or re-employed, include in his notification under paragraph (a) above particulars of his earnings and anticipated earnings from the relevant employment ; and c any person who becomes the debtor's employer and knows that the order is in force and by what court it was made shall, within seven days of his becoming the debtor's employer or of acquiring that knowledge (whichever is the later) notify that court in writing that he is the debtor's employer, and include in his notification a statement of the debtor's earnings and anticipated earnings. Power of court to determine whether particular payments are earnings 22 1 Where an attachment of earnings order is in force, the court shall, on the application of a person specified in subsection (2) below, determine whether payments to the debtor of a particular class or description specified by the application are earnings for the purposes of the order; and the employer shall be entitled to give effect to any determination for the time being in force under this section. 2 The persons referred to in subsection (1) above are — a the employer; b the debtor; c the person to whom payment under the relevant adjudication is required to be made (whether directly or through an officer of any court); and d without prejudice to paragraph (c) above, where the application is in respect of an attachment of earnings order made to secure payments under a magistrates' court maintenance order, the collecting officer. 3 Where an application under this section is made by the employer, he shall not incur any liability for non-compliance with the order as respects any payments of the class or description specified by the application which are made by him to the debtor while the application, or any appeal in consequence thereof, is pending; but this subsection shall not, unless the court otherwise orders, apply as respects such payments if the employer subsequently withdraws the application or, as the case may be, abandons the appeal. Consolidated orders 23 1 The powers of a county court under sections 13 and 14 of this Act shall include power to make an attachment of earnings order to secure the payment of any number of judgment debts; and the powers of a magistrates' court under those sections shall include power to make an attachment of earnings order to secure the discharge of any number of such liabilities as are specified in section 13(4). 2 An attachment of earnings order made by virtue of this section shall be known as a consolidated attachment order. 3 The power to make a consolidated attachment order shall be exercised subject to and in accordance with rules of court; and rules made for the purposes of this section may provide — a for the transfer from one court to another — i of an attachment of earnings order, or any proceedings for or arising out of such an order ; and ii of functions relating to the enforcement of any liability capable of being secured by attachment of earnings; b for enabling a court to which any order, proceedings or functions have been transferred under the rules to vary or discharge an attachment of earnings order made by another court and to replace it (if the court thinks fit) with a consolidated attachment order; c for the cases in which any power exercisable under this section or the rules may be exercised by a court of its own motion or on the application of a prescribed person; d for requiring the clerk or registrar of a court who receives payments made to him in compliance with an attachment of earnings order, instead of complying with section 19 of this Act, to deal with them as directed by the court or the rules; and e for modifying or excluding provisions of this Part of this Act, section 9 or 20 of the Act of 1958 or Part III of the Act of 1952, but only so far as may be necessary or expedient for securing conformity with the operation of rules made by virtue of paragraphs (a) to (d) of this subsection. 4 Subsection (3) above is without prejudice to any other power to make rules. Provisions as to persons employed under the Crown 24 1 The fact that an attachment of earnings order is made at the suit of the Crown shall not prevent its operation at any time when the debtor is in the employment of the Crown. 2 Where a debtor is in the employment of the Crown and an attachment of earnings order is made in respect of him, then for the purposes of this Part of this Act — a the chief officer for the time being of the department, office or other body in which the debtor is employed shall be treated as having the debtor in his employment (any transfer of the debtor from one department, office or body to another being treated as a change of employment); and b any earnings paid by the Crown or a Minister of the Crown, or out of the public revenue of the United Kingdom, shall be treated as paid by the said chief officer. 3 If any question arises, in proceedings for or arising out of an attachment of earnings order, as to what department, office or other body is concerned for the purposes of this section, or as to who for those purposes is the chief officer thereof, the question shall be referred to and determined by the Minister for the Civil Service; but that Minister shall not be under any obligation to consider a reference under this subsection unless it is made by the court. 4 A document purporting to set out a determination of the said Minister under subsection (3) above and to be signed by an official of the Civil Service Department shall, in any such proceedings as are mentioned in that subsection, be admissible in evidence and be deemed to contain an accurate statement of such a determination unless the contrary is shown. 5 This Part of this Act shall have effect notwithstanding any enactment passed before this Act and preventing or avoiding the attachment or diversion of sums due to a person in respect of service under the Crown, whether by way of remuneration, pension or otherwise. Enforcement provisions 25 1 If, after being served with notice of an application to a county court for an attachment of earnings order or for the variation of such an order, the debtor fails to attend on the day and at the time specified for any hearing of the application, the court may adjourn the hearing and order him to attend at a specified time on another day; and if the debtor — a fails to attend at that time on that day ; or b attends, but refuses to be sworn or give evidence, he may be ordered by the judge to be imprisoned for not more than fourteen days. 2 Subject to this section, a person commits an offence if — a being required by section 16(1) or 18(2) of this Act to comply with an attachment of earnings order, he fails to do so ; or b being required by section 16(2) of this Act to give a notice for the purposes of that subsection, he fails to give it, or fails to give it within the time required by that subsection ; or c he fails to comply with an order under section 20(1) of this Act or with any such requirement of a notice of application for an attachment of earnings order as is mentioned in section 20(4), or fails (in either case) to comply within the time required by the order or notice; or d he fails to comply with section 21 of this Act; or e he gives a notice for the purposes of section 16(2) of this Act, or a notification for the purposes of section 21 thereof, which he knows to be false in a material particular or recklessly gives such a notice or notification which is false in a material particular ; or f in purported compliance with section 16(2) or 21 of this Act, or with an order under section 20(1) thereof, or with any such requirement of a notice of application for an attachment of earnings order as is mentioned in section 20(4), he makes any statement which he knows to be false in a material particular or recklessly makes any statement which is false in a material particular. 3 Where a person commits an offence under subsection (2) above in relation to proceedings in, or to an attachment of earnings order made by, the High Court or a county court, he shall be liable on summary conviction to a fine of not more than £25 or he may be ordered by a judge of the High Court or the county court judge (as the case may be) to pay a fine of not more than £25 or, in the case of an offence specified in subsection (4) below, to be imprisoned for not more than fourteen days; and where a person commits such an offence otherwise than as mentioned above in this subsection, he shall be liable on summary conviction to a fine of not more than £25. 4 The offences referred to above in the case of which a judge may impose imprisonment are — a an offence under subsection (2)(c) or (d), if committed by the debtor; b an offence under subsection (2)(e) or (f), whether committed by the debtor or any other person. 5 It shall be a defence — a for a person charged with an offence under subsection (2)(a) above to prove that he took all reasonable steps to comply with the attachment of earnings order in question; b for a person charged with an offence under subsection (2)(b) above to prove that he did not know, and could not reasonably be expected to know, that the debtor was not in his employment or (as the case may be) had ceased to be so and that he gave the required notice as soon as reasonably practicable after the fact came to his knowledge. 6 Where a person is convicted or dealt with for an offence under subsection (2)(a) above, the court may order him to pay, to whoever is the collecting officer of the court for the purposes of the attachment of earnings order in question, any sums deducted by that person from the debtor's earnings and not already paid to the collecting officer. 7 Where under this section a person is ordered by a judge of the High Court or a county court judge to be imprisoned, the judge may at any time revoke the order and, if the person is already in custody, order his discharge. 8 Any fine imposed by a judge of the High Court under subsection (3) above and any sums ordered by the High Court to be paid under subsection (6) above shall be recoverable in the same way as a fine imposed by that court in the exercise of its jurisdiction to punish for contempt of court; section 179 of the County Courts Act 1959 (enforcement of fines) shall apply to payment of a fine imposed by a county court judge under subsection (3) and of any sums ordered by a county court judge to be paid under subsection (6); and any sum ordered by a magistrates' court to be paid under subsection (6) shall be recoverable as a sum adjudged to be paid on a conviction by that court. 9 For the purposes of section 13 of the Administration of Justice Act 1960 (appeal in cases of contempt of court), subsection (3) above shall be treated as an enactment enabling the High Court or a county court to deal with an offence under subsection (2) above as if it were contempt of court. 10 In this section references to proceedings in a court are to proceedings in which that court has power to make an attachment of earnings order or has made such an order. Meaning of " earnings " 26 1 For the purposes of this Act, but subject to the following subsection, " earnings " are any sums payable to a person — a by way of wages or salary (including any fees, bonus, commission, overtime pay or other emoluments payable in addition to wages or salary or payable under a contract of service); b by way of pension (including an annuity in respect of past services, whether or not rendered to the person paying the annuity, and including periodical payments by way of compensation for the loss, abolition or relinquishment, or diminution in the emoluments, of any office or employment). 2 The following shall not be treated as earnings: — a sums payable by any public department of the Government of Northern Ireland or of a territory outside the United Kingdom; b pay or allowances payable to the debtor as a member of Her Majesty's forces ; c pension, allowances or benefit payable under any of the enactments specified in Schedule 6 to this Act (being enactments relating to social security); d pension or allowances payable in respect of disablement or disability; e wages payable to a person as a seaman, other than wages payable to him as a seaman of a fishing boat. 3 In subsection (2)(e) above, expressions used in the Merchant Shipping Act 1894 have the same meanings as in that Act. Consequential amendments of 1958 Act 27 1 The following provisions of the Act of 1958 (as amended by this section), that is to say — a section 9(2), (4) and (5) (cases in which attachment of earnings order ceases to have effect or is to be varied or discharged); and b section 20 (procedure in magistrates' courts with respect to attachment of earnings orders), shall be construed as if they were contained in this Part of this Act. 2 The provisions of the Act of 1958 which are specified in Part I of Schedule 7 to this Act shall have effect with the amendments there specified; and in accordance with this section, sections 9 and 20 of that Act (omitting subsection (6) of section 20) shall have effect as set out in Part II of that Schedule. 3 In section 1 of the Act of 1958 (introductory provisions setting out the scheme of Part I as respects registration in one court of a maintenance order made by another), after subsection (1) there shall be inserted the following subsection: — 1A In the following provisions of this Act " maintenance order " means any order specified in Schedule 8 to the Administration of Justice Act 1970. . Other provisions for interpretation of Part II 28 1 In this Part of this Act, except where the context otherwise requires — " the Act of 1952 " and " the Act of 1958 " mean respectively the Magistrates' Courts Act 1952 and the Maintenance Orders Act 1958 ; " administration order " means an order made under, and so referred to in, Part VII of the County Courts Act 1959; " the court ", in relation to an attachment of earnings order, means the court which made the order, subject to rules of court as to the venue for, and the transfer of, proceedings in county courts and magistrates' courts ; " debtor ", " judgment debt ", and " relevant adjudication " have the meanings given by section 13 of this Act; " the employer " in relation to an attachment of earnings order, means the person who is required by the order to make deductions from earnings paid by him to the debtor; " High Court maintenance order ", " county court maintenance order " and " magistrates' court maintenance order " mean respectively a maintenance order enforceable by the High Court, a county court and a magistrates' court; " legal aid contribution order " means an order under section 76 of the Criminal Justice Act 1967 ; " maintenance order " means any order specified in Schedule 8 to this Act and includes such an order which has been discharged, if any arrears are recoverable thereunder; " maintenance payments " means payments required under a maintenance order; " prescribed " means prescribed by rules of court; and " rules of court " in relation to a magistrates' court, means rules under section 15 of the Justices of the Peace Act 1949 ; and, in relation to a magistrates' court, references to a single justice are to a justice of the peace acting for the same petty sessions area as the court. 2 Any reference in this Act to sums payable under a judgment or order, or to the payment of such sums, includes a reference to costs and the payment of them ; and the references in sections 15(4) and 18(7) to relevant costs are to any costs of the proceedings in which the attachment of earnings order in question was made, being costs which the debtor is liable to pay. 3 References in sections 15(5)(b), 18(3)(b) and 20(1)(a) of this Act to the debtor's needs include references to the needs of any person for whom he must, or reasonably may, provide. 4 Earnings which, in pursuance of a scheme under the Dock Workers (Regulation of Employment) Act 1946, are paid to a debtor by a body responsible for the local administration of the scheme acting as agent for the debtor's employer or as delegate of the body responsible for the general administration of the scheme shall be treated for the purposes of this Part of this Act as paid to the debtor by the last-mentioned body acting as principal. 5 This Part of this Act, so far as it relates to magistrates' courts, and Part III of the Act of 1952 shall be construed as if this Part were contained in that Part. Supplementary Extension of county court's power to make administration order 29 1 Where, on an application to a county court for an attachment of earnings order to secure the payment of a judgment debt, it appears to the court that the debtor also has other debts, the court — a shall consider whether the case may be one in which all the debtor's liabilities should be dealt with together and that for that purpose an order should be made for the administration of his estate ; and b if of opinion that it may be such a case, shall have power (whether or not it makes the attachment of earnings order applied for), with a view to making an administration order, to order the debtor to furnish to the court a list of all his creditors and the amounts which he owes to them respectively. 2 If, on receipt of the list referred to in subsection (1)(b) above, it appears to the court that the debtor's whole indebtedness amounts to not more than the amount for the time being specified in section 148(1) (b) of the County Courts Act 1959 (limit of total indebtedness governing county court's power to make administration order on application of debtor), the court may make such an order in respect of the debtor's estate, subject however to section 20(3) of the Administration of Justice Act 1965 (which requires that, before such an order is made, notice is to be given to all the creditors and thereafter restricts the right of any creditor to institute bankruptcy proceedings). 3 Where under subsection (1) above a county court orders a person to furnish to it a list of all his creditors, the making of the order shall, for the purposes of the Bankruptcy Act 1914, be an act of bankruptcy by him. 4 Nothing in this section is to be taken as prejudicing any right of a debtor to apply, under section 148 of the County Courts Act 1959, for an administration order. 5 In Part VII of the said Act of 1959 (administration orders) — a in section 153 (appropriation of money paid under administration order), paragraph (a) (which requires appropriation first in satisfaction of the plaintiff's costs) shall be omitted and, for the word " next " there shall be substituted the word " first "; and b in section 156(1) (power of Lord Chancellor to make rules about administration orders), after the words " the objects of this Part of this Act" there shall be inserted the words " and section 29 of the Administration of Justice Act 1970 ". Consequential and transitional provisions 30 1 Sections 11 and 12 of this Act shall not affect the validity of an order made, or warrant issued, by a court before the coming into force of those sections for the committal of a person to prison in respect of any description of liability for which there remains power under either of those sections for that or any other court to commit, nor affect the continuance of any proceedings, or the exercise of any power, in connection with such an order or warrant; but subject to this any order or warrant of committal made or issued by any court before the appointed day shall on that day cease to have effect if it is one which, in consequence of the said sections 11 and 12, that court would, on and after that day, have no jurisdiction to make. 2 Any person who immediately before the appointed day was in custody under an order or warrant which ceases to have effect by virtue of subsection (1) above shall be discharged. 3 As from the appointed day, an attachment of earnings order made before that day under Part II of the Act of 1958 (including an order made under that Part of that Act as applied by section 46 or 79 of the Criminal Justice Act 1967) shall take effect as an attachment of earnings order made under the corresponding power in this Part of this Act, and the provisions of this Part of this Act shall apply to it accordingly, so far as they are capable of doing so. 4 Rules of court may make such provision as the rule-making authority considers requisite — a for enabling an attachment of earnings order to which subsection (3) above applies to be varied so as to bring it into conformity, as from the appointed day, with the provisions of this Part of this Act, or to be replaced by an attachment of earnings order having effect as if made under the corresponding power in this Part of this Act; b to secure that anything required or authorised by this Part of this Act to be done in relation to an attachment of earnings order made thereunder is required or, as the case may be, authorised to be done in relation to an attachment of earnings order to which the said subsection (3) applies. 5 In this section, " the appointed day" means the day appointed under section 54 of this Act for the coming into force of this Part of this Act. PART III Discovery and Related Procedures Power of court to order disclosure, etc. of documents before commencement of proceedings 31 On the application, in accordance with rules of court, of a person who appears to the High Court to be likely to be a party to subsequent proceedings in that court in which a claim in respect of personal injuries to a person or in respect of a person's death is likely to be made, the High Court shall, in such circumstances as may be specified in the rules, have power to order a person who appears to the court to be likely to be a party to the proceedings and to be likely to have or to have had in his possession, custody or power any documents which are relevant to an issue arising or likely to arise out of that claim — a to disclose whether those documents are in his possession, custody or power ; and b to produce to the applicant such of those documents as are in his possession, custody or power. Extension of existing powers of court to order disclosure of documents, inspection of property, etc. 32 1 On the application, in accordance with rules of court, of a party to any proceedings in which a claim in respect of personal injuries to a person or in respect of a person's death is made, the High Court shall, in such circumstances as may be specified in the rules, have power to order a person who is not a party to the proceedings and who appears to the court to be likely to have or to have had in his possession, custody or power any documents which are relevant to an issue arising out of that claim — a to disclose whether those documents are in his possession, custody or power ; and b to produce to the applicant such of those documents as are in his possession, custody or power. 2 On the application, in accordance with rules of court, of a party to any such proceedings as are referred to in subsection (1) above, the High Court shall, in such circumstances as may be specified in the rules, have power to make an order providing for any one or more of the following matters, that is to say — a the inspection, photographing, preservation, custody and detention of property which is not the property of, or in the possession of, any party to the proceedings but which is the subject matter of the proceedings or as to which any question arises in the proceedings; b the taking of samples of any such property as is mentioned in paragraph (a) above and the carrying out of any experiment on or with any such property. 3 The foregoing provisions of this section are without prejudice to the exercise by the High Court of any power to make orders which is exercisable apart from those provisions. 4 In this section " property " includes any land, chattel or other corporeal property of any description. Provisions supplementary to ss. 31 and 32 33 1 The power to make rules of court under section 99 of the Supreme Court of Judicature (Consolidation) Act 1925 shall include power to make rules of court as to the circumstances in which an order under section 31 or 32 of this Act can be made; and any such rules may include such incidental, supplementary and consequential provisions as the authority making the rules may consider necessary or expedient. 2 Without prejudice to the generality of subsection (1) above, rules of court shall be made under the said section 99 for the purpose of ensuring that the costs of and incidental to proceedings for an order under section 31 or 32 of this Act incurred by the person against whom the order is sought shall be awarded to that person unless the court otherwise directs. 3 In this Part of this Act " personal injuries " includes any disease and any impairment of a person's physical or mental condition. Application of ss. 31 to 33 to county courts and High Court in Northern Ireland 34 1 Sections 31, 32 and 33 of this Act shall have effect in relation to county courts in England and Wales as they have effect in relation to the High Court, as if in those sections references to rules of court and to section 99 of the Supreme Court of Judicature (Consolidation) Act 1925 included references to county court rules and to section 102 of the County Courts Act 1959. 2 In the application of the provisions of this Part of this Act to Northern Ireland, " the High Court" means the High Court of Justice in Northern Ireland, the reference in section 33(1) to section 99 of the Supreme Court of Judicature (Consolidation) Act 1925 shall be construed as a reference to section 7 of the Northern Ireland Act 1962, and subsection (1) above shall be omitted. Application to Crown 35 1 This Part of this Act shall bind the Crown. 2 Section 21 of the Administration of Justice Act 1969 (power of court to order inspection, custody, etc. of property pending commencement of action) shall bind the Crown so far as it relates to property (within the meaning of that section) as to which it appears to the court that it may become the subject-matter of subsequent proceedings involving a claim in respect of personal injuries to a person or in respect of a person's death. 3 A court shall not make an order under section 31 or 32 of this Act, nor an order under section 21 of the said Act of 1969, if it considers that compliance with the order, if made, would be likely to be injurious to the public interest. 4 In this section references to the Crown do not include references to Her Majesty in Her private capacity nor to Her Majesty in right of Her Duchy of Lancaster, nor to the Duke of Cornwall. PART IV Actions by Mortgagees for Possession Additional powers of court in action by mortgagee for possession of dwelling-house 36 1 Where the mortgagee under a mortgage of land which consists of or includes a dwelling-house brings an action in which he claims possession of the mortgaged property, not being an action for foreclosure in which a claim for possession of the mortgaged property is also made, the court may exercise any of the powers conferred on it by subsection (2) below if it appears to the court that in the event of its exercising the power the mortgagor is likely to be able within a reasonable period to pay any sums due under the mortgage or to remedy a default consisting of a breach of any other obligation arising under or by virtue of the mortgage. 2 The court — a may adjourn the proceedings, or b on giving judgment, or making an order, for delivery of possession of the mortgaged property, or at any time before the execution of such judgment or order, may — i stay or suspend execution of the judgment or order, or ii postpone the date for delivery of possession, for such period or periods as the court thinks reasonable. 3 Any such adjournment, stay, suspension or postponement as is referred to in subsection (2) above may be made subject to such conditions with regard to payment by the mortgagor of any sum secured by the mortgage or the remedying of any default as the court thinks fit. 4 The court may from time to time vary or revoke any condition imposed by virtue of this section. 5 This section shall have effect in relation to such an action as is referred to in subsection (1) above begun before the date on which this section comes into force unless in that action judgment has been given, or an order made, for delivery of possession of the mortgaged property and that judgment or order was executed before that date. 6 In the application of this section to Northern Ireland, " the court" means a judge of the High Court in Northern Ireland, and in subsection (1) the words from " not being " to " made " shall be omitted. Exclusive jurisdiction of county court in certain mortgage actions 37 1 Where a mortgage of land consists of or includes a dwelling-house and no part of the land is situated in Greater London or the county palatine of Lancaster, then, subject to subsection (2) below, if a county court has jurisdiction by virtue of section 48 of the County Courts Act 1959 or section 38 of this Act to hear and determine an action in which the mortgagee under that mortgage claims possession of the mortgaged property, no court other than a county court shall have jurisdiction to hear and determine that action. 2 This section shall not apply to an action for foreclosure or sale in which a claim for possession of the mortgaged property is also made. 3 Nothing in this section shall be taken as affecting the jurisdiction of any court to hear and determine an action which is pending in that court at the date on which this section comes into force. Further provisions as to actions in county court for possession of mortgaged land 38 1 If an action in which the mortgagee under a mortgage of land claims possession of the mortgaged property would, by virtue of section 48 of the County Courts Act 1959, be within the jurisdiction of a county court had that claim been the only claim made in the action, a county court shall have jurisdiction to hear and determine the action notwithstanding that a claim for payment by the mortgagor of the amount owing in respect of the mortgage is also made in the action and that by reason of the amount claimed the last-mentioned claim is not within the jurisdiction of a county court. 2 Nothing in subsection (1) above shall be taken as empowering a county court to hear and determine an action for foreclosure or sale which is not within the jurisdiction of a county court. 3 Without prejudice to section 102(3)(c) of the County Courts Act 1959 (which enables county court rules to authorise the registrar to hear and determine certain proceedings and actions), the registrar of a county court may hear and determine any action in which the mortgagee under a mortgage of land claims possession of the mortgaged land, being an action which is within the jurisdiction of a county court. Interpretation of Part IV 39 1 In this Part of this Act — " dwelling-house " includes any building or part thereof which is used as a dwelling; " mortgage " includes a charge and " mortgagor " and " mortgagee " shall be construed accordingly ; " mortgagor " and " mortgagee " includes any person deriving title under the original mortgagor or mortgagee. 2 The fact that part of the premises comprised in a dwelling-house is used as a shop or office or for business, trade or professional purposes shall not prevent the dwelling-house from being a dwelling-house for the purposes of this Part of this Act. PART V Miscellaneous Provisions Punishment for unlawful harassment of debtors 40 1 A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract, he — a harasses the other with demands for payment which, in respect of their frequency or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation; b falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it ; c falsely represents himself to be authorised in some official capacity to claim or enforce payment; or d utters a document falsely represented by him to have some official character or purporting to have some official character which he knows it has not. 2 A person may be guilty of an offence by virtue of subsection (1)(a) above if he concerts with others in the taking of such action as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment. 3 Subsection (1)(a) above does not apply to anything done by a person which is reasonable (and otherwise permissible in law) for the purpose — a of securing the discharge of an obligation due, or believed by him to be due, to himself or to persons for whom he acts, or protecting himself or them from future loss; or b of the enforcement of any liability by legal process. 4 A person guilty of an offence under this section shall be liable on summary conviction to a fine of not more than £100, and on a second or subsequent conviction to a fine of not more than £400. Recovery of costs and compensation awarded by magistrates, assizes, quarter sessions, etc. 41 1 In the cases specified in Part I of Schedule 9 to this Act (being cases where, in criminal proceedings, a court makes an order against the accused for the payment of costs, compensation, etc.) any sum required to be paid by such an order as is there mentioned shall be treated, for the purposes of collection and enforcement, as if it had been adjudged to be paid on a conviction by a magistrates' court, being — a where the order is made by a magistrates' court, that court; and b in any other case, such magistrates' court as may be specified in the order. 2 In the cases specified in Part II of the said Schedule (being cases where a court makes an order against the prosecutor in criminal proceedings, and certain cases where an order for costs arises out of an appeal to quarter sessions in proceedings which are not criminal) any sum required to be paid by such an order as is there mentioned shall be enforceable as if the order were for the payment of money recoverable summarily as a civil debt. 3 Without prejudice to the foregoing subsections, but subject to subsection (4) below, in the cases specified in Schedule 9 to this Act any sum required to be paid by such an order as is there mentioned shall be enforceable by the High Court or a county court (otherwise than by issue of a writ of fieri facias or other process against goods or by imprisonment or attachment of earnings) as if the sum were due in pursuance of a judgment or order of the High Court or county court, as the case may be. 4 Subsection (3) above shall not authorise the enforcement by a county court of payment of any sum exceeding the limit for the time being in force under section 40 of the County Courts Act 1959 on the amount of any penalty recoverable by statute in a county court. 5 References in subsections (1) and (2) above to orders mentioned in Schedule 9 to this Act include references to orders made before the day appointed under section 54 of this Act for the coming into force of this section, except an order in the case of which the person entitled to payment has before that day begun proceedings for its enforcement; and in relation to such a case the enactments in force immediately before that day with reference to the enforcement of such an order shall continue to apply notwithstanding any repeal effected by this Act, without prejudice however to section 13(6) of this Act. For the purpose of the operation of subsection (1) above with respect to an order made (otherwise than by a magistrates' court) before the day so appointed, the order shall be deemed to specify the magistrates' court for the petty sessions area in which the person subject to the order for the time being resides. 6 In the Magistrates' Courts Act 1952 — a in section 72(1) (transfer of fine order in England and Wales) and in section 72A(1) (the same as between England and Scotland), for the words from the beginning to " the offender " there shall be substituted in each case the words " Where a magistrates' court has, or is treated by any enactment as having, adjudged a person by a conviction to pay a sum and it appears to the court that the person "; and b in section 72(2) (enforcement functions on transfer of fine in England and Wales), for the words " the convicting court" there shall be substituted the words " the court which made the order ". 7 In section 32(2) of the Courts-Martial (Appeals) Act 1968 (enforcement of order for costs against unsuccessful appellant or applicant for leave to appeal to that court), for paragraph (a) there shall be substituted the following: — a in the same manner as an order for costs made by the criminal division of the Court of Appeal under section 25 of the Criminal Appeal Act 1968; or . 8 In any of the cases specified in Part I of Schedule 9 to this Act, a court (other than a magistrates' court) which makes such an order as is there mentioned may, if it thinks that the period for which the person subject to the order is liable apart from this subsection to be committed to prison for default under the order is insufficient, specify a longer period for that purpose, but not exceeding twelve months; and then, in the case of default — a the specified period shall be substituted as the maximum for which the person may be imprisoned under section 64 of the Magistrates' Courts Act 1952 (distress or committal); and b paragraph 2 of Schedule 3 to that Act shall apply, with the necessary modifications, for the reduction of the specified period where, at the time of the person's imprisonment, he has made part payment under the order. 9 Where a magistrates' court has power to commit a person to prison for default in paying a sum due under an order enforceable as mentioned in this section, the court shall not exercise the power unless it is satisfied that all other methods of enforcing payment have been tried or considered and either have proved unsuccessful or are likely to do so. Enforcement of fines 42 In section 45(1) of the Criminal Justice Act 1967 (which enables payment of a fine to be enforced by High Court or county court process, excepting execution on goods and imprisonment) after the words " or by imprisonment" there shall be inserted the words " or attachment of earnings ". Procedure for recovery of legal aid contributions in criminal cases 43 1 The appropriate authority for the purposes of section 76 of the Criminal Justice Act 1967 (that is to say, the authority to whom a recipient of legal aid in a criminal case may under that section be ordered to pay a contribution towards the costs) shall be the clerk of a magistrates' court (referred to in this section as " the collecting court") specified in the order; and the court so specified shall be — a in a case where the court making the legal aid contribution order is itself a magistrates' court, that court; b in a case where the order is made on the disposal of an appeal from a magistrates' court, or in respect of a person who was committed (whether for trial or otherwise) by a magistrates' court to assizes or quarter sessions, the court from which the appeal is brought or, as the case may be, which committed him ; and c in any other case, a magistrates' court nominated by the court making the order. 2 Subject to subsection (5) below, any sum required to be paid by a legal aid contribution order shall be recoverable as if it had been adjudged to be paid by an order of the collecting court, subject to and in accordance with the provisions of Schedule 10 to this Act (being provisions which mainly apply the same enforcement procedure as for maintenance orders). 3 Without prejudice to subsection (2) above, but subject to the following subsections, payment of any sum required to be paid by a legal aid contribution order shall be enforceable by the High Court or a county court (otherwise than by issue of a writ of fieri facias or other process against goods or by imprisonment or attachment of earnings) as if the sum were due to the clerk of the collecting court in pursuance of a judgment or order of the High Court or county court, as the case may be. 4 The last foregoing subsection shall not authorise the enforcement by a county court of payment of any sum exceeding the limit for the time being in force under section 40 of the County Courts Act 1959 on the amount of any penalty recoverable by statute in a county court. 5 Where a legal aid contribution order has been made by the Courts-Martial Appeal Court in respect of a member of Her Majesty's armed forces and the Secretary of State notifies the collecting court that any sum payable under the order will be recovered by deductions from the person's pay in pursuance of one of the enactments amended by subsection (6) below, the collecting court shall not enforce payment of any such sum unless and until the Secretary of State subsequently notifies it that the person is no longer a member of those forces and that the sum has not been fully recovered. 6 In section 150(1) of the Army Act 1955 and section 150(1) of the Air Force Act 1955 (enforcement by deduction from service-man's pay of certain orders made by civil courts), after paragraph (c) there shall be inserted — d a contribution towards the costs of legal aid ordered for him, under Part IV of the Criminal Justice Act 1967, for the purpose of, or in connection with, an appeal to or from the Courts-Martial Appeal Court ; and in section 1(1) of the Naval Forces (Enforcement of Maintenance Liabilities) Act 1947 (which enables maintenance payments due from a person in naval or marine service to be recovered by deductions from pay), after paragraph (b) there shall be inserted — c for the payment of any contribution towards the costs of legal aid ordered for him, under Part IV of the Criminal Justice Act 1967, for the purpose of, or in connection with, an appeal to or from the Courts-Martial Appeal Court. 7 The clerk of the collecting court shall not take proceedings by virtue of subsection (3) above to recover any sum required to be paid by a legal aid contribution order unless authorised to do so by the court. 8 Any expenses incurred by the clerk of a magistrates' court in recovering any sum so required to be paid shall be treated for the purposes of Part IV of the Justices of the Peace Act 1949 as expenses of the magistrates' court committee. 9 Nothing in this section applies to a legal aid contribution order made before the day appointed under section 54 of this Act for the coming into force of this section ; and in relation to such an order the enactments in force immediately before that day and relating to the enforcement of such an order shall continue to apply notwithstanding any repeal effected by this Act, without prejudice however to section 13(6) of this Act. 10 In this section " legal aid contribution order " means an order under section 76 of the Criminal Justice Act 1967. Interest on judgment debts 44 1 The Lord Chancellor may by order made with the concurrence of the Treasury direct that section 17 of the Judgments Act 1838 (as that enactment has effect for the time being whether by virtue of this subsection or otherwise) shall be amended so as to substitute for the rate specified in that section as the rate at which judgment debts shall carry interest such rate as may be specified in the order. 2 An order under this section shall be made by statutory instrument which shall be laid before Parliament after being made. Removal of limit on number of county court judges assignable to a district and of certain registrars appointed jointly 45 1 There shall be no limit on the number of judges who may be assigned to a district by direction of the Lord Chancellor under section 4(4) of the County Courts Act 1959 and, accordingly, for the words in that subsection from "for a district" to " two judges " there shall be substituted the words " there shall be such number of judges for a district as may be specified in the direction ". 2 In section 18(3) of the said Act of 1959 (which enables the Lord Chancellor, in the case of a populous district, to appoint two persons to execute jointly the office of registrar for the district and on the death, etc. of a joint registrar either to appoint another joint registrar in his place or direct that the continuing registrar shall act as sole registrar) — a for the words " in the case of a populous district, appoint two persons to execute jointly the office of registrar for the district" there shall be substituted the words " appoint two or more persons to execute jointly the office of registrar for a district "; and b at the end there shall be added the words " or, as the case may be, that the continuing registrars shall execute jointly the office of registrar ". and in the definition of " registrar " and " registrar of a county court" in section 201 of the said Act of 1959, after the word " two " there shall be inserted the words " or more " and after the word " either " there shall be inserted the words " or any ". 3 In section 84(3) of the Supreme Court of Judicature (Consolidation) Act 1925 (which makes, in relation to the office of district registrar, provision similar to that made by section 18(3) of the said Act of 1959), after the word "two" there shall be inserted the words " or more " and at the end there shall be added the words " or, as the case may be, that the continuing registrars shall execute jointly the office of district registrar ". Deputy county court registrar not to act as such in certain proceedings 46 Section 29 of the County Courts Act 1959 (which provides that no officer of a county court shall, either by himself or his partner, be directly or indirectly engaged as solicitor or agent for any party in any proceedings in that court) shall have effect, and be deemed always to have had effect, as if after subsection (1) thereof there were inserted — 1A Subsection (1) of this section shall not apply to a deputy registrar, but a deputy registrar shall not act as such in relation to any proceedings in which he is, either by himself or his partner, directly or indirectly engaged as a solicitor or agent for any party. Extension of power to make rules, etc. for purposes of Rent Act 1968 (c. 23) 47 Section 106 of the Rent Act 1968 (which empowers the Lord Chancellor or, when the Great Seal is in commission, any Lord Commissioner to make rules and give directions for the purpose of giving effect to the provisions of that Act specified in subsection (3) of that section) shall be amended as follows: — a in subsection (1), the words " Subject to subsection (3) below" shall be inserted at the beginning and the words " specified in subsection (3) below " shall be omitted; b for subsection (3) there shall be substituted — 3 The power conferred by subsection (1) above shall not be exercisable in relation to the provisions of Part IV or VI of this Act other than section 51(2). Variation in rate of payments in maintenance order registered in magistrates' court 48 1 Section 4 of the Maintenance Orders Act 1958 (which enables the rate of payments in a maintenance order registered in a magistrates' court under that Act to be varied by the court of registration) shall be amended in accordance with this section. 2 Subsection (3) of that section (rate of payments not to be varied upwards) shall cease to have effect in relation to any maintenance order as defined by section 28(1) of this Act, whether made or registered before or after the coming into force of this section. 3 In subsection (4) of that section (power of magistrates' court, on application for variation, to remit to the court which made the order), for the words " that, by reason of the Umitations imposed on the court's jurisdiction by the last foregoing subsection or for any other reason, it is " there shall be substituted the words " that it is for any reason ". Amendments relating to guardianship of minors 49 1 Any order made under section 4(2) of the Family Law Reform Act 1969 (maintenance for persons between 18 and 21 who have been subject to an order under the Guardianship of Infants Acts) may be varied or discharged by a subsequent order made on the application of any person by or to whom payments were required to be made under the previous order. 2 In the Guardianship of Infants Act 1886 — a in section 5, the words from " and in every case " on wards (costs in custody proceedings); and b in section 11 (rules of procedure) paragraph (a) and, in paragraph (c), the words " England or ", shall cease to have effect. 3 Subsection (1) of this section shall be deemed to have come into operation at the same time as section 4 of the said Act of 1969. Proof of age before magistrates 50 Section 126(5) of the Magistrates' Courts Act 1952 (which relates to proof of age) shall have effect as if the provisions of that Act included — a section 1 of the First Offenders Act 1958 ; and b section 18, section 24(1) and (2) and section 33 of the Criminal Justice Act 1967. Minor amendments of Children and Young Persons Act 1969 (c. 54) 51 1 In sections 2(4) and 104 of the Act of 1952 the references to sections 20 and 21 of that Act (which are repealed by the Act of 1969 and replaced by section 6 of that Act) shall be construed as references to the said section 6; and for the purposes of section 126(5) of the Act of 1952 and section 70(3) of the Act of 1969 (which relate to proof of age) the said section 6 shall be deemed to be a provision of the Act of 1952 and not the Act of 1969. 2 The following paragraph shall be inserted after paragraph 1 of Schedule 4 to the Act of 1969 (transitional provisions and savings) — 1A 1 Where — a before the date when section 1 of this Act comes into force any child or young person (hereafter in this paragraph referred to as " the relevant infant ") has been brought before a juvenile court under section 62 of the Children and Young Persons Act 1933 or has been brought before such a court by virtue of a provision of section 40 or 40A of the Education Act 1944 ; and b immediately before that date that court has neither made any order which it had power to make in respect of the relevant infant under the said section 62 nor dissmissed the case, nothing in paragraph 13 of Schedule 5 to this Act nor in any provision of Schedule 6 thereto shall prevent the proceedings before that court in respect of the relevant infant being continued; but the court shall in those proceedings have power to make any order which it has power to make in proceedings under section 1 of this Act and shall not have power to make any other order, and subsections (3), (4) and (5) of the said section 1 and subsections (10) and (13) of section 2 of this Act shall have effect accordingly with any necessary modifications. 2 For the purposes of subsection (12) of the said section 2, any order made in respect of the relevant infant by virtue of sub-paragraph (1) of this paragraph shall be deemed to be made under section 1 of this Act. 3 Any record of a finding of the fact that the relevant infant is in need of care or protection made in pursuance of section 5 of the Children and Young Persons Act 1938 in any such proceedings as are referred to in sub-paragraph (1) of this paragraph shall, notwithstanding the repeal of the said section 5 by this Act, be admissible as evidence of that fact in those proceedings. 3 In this section " the Act of 1952 " and " the Act of 1969 " mean respectively the Magistrates' Courts Act 1952 and the Children and Young Persons Act 1969. PART VI General Financial provisions 52 There shall be defrayed out of moneys provided by Parliament any increase attributable to the provisions of this Act in the sums payable under any other enactment out of moneys so provided. Powers of Parliament of Northern Ireland 53 Notwithstanding anything in the Government of Ireland Act 1920, the Parliament of Northern Ireland shall have power to make laws for purposes similar to the purposes of section 24 or 37 of this Act. Citation, interpretation, repeals, commencement and extent 54 1 This Act may be cited as the Administration of Justice Act 1970. 2 References in this Act to any enactment include references to that enactment as amended or extended by or under any other enactment, including this Act. 3 The enactments specified in Schedule 11 to this Act are hereby repealed to the extent specified in the third column of that Schedule. 4 This Act shall come into force on such day as the Lord Chancellor may appoint by order made by statutory instrument, and different days may be so appointed for different provisions of this Act, or for different purposes. 5 Except insofar as it amends, or authorises the amendment of, any enactment which extends to Scotland, this Act shall not extend to Scotland. 6 This section (except subsection (3)) and the following provisions only of this Act extend to Northern Ireland, that is to say — a sections 1(6) and 27 and Schedules 2 and 7, so far as they relate to any enactment which extends to Northern Ireland, and section 2(5); b Part III; and c sections 36, 39, 43(6) and 53. and the amendment of section 25 of the Court of Probate Act (Ireland) 1859 made by the said section 1(6) and Schedule 2 shall be treated for the purposes of section 6 of the Government of Ireland Act 1920 (which restricts the power of the Parliament of Northern Ireland to alter Acts of the Parliament of the United Kingdom passed after the day appointed for the purposes of that section) as having been made by an Act passed before that day. SCHEDULES SCHEDULE 1 High Court Business Assigned to Family Division Section 1. Business at first instance Proceedings consisting of a matrimonial cause, or any matter arising out of or connected with such a cause; proceedings for a decree of presumption of death and dissolution of marriage ; and any other proceedings with respect to which rules of court may be made by virtue of section 7(1) of the Matrimonial Causes Act 1967. Proceedings for a declaration — a under section 39 of the Matrimonial Causes Act 1965, as to a person's legitimacy, or the validity of a marriage, or a person's right to be deemed a British subject; or b with respect to a person's matrimonial status. Proceedings in relation to the wardship of minors. Proceedings under the Adoption Acts 1958 and 1968. Proceedings under the Guardianship of Infants Act 1886 and 1925 and otherwise in relation to the guardianship of minors, except proceedings for the appointment of a guardian of a minor's estate alone. Proceedings under section 3 of the Marriage Act 1949 for obtaining the court's consent to the marriage of a minor. Proceedings under section 17 of the Married Women's Property Act 1882 (determination of title to property in dispute between spouses). Proceedings in which a parent or guardian of a minor applies for a writ of habeas corpus ad subjiciendum relative to the custody, care or control of the minor. Proceedings under the following enactments: — a the Maintenance Orders (Facilities for Enforcement) Act 1920 (enforcement in England and Wales of orders made overseas for periodical payments to a man's wife or dependant); b Part II of the Maintenance Orders Act 1950 (enforcement in England and Wales of certain maintenance and other orders made in Scotland or Northern Ireland); c the Maintenance Orders Act 1958 (registration and enforcement of certain maintenance and other orders); d Part II of this Act. Proceedings under section 1 of the Matrimonial Homes Act 1967 (means whereby a spouse can continue in occupation of, or obtain entry to, a dwelling-house which is, or has been, the matrimonial home). Appellate business Proceedings on appeal under — a section 10 of the Guardianship of Infants Act 1886 (appeal to High Court from order of county court under that Act); b section 7(3) of the Guardianship of Infants Act 1925 (corresponding appeal from a magistrates' court); c section 11 of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 (appeal from certain decisions of a magistrates' court under that Act). Proceedings on appeal from a magistrates' court under section 10 of the Adoption Act 1958 against the making of, or refusal to make, an adoption order. Proceedings on appeal from a magistrates' court under section 4(7) of the Maintenance Orders Act 1958 against the variation of, or refusal to vary, an order registered in accordance with the provisions of that Act. Proceedings on appeal under section 13 of the Administration of Justice Act 1960 (appeal in cases of contempt of court) from an order or decision of a magistrates' court under section 54(3) of the Magistrates' Courts Act 1952 where the order or decision was made to enforce an order of such a court under the Guardianship of Infants Acts 1886 and 1925 or the Matrimonial Proceedings (Magistrates' Courts) Act 1960. Proceedings on appeal by case stated against an order or determination of a court of quarter sessions, or a magistrates' court, made or given in affiliation proceedings. Proceedings on appeal by case stated against an order or determination of a magistrates' court with regard to the enforcement of — a an order for the payment of money made by virtue of the Matrimonial Proceedings (Magistrates' Courts) Act 1960 ; b an order for the payment of money registered in a magistrates' court under the Maintenance Orders Act 1958 or registered in a court in England and Wales under Part II of the Maintenance Orders Act 1950 or the Maintenance Orders (Facilities for Enforcement) Act 1920 or confirmed by a magistrates' court under the last-mentioned Act. Proceedings on appeal by case stated against an order or determination of a magistrates' court under section 24 of the Matrimonial Causes Act 1965 (alteration of maintenance agreement between spouses). SCHEDULE 2 Amendment of Enactments Consequential on Section 1 Section 1. THE COURT OF PROBATE ACT (IRELAND) 1859 (22 and 23 Vict. c. 31) 1 In section 25 of the Court of Probate Act (Ireland) 1859 (certificate of principal probate registrar in England required before English grants are resealed), after the words "'principal probate registrar'" insert the words " or, under the hand of a registrar of the Family Division of the High Court in England, that bond has been given to the principal registrar of that Division ". THE MAINTENANCE ORDERS (FACILITIES FOR ENFORCEMENT) ACT 1920 (c. 33) 2 In section 1 of the Maintenance Orders (Facilities for Enforcement) Act 1920 (provisions for registration and enforcement of maintenance orders made overseas), in subsection (2), for the words " Probate, Divorce and Admiralty Division" substitute the words " Family Division ". THE ADMINISTRATION OF ESTATES ACT 1925 (c. 23) 3 In section 23 of the Administration of Estates Act 1925 (grant of representation in the case of settled land), in subsections (3) and (4), for the words " Principal Probate Registry " substitute the words " principal registry of the Family Division of the High Court ". 4 In section 47A of the said Act of 1925 (life interest of surviving spouse on an intestacy), in subsection (7), for the words " principal probate registrar" substitute the words " principal registrar of the Family Division of the High Court ". 5 In section 55 of the said Act of 1925 (interpretation), for paragraph (xv) substitute — xv ' Probate Judge ' means the President of the Family Division of the High Court . THE SUPREME COURT OF JUDICATURE (CONSOLIDATION) ACT 1925 (c. 49) References to Probate Division and its President 6 In the following provisions of the Supreme Court of Judicature (Consolidation) Act 1925, for the words "Probate, Divorce and Admiralty Division" or "Probate Division ", in each place where they occur, substitute the words " Family Division " : — section 2 (constitution of High Court), subsection (1); section 3 (qualification to sit as judge), subsection (1); section 4 (divisions of High Court), subsections (1)(iii) and (2); section 6 (constitution of Court of Appeal), subsection (2); section 9 (qualification of judges), subsection (3); section 16 (precedence of judges), subsections (2) and (2a); section 70 (commissioners of assize), subsections (3) and (5); section 99 (rules of court), subsections (4) and (6); section 100 (rules about non-contentious probate business), subsection (1); section 108 (district probate registries), subsections (2), (3) and (5); section 109 (clerks of district probate registries), subsections (1) and (2); section 113 (power to abolish offices); section 115 (tenure of officers of Supreme Court), subsection (3); section 116 (appointment of deputies for court officers), subsection (4); section 128A (district probate registrar), subsections (2) and (3); section 152 (duties of district probate registrars), subsection (2), (3), (5) and (6) ; section 156 (calendars of grants), subsection (2); section 157 (copies of will to be delivered to Revenue); section 172 (depositories of wills of living persons); section 174 (seals for use in probate registries), subsection (1); section 220 (documents filed in, or in custody of, central office), subsection (3); Schedule 2 (district probate registries), paragraph 2 ; Schedule 3, Part I (officers to whom special provisions as to appointment, retirement and pension apply). Other amendments in Parts 1 to V 7 In section 5 of the said Act of 1925 (power to alter divisions by Order in Council), in subsection (1), for the words " on a report or recommendation of the council of judges of the Supreme Court assembled in pursuance of the provisions of Part X of this Act", substitute the words " on a recommendation of the Lord Chancellor, the Lord Chief Justice, the Master of the Rolls, the President of the Family Division and the Vice-Chancellor ". 8 In section 56 of the said Act of 1925 (allocation of business to divisions) — a in subsection (1)(b), for the words " The wardship of infants and the care of infants' estates " substitute — The appointment of a guardian of a minor's estate alone ; b after subsection (1)(b) insert — bb all causes and matters involving the exercise of the High Court's probate jurisdiction otherwise than in respect of non-contentious or common form probate business ; c after subsection (2)(a) insert — aa all causes and matters involving the exercise of the High Court's Admiralty jurisdiction, or its jurisdiction as a prize court ; d for subsection (3) substitute — 3 To the Family Division — a all causes and matters involving the exercise of the High Court's jurisdiction in proceedings specified in Schedule 1 to the Administration of Justice Act 1970; b all causes and matters which under, or by virtue or in pursuance of, any other enactment for the time being in force are assigned to the Family Division. 9 For section 107 of the said Act of 1925 (principal probate registry) substitute — 107 The principal registry of the Family Division, for the purpose of non-contentious or common form probate business, shall remain in London, unless Her Majesty by Order in Council appoints some other place for it. 10 In section 112 of the said Act of 1925 (classification of Supreme Court clerks), in subsection (1), for the words "the principal" substitute the words " the principal registry of the Family Division ". 11 In Schedule 3 to the said Act of 1925, Part I (officers to whom special provisions as to appointment, retirement and pension apply), after the words "Assistant Master of the Supreme Court (King's Bench Division) " insert the words " Admiralty Registrar ". Amendments of references in Part VII to principal probate registry and registrar 12 In the following provisions of the said Act of 1925, for the words " the principal probate registry", in each place where they occur, substitute the words " the principal registry of the Family Division " : — section 126 (qualification for appointment to certain offices), subsection (3); section 150 (application for grants); section 151 (grants in district probate registries), subsection (3); section 152 (duties of district probate registrars), subsections (1), (2), (3), (4) and (5); section 154 (caveats), subsections (1) and (2); section 156 (records of grants), subsection (1); section 168 (resealing of Scottish confirmations), subsections (1), (2) and (3); section 169 (resealing of Northern Irish grants), subsections (1), (2) and (3); section 170 (deposit of wills, etc.) ; section 171 (official copies of wills), paragraphs (b) and (c) ; section 174 (seals for use in probate registries), subsection (1). 13 In section 157 of the said Act of 1925 (copies of wills to be delivered to Commissioners of Inland Revenue), for the words " every probate registry " substitute the words " the principal registry of the Family Division and every district probate registry ". 14 In the following provisions of the said Act of 1925, for the words " the principal probate registrar ", in each place where they occur, substitute the words " the principal registrar of the Family Division " : — section 167 (administration bonds), subsection (2); section 168 (re-sealing of Scottish confirmations), subsection (3); section 169 (re-sealing of Northern Irish grants), subsection (2); section 171 (official copies of wills), paragraph (c). 15 In section 167 of the said Act of 1925 (administration bonds), in subsection (1), for the words from " senior " to " principal probate registrar", where last occurring, substitute the words " principal registrar of the Family Division and, subject to the provisions of this section, if that registrar " ; and in subsection (4), for the words " the principal probate registrar " substitute the words " the principal registrar of the Family Division or, before the coming into force of section 1 of the Administration of Justice Act 1970, the principal probate registrar ". THE INHERITANCE (FAMILY PROVISION) ACT 1938 (c. 45) 16 In section 3 of the Inheritance (Family Provision) Act 1938 (effect and form of order as to provision to be made for dependant of deceased person), in subsection (3), for the words " principal probate registry " substitute the words " principal registry of the Family Division ". THE ADMINISTRATION OF JUSTICE (PENSIONS) ACT 1950 (14 & 15 Geo. 6 c. 11) 17 In Schedule 1 to the Administration of Justice (Pensions) Act 1950 (list of judges and others whose pensions are affected by Part I of the Act), in the left-hand column — a after the words " Assistant Master of the Supreme Court (King's Bench Division ") insert " Admiralty Registrar ". b for the words " Registrar, Probate Division " substitute the words " Registrar, Probate or Family Division ". THE SUPREME COURT OFFICERS (PENSIONS) ACT 1954 (c. 38) 18 In section 2 of the Supreme Court Officers (Pensions) Act 1954 (judges' secretaries and clerks), in subsections (2), (5) and (6), for the words " Probate, Divorce and Admiralty Division" substitute the words " Family Division ". THE PUBLIC RECORDS ACT 1958 (c. 51) 19 In section 8 of the Public Records Act 1958 (deposit and custody of court records), in subsection (5), for the words " Probate Division " substitute the words " Family Division ". THE JUDICIAL PENSIONS ACT 1959 (c. 9) 20 In Schedule 1 to the Judicial Pensions Act 1959 (judicial offices qualifying for pension at rates set out in section 1) for the words " Probate, Divorce and Admiralty Division" substitute the words " Probate, Divorce and Admiralty, or Family Division ". THE COUNTY COURTS ACT 1959 (c. 22) 21 In section 42 of the County Courts Act 1959 (jurisdiction by agreement in certain actions) for the words " Probate, Divorce and Admiralty Division " substitute the words " Family Division or have involved the exercise of the High Court's Admiralty jurisdiction ". 22 At the end of section 54(2) of the said Act of 1959 (transfer of equity proceedings from High Court to county court) insert the words " other than a matter in relation to which section 63 of this Act applies ". 23 In section 62(1) of the said Act of 1959 (probate jurisdiction) and section 63 thereof (transfer of probate proceedings from High Court to county court), for the words " principal probate registry ", in each place where they occur, substitute the words " principal registry of the Family Division ". 24 In section 64 of the said Act of 1959 (effect of order of judge in probate proceedings), in paragraph (a), after the word "principal" insert the words " registry of the Family Division " ; and, in paragraph (b), for the words " principal probate registry " substitute the words " principal registry of the Family Division ". THE JUDGES' REMUNERATION ACT 1965 (c. 61) 25 In Schedule 1 to the Judges' Remuneration Act 1965 (salaries of higher United Kingdom judiciary), for "Probate, Divorce and Admiralty Division " substitute " Family Division ". THE MATRIMONIAL CAUSES ACT 1967 (c. 56) 26 In section 4 of the Matrimonial Causes Act 1967 (county court proceedings in High Court divorce registry), for the words " principal probate registry", in each place where they occur, substitute the words " divorce registry ". 27 In section 7 of the said Act of 1967 (matrimonial causes rules), in subsection (1). — a for the words " Probate, Divorce and Admiralty Division " substitute the words " Family Division "; and b for the words " principal probate registry" substitute the words " divorce registry ". 28 In section 10 of the said Act of 1967 (interpretation), in subsection (1), after the definition of " divorce county court" insert — ' divorce registry ' means the principal registry of the Family Division of the High Court . SCHEDULE 3 Application of Arbitration Act 1950 to Judge-Arbitrators Section 4. 1 In this Schedule — a " the Act" means the Arbitration Act 1950 ; b " arbitration agreement" has the same meaning as in the Act; and c " judge-arbitrator" and " judge-umpire " mean a judge of the Commercial Court appointed as arbitrator or, as the case may be, as umpire by or by virtue of an arbitration agreement. 2 In section 1 of the Act (authority of arbitrator to be irrevocable except by leave of the court), in its application to a judge-arbitrator or judge-umpire, the Court of Appeal shall be substituted for the High Court. 3 The power of the High Court under section 7 of the Act (vacancy among arbitrators supplied by parties) to set aside the appointment of an arbitrator shall not be exercisable in the case of the appointment of a judge-arbitrator. 4 Section 8(3) of the Act (power of High Court to order umpire to enter immediately on reference as sole arbitrator) shall not apply to a judge-umpire ; but a judge-umpire may, on the application of any party to the reference and notwithstanding anything to the contrary in the arbitration agreement, enter on the reference in lieu of the arbitrators and as if he were the sole arbitrator. 5 1 The powers conferred on the High Court or a judge thereof by section 12(4), (5) and (6) of the Act (summoning of witnesses, interlocutory orders, etc.) shall be exercisable in the case of a reference to a judge-arbitrator or judge-umpire as in the case of any other reference to arbitration, but shall in any such case be exercisable also by the judge-arbitrator or judge-umpire himself. 2 Anything done by an arbitrator or umpire in the exercise of powers conferred by this paragraph shall be done by him in his capacity as judge of the High Court and have effect as if done by that court; but nothing in this paragraph prejudices any power vested in the arbitrator or umpire in his capacity as such. 6 Section 13(2) and (3) of the Act (extension of time for making award; provision for ensuring that reference is conducted with reasonable dispatch) shall not apply to a reference to a judge-arbitrator or judge-umpire ; but a judge-arbitrator or judge-umpire may enlarge any time limited for making his award (whether under the Act or otherwise), whether that time has expired or not. 7 1 Section 18(4) of the Act (provision enabling a party in an arbitration to obtain an order for costs) shall apply, in the case of a reference to a judge-arbitrator, with the omission of the words from " within fourteen days " to " may direct". 2 The power of the High Court to make declarations and orders for the purposes of section 18(5) of the Act (charging order for solicitor's costs) shall be exercisable in the case of an arbitration by a judge-arbitrator or judge-umpire as in the case of any other arbitration, but shall in any such case be exercisable also by the judge-arbitrator or judge-umpire himself. 3 A declaration or order made by an arbitrator or umpire in the exercise of the power conferred by the last foregoing sub-paragraph shall be made by him in his capacity as judge of the High Court and have effect as if made by that court. 8 1 Section 19 of the Act (power of High Court to order delivery of award on payment of arbitrators' fees into court) shall not apply with respect to the award of a judge-arbitrator or judge-umpire. 2 A judge-umpire may withhold his award until the fees payable to the arbitrators have been paid into the High Court. 3 Arbitrators' fees paid into court under this paragraph shall be paid out in accordance with rules of court, subject to the right of any party to the reference to apply (in accordance with the rules) for any fee to be taxed, not being a fee which has been fixed by written agreement between him and the arbitrator. 4 A taxation under this paragraph may be reviewed in the same manner as a taxation of the costs of an award. 5 On a taxation under this paragraph, or on a review thereof, an arbitrator shall be entitled to appear and be heard. 9 1 In sections 21(1) and (2), 22 and 23 of the Act (special case, remission and setting aside of awards, etc.), in their application to a judge-arbitrator or judge-umpire, and to a reference to him and to his award thereon, the Court of Appeal shall be substituted for the High Court. 2 A decision of the Court of Appeal on a case stated by a judge-arbitrator or judge-umpire under section 21 of the Act (as amended by this paragraph) shall be deemed to be a judgment of that court for the purposes of section 3 of the Appellate Jurisdiction Act 1876 (appeal to House of Lords) ; but no appeal shall lie from any such decision without the leave of the Court of Appeal or the House of Lords. 10 1 Section 24(2) of the Act (removal of issue of fraud for trial in the High Court) shall not apply to an agreement under or by virtue of which a judge-arbitrator or judge-umpire has been appointed ; nor shall leave be given by the High Court under that subsection to revoke the authority of a judge-arbitrator or judge-umpire. 2 Where, on a reference of a dispute to a judge-arbitrator or judge-umpire, it appears to the judge that the dispute involves the question whether a party to the dispute has been guilty of fraud, he may, so far as may be necessary to enable that question to be determined by the High Court, order that the agreement by or by virtue of which he was appointed shall cease to have effect and revoke his authority as arbitrator or umpire. 3 An order made by a judge-arbitrator or judge-umpire under this paragraph shall have effect as if made by the High Court. 11 Section 25 of the Act (powers of court on removal of arbitrator or revocation of arbitration agreement) shall be amended as follows: — a after the words "the High Court" where they first occur in subsection (1), where they occur for the first and second time in subsection (2), and in subsections (3) and (4), there shall be inserted the words " or the Court of Appeal "; and b after those words where they occur for the second time in subsection (1) and for the third time in subsection (2) there shall be inserted the words " or the Court of Appeal, as the case may be ". 12 The leave required by section 26 of the Act (enforcement in High Court) for an award on an arbitration agreement to be enforced as mentioned in that section may, in the case of an award by a judge-arbitrator or a judge-umpire, be given by the judge-arbitrator or judge-umpire himself. SCHEDULE 4 Taxes, Social Insurance Contributions, etc. subject to Special Enforcement Provisions in Part II Sections 11, 12 and 14. 1 Income tax or any other tax or liability recoverable under section 65, 66 or 68 of the Taxes Management Act 1970. 2 Selective employment tax under section 44 of the Finance Act 1966. 3 Contributions under — section 3 (flat-rate) or section 4 (graduated) of the National Insurance Act 1965; section 1 of the National Health Service Contributions Act 1965 ; or section 2 of the National Insurance (Industrial Injuries) Act 1965. 4 Redundancy Fund contributions under section 27 of the Redundancy Payments Act 1965. SCHEDULE 5 Deductions by Employer under Attachment of Earnings Order Sections 15 and 16. PART I Scheme of Deductions Preliminary definitions 1 The following three paragraphs have effect for defining and explaining, for purposes of this Schedule, expressions used therein. 2 " Pay-day ", in relation to earnings paid to a debtor, means an occasion on which they are paid. 3 " Attachable earnings", in relation to a pay-day, are the earnings which remain payable to the debtor on that day after deduction by the employer of — a income tax ; b contributions under any of the following enactments — the National Insurance Act 1965, the National Insurance (Industrial Injuries) Act 1965, or the National Health Service Contributions Act 1965 ; c amounts deductible under any enactment, or in pursuance of a request in writing by the debtor, for the purposes of a superannuation scheme within the meaning of the Wages Councils Act 1959. 4 On any pay-day — a "the normal deduction" is arrived at by applying the normal deduction rate (as specified in the relevant attachment of earnings order) with respect to the period since the last pay-day or, if it is the first pay-day of the debtor's employment with the employer, since the employment began; and b " the protected earnings" are arrived at by applying the protected earnings rate (as so specified) with respect to the said period. Employer's deduction (judgment debts and administration orders) 5 In the case of an attachment of earnings order made to secure the payment of a judgment debt or payments under an administration order, the employer shall on any pay-day — a if the attachable earnings exceed the protected earnings, educt from the attachable earnings the amount of the excess or the normal deduction rate, whichever is the less ; b make no deduction if the attachable earnings are equal to, or less than, the protected earnings. Employer's deduction (other cases) 6 1 The following provision shall have effect in the case of an attachment of earnings order to which paragraph 5 above does not apply. 2 If on a pay-day the attachable earnings exceed the sum of — a the protected earnings ; and b so much of any amount by which the attachable earnings on any previous pay-day fell short of the protected earnings as has not been made good by virtue of this sub-paragraph on another previous pay-day, then, in so far as the excess allows, the employer shall deduct from the attachable earnings the amount specified in the following sub-paragraph. 3 The said amount is the sum of — a the normal deduction ; and b so much of the normal deduction on any previous pay-day as was not deducted on that day and has not been paid by virtue of this sub-paragraph on any other previous pay-day. 4 No deduction shall be made on any pay-day when the attachable earnings are equal to, or less than, the protected earnings. PART II Priority as between Orders 7 Where the employer is required to comply with two or more attachment of earnings orders in respect of the same debtor, all or none of which orders are made to secure either the payment of judgment debts or payments under an administration order, then on any pay-day the employer shall, for the purpose of complying with Part I of this Schedule. — a deal with the orders according to the respective dates on which they were made, disregarding any later order until an earlier one has been dealt with ; b deal with any later order as if the earnings to which it relates were the residue of the debtor's earnings after the making of any deduction to comply with any earlier order. 8 Where the employer is required to comply with two or more attachment of earnings orders, and one or more (but not all) of those orders are made to secure either the payment of judgment debts or payments under an administration order, then on any pay-day the employer shall, for the purpose of complying with Part I of this Schedule — a deal first with any order which is not made to secure the payment of a judgment debt or payments under an administration order, (complying with paragraph 7 above if there are two or more such orders); and b deal thereafter with any order which is made to secure the payment of a judgment debt or payments under an administration order as if the earnings to which it relates were the residue of the debtor's earnings after the making of any deduction to comply with an order having priority by virtue of sub-paragraph (a) of this paragraph ; and c if there are two or more orders to which sub-paragraph (b) of this paragraph applies, comply with paragraph 7 above in respect of those orders. SCHEDULE 6 Enactments Providing Benefits which are not to be Treated as Debtor's Earnings Section 26. The National Insurance Act 1965. The National Insurance (Industrial Injuries) Act 1965. The Family Allowances Act 1965. The Ministry of Social Security Act 1966. The Industrial Injuries and Diseases (Old Cases) Act 1967. SCHEDULE 7 Provisions of Maintenance Orders Act 1958 as amended Section 27. PART I Amendments of Sections 9 and 20 1 In this Part of this Schedule " the Act" means the Maintenance Orders Act 1958. 2 In section 9(2) of the Act — a after " order " (where that word first occurs) insert " made to secure maintenance payments "; and b after " order " (where that word first occurs after paragraph (e)) insert " so made ". 3 In section 9(4) and (5) of the Act, for " defendant" (wherever that word occurs) substitute " debtor ". 4 In section 9(4) of the Act — a for the words from the beginning to " a county court" substitute " Where, in the case of an attachment of earnings order made by the High Court or a county court to secure maintenance payments, it appears to the collecting officer of the court ". b for the words from " which made that order " to the end of paragraph (ii) substitute " shall make the appropriate variation order, unless the debtor requests it to discharge the attachment of earnings order, or to vary it in some other way, and the court thinks fit to comply with the request ". 5 In section 9(5) of the Act — a for the words from the beginning to " a magistrates' court" substitute " Where, in the case of an attachment of earnings order made by a magistrates' court to secure maintenance payments, it appears to the collecting officer ". b for the words from " proceed under the following paragraph " to the end of the subsection substitute " discharge the attachment of earnings order, or to vary it in some other way, and the court thinks fit to comply with the request ". 6 In section 20 of the Act — a in subsection (1), after " anything in this Act" insert " or Part II of the Administration of Justice Act 1970 " and for paragraph (b) substitute — b apply for an attachment of earnings order to secure payments under the maintenance order or (except as required by section 9(5) of this Act) an order discharging or varying such an attachment of earnings order ; or c apply for a determination under section 22 of the Administration of Justice Act 1970 ; b at the beginning of subsection (2) insert " Subject to rules of court made by virtue of section 18(3)(c) of the Administration of Justice Act 1970 ". c in subsection (3), after " magistrates' court" (where those words occur for the second time) insert " to secure maintenance payments ". d for subsection (4)(a) substitute — a the power to make an order in pursuance of a complaint by the debtor for an attachment of earnings order, or the discharge or variation of such an order, shall be deemed to be a power to make an order against the person to whom payment under the relevant adjudication is required to be made (whether directly or through an officer of any court) ; e in subsection(4)(b), for " paragraph (b) of section seven of this Act " substitute " section 14(4)(b) of the Administration of Justice Act 1970 " and for " defendant " substitute " debtor " ; and f for subsection (5) substitute — 5 An application to a magistrates' court for a determination under section 22 of the Administration of Justice Act 1970 shall be made by complaint; and on making a determination under that section a magistrates' court may in its discretion make such order as it thinks just and reasonable for the payment by any of the persons mentioned in subsection (2) of that section of the whole or any part of the costs of the determination (but subject to subsection (1)(ii) of this section); and costs ordered to be paid under this subsection shall — a in the case of costs to be paid by the debtor to the person in whose favour the attachment of earnings order in question was made, be deemed to be — i if the attachment of earnings order was made to secure maintenance payments, a sum due under the related maintenance order, and ii otherwise, a sum due to the clerk of the court; and b in any other case, be enforceable as a civil debt. PART II Sections 9 and 20 as amended 9 2 An attachment of earnings order made to secure maintenance payments shall cease to have effect — a upon the grant of an application under section two of this Act for the registration of the related maintenance order under Part I of this Act, notwithstanding that, in the case of an application under subsection (1) of that section, the grant may subsequently become void under subsection (2) thereof; b where the related maintenance order is registered under the said Part I, upon the giving of notice with respect thereto under section five of this Act; c upon the making of an order of commitment or the issue of a warrant of commitment for the enforcement of the related maintenance order, or upon the exercise for that purpose of the power conferred on a magistrates' court by subsection (2) of section sixty-five of the Magistrates' Courts Act, 1952, to postpone the issue of such a warrant; d upon the discharge of the related maintenance order while it is not registered under Part I of this Act; e upon the related maintenance order ceasing to be registered in a court in England, or becoming registered in a court in Scotland or Northern Ireland, under Part II of the Maintenance Orders Act, 1950 ; and where an attachment of earnings order so made ceases to have effect as aforesaid the proper officer of the prescribed court shall give notice of the cessation to the person to whom the order was directed: Provided that where the related maintenance order is discharged as mentioned in paragraph (d) of this subsection and it appears to the court discharging the order that arrears thereunder will remain to be recovered after the discharge, that court may, if it thinks fit, direct that this subsection shall not apply. 4 Where, in the case of an attachment of earnings order made by the High Court or a county court to secure maintenance payments, it appears to the collecting officer of the court that — a the aggregate of the payments made for the purposes of the related maintenance order by the debtor (whether under the attachment of earnings order or otherwise) exceeds the aggregate of the payments required up to that time by the maintenance order; and b the normal deduction rate specified by the attachment of earnings order (or where two or more such orders are in force in relation to the maintenance order, the aggregate of the normal deduction rates specified by those orders) exceeds the rate of payments required by the maintenance order; and c no proceedings for the variation or discharge of the attachment of earnings order are pending, the said officer shall give the prescribed notice to the person to whom he is required to pay sums received under the attachment of earnings order and to the debtor, and the court shall make the appropriate variation order, unless the debtor requests it to discharge the attachment of earnings order, or to vary it in some other way, and the court thinks fit to comply with the request. In this and the next following subsection " the appropriate variation order " means an order varying the attachment of earnings order in question by reducing the normal deduction rate specified thereby so as to secure that that rate (or, in the case mentioned in paragraph (b) of this subsection, the aggregate of the rates therein mentioned) is the same as the rate of payments required by the maintenance order or is such lower rate as the court trunks fit having regard to the amount of the excess mentioned in paragraph (a) of this subsection. 5 Where, in the case of an attachment of earnings order made by a magistrates' court to secure maintenance payments, it appears to the collecting officer that the conditions specified in paragraphs (a) to (c) of the last foregoing subsection are satisfied, that officer shall make an application to that court for the appropriate variation order, and the court — a shall grant the application unless the debtor appears at the hearing thereof and requests the court to discharge the attachment of earnings order, or to vary it in some other way, and the court thinks fit to comply with the request. 20 1 Notwithstanding anything in this Act or Part II of the Administration of Justice Act 1970, the clerk of a magistrates' court who is entitled to receive payments under a maintenance order for transmission to another person shall not — a apply for the registration of the maintenance order under Part I of this Act or give notice in relation to the order in pursuance of subsection (1) of section five thereof; or b apply for an attachment of earnings order to secure payments under the maintenance order or (except as required by section 9(5) of this Act) an order discharging or varying such an attachment of earnings order ; or c apply for a determination under section 22 of the Administration of Justice Act 1970, unless he is requested in writing to do so by a person entitled to receive the payments through him ; and where the clerk is requested as aforesaid — i he shall comply with the request unless it appears to him unreasonable in the circumstances to do so ; ii the person by whom the request was made shall have the same liabilities for all the costs properly incurred in or about any proceedings taken in pursuance of the request as if the proceedings had been taken by that person ; and for the purposes of paragraph (ii) of this subsection any application made by the clerk as required by the said subsection (5) shall be deemed to be made on the request of the person in whose favour the attachment of earnings order in question was made. 2 Subject to rules of court made by virtue of section 18(3)(c) of the Administration of Justice Act 1970, an application to a magistrates' court by virtue of subsection (2) of section four of this Act for the variation of a maintenance order and an application to a magistrates' court for an attachment of earnings order, or an order discharging or varying an attachment of earnings order, shall be made by complaint. 3 It is hereby declared that a magistrates' court has jurisdiction to hear a complaint by or against a person residing outside England for the discharge or variation of an attachment of earnings order made by a magistrates' court to secure maintenance payments ; and where such a complaint is made against a person residing outside England, then — a if he resides in Scotland or Northern Ireland, section fifteen of the Maintenance Orders Act, 1950 (which relates to the service of process on persons residing in those countries) shall have effect in relation to the complaint as it has effect in relation to the proceedings therein mentioned ; and b if the said person resides outside the United Kingdom and does not appear at the time and place appointed for the hearing of the complaint but it is proved to the satisfaction of the court, on oath or in such other manner as may be prescribed, that the complainant has taken such steps as may be prescribed to give to the said person notice of the complaint and of the time and place aforesaid, the court may, if it thinks it reasonable in all the circumstances to do so, proceed to hear and determine the complaint at the time and place appointed for the hearing or for any adjourned hearing in like manner as if the said person had then appeared. 4 For the purposes of section forty-three of the Magistrates' Courts Act, 1952 (which provides for the issue of a summons directed to the person against whom an order may be made in pursuance of a complaint) — a the power to make an order in pursuance of a complaint by the debtor for an attachment of earnings order, or the discharge or variation of such an order, shall be deemed to be a power to make an order against the person to whom payment under the relevant adjudication is required to be made (whether directly or through an officer of any court); and b the power to make an attachment of earnings order, or an order discharging or varying an attachment of earnings order, in pursuance of a complaint by any other person (including a complaint in proceedings to which section 14(4)(b) of the Administration of Justice Act 1970 applies) shall be deemed to be a power to make an order against the debtor. 5 An application to a magistrates' court for a determination under section 22 of the Administration of Justice Act 1970 shall be made by complaint; and on making a determination under that section a magistrates' court may in its discretion make such order as it thinks just and reasonable for the payment by any of the persons mentioned in subsection (2) of that section of the whole or any part of the costs of the determination (but subject to subsection (1)(ii) of this section) ; and costs ordered to be paid under this subsection shall — a in the case of costs to be paid by the debtor to the person in whose favour the attachment of earnings order in question was made, be deemed to be — i if the attachment of earnings order was made to secure maintenance payments, a sum due under the related maintenance order, and ii otherwise, a sum due to the clerk of the court; and b in any other case, be enforceable as a civil debt. 6 . . . . . . . . . . 7 A complaint for an attachment of earnings order may be heard notwithstanding that the complaint was not made within the six months allowed by section one hundred and four of the Magistrates' Courts Act, 1952. 8 For the avoidance of doubt it is hereby declared that a complaint may be made to enforce payment of a sum due and unpaid under a maintenance order notwithstanding that a previous complaint has been made in respect of that sum or a part thereof and whether or not an order was made in pursuance of the previous complaint. SCHEDULE 8 Maintenance Orders for purposes of 1958 Act and Part II of this Act Section 28. 1 An order for alimony, maintenance or other payments made, or having effect as if made, under Part II of the Matrimonial Causes Act 1965 (ancillary relief in actions for divorce etc.). 2 An order for payments to or in respect of a child being an order made, or having effect as if made, under Part III of the said Act of 1965 (maintenance of children following divorce, etc.). 3 An order for maintenance or other payments to or in respect of a spouse or child being an order made, or having effect as if made, under the Matrimonial Proceedings (Magistrates' Courts) Act 1960. 4 An order under — a section 3(2), 5(4) or 6 of the Guardianship of Infants Act 1925 (payments for maintenance of minor in care of guardian); b section 4(2) of the Family Law Reform Act 1969 (payments for maintenance of person who has been in guardianship and has come of age, but is not yet twenty-one); or c section 6 of the said Act of 1969 (payments for maintenance of ward of court). 5 An affiliation order (that is to say an order under section 4 of the Affiliation Proceedings Act 1957, section 44 of the National Assistance Act 1948, section 26 of the Children Act 1948 or section 24 of the Ministry of Social Security Act 1966). 6 An order under section 87 of the Children and Young Persons Act 1933, section 30 of the Children and Young Persons Act 1963 or section 23 of the Ministry of Social Security Act 1966 (various provisions for obtaining contributions from a person whose dependants are assisted or maintained out of public funds). 7 An order under section 43 of the National Assistance Act 1948 (recovery of costs of maintaining assisted person). 8 An order to which section 16 of the Maintenance Orders Act 1950 applies by virtue of subsection (2)(b) or (c) of that section (that is to say an order made by a court in Scotland or Northern Ireland and corresponding to one of those specified in the foregoing paragraphs) and which has been registered in a court in England and Wales under Part II of that Act. 9 A maintenance order within the meaning of the Maintenance Orders (Facilities for Enforcement) Act 1920 (Commonwealth orders enforceable in the United Kingdom) registered in, or confirmed by, a court in England and Wales under that Act. SCHEDULE 9 Enforcement of Orders for Costs, Compensation, etc. Section 41. PART I Cases where Payment Enforceable as on Summary Conviction Costs awarded by magistrates 1 Where a magistrates' court, on the summary trial of an information, makes an order as to costs to be paid by the accused to the prosecutor. 2 Where an appellant to quarter sessions against conviction or sentence by a magistrates' court abandons his appeal and the magistrates' court orders him to pay costs to the other party to the appeal. Costs awarded by assizes and quarter sessions 3 Where a person appeals to quarter sessions against conviction or sentence by a magistrates' court, and quarter sessions makes an order as to costs to be paid by him. 4 Where a person is prosecuted or tried on indictment or inquisition before a court of assize or quarter sessions and is convicted, and the court orders him to pay the whole or part of the costs incurred in or about the prosecution and conviction. 5 Where the accused is ordered by quarter sessions to pay costs, under powers exercisable by virtue of section 14 of the Costs in Criminal Cases Act 1952 (committal to quarter sessions for sentence and other purposes ; appeal under Vagrancy Act 1824). Costs awarded by Court of Appeal (criminal division) or House of Lords 6 Where the criminal division of the Court of Appeal dismisses an appeal or application for leave to appeal and orders the appellant or applicant to pay the whole or part of the costs of the appeal or application. 7 Where the criminal division of the Court of Appeal or the House of Lords dismisses an application for leave to appeal to that House (being an application made by the person who was the appellant before the criminal division) and orders him to pay the whole or part of the costs of the application. Criminal costs awarded by High Court 8 Where a person is tried at bar in the Queen's Bench Division of the High Court and is convicted, and the High Court orders him to pay the whole or part of the costs incurred in or about the prosecution and conviction. Miscellaneous orders for costs, compensation, damages etc. 9 Where a court makes an order for the payment of costs by an offender and does so under the Costs in Criminal Cases Act 1952 as applied by section 31(1) or (2) of the Criminal Justice Act 1967 (proceedings in which a person is dealt with for a further offence after being put on probation, conditionally discharged, bound over or given a suspended sentence). 10 Where under section 4 of the Forfeiture Act 1870 or section 34 of the Magistrates' Courts Act 1952 a court awards a sum of money by way of satisfaction or compensation for damage to, or loss of, property suffered through or by means of an indictable offence. 11 Where under section 11(2) of the Criminal Justice Act 1948 a court, on making a probation order or an order for conditional discharge, or on discharging an offender absolutely, orders the offender to pay damages for injury or compensation for loss. 12 Where under section 55 of the Children and Young Persons Act 1933 a court orders any fine, damages, compensation or costs, or any sum awarded by way of satisfaction or compensation to be paid by the parent or guardian of a child or young person. PART II Cases where costs enforceable summarily as civil debt Costs awarded by magistrates 13 Where a magistrates' court, on the summary trial of an information, makes an order as to costs to be paid by the prosecutor to the accused. 14 Where an appellant to quarter sessions from a magistrates' court (otherwise than against conviction or sentence) abandons his appeal and the magistrates' court orders him to pay costs to the other party to the appeal. 15 Where examining justices determine not to commit a person for trial and order the prosecutor to pay the whole or part of the costs incurred in or about the defence. Costs awarded by assizes and quarter sessions 16 Where a person convicted by a magistrates' court appeals to quarter sessions against conviction or sentence, and quarter sessions makes an order as to costs to be paid by the respondent to the appellant. 17 Where a person appeals to quarter sessions from a magistrates' court (otherwise than against conviction or sentence) and quarter sessions makes an order as to costs to be paid by the appellant or respondent. 18 Where a person is prosecuted or tried on indictment or inquisition before a court of assize or quarter sessions and is acquitted, and the court orders the prosecutor to pay the whole or part of the costs incurred in or about the defence. 19 Where a person is committed for trial and is not ultimately tried, and the court to which he is committed orders the prosecutor to pay to him the whole or part of the costs incurred in or about the defence. 20 Where the prosecutor is ordered by quarter sessions to pay costs, under powers exercisable by virtue of section 14(2) or (3) of the Costs in Criminal Cases Act 1952 (committal or appeal to quarter sessions under Vagrancy Act 1824). Criminal costs awarded by High Court 21 Where a person is tried at bar in the Queen's Bench Division of the High Court and is acquitted, and the High Court orders the prosecutor to pay the whole or part of the costs incurred in or about the defence. SCHEDULE 10 Enforcement by Magistrates' Court of Legal Aid Contribution Order Section 43. General provisions as to enforcement 1 In this Schedule "collecting court" and "legal aid contribution order " have the same meaning as in section 43 of this Act. 2 The collecting court may, in relation to a legal aid contribution order, exercise the powers of section 63 of the Magistrates' Courts Act 1952 (power to dispense with immediate payment); and for the purposes of that section any provision made by the court which made the order as to time for payment, or payment by instalments, shall be treated as made by the collecting court. 3 Sections 74 (complaint for arrears), 75 (effect of committal on arrears) and 76 (power to remit arrears) of the Magistrates' Courts Act 1952 shall apply as if a legal aid contribution order were enforceable as an affiliation order. 4 Any costs awarded, under section 55 of the Magistrates' Courts Act 1952, on the hearing of a complaint for the enforcement of a legal aid contribution order shall be enforceable as a sum required to be paid by that order. 5 Sections 17 and 18 of the Maintenance Orders Act 1958 (not more than one committal for same arrears, and power to review committals) shall apply as if a legal aid contribution order were a maintenance order. 6 Section 68 of the Magistrates' Courts Act 1952 (application of money found on defaulter to satisfy sum adjudged) shall apply as if a legal aid contribution order were enforceable as an affiliation order. Transfer of enforcement proceedings to different court 7 1 Where it appears to the collecting court that a person subject to a legal aid contribution order is residing in a petty sessions area other than that for which the court acts, the court may make a transfer order under this paragraph, that is to say an order making payment under the legal aid contribution order enforceable in that other petty sessions area (which area shall be specified in the transfer order). 2 As from the date of a transfer order under this paragraph the court which made the order shall cease to be the collecting court for the purposes of the legal aid contribution order and of section 43 of this Act and this Schedule and be replaced as such by a magistrates' court acting for the petty sessions area specified in the transfer order. SCHEDULE 11 Enactments Repealed Section 54. Chapter Short Title Extent of Repeal 33 & 34 Vict. c. 23 . The Forfeiture Act 1870. In section 4, the words from " and the amount" onwards. 49 & 50 Vict. c. 27 . The Guardianship of Infants Act 1886. In section 5 the words from " and in every case " onwards. In section 6, the words " in any division thereof ". In section 9, the words from " Any application " to " Rules of Court". In section 10, the words " before a judge of the Chancery Division " and the words from " and, subject to any " to " as he shall direct". In section 11, paragraph (a), and, in paragraph (c), the words " England or ". 4 & 5 Geo. 5. c. 59 . The Bankruptcy Act 1914 Section 107(1) to (3). 15 & 16 Geo. 5 c. 23 . The Administration of Estates Act 1925 In section 30(3), the words " the Probate, Divorce and Admiralty Division of". 15 & 16 Geo. 5. c. 49 . The Supreme Court of Judicature (Consolidation) Act 1925. In section 5(1), the words " report or". In section 58, the words from "and (4) Subject to rules of court" onwards. In section 63, in paragraph (b) of the proviso to subsection (6), the words " with the concurrence of the other judges of the Division or a majority thereof, or in the case of the King's Bench Division ". In section 225, the definition of " Probate Division ". 23 & 24 Geo. 5. c. 12 . The Children and Young Persons Act 1933 Section 55(4). 23 & 24 Geo. 5 c. 38 . The Summary Jurisdiction (Appeals) Act 1933 Section 5(2). 11 & 12 Geo. 6 c. 58 . The Criminal Justice Act 1948 Section 11(3). 12, 13 and 14 Geo. 6. c. 87 . The Patents Act 1949. Section 85(6). 12, 13 and 14 Geo. 6. c. 88 . The Registered Designs Act 1949. Section 28(6). 15 & 16 Geo. 6. & 1 Eliz. 2 c. 48 . The Costs in Criminal Cases Act 1952. Section 10(1) to (3); and in section 10(5) the words " under this section ", wherever occurring. 15 & 16 Geo. 6. & 1 Eliz. 2. c. 55 . The Magistrates' Courts Act 1952. In section 34, the words from " and any sum " onwards. In section 74(6)(a), the words " under the Maintenance Orders Act 1958 ". Section 85(3). 6 & 7 Eliz. 2. c. 39 . The Maintenance Orders Act 1958. Section 4(3). Sections 6 to 8. Section 9(1), (3) and (6). Sections 10 to 15. In section 21(1), the definitions of " attachment of earnings order," " earnings "," employer "," excepted sums " and " maintenance order"; and section 21(5). The Schedule. 1959 c. 22 . The County Courts Act 1959. Section 153(a). Section 154. 1964 c. 42 . The Administration of Justice Act 1964. Section 5(2). In Schedule 3, paragraph 25(2). 1965 c. 72 . The Matrimonial Causes Act 1965. In section 38(1), the words from " and any order " onwards. 1966 c. 20 . The Ministry of Social Security Act 1966. In section 23(6), the words from " and the Maintenance Orders Act 1958 " onwards. In section 24(9), the words from " and the Maintenance Orders Act 1958 " onwards. 1966 c. 31 . The Criminal Appeal Act 1966. Section 1(4) and (6)(b). Section 2(2). 1967 c. 80 . The Criminal Justice Act 1967. Section 46. Section 79(3) to (7). In section 84, the definition of " appropriate authority ". Schedule 1. 1968 c. 19 . The Criminal Appeal Act 1968. In Section 45(2), the words " of the Queen's Bench Division of ". In Schedule 5, the entry relating to section 10(2) of the Costs in Criminal Cases Act 1952. 1968 c. 36 . The Maintenance Orders Act 1968. In the Schedule, the entry relating to section 4 of the Maintenance Orders Act 1958. 1969 c. 46 . The Family Law Reform Act 1969. In section 4(5)(b), the words from " and be deemed " onwards. In section 6(7) the words from " and be deemed " onwards. 1969 c. 54 . The Children and Young Persons Act 1969. In section 3(6), the word " and " at the end of paragraph (b), and paragraph (c).

The Consular Relations (Merchant Shipping) (United States of Mexico) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (United States of Mexico) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Article 3 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 4 of this Order a ship shall be treated as belonging to the United States of Mexico if it is registered at a port in any of the territories of the United States of Mexico. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the United States of Mexico shall not be entertained by any court in the United Kingdom unless either: a the proceedings are instituted by or against a person who is a citizen of the United Kingdom and Colonies, a citizen of Southern Rhodesia, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948; or b a consular officer of the United States of Mexico has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 The United States of Mexico is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The Smoke Control Areas (Exempted Fireplaces) Order 1970 The Minister of Housing and Local Government, in exercise of his powers under section 11(4) and (8) of the Clean Air Act 1956, and of all other powers enabling him in that behalf, hereby orders as follows: — Title and commencement 1 This order may be cited as the Smoke Control Areas (Exempted Fire-places) Order 1970 and shall come into operation on 1st May 1970. Interpretation 2 1 The Interpretation Act 1889 shall apply for the interpretation of this order as it applies for the interpretation of an Act of Parliament. 2 In this order — “ fireplace ” includes any furnace, grate or stove, whether open or closed ; and “ the standard conditions ” means the conditions specified in article 4 of this order . Classes of fireplace exempt from section 11 of Clean Air Act 1956 3 In England and Wales, any class of fireplace numbered and described in column (1) of Schedule 1 hereto shall, upon the standard conditions and such further conditions (if any) as are specified in column (2) against that class, be exempted from the provisions of section 11 of the Clean Air Act 1956 (which enables local authorities to establish smoke control areas in which emission of smoke is an offence, but provides for the exemption of certain fireplaces). Standard conditions of exemption 4 The standard conditions shall be that the fireplace is installed, maintained and operated — a so as to minimise the emission of smoke; and b in accordance with the manufacturer's instructions as to operation (if any) or, in the case of the class of fireplace numbered 6 in Schedule 1 hereto, in accordance with such instructions of the National Coal Board. Revocations 5 The orders set out in Schedule 2 hereto are hereby revoked. Given under the official seal of the Minister of Housing and Local Government on 21st April 1970. Anthony Greenwood Minister of Housing and Local Government SCHEDULE 1 (1) (2) Class of fireplace Conditions 1. Any fireplace specially designed or adapted for combustion of liquid fuel. 2. Any fireplace (other than a fireplace fired by pulverised fuel) constructed on or after 31st December 1956 and installed before 1st May 1970 and equipped with mechanical stokers, or adapted between those dates for use with such stokers. 3. Any fireplace designed to burn coal (other than a fireplace fired by pulverised coal) with a heating capacity exceeding 150,000 British thermal units per hour constructed and installed on or after 31st December 1956 and equipped with mechanical stokers or adapted on or after that date for use with such stokers. No fuel shall be used other than that for which the mechanical stoker was designed. 4. The fireplace known as the Solid Fuel Ductair Unit, manufactured by Radiation Limited. 5. The fireplace known as the Fulgora Slow Combustion Stove, manufactured by Fulgora Stoves Limited. No fuel shall be used other than wood waste in clean condition. 6. The fireplace known as the Housewarmer, manufactured for the National Coal Board by Ideal Standard Limited. No fuel shall be used other than washed coal singles. 7. The fireplace known as the Wood Chip Fired Air Heater, manufactured by Air Plants Limited. No fuel shall be used other than clean wood waste of a size within the limits referred to in the manufacturer's instructions. 8. The fireplace known as the Hounsell Sawdust Burning Stove, manufactured by John Hounsell (Engineers) Limited. No fuel shall be used other than wood waste in clean condition. SCHEDULE 2 ORDERS REVOKED The Smoke Control Areas (Exempted Fireplaces) Order 1957 The Smoke Control Areas (Exempted Fireplaces) Order 1959 The Smoke Control Areas (Exempted Fireplaces) Order 1957 The Smoke Control Areas (Exempted Fireplaces) Order 1957

The Consular Relations (Merchant Shipping) (Federal Republic of Germany) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Her Majesty, by virtue and in exercise of the powers conferred on Her by sections 4, 5, 6 and 16(2) of the Consular Relations Act 1968 or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Merchant Shipping) (Federal Republic of Germany) Order 1970 and shall come into operation on 1st January 1971. 2 1 For the purposes of Articles 3 and 4 of this Order and for the purposes of section 6 of the Consular Relations Act 1968 as applied by virtue of Article 5 of this Order a ship shall be treated as belonging to the Federal Republic of Germany if it is a ship which lawfully flies the flag of the Federal Republic of Germany. 2 Nothing in this Order shall apply to any ship of war. 3 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 Proceedings relating to the remuneration or any contract of service of the master or a member of the crew of any ship belonging to the Federal Republic of Germany shall not be entertained by any court in the United Kingdom unless a consular officer of the Federal Republic of Germany has been notified of the intention to invoke the jurisdiction of that court and has not objected within a period of two weeks from the date of such notification and a statement to that effect is included among the details on which the claim is based at the time when the proceedings are commenced. 4 Where an offence is alleged to have been committed on board any ship belonging to the Federal Republic of Germany by the master or a member of the crew, proceedings for the offence instituted otherwise than at the request or with the consent of a consular officer of the Federal Republic of Germany shall not be entertained by any court in the United Kingdom, unless — a the offence is alleged to have been committed — i by or against a person who is a citizen of the United Kingdom and Colonies, a citizen of Southern Rhodesia, a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948; or ii against a person other than the master or a member of the crew; or b the offence is one involving the tranquillity or safety of a port, or the law relating to safety of life at sea, public health, oil pollution, wireless telegraphy, immigration or customs; or c the offence is one punishable (on a first conviction) with imprisonment for a term that may extend to five years or with a more severe sentence. 5 The Federal Republic of Germany is designated for the purposes of section 6 of the Consular Relations Act 1968 (which relates to detention on board ship for disciplinary offences). W. G. Agnew

The Import Duty Reliefs (No. 2) Order 1970 Whereas it appears to the Treasury expedient that the relief from import duties provided by this Order should be allowed with a view to conforming with an agreement concerning co-operation in defence satellite communications which has been made between Her Majesty's Government in the United Kingdom and the Government of the United States of America and entered into force on 1st April 1970: Now therefore, the Lords Commissioners of Her Majesty's Treasury, by virtue of the powers conferred on them by section 5 of the Import Duties Act 1958, and of all other powers enabling them in that behalf, on the recommendation of the Board of Trade hereby make the following Order: — 1 1 This Order may be cited as the Import Duty Reliefs (No. 2) Order 1970. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 This Order shall come into operation on 16th October 1970. 2 Payment shall not be required of any import duty chargeable on goods in the case of which it is shown to the satisfaction of the Commissioners of Customs and Excise that they are imported solely for purposes connected with the carrying into effect of the said agreement. David Howell Bernard Weatherill Two of the Lords Commissioners of Her Majesty's Treasury 9th October 1970

Equal Pay Act 1970 Requirement of equal treatment for men and women in same employment 1 1 The provisions of this section shall have effect with a view to securing that employers give equal treatment as regards terms and conditions of employment to men and to women, that is to say that (subject to the provisions of this section and of section 6 below) — a for men and women employed on like work the terms and conditions of one sex are not in any respect less favourable than those of the other; and b for men and women employed on work rated as equivalent (within the meaning of subsection (5) below) the terms and conditions of one sex are not less favourable than those of the other in any respect in which the terms and conditions of both are determined by the rating of their work. The following provisions of this section and section 2 below are framed with reference to women and their treatment relative to men, but are to be read as applying equally in a converse case to men and their treatment relative to women. 2 It shall be a term of the contract under which a woman is employed at an establishment in Great Britain that she shall be given equal treatment with men in the same employment, that is to say men employed by her employer or any associated employer at the same establishment or at establishments in Great Britain which include that one and at which common terms and conditions of employment are observed either generally or for employees of the relevant class. 3 Where a woman is employed at an establishment in Great Britain otherwise than under a contract which includes (directly or by reference to a collective agreement or otherwise) a term satisfying subsection (2) above, the terms and conditions of her employment shall include an implied term giving effect to that subsection. 4 A woman is to be regarded as employed on like work with men if, but only if, her work and theirs is of the same or a broadly similar nature, and the differences (if any) between the things she does and the things they do are not of practical importance in relation to terms and conditions of employment; and accordingly in comparing her work with theirs regard shall be had to the frequency or otherwise with which any such differences occur in practice as well as to the nature and extent of the differences. 5 A woman is to be regarded as employed on work rated as equivalent with that of any men if, but only if, her job and their job have been given an equal value, in terms of the demand made on a worker under various headings (for instance effort, skill, decision), on a study undertaken with a view to evaluating in those terms the jobs to be done by all or any of the employees in an undertaking or group of undertakings, or would have been given an equal value but for the evaluation being made on a system setting different values for men and women on the same demand under any heading. 6 Subject to the following subsections, for purposes of this section — a " employed" means employed under a contract of service or of apprenticeship or a contract personally to execute any work or labour, and related expressions shall be construed accordingly ; b a person is to be regarded as employed at an establishment if he is employed to work in the establishment or, in the case of a person employed to work otherwise than in an establishment, if his employment is carried out from the establishment; c two employers are to be treated as associated if one is a company of which the other (directly or indirectly) has control or if both are companies of which a third person (directly or indirectly) has control. 7 A person is not to be regarded for purposes of this section as employed at an establishment in Great Britain if his employment is wholly or mainly outside Great Britain; but — a employment on aircraft or hovercraft registered in Great Britain shall not be regarded as employment outside Great Britain, unless it is wholly outside Great Britain; b persons employed to work on board a ship registered in Great Britain, unless the employment is wholly outside Great Britain, are to be regarded as employed at an establishment in Great Britain, and the ship shall be deemed to be the establishment. 8 This section shall apply to persons employed under or for purposes of a Minister of the Crown or government department, otherwise than as members of the naval, military or air forces of the Crown or of any women's service administered by the Defence Council, as it would apply if they were employed by a private person. Disputes as to, and enforcement of requirement of equal treatment 2 1 Any claim in respect of the operation of a term included in a woman's contract of employment or implied in her terms and conditions of employment as mentioned in section 1(3) above (in this section referred to as an " equal pay clause "), including a claim for arrears of remuneration or damages in respect of a failure to comply with an equal pay clause, may be referred to and determined by an industrial tribunal, and may be so referred either by the person making the claim or by the person against whom it is made. 2 Where it appears to the Secretary of State that there may be a question whether the employer of any women is or has been failing to comply with their equal pay clauses, but that it is not reasonable to expect them to take steps to have the question determined, the question may be referred by him to an industrial tribunal and shall be dealt with as if the reference were of a claim by the women against the employer. 3 Where it appears to the court in which any proceedings are pending that a claim or counter-claim in respect of the operation of an equal pay clause could more conveniently be disposed of separately by an industrial tribunal, the court may direct that the claim or counterclaim shall be struck out; and (without prejudice to the foregoing) where in proceedings before any court a question arises as to the operation of an equal pay clause, the court may on the application of any party to the proceedings or otherwise refer that question, or direct it to be referred by a party to the proceedings, to an industrial tribunal for determination by the tribunal, and may stay or sist the proceedings in the meantime. 4 No claim in respect of the operation of an equal pay clause relating to a woman's employment shall be referred to an industrial tribunal otherwise than by virtue of subsection (3) above, if she has not been employed in the employment within the six months preceding the date of the reference. 5 A woman shall not be entitled, in proceedings brought in respect of a failure to comply with an equal pay clause (including proceedings before an industrial tribunal), to be awarded any payment by way of arrears of remuneration or damages in respect of a time earlier than two years before the date on which the proceedings were instituted. 6 Where a woman ought to be or to have been given equal treatment with a man as required by her equal pay clause, and he enjoys or has enjoyed by comparison with her any greater remuneration or other advantage, then it shall be for the woman's employer to show that this advantage is not the result of his terms and conditions of employment being in any respect more favourable than hers, but is genuinely due to a material difference (other than the difference of sex) between her case and his. 7 In this section " industrial tribunal" means a tribunal established under section 12 of the Industrial Training Act 1964 ; and there shall be paid out of moneys provided by Parliament any additional amounts which by virtue of this section are so payable under section 12(3) of that Act, as amended by section 46(5) of the Redundancy Payments Act 1965. Collective agreements and pay structures 3 1 Where a collective agreement made before or after the commencement of this Act contains any provision applying specifically to men only or to women only, the agreement may be referred, by any party to it or by the Secretary of State, to the Industrial Court constituted under Part I of the Industrial Courts Act 1919 to declare what amendments need to be made in the agreement, in accordance with subsection (4) below, so as to remove that discrimination between men and women. 2 Where on a reference under subsection (1) above the Industrial Court have declared the amendments needing to be made in a collective agreement in accordance with that subsection, then — a in so far as the terms and conditions of a person's employment are dependent on that agreement, they shall be ascertained by reference to the agreement as so amended, and any contract regulating those terms and conditions shall have effect accordingly; and b if the Industrial Court make or have made, under section 8 of the Terms and Conditions of Employment Act 1959 or any other enactment, an award or determination requiring an employer to observe the collective agreement, the award or determination shall have effect by reference to the agreement as so amended. 3 On a reference under subsection (1) above the Industrial Court may direct that all or any of the amendments needing to be made in the collective agreement shall be treated as not becoming effective until a date after their decision, or as having been effective from a date before their decision but not before the reference to them, and may specify different dates for different purposes; and subsection (2) above and any such contract, award or determination as is there mentioned shall have or be deemed to have had effect accordingly. 4 Subject to section 6 below, the amendments to be made in a collective agreement under this section shall be such as are needed — a to extend to both men and women any provision applying specifically to men only or to women only; and b to eliminate any resulting duplication in the provisions of the agreement in such a way as not to make the terms and conditions agreed for men, or those agreed for women, less favourable in any respect than they would have been without the amendments; but the amendments shall not extend the operation of the collective agreement to men or to women not previously falling within it, and where accordingly a provision applying specifically to men only or to women only continues to be required for a category of men or of women (there being no provision in the agreement for women or, as the case may be, for men of that category), then the provision shall be limited to men or women of that category but there shall be made to it such amendments, if any, as are needed to secure that the terms and conditions of the men or women of that category are not in any respect less favourable than those of all persons of the other sex to whom the agreement applies. 5 For purposes of this section " collective agreement" means any agreement as to terms and conditions of employment, being an agreement between — a parties who are or represent employers or organisations of employers or associations of such organisations; and b parties who are or represent organisations of employees or associations of such organisations; but includes also any award modifying or supplementing such an agreement. 6 Subsections (1) to (4) above (except subsection (2)(b) and subsection (3) in so far as it relates to subsection (2)(b)) shall have effect in relation to an employer's pay structure as they have effect in relation to a collective agreement, with the adaptation that a reference to the Industrial Court may be made by the employer or by the Secretary of State; and for this purpose " pay structure " means any arrangements adopted by an employer (with or without any associated employer) which ux common terms and conditions of employment for his employees or any class of his employees, and of which the provisions are generally known or open to be known by the employees concerned. 7 In this section the expression " employment " and related expressions, and the reference to an associated employer, shall be construed in the same way as in section 1 above, and section 1(8) shall have effect in relation to this section as well as in relation to that section. Wages regulation orders 4 1 Where a wages regulation order made before or after the commencement of this Act contains any provision applying specifically to men only or to women only, the order may be referred by the Secretary of State to the Industrial Court to declare what amendments need to be made in the order, in accordance with the like rules as apply under section 3(4) above to the amendment under that section of a collective agreement, so as to remove that discrimination between men and women; and when the Court have declared the amendments needing to be so made, the Secretary of State may by order made by statutory instrument coming into operation not later than five months after the date of the Court's decision direct that (subject to any further wages regulation order) the order referred to the Court shall have effect subject to those amendments. 2 A wages regulation order shall be referred to the Industrial Court under this section if the Secretary of State is requested so to refer it either — a by a member or members of the wages council concerned with the order who was or who were appointed as representing employers; or b by a member or members of that wages council who was or who were appointed as representing workers; or if in any case it appears to the Secretary of State that the order may be amendable under this section. 3 Where by virtue of section 12(1) of the Wages Councils Act 1959 a contract between a worker and an employer is to have effect with modifications specified in section 12(1), then (without prejudice to the general saving in section 11(7) of that Act for rights conferred by or under other Acts) the contract as so modified shall have effect subject to any further term implied by virtue of section 1 above. 4 In this section " wages regulation order " means an order made or having effect as if made under section 11 of the Wages Councils Act 1959. Agricultural wages orders 5 1 Where an agricultural wages order made before or after the commencement of this Act contains any provision applying specifically to men only or to women only, the order may be referred by the Secretary of State to the Industrial Court to declare what amendments need to be made in the order, in accordance with the like rules as apply under section 3(4) above to the amendment under that section of a collective agreement, so as to remove that discrimination between men and women; and when the Court have declared the amendments needing to be so made, it shall be the duty of the Agricultural Wages Board, by a further agricultural wages order coming into operation not later than five months after the date of the Court's decision, either to make those amendments in the order referred to the Court or otherwise to replace or amend that order so as to remove the discrimination. 2 Where the Agricultural Wages Board certify that the effect of an agricultural wages order is only to make such amendments of a previous order as have under this section been declared by the Industrial Court to be needed, or to make such amendments as aforesaid with minor modifications or modifications of limited application, or is only to revoke and reproduce with such amendments a previous order, then the Board may instead of complying with paragraphs 1 and 2 of Schedule 4, or in the case of Scotland paragraphs 1 and 2 of Schedule 3, to the Agricultural Wages Act give notice of the proposed order in such manner as appears to the Board expedient in the circumstances, and may make the order at any time after the expiration of seven days from the giving of the notice. 3 An agricultural wages order shall be referred to the Industrial Court under this section if the Secretary of State is requested so to refer it either — a by a body for the time being entitled to nominate for membership of the Agricultural Wages Board persons representing employers (or, if provision is made for any of the persons representing employers to be elected instead of nominated, then by a member or members representing employers); or b by a body for the time being entitled to nominate for membership of the Board persons representing workers (or, if provision is made for any of the persons representing workers to be elected instead of nominated, then by a member or members representing workers); or if in any case it appears to the Secretary of State that the order may be amendable under this section. 4 In this section " the Agricultural Wages Board " means the Agricultural Wages Board for England and Wales or the Scottish Agricultural Wages Board, "the Agricultural Wages Act " means the Agricultural Wages Act 1948 or the Agricultural Wages (Scotland) Act 1949 and " agricultural wages order " means an order of the Agricultural Wages Board under the Agricultural Wages Act. Exclusion from ss. 1 to 5 of pensions etc. 6 1 In so far as — a the terms and conditions of a woman's employment are, in any respect, affected by compliance with the law regulating the employment of women; or b any special treatment is accorded to women in connection with the birth or expected birth of a child; then to that extent the requirement of equal treatment for men and women as mentioned in section 1(1) of this Act shall not apply (but without prejudice to its operation as regards other matters), nor shall that requirement extend to requiring equal treatment as regards terms and conditions related to retirement, marriage or death or to any provision made in connection with retirement, marriage or death; and the requirements of section 3(4) of this Act shall be subject to corresponding restrictions. 2 Any reference in this section to retirement includes retirement, whether voluntary or not, on grounds of age, length of service or incapacity. Service pay 7 1 The Secretary of State or Defence Council shall not make, or recommend to Her Majesty the making of, any instrument relating to the terms and conditions of service of members of the naval, military or air forces of the Crown or of any women's service administered by the Defence Council, if the instrument has the effect of making a distinction, as regards pay, allowances or leave, between men and women who are members of those forces or of any such service, not being a distinction fairly attributable to differences between the obligations undertaken by men and those undertaken by women as such members as aforesaid. 2 The Secretary of State or Defence Council may refer to the Industrial Court for their advice any question whether a provision made or proposed to be made by any such instrument as is referred to in subsection (1) above ought to be regarded for purposes of this section as making a distinction not permitted by that subsection. Police pay 8 Regulations made — a under section 33, 34 or 35 of the Police Act 1964; or b under section 26 or 27 of the Police (Scotland) Act 1967; shall not make any distinction between men and women as regards their hours of duty, leave, pay or allowances except in so far as special treatment is accorded to women in connection with the birth or expected birth of a child or different provision is made for marriage. Commencement 9 1 Except as provided by subsection (2) below, the foregoing provisions of this Act shall come into force on the 29th December 1975 and references in this Act to its commencement shall be construed as referring to the coming into force of those provisions on that date. 2 If it appears to the Secretary of State expedient so to do in order to secure orderly progress before the commencement of this Act towards equal treatment for men and women, the Secretary of State may, by order made to come into operation on the 31st December 1973, provide for the provisions of sections 1 and 2 of this Act, other than any provisions excluded by the order, to have effect so as to require, as regards the period beginning with that date and ending with the 28th December 1975, that in any respect specified by the order differences in the treatment as regards terms and conditions of employment given to men and women shall be subject to such limitations as may be so specified, and may make corresponding provision with respect to sections 3 to 5; and as regards that period, if provision is so made by an order under this subsection, sections 1 and 2 above (apart from any provisions excepted by the order) shall have effect as if references to equal treatment were references to treatment as near to equal as is required by the order. 3 Any order under subsection (2) above shall provide, in respect of rates of pay, that the rate to be paid to a person in accordance with the term referred to in section 1(2) or (3) above shall be not less than nine-tenths of the rate paid to those with whom comparison is required by that term; but the fraction specified by the order may be greater than nine-tenths. 4 The power to make an order under subsection (2) above shall be exercisable by statutory instrument, but an order shall not be so made unless a draft of the order has been approved by resolution of each House of Parliament. 5 Before laying before Parliament a draft of an order under subsection (2) above the Secretary of State shall consult such bodies appearing to him to represent the interests of employers or of employees as he considers appropriate. Preliminary references to Industrial Court 10 1 A collective agreement, pay structure or order which after the commencement of this Act could under section 3, 4 or 5 of this Act be referred to the Industrial Court to declare what amendments need to be made as mentioned in that section may at any time not earlier than one year before that commencement be referred to the Court under this section for their advice as to the amendments needing to be so made. 2 A reference under this section may be made by any person authorised by section 3, 4 or 5, as the case may be, to make a corresponding reference under that section, but the Secretary of State shall not under this section refer an order to the Industrial Court unless requested so to do as mentioned in section 4(2) or 5(3), as the case may be, nor be required to refer an order if so requested. 3 A collective agreement, pay structure or order referred to the Industrial Court under this section may after the commencement of this Act be again referred to the Court under section 3, 4 or 5; but at that commencement any reference under this section (if still pending) shall lapse. 4 If an order is made under section 9(2) above for section 3, 4 or 5 to have effect from 31st December 1973 (with or without modifications), then, without prejudice to the operation of subsections (1) to (3) above apart from this subsection, the order may make corresponding provision for those subsections to apply, with such adaptations as may be provided for by the order, so as to authorise the making of references to the Industrial -Court during a year (or any less period specified in the order) preceding me 31st December 1973 ; and for that purpose the order may be made so as to come into operation before that date. Short title, interpretation and extent 11 1 This Act may be cited as the Equal Pay Act 1970. 2 In this Act the expressions " man " and " woman " shall be read as applying to persons of whatever age. 3 This Act shall not extend to Northern Ireland.

The Weights and Measures (Equivalents for dealings with drugs) Regulations 1970 The Secretaries of State respectively concerned with health in England, in Wales and in Scotland, acting jointly, in exercise of their powers under section 10(7) of the Weights and Measures Act 1963 as amended by article 2(2) of and Schedule 1 to the Transfer of Functions (Wales) Order 1969 , section 103 of the Medicines Act 1968 and of all other powers enabling them in that behalf, hereby make the following regulations: — Citation and commencement 1 These regulations may be cited as the Weights and Measures (Equivalents for dealings with drugs) Regulations 1970 and shall come into operation on 1st January 1971. Interpretation 2 1 In these regulations, unless the context otherwise requires — “ animal ” includes any bird, fish or reptile; “ medicated feed supplement ” means a dilution of a drug or drugs in a diluent for mixing with animal feeding stuffs; “ ingredient ” means a drug which is one constituent of a preparation which is itself a drug; “ mixture ” means any liquid preparation intended for administration by mouth which consists of one or more drugs dissolved or suspended in an aqueous or other appropriate vehicle, but does not include an elixir, emulsion, linctus or syrup; “ total quantity ” means the total quantity of a drug or of a preparation which is itself a drug other than an ingredient; “ veterinary drug ” means a drug ordered, sold or supplied for administration to an animal; “ veterinary prescription ” means a prescription for a drug intended for administration to an animal. 2 In these regulations a reference to a National Formulary shall be a reference to any edition of a formulary issued under the name of the National Formulary, the National War Formulary or the National (War) Formulary or to any edition issued prior to 1968 of the British National Formulary. 3 In these regulations a reference to a numbered regulation shall be a reference to the regulation bearing that number in these regulations and a reference to a numbered table shall be a reference to a table bearing that number in the schedule to these regulations. 4 The Interpretation Act 1889 shall apply to the interpretation of these regulations as it applies to the interpretation of an Act of Parliament. Exclusion from the regulations of drugs in animal feeding stuffs 3 These regulations shall not apply to dealings in drugs which are medicated feed supplements or which are contained in animal feeding stuffs. Equivalents for weights and volumes of ingredients 4 1 The provisions of this regulation shall apply subject to the provisions of regulations 6, 7 and 8. 2 Any unit of measurement mentioned in column 2 of Table 1 or column 2 of Table 2 shall be treated for the purpose of any dealing with quantities of ingredients as the equivalent of the unit set opposite thereto in column 1 of the table; and for any fraction of one grain not specifically mentioned in column 1 of Table 1, the equivalent for such purpose shall be treated as the corresponding fraction of the equivalent of one grain set out in column 2 of that table. 3 28 millilitres shall be treated for the purpose of any dealing with quantities of ingredients of drugs other than veterinary drugs, and 25 millilitres shall be treated for the purpose of any dealing with quantities of ingredients of veterinary drugs, as the equivalent of any quantity of not less than 451 and not more than 480 minims. 4 30 grammes shall be treated as the equivalent of one ounce (avoir-dupois or apothecaries) and 25 millilitres shall be treated as the equivalent of one fluid ounce for the purpose of any dealing with quantities of ingredients of veterinary drugs and where any quantity of such ingredients is expressed in terms of a number of ounces or fluid ounces, the equivalent for that purpose shall be 30 grammes or 25 millilitres, as the case may be, multiplied by that number. Equivalents for weights and volumes of total quantities 5 1 The provisions of this regulation shall apply subject to the provisions of regulations 6, 7 and 8. 2 Any unit of measurement mentioned in column 2 of Table 3 or column 2 of Table 4 shall be treated for the purpose of any dealing with total quantities of drugs as the equivalent of the unit set opposite thereto in column 1 of the table. 3 Where any quantity of drugs, expressed in terms of one or more of the units mentioned in column 1 of Table 3 or column 1 of Table 4, is greater than one pound or one pint, the equivalent for the purpose of any dealing with total quantities of drugs shall be treated as the corresponding multiple of the equivalent of one pound or one point, as the case may be, specified in column 2 of the relevant table together with the equivalent so specified of any residue of less than a pound or a pint; and in this paragraph “ corresponding multiple ”, in relation to a quantity of pounds or pints, means the number of times that quantity will divide into units of one pound or one pint, as the case may be. Equivalents for weights and volumes prescribed by referring to specified monographs 6 Where a prescription for any drug — a refers (whether by the use of the monograph name or otherwise) to a monograph in any edition issued prior to 1968 of the British Pharmaceutical Codex or in a National Formulary and such monograph contains a formulation for the drug expressed in imperial units, and b a formulation for the drug expressed in metric units is contained in the Compendium of Past Formulae 1933 to 1966 issued by the National Pharmaceutical Union in December 1969, then, for the purpose of dispensing the prescription, the metric equivalent of those imperial units shall be treated as that set out in that compendium instead of the metric equivalent ascertained in accordance with regulations 4 and 5. Equivalents for doses of liquids 7 1 Except as provided in paragraph (3) of this regulation, where a prescription for any drug states the quantity of each does in terms of fluid drachms, the equivalent of each fluid drachm shall for the purpose of dispensing the prescription be treated as 5 millilitres. 2 Except as provided in paragraph (4) of this regulation, where a prescription other than a veterinary prescription is for a drug which is a mixture and — a a formulation for such drug with a dose of one half of one fluid ounce is contained in any edition issued prior to 1968 of the British Pharmacopoeia or of the British Pharmaceutical Codex or in a National Formulary, or b a formulation for such drug with a dose of 10 millilitres is contained in the edition of the British Pharmacopoeia, the British Pharmaceutical Codex or the British National Formulary current on the date of the making of these regulations or in any subsequent edition thereof or in any compendium prepared under paragraph (a) of subsection (3) and published under subsection (6) of section 99 of the Medicines Act 1968, or c a formulation for such drug is set out in the prescription, and such prescription states the quantity of each does in terms of fluid ounces, then for the purpose of dispensing the prescription the equivalent of each half of a fluid ounce shall be treated as 10 millilitres. 3 Where a prescription other than a veterinary prescription for any drug which is a mixture, other than a mixture formulated for administration to children, states that the quantity of each does is to be 2 fluid drachms the equivalent of that quantity for the purpose of dispensing the prescription, shall be treated as 10 millilitres. Provided that if the prescription refers (whether by the use of the monograph name or otherwise) to a monograph in the British Pharmacopoeia, the British Pharmaceutical Codex or the British National Formulary which contains a formulation of the drug with a does of one half of a fluid ounce or 10 millilitres, and the drug is not prescribed at twice the normal strength, the equivalent of a dose of 2 fluid drachms shall for the purpose of dispensing the prescription be treated as 10 millilitres of the drug at half the normal strength. 4 Where a prescription other than a veterinary prescription for liquid paraffin or any fixed oil, with or without other ingredients, or for any drug which is a mixture other than a mixture to which paragraph (2) of this regulation refers, states the quantity of each dose in terms of fluid ounces, the equivalent of each half of a fluid ounce shall for the purpose of dispensing the prescription be treated as 15 millilitres. 5 Where a veterinary prescription for any drug states the quantity of each dose in terms of fluid ounces, the equivalent of each half of a fluid ounce shall for the purpose of dispensing the prescription be treated as 15 millilitres. Equivalents for total quantities in respect of prescriptions stating dose quantities 8 1 Where a prescription other than a veterinary prescription is a prescription such as is described in regulation 7(1) or differs from a prescription so described only in that it states the quantity of each dose in terms of millilitres instead of in terms of drachms, and such prescription is for a total quantity expressed as a number of fluid ounces mentioned in column 1 of Table 5, the equivalent of that total quantity shall for the purpose of dispensing the prescription be treated as the quantity set opposite thereto in column 2 of the table. 2 Where a prescription is a prescription such as is described in regulation 7(2) or differs from a prescription so described only in that it states the quantity of each dose in terms of millilitres instead of in terms of fluid ounces, and such prescription is for a total quantity expressed as a number of fluid ounces mentioned in column 1 of Table 6, the equivalent of that total quantity shall for the purpose of dispensing the prescription be treated as the quantity set opposite thereto in column 2 of the table. 3 Where a prescription to which regulation 7(3) refers is for a total quantity expressed as a number of fluid ounces mentioned in column 1 of Table 7, the equivalent of that total quantity shall for the purpose of dispensing the prescription be treated as the quantity set opposite thereto in column 2 of the table. 4 Where a prescription to which paragraph (1) or paragraph (3) of regulation 7 refers is for a total quantity greater than 12 fluid ounces, the equivalent of the total quantity shall for the purpose of dispensing the prescription be treated as the corresponding multiple of the equivalent of 12 fluid ounces specified in column 2 of Table 5 or column 2 of Table 7, as the case may be, together with the equivalent specified in the relevant table of any residue of less than 12 fluid ounces. 5 Where a prescription to which regulation 7(2) refers is for a total quantity greater than 24 fluid ounces, the equivalent of the total quantity shall for the purpose of dispensing the prescription be treated as the corresponding multiple of the equivalent of 24 fluid ounces specified in column 2 of Table 6 together with the equivalent specified in that table of any residue of less than 24 fluid ounces. 6 In this regulation “ corresponding multiple ”, in relation to a quantity of fluid ounces, means the number of times that quantity will divide by 12 or 24 as the case may be. 7 Where any prescription to which regulation 7 refers specifies quantities of ingredients of any drug in the total quantity to be dispensed, these regulations shall be treated as applying to the quantity of each such ingredient in each dose. Control of sale and supply 9 1 Except as provided in paragraph (2) of this regulation, where any manufacturer, wholesale dealer or retail dealer sells or supplies any drug, he shall, if the order or prescription relating to such dealing is for an ingredient or total quantity expressed in terms of a number of units of measurement for which an equivalent quantity may be ascertained in accordance with regulations 4 and 5, carry out such dealing in terms of the equivalent quantity so ascertained. 2 Where any manufacturer, wholesale dealer or retail dealer sells or supplies any drug — a if the prescription relating to such dealing is a prescription such as is mentioned in regulation 6 which refers in the manner therein specified to a formulation of a drug expressed in terms of imperial units he shall carry out such dealing in terms of the metric equivalent for such imperial units ascertained in accordance with that regulation; or b if the prescription relating to such dealing is a prescription to which paragraph (1), (2) or (3) of regulation 7 refers and — i is for a total quantity expressed in terms of a unit of measurement specified in column 1 of Table 5, column 1 of Table 6 or column 1 of Table 7, or ii being a prescription to which paragraph (1) or (3) of regulation 7 refers, is for a total quantity greater than 12 fluid ounces, or iii being a prescription to which regulation 7(2) refers, is for a total quantity greater than 24 fluid ounces, he shall carry out such dealing in terms of the equivalent quantity ascertained in accordance with regulations 7 and 8; or c if the prescription is a prescription to which paragraph (4) or (5) of regulation 7 refers and is for a total quantity expressed in terms of a unit of measurement specified in column 1 of Table 4 or is for a total quantity greater than 1 pint he shall carry out such dealing in terms of the equivalent quantity ascertained in accordance with regulations 7 and 5. Revocation 10 The Weights and Measures (Equivalents for dealings with drugs) Regulations 1969 are hereby revoked. Keith Joseph Secretary of State for Social Services 15th December 1970 Given under my hand on 10th December 1970. Peter Thomas Secretary of State for Wales Given under the seal of the Secretary of State for Scotland on 11th December 1970. Gordon Campbell Secretary of State for Scotland SCHEDULE TABLE 1 Weights of ingredients Column 1 Column 2 grains milligrammes 1/600 0.1 1/500 1/480 0.125 1/400 0.15 1/320 1/300 0.2 1/240 0.25 1/200 0.3 1/160 1/150 0.4 1/130 1/120 0.5 1/100 0.6 1/80 1/75 0.8 1/60 1 1/50 1.25 1/40 1.5 1/30 2 1/25 1/24 2.5 1/20 3 1/15 4 1/12 5 1/10 6 1/8 7.5 1/6 10 1/5 12.5 1/4 15 1/3 20 2/5 25 1/2 30 3/5 40 3/4 50 1 60 1¼ 75 1½ 100 2 125 2½ 150 3 200 3½ 4 250 4½ 5 300 5½ 6 400 6½ 7 7½ 450 8 500 9 10 600 11 to 13 800 14 to 16 1 17 to 20 1·2 21 to 25 1·5 26 to 29 1·8 30 to 33 2 34 to 37 2·3 38 to 43 2·5 44 to 51 3 52 to 57 3·5 58 to 65 4 66 to 76 4·5 77 to 84 5 85 to 102 6 103 to 115 7 116 to 135 8 136 to 150 9 151 to 165 10 166 to 180 11 181 to 190 12 191 to 220 13 221 to 250 15 251 to 275 17 276 to 325 20 326 to 350 22 351 to 375 23 376 to 400 25 401 to 425 26 426 to 450 28 451 to 480 30 Entries in the above Table expressed as one figure to another are inclusive of both figures. TABLE 2 Volumes of ingredients Column 1 Column 2 minims millilitres 1 0·06 1½ 0·09 2 0·12 2½ 0·15 3 0·18 3½ 0·2 4 4½ 0·25 5 5½ 0·3 6 7 7½ 0·4 8 9 0·5 10 11 0.6 12 13 0·7 14 15 16 0·9 17 18 1 19 to 22 1·2 23 to 27 1·5 28 to 32 1·8 33 to 37 2 38 to 46 2·5 47 to 55 3 56 to 64 3·5 65 to 74 4 75 to 84 4·5 85 to 93 5 94 to 110 6 111 to 130 7 131 to 149 8 150 to 167 9 168 to 185 10 186 to 200 11 201 to 220 12 221 to 250 14 251 to 275 15 276 to 300 17 301 to 330 18 331 to 370 20 371 to 400 22 401 to 450 25 Entries in the above Table expressed as one figure to another are inclusive of both figures. TABLE 3 Weights of total quantities Column 1 Column 2 ounces avoirdupois or apothecaries grammes 1 oz. or more but less than 1½ oz. 25 1½ oz. or more but less than 3 oz. 50 3 oz. or more but less than 5½ oz. 100 5½ oz. or more but less than 9 oz. 200 9 oz. or more but less than 14½ oz. 300 14½ oz. or more but not more than 16 oz. or 1 lb. avoirdupois 500 2w TABLE 4 Volumes of total quantities (other than those to which Table 5, 6 or 7 apply) Column 1 Column 2 fluid ounces millilitres 1 fl. oz. or more but less than 1½ fl. oz. 25 1½ fl. oz. or more but less than 3 fl. oz. 50 3 fl. oz. or more but less than 5½ fl. oz. 100 5½ fl. oz. or more but less than 9 fl. oz. 200 9 fl. oz. or more but less not more than 14½ fl. oz. or 1 pint or 1/8 gallon 300 14½ fl. oz. or more but not more than 20 fl. oz. or 1 pint or 1/8 gallon 500 TABLE 5 Total quantities of prescriptions described in regulation 8(1) Column 1 Column 2 fluid ounces millilitres 1/2 25 1 1½ 50 2 3 100 4 150 5 6 200 8 10 300 12 500 TABLE 6 Total quantities of prescriptions described in regulation 8(2) Column 1 Column 2 fluid ounces millilitres 1/2 10 1 20 2 3 50 4 6 100 8 10 12 200 16 20 300 24 500 TABLE 7 Total quantities of prescriptions described in regulation 8(3) Column 1 Column 2 fluid ounces millilitres 1/4 10 1/2 20 1 1½ 50 2 3 100 4 5 6 200 8 10 300 12 500

The Smallholdings (Selection of Tenants) Regulations 1970 The Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales, acting jointly, in exercise of the powers conferred on them by sections 44(6) and 63 of the Agriculture Act 1970, and of all other powers enabling them in that behalf, hereby make the following regulations: — Citation and commencement 1 These regulations may be cited as the Smallholdings (Selection of Tenants) Regulations 1970, and shall come into operation on 1st August 1970. Interpretation 2 1 In these regulations “ the Act ” means the Agriculture Act 1970. 2 The Interpretation Act 1889 applies for the interpretation of these regulations as it applies for the interpretation of an Act of Parliament. Requirements as to agricultural experience of prospective tenants 3 1 Except as provided in paragraph (2) of this regulation, no person shall be selected as a tenant to whom a smallholding may be let under section 44 of the Act unless he shows to the satisfaction of the smallholdings authority that for a period of not less than five years (whether continuous or not) he has been occupied in full-time practical farm work; provided that for the purpose of this regulation any period during which a person was attending a full-time course in agriculture at a university, college or other establishment of further education shall, up to a maximum of three years, be deemed to be a period during which he was occupied in full-time practical farm work. 2 The foregoing paragraph shall not apply to the widow of a deceased tenant of a smallholding in relation to the first letting of that smallholding after the death of the tenant if, when that letting is under consideration by the smallholdings authority, she is residing on the smallholding. Advertisement of vacant holdings 4 1 As a preparatory step before letting land as a smallholding under section 44 of the Act, every smallholdings authority shall, once in any year during which any smallholding on their smallholdings estate becomes available for letting, cause a notice to be published in at least one newspaper circulating substantially outside their area stating that the authority provides smallholdings for letting, describing the location and types of the smallholdings on the authority's smallholdings estate or of the smallholdings available for letting and setting out the requirements to be fulfilled by persons to whom smallholdings may be let. 2 In this regulation “ year ” means a period of twelve months ending on 31st March. In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 6th July 1970. J.M.L. Prior Minister of Agriculture, Fisheries and Food Given under my hand on 14th July 1970. Peter Thomas Secretary of State for Wales

Merchant Shipping Act 1970 Engagement and discharge of crews Crew agreements 1 1 Except as provided under subsection (5) of this section an agreement in writing shall be made between each person employed as a seaman in a ship registered in the United Kingdom and the persons employing him and shall be signed both by him and by or on behalf of them. 2 The agreements made under this section with the several persons employed in a ship shall be contained in one document (in this Act referred to as a crew agreement) except that in such cases as the Board of Trade may approve — a the agreements to be made under this section with the persons employed in a ship may be contained in more than one crew agreement; and b one crew agreement may relate to more than one ship. 3 The provisions and form of a crew agreement must be of a kind approved by the Board of Trade; and different provisions and forms may be so approved for different circumstances. 4 Subject to the following provisions of this section, a crew agreement shall be carried in the ship to which it relates whenever the ship goes to sea. 5 The Board of Trade may make regulations providing for exemptions from the requirements of this section — a with respect to such descriptions of ship as may be specified in the regulations or with respect to voyages in such areas or such description of voyages as may be so specified ; or b with respect to such descriptions of seamen as may be specified in the regulations ; and the Board of Trade may grant other exemptions from those requirements (whether with respect to particular seamen or with respect to seamen employed by a specified person or in a specified ship or in the ships of a specified person) in cases where the Board are satisfied that the seamen to be employed otherwise than under a crew agreement will be adequately protected. 6 Where, but for an exemption granted by the Board of Trade, a crew agreement would be required to be carried in a ship or a crew agreement carried in a ship would be required to contain an agreement with a person employed in the ship, the ship shall carry such document evidencing the exemption as the Board of Trade may direct. 7 Regulations under this section may enable ships required under this section to carry a crew agreement to comply with the requirement by carrying a copy thereof, certified in such manner as may be provided by the regulations. 8 If a ship goes to sea or attempts to go to sea in contravention of the requirements of this section the master or the person employing the crew shall be liable on summary conviction to a fine not exceeding £100 and the ship, if in the United Kingdom, may be detained. Regulations relating to crew agreements 2 1 The Board of Trade may make regulations — a requiring such notice as may be specified in the regulations to be given to a superintendent or proper officer, except in such circumstances as may be so specified, before a crew agreement is made or an agreement with any person is added to those contained in a crew agreement; b providing for the delivery to a superintendent or proper officer or the Registrar General of Shipping and Seamen of crew agreements and agreements added to those contained in a crew agreement and of copies of crew agreements and of agreements so added ; c requiring the posting in ships of copies of or extracts from crew agreements; d requiring copies of or extracts from crew agreements to be supplied to members of the crew demanding them and requiring copies of or extracts from documents referred to in crew agreements to be made available, in such circumstances as may be specified in the regulations, for inspection by members of the crew ; and e requiring any document carried in a ship in pursuance of section 1 of this Act to be produced on demand to an officer of customs and excise. 2 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £50 or such less amount as may be specified in the regulations. Discharge of seamen 3 1 The Board of Trade may make regulations prescribing the procedure to be followed in connection with the discharge of seamen from ships registered in the United Kingdom. 2 Without prejudice to the generality of subsection (1) of this section, regulations under this section may make provision — a requiring notice of such a discharge to be given at such time as may be specified in the regulations to the superintendent or proper officer at a place specified in or determined under the regulations ; b requiring such a discharge to be recorded, whether by entries in the crew agreement and discharge book or otherwise, and requiring copies of any such entry to be given to a superintendent or proper officer or the Registrar General of Shipping and Seamen. 3 Regulations under this section may provide that in such cases as may be specified in the regulations, or except in such cases as may be specified in or determined under the regulations, a seaman shall not be discharged outside the United Kingdom from a ship registered in the United Kingdom without the consent of the proper officer. 4 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £100 or such less amount as may be specified in the regulations. Seamen left behind abroad otherwise than on discharge 4 Regulations made under section 3 of this Act may apply any provision thereof, with such modifications as appear to the Board of Trade to be appropriate, to cases where a seaman employed in a ship registered in the United Kingdom is left behind outside the United Kingdom otherwise than on being discharged from the ship. Discharge of seamen when ship ceases to be registered in U.K 5 Where a ship registered in the United Kingdom ceases to be so registered, any seaman employed in the ship shall be discharged from the ship unless he consents in writing to continue his employment in the ship; and sections 7 to 10 of this Act shall apply in relation to his wages as if the ship had remained registered in the United Kingdom. Restrictions on making arrangements for employment of seamen 6 1 A person shall not for reward make arrangements for finding seamen for persons seeking to employ seamen or for finding employment for seamen, unless — a he is the holder of a licence under this section authorising him to do so or is in the regular employment of the holder of such a licence ; or b he is in the regular employment of the persons seeking to employ the seamen or makes the arrangements in the course of acting as ship's agent for those persons or is the master of the ship in which the seamen are to serve or an officer acting under his authority; or c the employment is such as is exempted from the pro visions of this subsection by regulations made by the Board of Trade. 2 A person shall not demand or directly or indirectly receive from any person any remuneration for providing him with employment as a seaman. 3 The Board of Trade may grant licences for the purposes of this section for such periods, on such terms and subject to such conditions, including conditions providing for revocation, as they think fit. 4 If a person acts in contravention of subsection (1) of this section he shall be liable on summary conviction to a fine not exceeding £50 and if a person acts in contravention of subsection (2) of this section he shall be liable on summary conviction to a fine not exceeding £20. Wages, etc. Payment of seamen's wages 7 1 Except as provided by or under this Act or any other enactment, the wages due to a seaman under a crew agreement relating to a ship shall be paid to him in full at the time when he leaves the ship on being discharged therefrom (in this section and section 8 of this Act referred to as the time of discharge). 2 If the amount shown in the account delivered to a seaman under section 8(1) of this Act as being the amount payable to him under subsection (1) of this section is replaced by an increased amount shown in a further account delivered to him under section 8(3) of this Act, the balance shall be paid to him within seven days of the time of discharge ; and if the amount so shown in the account delivered to him under section 8(1) of this Act exceeds £50 and it is not practicable to pay the whole of it at the time of discharge, not less than £50 nor less than one-quarter of the amount so shown shall be paid to him at that time and the balance within seven days of that time. 3 If any amount which, under the preceding provisions of this section, is payable to a seaman is not paid at the time at which it is so payable the seaman shall be entitled to wages at the rate last payable under the crew agreement for every day on which it remains unpaid during the period of fifty-six days following the time of discharge; and if any such amount or any amount payable by virtue of this subsection remains unpaid after the end of that period it shall carry interest at the rate of 20 per cent, per annum. 4 Subsection (3) of this section does not apply if the failure to pay was due to a mistake, to a reasonable dispute as to liability or to the act or default of the seaman or to any other cause, not being the wrongful act or default of the persons liable to pay his wages or of their servants or agents; and so much of that subsection as relates to interest on the amount due shall not apply if a court in proceedings for its recovery so directs. 5 Where a seaman is employed under a crew agreement relating to more than one ship the preceding provisions of this section shall have effect, in relation to wages due to him under the agreement, as if for any reference to the time of discharge there were substituted a reference to the termination of his employment under the crew agreement. 6 Where a seaman, in pursuance of section 5 of this Act, is discharged from a ship outside the United Kingdom but returns to the United Kingdom under arrangements made by the persons who employed him, the preceding provisions of this section shall have effect, in relation to the wages due to him under a crew agreement relating to the ship, as if for the references in subsections (1) to (3) to the time of discharge there were substituted references to the time of his return to the United Kingdom, and subsection (5) were omitted. Account of seaman's wages 8 1 Subject to subsection (4) of this section and to regulations made under section 9 or 62 of this Act, the master of every ship registered in the United Kingdom shall deliver to every seaman employed in the ship under a crew agreement an account of the wages due to him under that crew agreement and of the deductions subject to which the wages are payable. 2 The account shall indicate that the amounts stated therein are subject to any later adjustment that may be found necessary and shall be delivered not later than twenty-four hours before the time of discharge or, if the seaman is discharged without notice or at less than twenty-four hours' notice, at the time of discharge. 3 If the amounts stated in the account require adjustment the persons who employed the seaman shall deliver to him a further account stating the adjusted amounts ; and that account shall be delivered not later than the time at which the balance of his wages is payable to the seaman. 4 Where a seaman is employed under a crew agreement relating to more than one ship any account which under the preceding provisions of this section would be required to be delivered to him by the master shall instead be delivered to him by the persons employing him and shall be so delivered on or before the termination of his employment under the crew agreement. 5 If a person fails without reasonable cause to comply with the preceding provisions of this section he shall be liable on summary conviction to a fine not exceeding £20. Regulations relating to wages and accounts 9 The Board of Trade may make regulations — a authorising deductions to be made from the wages due to a seaman under a crew agreement (in addition to any authorised by any provision of this Act or of any other enactment for the time being in force) in cases where a breach of his obligations under the agreement is alleged against him and such conditions, if any, as may be specified in the regulations are complied with, or in such other cases as may be specified in the regulations; b regulating the manner in which any amounts deducted under the regulations are to be dealt with; c prescribing the manner in which wages due to a seaman under a crew agreement are to be or may be paid; d regulating the manner in which such wages are to be dealt with and accounted for in circumstances where a seaman leaves his ship in the United Kingdom otherwise than on being discharged therefrom; e prescribing the form and manner in which any account required to be delivered by section 8 of this Act is to be prepared and the particulars to be contained therein (which may include estimated amounts). Power of superintendent or proper officer to decide disputes about wages 10 1 Any dispute relating to the amount payable to a : seaman employed under a crew agreement may be submitted by' the parties to a superintendent or proper officer for decision; but the superintendent or proper officer shall not be bound to accept the submission or, if he has accepted it, to decide the dispute, if he is of opinion that the dispute, whether by reason of the amount involved or for any other reason, ought not to be decided by him. 2 The decision of a superintendent or proper officer on a dispute submitted to him under this section shall be final. Restriction on assignment of and charge upon wages 11 1 Subject to subsections (2) and (3) of this section, the following provisions shall have effect with respect to the wages due or accruing to a seaman employed in a ship registered in the United Kingdom, that is to say. — a the wages shall not be subject to attachment or arrestment ; b an assignment thereof before they have accrued shall not bind the seaman and the payment of the wages to the seaman shall be valid notwithstanding any previous assignment or charge; and c a power of attorney or authority for the receipt of the wages shall not be irrevocable. 2 Nothing in this section shall affect the provisions of this Act with respect to allotment notes. 3 Nothing in this section applies to any disposition relating to the application of wages — a in the payment of contributions to a fund declared by regulations made by the Board of Trade to be a fund to which this section applies ; or b in the payment of contributions in respect of the membership of a body declared by regulations made by the Board of Trade to be a body to which this section applies; or to anything done or to be done for giving effect to such a disposition. Power of court to award interest on wages due otherwise than under crew agreement 12 In any proceedings by the master of a ship or a person employed in a ship otherwise than under a crew agreement for the recovery of any sum due to him as wages the court, unless it appears to it that the delay in paying the sum was due to a mistake, to a reasonable dispute as to liability or to the act or default of the person claiming the amount or to any other cause, not being the wrongful act or default of the persons liable to make the payment or their servants or agents, may order them to pay, in addition to the sum due, interest on it at the rate of twenty per cent, per annum or such lower rate as the court may specify, for the period beginning seven days after the sum became due and ending when the sum is paid. Allotment notes 13 1 Subject to the following provisions of this section, a seaman may, by means of an allotment note issued in accordance with regulations made by the Board of Trade, allot to any person or persons part of the wages to which he will become entitled in the course of his employment in a ship or ships registered in the United Kingdom. 2 A seaman's right to make an allotment under this section shall be subject to such limitations as may, by virtue of the following provisions of this section, be imposed by regulations made by the Board of Trade. 3 Regulations made by the Board of Trade for the purposes of this section may prescribe the form of allotment notes and — a may limit the circumstances in which allotments may be made ; b may limit (whether by reference to an amount or by reference to a proportion) the part of the wages that may be allotted and the number of persons to whom it may be allotted and may prescribe the method by which that part is to be calculated ; c may limit the persons to whom allotments may be made by a seaman to persons of such descriptions or persons standing to him in such relationships as may be prescribed by the regulations; d may prescribe the times and the intervals at which payments under allotment notes are to be made. 4 Regulations under this section may make different provision in relation to different descriptions of seamen and different circumstances. Right of person named in allotment note to sue in own name 14 1 A person to whom any part of a seaman's wages has been allotted by an allotment note issued in accordance with regulations made under section 13 of this Act shall have the right to recover that part in his own name and for that purpose shall have the same remedies as the seaman has for the recovery of his wages. 2 In any proceedings brought by a person named in such an allotment note as the person to whom any part of a seaman's wages has been allotted it shall be presumed, unless the contrary is shown, that the seaman is entitled to the wages specified in the note and that the allotment has not been varied or cancelled. Right, or loss of right, to wages in certain circumstances 15 1 Where a ship registered in the United Kingdom is wrecked or lost a seaman whose employment in the ship is thereby terminated before the date contemplated in the agreement under which he is so employed shall, subject to the following provisions of this section, be entitled to wages at the rate payable under the agreement at the date of the wreck or loss for every day on which he is unemployed in the two months following that date unless it is proved that he did not make reasonable efforts to save the ship and persons and property carried in it. 2 Where a ship registered in the United Kingdom is sold while outside the United Kingdom or ceases to be so registered and a seaman's employment in the ship is thereby terminated before the date contemplated in the agreement under which he is so employed, then, unless it is otherwise provided in the agreement, he shall, subject to the following provisions of this section, be entitled to wages at the rate payable under the agreement at the date on which his employment is terminated for every day on which he is unemployed in the two months following that date. 3 A seaman shall not be entitled to wages by virtue of subsection (1) or subsection (2) of this section for a day on which he was unemployed, if it is shown — a that the unemployment was not due to the wreck or loss of the ship or, as the case may be, the termination of his employment on the sale of the ship or its ceasing to be registered in the United Kingdom ; or b that the seaman was able to obtain suitable employment for that day but unreasonably refused or failed to take it. Protection of certain rights and remedies 16 1 A seaman's lien, his remedies for the recovery of his wages, his right to wages in case of the wreck or loss of his ship, and any right he may have or obtain in the nature of salvage shall not be capable of being renounced by any agreement. 2 Subsection (1) of this section does not affect such of the terms of any agreement made with the seamen belonging to a ship which, in accordance with the agreement, is to be employed on salvage service, as provide for the remuneration to be paid to them for salvage services rendered by that ship. Claims against seaman's wages for maintenance, etc. of dependants 17 1 Where, during a seaman's employment in a ship, expenses are incurred by a responsible authority for the benefit of any dependant of his and the expenses are of a kind specified in regulations under this section and such further conditions, if any, as may be so specified are satisfied, the authority may by notice in writing complying with the regulations require the persons employing the seaman — a to retain for a period specified in the notice such proportion of his net wages as may be so specified; and b to give to the responsible authority as soon as may be notice in writing of the seaman's discharge from the ship; and the persons employing the seaman shall comply with the notice (subject to subsection (3) of this section) and give notice in writing of its contents to the seaman. 2 For the purposes of this section — a the following persons, and no others, shall be taken to be a seaman's dependants, that is to say, his spouse and any person under the age of sixteen whom he is liable, for the purposes of any enactment in force in any part of the United Kingdom, to maintain or in respect of whom he is liable under any such enactment to make contributions to a local authority; and b expenses incurred for the benefit of any person include (in addition to any payments made to him or on his behalf) expenses incurred for providing him with accommodation or care or for exercising supervision over him; but no expenses shall be specified in regulations under this section unless they are such that a magistrates' court has power under any enactment in force in any part of the United Kingdom to order the making of payments in respect thereof. 3 Not more than the following proportion of a seaman's net wages shall be retained under subsection (1) of this section (whether in pursuance of one or more notices) that is to say. — a one-half if the notice or notices relate to one dependant, only; b two-thirds if the notice or notices relate to two or more dependants. 4 Where a responsible authority have served a notice under this section on the persons employing a seaman a magistrates' court may, on the application of the authority, make an order for the payment to the authority of such sum, not exceeding the proportion of the seaman's wages which those persons were required by virtue of this section to retain, as the court, having regard to the expenses incurred by the authority and the seaman's means, thinks fit. 5 Any sums paid out of a seaman's wages in pursuance of an order under this section shall be deemed to be paid to him in respect of his wages; and the service, on the persons who employed the seaman, of such an order or of an order dismissing an application for such an order shall terminate the period for which they were required to retain the wages. 6 An application for an order under this section for the payment of any sum by the persons who employed a seaman shall be deemed, for the purposes of any proceedings, to be an application for an order against the seaman; but the order, when served on those persons, shall have effect as an order against them and may be enforced accordingly. 7 Parts I and III of the Maintenance Orders Act 1950 shall have effect as if an order under this section were included among those referred to in subsections (1) and (2) of section 4, subsections (1) and (2) of section 9 and subsections (1) and (2) of section 12 of that Act; and any sum payable by any persons under an order made under this section in any part of the United Kingdom may, in any other part of the United Kingdom, be recovered from them as a debt due to the authority on whose application the order was made. 8 Any notice or order under this section may be served by registered post or recorded delivery service. 9 The Board of Trade may make regulations specifying — a the expenses in respect of which a notice may be served by a responsible authority under subsection (1) of this section; b any conditions that must be satisfied if such a notice is to be served; c the period that may be specified in such a notice (being a period beginning with the service of the notice and ending a specified number of days after the seaman's discharge from his ship); d the form of such a notice and the information to be contained therein; and e the amounts to be deducted from a seaman's wages in computing his net wages for the purposes of this section; and the amounts specified under paragraph (e) of this subsection may include amounts allotted by allotment notes issued under section 13 of this Act. 10 In this section "responsible authority" means the Secretary of State, the Ministry of Health and Social Services for Northern Ireland or any local authority; but any application to be made or notice to be given under this section by or to a responsible authority may, if the authority is the Secretary of State or the Ministry of Health and Social Services for Northern Ireland, be made or given on behalf of the Secretary of State or Ministry by or to the Supplementary Benefits Commission or, as the case may be, the Supplementary Benefits Commission for Northern Ireland. 11 In this section "local authority" includes a welfare authority constituted under the Public Health and Local Government (Administrative Provisions) Act (Northern Ireland) 1946 and " magistrates' court" — a in relation to Scotland, means the sheriff, and b in relation to Northern Ireland, means a court of summary jurisdiction. Remedies of master for remuneration, disbursements, etc. 18 The master of a ship shall have the same lien for his remuneration, and all disbursements or liabilities properly made or incurred by him on account of the ship, as a seaman has for his wages. Safety, health and welfare Safety Regulations 19 1 The Board of Trade may make regulations for securing, as far as practicable, safe working conditions and safe means of access for masters and seamen employed in ships registered in the United Kingdom and for requiring the reporting of injuries sustained by them. 2 Without prejudice to the generality of the preceding subsection, regulations under this section may — a require the maintenance, inspection and testing of any equipment and impose conditions on its use; b require, prohibit, or regulate the use of any material or process; c require the provision and use of any protective clothing or equipment; d limit the hours of employment of seamen in any specified operation or in any specified circumstances ; e make provision for the discharge, by persons appointed from among the persons employed in a ship, of functions in connection with the arrangements to be made under the regulations. 3 Regulations under this section may make different provisions for different descriptions of ship and for ships of the same description in different circumstances. 4 The Board of Trade may grant exemptions from any requirement of regulations under this section in respect of any ship or description of ship. 5 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding, if the offence is committed by the master or owner, £200, and, if it is committed by any other person, £20. Crew accommodation 20 1 The Board of Trade may make regulations with respect to the crew accommodation to be provided in ships registered in the United Kingdom. 2 Without prejudice to the generality of the preceding subsection, regulations made under this section may, in particular — a prescribe the minimum space per man which must be provided by way of sleeping accommodation for seamen and the maximum number of persons by whom a specified part of such sleeping accommodation may be used; b regulate the position in the ship in which the crew accommodation or any part thereof may be located and the standards to be observed in the construction, equipment and furnishing of any such accommodation ; c require the submission to a surveyor of ships of plans and specifications of any works proposed to be carried out for the purpose of the provision or alteration of any such accommodation and authorise the surveyor to inspect any such works; and d provide for the maintenance and repair of any such accommodation and prohibit or restrict the use of any such accommodation for purposes other than those for which it is designed. 3 Regulations under this section may make different provision with respect to different descriptions of ships or with respect to ships which were registered in the United Kingdom at different dates or the construction of which was begun at different dates and with respect to crew accommodation provided for seamen of different descriptions. 4 Regulations under this section may exempt ships of any description from any requirements of the regulations and the Board of Trade may grant other exemptions from any such requirement with respect to any ship. 5 Regulations made under this section may require the master of a ship or any officer authorised by him for the purpose to carry out such inspections of the crew accommodation as may be prescribed by the regulations. 6 If the provisions of any regulations made under this section are contravened in the case of a ship the owner or master shall be liable on summary conviction to a fine not exceeding £200, and the ship, if in the United Kingdom, may be detained. 7 In this section " crew accommodation " includes sleeping rooms, mess rooms, sanitary accommodation, hospital accommodation, recreation accommodation, store rooms and catering accommodation provided for the use of seamen but does not include any accommodation which is also used by or provided for the use of passengers. Provisions and water 21 1 The Board of Trade may make regulations requiring such provisions and water to be provided for seamen employed in ships registered in the United Kingdom or any description of such ships as may be specified in the regulations; and regulations under this section may make different provision for different circumstances and different descriptions of seamen. 2 Regulations under this section may require a ship to carry such weighing and measuring equipment as may be necessary to ensure that the quantities of provisions and water supplied to seamen employed in the ship are in accordance with the regulations. 3 The Board of Trade may exempt any ship from any requirement of regulations made under this section, either generally or in respect of a particular voyage. 4 If the provisions of any regulations made under this section are not complied with in the case of a ship the master or owner shall be liable on summary conviction to a fine not exceeding £100 unless he proves that the failure to comply was not due to his neglect or default. 5 If a person empowered under this Act to inspect the provisions and water to be supplied to the seamen employed in a ship is not satisfied that they are in accordance with regulations made under this section the ship, if in the United Kingdom, may be detained. Complaints about provisions or water 22 1 If three or more seamen employed in a ship registered in the United Kingdom consider that the provisions or water provided for the seamen employed in that ship are not in accordance with regulations made under section 21 of this Act (whether because of bad quality, unfitness for use or deficiency in quantity) they may complain to the master, who shall investigate the complaint. 2 If the seamen are dissatisfied with the action taken by the master as a result of his investigation or by his failure to take any action they may state their dissatisfaction to him and may claim to complain to a superintendent or proper officer; and thereupon the master shall make adequate arrangements to enable the seamen to do so as soon as the service of the ship permits. 3 The superintendent or proper officer to whom a complaint has been made under this section shall investigate the complaint and may examine the provisions or water or cause them to be examined. 4 If the master fails without reasonable cause to comply with the provisions of subsection (2) of this section he shall be liable on summary conviction to a fine not exceeding £20, and if he has been notified in writing by the person making an examination under subsection (3) of this section that any provisions or water are found to be unfit for use or not of the quality required by the regulations, then. — a if they are not replaced within a reasonable time the master or owner shall be liable on summary conviction to a fine not exceeding £100 unless he proves that the failure to replace them was not due to his neglect or default; and b if the master, without reasonable cause, permits them to be used he shall be liable on summary conviction to a fine not exceeding £100. Other complaints 23 1 If a seaman employed in a ship registered in the United Kingdom considers that he has cause to complain about the master or any other seaman employed in the ship or about the conditions on board the ship he may complain to the master. 2 If the seaman is dissatisfied with the action taken by the master on the complaint or by his failure to take any action he may state his dissatisfaction to him and, if the ship is outside the United Kingdom, claim to complain to a proper officer; and thereupon the master shall make adequate arrangements to enable the seaman to do so as soon as the service of the ship permits. 3 If the master of a ship fails without reasonable cause to comply with the provisions of this section he shall be liable on summary conviction to a fine not exceeding £20. Medical stores 24 1 The Board of Trade may make regulations requiring ships registered in the United Kingdom, or such descriptions of ships registered in the United Kingdom as may be specified in the regulations, to carry such medicines and other medical stores (including books containing instructions and advice) as may be specified in the regulations; and the regulations may make different provision for different circumstances. 2 If a ship goes to sea or attempts to go to sea without carrying the medical stores which it is required to carry by regulations under this section the master or owner shall be liable on summary conviction to a fine not exceeding £100 unless he proves that the failure to carry the stores was not due to his neglect or default. 3 If a person empowered under this Act to inspect the medical stores carried in a ship is not satisfied that the ship carries the stores which it is required to carry by regulations under this section, the ship, if in the United Kingdom, may be detained. Medical treatment on board ship 25 Where a ship registered in the United Kingdom does not carry a doctor among the seamen employed in it the master shall make arrangements for securing that any medical attention on board the ship is given either by him or under his supervision by a person appointed by him for the purpose. Expenses of medical treatment, etc., during voyage 26 If a person, while employed in a ship registered in the United Kingdom, receives outside the United Kingdom any surgical or medical treatment or such dental or optical treatment (including the repair or replacement of any appliance) as cannot be postponed without impairing efficiency, the reasonable expenses thereof shall be borne by the persons employing him; and if he dies while so employed and is buried or cremated outside the United Kingdom, the expenses of his burial or cremation shall also be borne by those persons. Offences by seamen, etc. Misconduct endangering ship or persons on board ship 27 1 If the master or any member of the crew of a ship registered in the United Kingdom — a does any act which causes or is likely to cause the loss or destruction of or serious damage to the ship or the death of or serious injury to a person on board the ship; or b omits to do anything required to preserve the ship from loss, destruction or serious damage or to preserve any person on board the ship from death or serious injury; and the act or omission is deliberate, or amounts to a breach or neglect of duty, or he is under the influence of drink or a drug at the time of the act or omission, he shall be liable, on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, and, on summary conviction, to a fine not exceeding £200. 2 In this section " breach or neglect of duty ", except in relation to a master, includes any disobedience to a lawful command. Drunkenness, etc. on duty 28 If a seaman employed in a ship registered in the United Kingdom is, while on duty, under the influence of drink or a drug to such an extent that his capacity to carry out his duties is impaired, he shall be liable on summary conviction to a fine not exceeding £50. Wilful disobedience to certain lawful commands 29 If a seaman employed in a ship registered in the United Kingdom wilfully disobeys a lawful command relating to or likely to affect the operation of the ship or its equipment he shall be liable on summary conviction to a fine not exceeding £50. Continued or concerted disobedience, neglect of duty, etc. 30 If a seaman employed in a ship registered in the United Kingdom — a persistently and wilfully neglects his duty ; or b persistently and wilfully disobeys lawful commands ; or c combines with other seamen employed in that ship to disobey lawful commands or to neglect duty or to impede the navigation of the ship or the progress of a voyage; he shall be liable on summary conviction to a fine not exceeding £100. Absence without leave at time of sailing 31 If a seaman employed in a ship registered in the United Kingdom is absent without leave and the ship is thereby delayed or goes to sea without him, then if he is so absent deliberately and without reasonable cause or his absence is due to recklessness, he shall be liable on summary conviction to a fine not exceeding £100. Offences committed by certain other persons 32 Where a person goes to sea in a ship without the consent of the master or of any other person authorised to give it or is conveyed in a ship in pursuance of section 62(5)(b) of this Act, sections 27, 29, 30(b) and 30(c) of this Act shall apply as if he were a seaman employed in the ship. Defence of drug taken for medical purposes Defence of drug taken for medical purposes 33 In proceedings for an offence under section 27 or section 28 of this Act it shall be a defence to prove that at the time of the act or omission alleged against the defendant he was under the influence of a drug taken by him for medical purposes and either that he took it on medical advice and complied with any directions given as part of that advice or that he had no reason to believe that the drug might have the influence it had. Disciplinary offences Disciplinary offences 34 1 For the purpose of maintaining discipline on board ships registered in the United Kingdom the Board of Trade may make regulations specifying any misconduct on board as a disciplinary offence and enabling the master, or such officer as may under the regulations be required or authorised to exercise the powers of the master, to impose fines on seamen committing disciplinary offences. 2 The fine that may be so imposed on a seaman for a disciplinary offence shall be such as may be provided in the regulations either by reference to his pay for such period as may be specified in the regulations, calculated in such manner as may be so specified, or by reference to an amount so specified ; but the period so specified shall not exceed five days and the amount so specified shall not exceed £10. 3 Regulations under this section shall prescribe the procedure to be followed in dealing with disciplinary offences. 4 Regulations under this section shall enable the master to remit, in such circumstances as may be specified in the regulations, the whole or part of any fine imposed thereunder. 5 Regulations under this section may make different provision for different descriptions of ship and for seamen employed in different capacities. Appeal against fine for disciplinary offence 35 1 A seaman on whom a fine has been imposed for a disciplinary offence may, in accordance with regulations made by the Board of Trade, appeal against the decision to a superintendent or proper officer and on such an appeal the superintendent or proper officer may confirm or quash the decision and may remit the whole or part of the fine. 2 Regulations under this section shall provide for the procedure to be followed on any such appeal, including the time within which notice of an intended appeal is to be given by the appellant to the master and by the master to the superintendent or proper officer and the place at which the appeal is to be heard. Power to provide for ship's disciplinary committees 36 1 The Board of Trade may make regulations providing for the setting up in ships to which the regulations apply of committees of persons employed in the ships, to be known as ship's disciplinary committees, and for the exercise by members of those committees of all or any of the powers of the master in dealing with disciplinary offences. 2 Regulations under this section may contain such provisions excluding, modifying or adding to the provisions of regulations under section 34 of this Act as appear to the Board of Trade necessary or expedient for the proper and effective discharge by members of a ship's disciplinary committee of functions otherwise exercisable by the master. 3 Regulations under this section may be so made as to apply to ships generally or to any description of ship specified in the regulations and either in all circumstances or in such circumstances as may be so specified, or to apply to such ships or to ships of such descriptions as may for the time being be specified in a direction of the Board of Trade. 4 No regulations shall be made under this section unless a draft thereof has been laid before Parliament and approved by resolution of each House of Parliament. Prohibition of double prosecutions 37 Where any conduct is both a disciplinary offence and an offence against any provision of the Merchant Shipping Acts, then if it has been dealt with as a disciplinary offence it shall not be dealt with as an offence against that provision. Payment of fines for disciplinary offences 38 1 Subject to subsection (3) of this section, the amount of a fine imposed on a seaman for a disciplinary offence, so far as not remitted by the master or on appeal, may be deducted from his wages or otherwise recovered by the persons employing him and shall be paid by them (whether or not it has been so deducted or otherwise recovered) to a superintendent or proper officer. 2 Subject to subsection (3) of this section — a if the wages or part of the wages are paid by the master on behalf of the persons employing the seaman, or the master is the person employing the seaman, the said amount shall be paid at the time when the seaman leaves the ship at the end of the voyage or, if earlier, when his employment in the ship is terminated; b in any other case the master shall at that time notify the amount to those persons and they shall pay it when the next payment in respect of the seaman's wages falls to be made by them. 3 Where an appeal against such a fine is pending at the time mentioned in subsection (2) of this section no amount shall by reason of the fine be deducted, recovered, paid or notified under the preceding provisions of this section until the appeal has been disposed of; but regulations under section 35 of this Act may provide for the amount of the fine to be provisionally deducted from the seaman's wages pending the appeal. 4 Any amount paid under this section to a superintendent or proper officer shall be transmitted by him to the Board of Trade and any amount required to be so paid but remaining unpaid shall be recoverable by the Board of Trade. 5 The Board of Trade shall pay any sums received by them in pursuance of this section into the Consolidated Fund. Civil liability for absence without leave, smuggling and fines imposed under immigration laws Civil liability for absence without leave 39 1 The following provisions of this section shall apply with respect to the liability of a seaman employed in a ship registered in the United Kingdom to damages for being absent from his ship at a time when he is required under his contract of employment to be on board. 2 If ne proves that his absence was due to an accident or mistake or some other cause beyond his control and that he took all reasonable precautions to avoid being absent his absence shall not be treated as a breach of contract. 3 Where subsection (2) of this section does not apply, then — a if no special damages are claimed his liability shall be £10; b if special damages are claimed his liability shall not be more than £100. 4 In the application of this section to Scotland for the references to special damages there shall be substituted references to damages in respect of specific expense incurred or loss sustained. Civil liability for smuggling 40 If a seaman employed in a ship registered in the United Kingdom is found in civil proceedings before a court in the United Kingdom to have committed an act of smuggling, whether within or outside the United Kingdom, he shall be liable to make good any loss or expense that the act has caused to any other person. Civil liability for fines imposed under immigration laws 41 1 The following provisions of this section shall apply where, at a time when a ship registered in the United Kingdom is in the national or territorial waters of any country outside the United Kingdom, a seaman employed in the ship is absent without leave and present in that country in contravention of that country's laws. 2 If, by reason of the contravention, a penalty is incurred under those laws by the persons employing the seaman the penalty shall be treated as being attributable to his absence without leave and may, subject to the provisions of section 39 of this Act, be recovered from him as special damages for breach of contract (or, in Scotland, as damages in respect of specific expense incurred or loss sustained). 3 If, by reason of the contravention, a penalty is incurred under those laws by any other person the amount thereof, or, if that amount exceeds £100, £100, may be recovered by him from the seaman. Trade disputes Trade disputes involving seamen 42 1 The Conspiracy and Protection of Property Act 1875, except section 5, shall apply to seamen as it applies to other persons. 2 Notwithstanding anything in any agreement, a seaman employed in a ship registered in the United Kingdom may terminate his employment in that ship by leaving the ship in contemplation or furtherance of a trade dispute after giving to the master not less than forty-eight hours' notice of his intention to do so, and shall not be compelled (unless the notice is withdrawn) to go to sea in the forty-eight hours following the giving of such a notice ; but such a notice shall be of no effect unless at the time it is given the ship is in the United Kingdom and securely moored in a safe berth. 3 In this section " trade dispute " has the same meaning as in section 5(3) of the Trade Disputes Act 1906. Manning and certification Manning 43 1 Subject to subsection (2) of this section, the Board of Trade may make regulations — a requiring ships to which this section applies to carry such number of qualified officers of any description, qualified doctors and qualified cooks and such number of other seamen or qualified seamen of any description as may be specified in the regulations; and b prescribing or enabling the Board of Trade to specify standards of competence to be attained and other conditions to be satisfied (subject to any exceptions allowed by or under the regulations) by officers and other seamen of any description in order to be qualified for the purposes of this section. 2 The Board of Trade shall not exercise their power to make regulations requiring ships to carry seamen other than doctors and cooks except to the extent that it appears to them necessary or expedient in the interests of safety. 3 Regulations under this section may make different provision for different descriptions of ship or for ships of the same description in different circumstances. 4 Without prejudice to the generality of paragraph (b) of subsection (1) of this section, the conditions prescribed or specified under that paragraph may include conditions as to nationality, and regulations made for the purposes of that paragraph may make provision, or enable the Board of Trade to make provision, for — a the manner in which the attainment of any standard or the satisfaction of any other condition is to be evidenced; b the conduct of any examinations, the conditions for admission to them and the appointment and remuneration of examiners; and c the issue, form and recording of certificates and other documents; and different provisions may be so made or enabled to be made for different circumstances. 5 If a person makes a statement which he knows to be false or recklessly makes a statement which is false in a material particular for the purpose of obtaining for himself or another person a certificate or other document which may be issued under this section he shall be liable on summary conviction to a fine not exceeding £100. Power to exempt from manning requirements 44 1 The Board of Trade may exempt any ship or description of ship from any requirements of regulations made under section 43 of this Act. 2 An exemption given under this section may be confined to a particular period or to one or more particular voyages. Prohibition of going to sea undermanned 45 Subject to section 44 of this Act, if a ship to which this section applies goes to sea or attempts to go to sea without carrying such officers and other seamen as it is required to carry under section 43 of this Act the owner or master shall be liable on summary conviction to a fine not exceeding £200 and the ship, if in the United Kingdom, may be detained. Unqualified persons going to sea as qualified officers or seamen 46 1 If a person goes to sea as a qualified officer or seaman of any description without being such a qualified officer or seaman he shall be liable on summary conviction to a fine not exceeding £100. 2 In this section " qualified " means qualified for the purposes of section 43 of this Act. Production of certificates and other documents of qualification 47 Any person serving or engaged to serve in any ship to which this section applies and holding any certificate or other document which is evidence that he is qualified for the purposes of section 43 of this Act shall on demand produce it to any superintendent, surveyor or proper officer and (if he is not himself the master) to the master of the ship ; and if he fails to do so without reasonable cause he shall be liable on summary conviction to a fine not exceeding £20. Crew's knowledge of English 48 1 Where in the opinion of a superintendent or proper officer the crew of a ship to which this section applies consists of or includes persons who may not understand orders given to them in the course of their duty because of their insufficient knowledge of English and the absence of adequate arrangements for transmitting the orders in a language of which they have sufficient knowledge, then — a if the superintendent or proper officer has informed the master of that opinion the ship shall not go to sea; and b if the ship is in the United Kingdom it may be detained. 2 If a ship goes to sea or attempts to go to sea in contravention of this section the owner or master shall be liable on summary conviction to a fine not exceeding £200. Application of sections 43, 45, 47 and 48 49 Sections 43, 45, 47 and 48 of this Act apply to every ship registered in the United Kingdom and also to any ship registered elsewhere which carries passengers — a between places in the United Kingdom or between the United Kingdom and the Isle of Man or any of the Channel Islands; or b on a voyage which begins and ends at the same place in the United Kingdom and on which the ship calls at no place outside the United Kingdom. Special certificates of competency 50 1 The Board of Trade may issue and record documents certifying the attainment of any standard of competence relating to ships or their operation, notwithstanding that the standard is not among those prescribed or specified under section 43(1)(b) of this Act; and may, in relation thereto, make regulations for purposes corresponding to those mentioned in section 43(4) of this Act. 2 If a person makes a statement which he knows to be false or recklessly makes a statement which is false in a material particular for the purpose of obtaining for himself or another person a document which may be issued under this section he shall be liable on summary conviction to a fine not exceeding £100. Restriction on employment of persons under 18 on board ship 51 1 A person under school-leaving age shall not be employed in any ship registered in the United Kingdom except as permitted by regulations under this section. 2 The Board of Trade may make regulations — a prescribing circumstances in which and conditions subject to which persons under school-leaving age who have attained such age as may be specified in the regulations may be employed in a ship in such capacities as may be so specified ; b prescribing circumstances and capacities in which per sons over school-leaving age but under the age of eighteen or under such lower age as may be specified in the regulations must not be employed in a ship registered in the United Kingdom or may be so employed only subject to such conditions as may be specified in the regulations. 3 Regulations made for the purposes of this section may make different provision for different employments and different descriptions of ship and any other different circumstances. 4 If any person is employed in a ship in contravention of this section or if any condition subject to which a person may be employed under regulations made for the purposes of this section is not complied with, the owner or master shall be liable on summary conviction to a fine not exceeding £100. 5 For the purposes of this section a person employed in a ship shall be deemed to be over school-leaving age if he has, and under school-leaving age if he has not, attained the age which is the upper limit of the compulsory school age (in Scotland school age) under the enactments relating to education in the part of the United Kingdom in which he entered into the agreement under which he is so employed or, if he entered into that agreement outside the United Kingdom or is employed otherwise than under an agreement, under the enactments relating to education in England and Wales ; and if he is treated for the purposes of those enactments as not having attained that age he shall be so treated also for the purposes of this section. Disqualification of seamen, inquiries and investigations Inquiry into fitness or conduct of officer 52 1 If it appears to the Board of Trade that an officer — a is unfit to discharge his duties, whether by reason of incompetence or misconduct or for any other reason; or b has been seriously negligent in the discharge of his duties; or c has failed to comply with the provisions of section 422 of the Merchant Shipping Act 1894 (duty to give assistance and information after collision); the Board of Trade may cause an inquiry to be held by one or more persons appointed by them and, if they do so, may, if they think fit, suspend, pending the outcome of the inquiry, any certificate issued to the officer in pursuance of section 43 of this Act and require the officer to deliver it to them. 2 Where a certificate issued to an officer has been suspended under subsection (1) of this section the suspension may, on the application of the officer, be terminated by the High Court or, if the inquiry is held in Scotland, by the Court of Session, and the decision of the court on such an application shall be final. 3 An inquiry under this section shall be conducted in accordance with rules made under section 58(1) of this Act and those rules shall require the persons holding the inquiry to hold it with the assistance of one or more assessors. 4 The persons holding an inquiry under this section into the fitness or conduct of an officer — a may, if satisfied of any of the matters mentioned in paragraphs (a) to (c) of subsection (1) of this section, cancel or suspend any certificate issued to him under section 43 of this Act or censure him ; b may make such order with regard to the costs of the inquiry as they think just; and c shall make a report on the case to the Board of Trade ; and if the certificate is cancelled or suspended the officer (unless he has delivered it to the Board of Trade in pursuance of subsection (1) of this section) shall deliver it forthwith to the persons holding the inquiry or to the Board of Trade. 5 Any costs which a person is ordered to pay under subsection (4)(b) of this section may be recovered from him by the Board of Trade. Disqualification of holder of certificate other than officer's 53 1 Where it appears to the Board of Trade that a person who is the holder of a certificate to which this section applies is unfit to be the holder of such a certificate, whether by reason of incompetence or misconduct or for any other reason, they may give him notice in writing that they are considering the suspension or cancellation of the certificate. 2 The notice must state the reasons why it appears to the Board of Trade that that person is unfit to be the holder of such a certificate and must state that within a period specified in the notice, or such longer period as the Board of Trade may allow, he may make written representations to the Board or claim to make oral representations to the Board. 3 After considering any representations made in pursuance of the preceding subsection the Board shall decide whether or not to suspend or cancel the certificate and shall give the holder of it written notice of their decision. 4 Where the decision is to suspend or cancel the certificate the notice shall state the date from which the cancellation is to take effect, or the date from which and the period for which the suspension is to take effect, and shall require the holder to deliver the certificate to the Board not later than the date so specified unless before that date he has required the case to be dealt with by an inquiry under section 54 of this Act. 5 Where, before the date specified in the notice, he requires the case to be dealt with by such an inquiry, then, unless he withdraws the requirement, the suspension or cancellation shall not take effect except as ordered in pursuance of the inquiry. 6 The Board of Trade may make regulations prescribing the procedure to be followed with respect to the making and consideration of representations in pursuance of this section, the form of any notice to be given under this section and the period to be specified in any such notice as the period within which any steps are to be taken. 7 This section applies to every certificate issued under section 50 of this Act and to any certificate issued under section 43 of this Act other than one certifying that a person is qualified as an officer. Inquiry into fitness or conduct of person other than officer 54 1 Where a person has, before the date mentioned in section 53(4) of this Act, required his case to be dealt with by an inquiry under this section the Board of Trade shall cause an inquiry to be held by one or more persons appointed by them 2 An inquiry under this section shall be conducted in accordance with rules made under section 58(1) of this Act and those rules shall require the persons holding the inquiry to hold it with the assistance of one or more assessors. 3 The persons holding an inquiry under this section — a may confirm the decision of the Board of Trade and cancel or suspend the certificate accordingly; b may, where the decision was to cancel the certificate, suspend it instead; c may, where the decision was to suspend the certificate, suspend it for a different period ; d may, instead of confirming the decision of the Board of Trade, censure the holder of the certificate or take no further action; e may make such order with regard to the costs of the inquiry as they think just; and f shall make a report on the case to the Board of Trade; and if the certificate is cancelled or suspended it shall be delivered forthwith to the persons holding the inquiry or to the Board of Trade. 4 Any costs which a person is ordered to pay under subsection (3)(e) of this section may be recovered from him by the Board of Trade. Inquiries and investigations into shipping casualties 55 1 Where any of the following casualties has occurred, that is to say. — a the loss or presumed loss, stranding, grounding, abandonment of or damage to a ship ; or b a loss of life caused by fire on board or by any accident to a ship or ship's boat, or by any accident occurring on board a ship or ship's boat; or c any damage caused by a ship ; and, at the time it occurred, the ship was registered in the United Kingdom or the ship or boat was in the United Kingdom or the territorial waters thereof, the Board of Trade — i may cause a preliminary inquiry into the casualty to be held by a person appointed for the purpose by the Board; and ii may (whether or not a preliminary inquiry into the casualty has been held) cause a formal investigation into the casualty to be held, if in England, Wales or Northern Ireland, by a wreck commissioner and, if in Scotland, by the sheriff. 2 A person appointed under this section to hold a preliminary inquiry shall for the purpose of the inquiry have the powers conferred on an inspector by section 729 of the Merchant Shipping Act 1894. Formal investigation into shipping casualty 56 1 A wreck commissioner or sheriff holding a formal investigation into a casualty under section 55 of this Act shall conduct it in accordance with rules under section 58(1) of this Act, and those rules shall require the assistance of one or more assessors and, if any question as to the cancellation or suspension of an officer's certificate is likely to arise, the assistance of not less than two assessors. 2 Subsections (1), (3) and (4) of section 77 of the Magistrates' Courts Act 1952 (which provide for the attendance of witnesses and the production of evidence) shall apply in relation to a formal investigation held by a wreck commissioner as if the wreck commissioner were a magistrates' court and the investigation a complaint; and the wreck commissioner shall have power to administer oaths for the purposes of the investigation. 3 Where a formal investigation is held in Scotland the sheriff shall, subject to any rules made under section 58(1) of this Act, dispose of it as a summary application, and, subject to section 57 of this Act, his decision on the investigation shall be final. 4 If as a result of the investigation the wreck commissioner or sheriff is satisfied, with respect to any officer, of any of the matters mentioned in paragraphs (a) to (c) of section 52(1) of this Act and, if it is a matter mentioned in paragraph (a) or (b) of that section, is further satisfied that it caused or contributed to the casualty, he may cancel or suspend any certificate issued to the officer under section 43 of this Act or censure him; and if he cancels or suspends the certificate the officer shall deliver it forthwith to him or to the Board of Trade. 5 The wreck commissioner or sheriff may make such order with regard to the costs of the investigation as he thinks just and shall make a report on the case to the Board of Trade. 6 Any costs which a person is ordered to pay under the preceding subsection may be recovered from him by the Board of Trade. 7 In its application to Northern Ireland this section shall have effect as if in subsection (2) for the references to subsections (1), (3) and (4) of section 77 of the Magistrates' Courts Act 1952 there were substituted references to subsections (1) and (3) of section 120 and subsection (1) of section 122 of the Magistrates' Courts Act (Northern Ireland) 1964. Rehearing of and appeal from inquiries and investigations 57 1 Where an inquiry or formal investigation has been held under the preceding provisions of this Act the Board of Trade may order the whole or part of the case to be re-heard, and shall do so — a if new and important evidence which could not be produced at the inquiry or investigation has been discovered; or b if there appear to the Board to be other grounds for suspecting that a miscarriage of justice may have occurred. 2 An order under subsection (1) of this section may provide for the re-hearing to be as follows. — a if the inquiry or investigation was held in England, Wales or Northern Ireland, by the persons who held it, by a wreck commissioner or by the High Court; b if it was held in Scotland, by the persons who held it, by the sheriff or by the Court of Session. 3 Any re-hearing under this section which is not held by the High Court or the Court of Session shall be conducted in accordance with rules made under section 58(1) of this Act; and section 56 of this Act shall apply in relation to a re-hearing of an investigation by a wreck commissioner or sheriff as it applies in relation to the holding of an investigation. 4 Where the persons holding the inquiry or investigation have decided to cancel or suspend the certificate of any person or have found any person at fault, then, if no application for an order under subsection (1) of this section has been made or such an application has been refused, that person or any other person who, having an interest in the inquiry or investigation, has appeared at the hearing and is affected by the decision or finding, may appeal to the High Court or the Court of Session, according as the inquiry or investigation was held in England, Wales or Northern Ireland or in Scotland. Rules as to inquiries, investigations and appeals 58 1 The Board of Trade may make rules for the conduct of inquiries under sections 52 and 54 of this Act and of formal investigations under section 55 of this Act and for the conduct of any re-hearing under section 57 of this Act which is not held by the High Court or the Court of Session. 2 Without prejudice to the generality of the preceding subsection, rules under this section may provide for the appointment and summoning of assessors, the manner in which any facts may be proved, the persons allowed to appear, and the notices to be given to persons affected. 3 Rules of court made for the purpose of re-hearings under section 57 of this Act which are held by the High Court, or of appeals to the High Court, may require the court, subject to such exceptions, if any, as may be allowed by the rules, to hold such a rehearing or hear such an appeal with the assistance of one or more assessors. Failure to deliver cancelled or suspended certificate 59 If a person fails to deliver a certificate as required under section 52 or 56 of this Act he shall be liable on summary conviction to a fine not exceeding £50; and if a person fails to deliver a certificate as required under section 53 or 54 of this Act he shall be liable on summary conviction to a fine not exceeding £10. Power to restore certificate 60 Where a certificate has been cancelled or suspended under this Act or under section 478 of the Merchant Shipping Act 1894, the Board of Trade, if of opinion that the justice of the case requires it, may re-issue the certificate or, as the case may be, reduce the period of suspension and return the certificate, or may grant a new certificate of the same or a lower grade in place of the cancelled or suspended certificate. Inquiries into deaths of crew members and others 61 1 Subject to subsection (4) of this section, where — a any person dies in a ship registered in the United Kingdom; or b the master of or a seaman employed in such a ship dies in a country outside the United Kingdom; an inquiry into the cause of the death shall be held by a superintendent or proper officer at the next port where the ship calls after the death and where there is a superintendent or proper officer, or at such other place as the Board of Trade may direct. 2 The superintendent or proper officer holding the inquiry shall for the purpose of the inquiry have the powers conferred on an inspector by section 729 of the Merchant Shipping Act 1894. 3 The person holding the inquiry shall make a report of his findings to the Board of Trade and the Board shall make a copy of the report available — a if the deceased person was employed in the ship and a person was named as his next of kin in the crew agreement or list of the crew in which the deceased person's name last appeared, to the person so named ; b in any case, to any person requesting it who appears to the Board of Trade to be interested. 4 No inquiry shall be held under this section in a case where, in England, Wales or Northern Ireland, a coroner's inquest is to be held or, in Scotland, an inquiry is to be held under the Fatal Accidents Inquiry (Scotland) Act 1895 or the Fatal Accidents and Sudden Deaths Inquiry (Scotland) Act 1906. Relief and repatriation of seamen left behind Relief and return of seamen left behind, etc. 62 1 Where — a a person employed as a seaman in a ship registered in the United Kingdom is left behind in any country outside the United Kingdom or is taken to such a country on being shipwrecked; or b a person who became so employed under an agreement entered into outside the United Kingdom is left behind in the United Kingdom or is taken to the United Kingdom on being shipwrecked ; the persons who last employed him as a seaman shall make such provision for his return and for his relief and maintenance until his return and such other provisions as may be required by regulations made by the Board of Trade. 2 The provisions to be so made may include the repayment of expenses incurred in bringing a shipwrecked seaman ashore and maintaining him until he is brought ashore and the payment of the expenses of the burial or cremation of a seaman who dies before he can be returned. 3 The Board of Trade may also make regulations providing for the manner in which any wages due to any person left behind or taken to any country as mentioned in subsection (1) of this section, and any property of his left on board ship, are to be dealt with. 4 The Board of Trade may make regulations requiring a superintendent or proper officer — a to make such provision as may be prescribed by the regulations with respect to any matter for which provision may be required to be made by regulations under the preceding provisions of this section; and b to make the like provision with respect to citizens of the United Kingdom and Colonies found in distress in any country outside the United Kingdom after being employed in ships registered in, or belonging to the government of, such a country. 5 Without prejudice to the generality of the preceding provisions, regulations made under this section may make provision — a for determining the place to which a person is to be returned; b for requiring the master of any ship registered in the United Kingdom to convey a person to a place determined in accordance with the regulations and for enabling a superintendent or proper officer to give the master directions for that purpose ; c for the making of payments in respect of the conveyance of a person in accordance with the regulations; and d for the keeping of records and the rendering of accounts. 6 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £100 or such less amount as may be specified in the regulations. 7 This section applies to a person left behind on being discharged in pursuance of section 5 of this Act, whether or not at the time he is left behind the ship is still registered in the United Kingdom. Limit of employers' liability under s. 62 63 Where a person left behind in or taken to any country as mentioned in section 62(1) of this Act remains there after the end of a period of three months the persons who last employed him as a seaman shall not be liable under that section to make provision for his return or for any matter arising after the end of that period, unless they have before the end of that period been under an obligation imposed on them by regulations under that section to make provision with respect to him. Recovery of expenses incurred for relief and return, etc. 64 1 Where any expenses are incurred in respect of any matter for which the employers of a seaman are required to make provision under section 62 of this Act, then — a if the expenses are incurred by the Board of Trade, or are incurred by the government of any country outside the United Kingdom and repaid to them on behalf of the Crown, the Board of Trade may recover them from the employers; b if the expenses are incurred by the seaman he may recover them from the employers unless they prove either that under the terms of his employment they were to be borne by him or that he would not have been left behind but for his own wrongful act or neglect. 2 Where, in the case of any seaman, expenses are incurred by the Board of Trade or are incurred by the government of any country outside the United Kingdom and repaid to them on behalf of the Crown — a in respect of any matter for which, but for section 63 of this Act, the seaman's last employers would have been required to make provision under section 62 of this Act; or b in respect of any matter for which provision is required to be made under section 62 (4) (b) of this Act; the Board of Trade may recover them from the seaman (or, if he has died, from his personal representatives). Property of deceased seamen Custody, etc. of property of deceased seamen 65 1 The Board of Trade may make regulations providing for the custody of and dealing with — a any property left on board a ship registered in the United Kingdom by a seaman dying while or after being employed in the ship ; b any property left in a country outside the United Kingdom by a seaman dying while or within six months after being employed in such a ship ; and c any property left in a country outside the United Kingdom by a citizen of the United Kingdom and colonies dying while or within six months after being employed as a seaman in a ship registered outside the United Kingdom; until it is disposed of by or under the directions of the Board of Trade; and for the recovery by the Board of Trade of any wages which, at the time of a seaman's death, were due to him in respect of his employment in a ship registered in the United Kingdom. 2 Regulations under this section may require the recording of particulars and the rendering of accounts and may enable the Board of Trade or any person having custody of any such property to sell it by auction or otherwise and account for the proceeds. 3 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £100. Disposal of property of deceased seaman 66 1 Where, on the death of a seaman, any assets come into the hands of the Board of Trade by virtue of section 65 of this Act the Board may satisfy out of them any expenses incurred by the Board in respect of the seaman or his property. 2 If the value of the residue of the assets does not exceed £500, the Board of Trade may at any time pay or deliver it to any of the persons mentioned in subsection (3) of this section or distribute it among them, unless a grant of representation, or in Scotland confirmation, has then been made and the Board of Trade know of it; and the Board shall thereby be discharged from any further liability in respect of the residue. 3 The persons referred to in subsection (2) of this section are — a any person appearing to the Board of Trade to be a person named as the seaman's next of kin in the crew agreement or list of the crew in which the seaman's name last appeared; b any person appearing to the Board of Trade to be his widow or a child of his ; c any person appearing to the Board of Trade to be beneficially entitled, under a will or on intestacy, to the seaman's estate or any part of it; d any person appearing to the Board of Trade to be a creditor of the seaman. 4 If it appears to the Board of Trade that any of the persons to whom any assets may be paid or delivered under this section is resident in a foreign state the Board of Trade may pay or deliver them to him by paying or delivering them to a consular officer of that state for transmission to him. 5 In this section " child " includes an adopted child and an illegitimate child. Application of sections 62 to 66 to masters Application of sections 62 to 66 to masters 67 In sections 62 to 66 of this Act " seaman " (notwithstanding the definition in section 742 of the Merchant Shipping Act 1894) includes the master of a ship. Documentation, reports and returns Official log books 68 1 Except as provided by regulations under this section an official log book in a form approved by the Board of Trade shall be kept in every ship registered in the United Kingdom. 2 The Board of Trade may make regulations prescribing the particulars to be entered in official log books, the persons by whom such entries are to be made, signed or witnessed, and the procedure to be followed in the making of such entries and in their amendment or cancellation. 3 The regulations may require the production or delivery of official log books to such persons, in such circumstances and within such times as may be specified therein. 4 Regulations under this section may exempt ships of any description from any requirements thereof, either generally or in such circumstances as may be specified in the regulations. 5 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £20. 6 If a person wilfully destroys or mutilates or renders illegible any entry in an official log book he shall be liable on summary conviction to a fine not exceeding £100. Lists of crew 69 1 Except as provided by regulations made under this section the master of every ship registered in the United Kingdom shall make and maintain a list of the crew containing such particulars as may be required by the regulations. 2 The Board of Trade may make regulations — a specifying the particulars to be entered in a list of the crew; b limiting the time for which a list of the crew may remain in force; c providing for the maintenance by such persons and either in such place as may be specified in the regulations or, if it is so specified, in the ship, of a copy or copies of each list of a crew, and for the notification to such persons of any changes therein; d for the production of a list of the crew to such persons, in such circumstances and within such time as may be specified in the regulations ; and e for the delivery to a superintendent or proper officer or the Registrar General of Shipping and Seamen, in such circumstances as may be specified in the regulations, of a list of the crew or a copy thereof maintained under the regulations and for the notification to him of any changes in such a list. 3 Regulations under this section may enable a list of the crew to be contained in the same document as a crew agreement and may treat any particulars entered in the crew agreement as forming part of the particulars entered in the list. 4 Regulations under this section may exempt from the requirements thereof such descriptions of ship as may be specified in the regulations and may make different provision for different circumstances. 5 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £20. British seamen's cards 70 1 The Board of Trade may make regulations providing — a for the issue to British seamen of cards (in this section referred to as " British seamen's cards ") in such form and containing such particulars with respect to the holders thereof and such other particulars (if any) as may be prescribed by the regulations, and for requiring British seamen to apply for such cards ; b for requiring the holders of British seamen's cards to produce them to such persons and in such circumstances as may be prescribed by the regulations; c for the surrender of British seamen's cards in such circumstances as may be prescribed by the regulations ; d for any incidental or supplementary matters for which the Board think it expedient for the purposes of the regulations to provide; and any provision of the regulations having effect by virtue of paragraph (a) of this subsection may be so framed as to apply to all British seamen or any description of them and as to have effect subject to any exemptions for which provision may be made by the regulations. 2 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £10. 3 In this section " British seamen " means persons who are not aliens within the meaning of the British Nationality Act 1948 and are employed, or ordinarily employed, as masters or seamen. 4 If a person makes a statement which he knows to be false or recklessly makes a statement which is false in a material particular for the purpose of obtaining for himself or another person a British seaman's card he shall be liable on summary conviction to a fine not exceeding £100. Discharge books 71 1 The Board of Trade may make regulations providing — a for the issue to persons who are or have been employed in ships registered in the United Kingdom of discharge books in such form and containing such particulars with respect to the holders thereof and such other particulars (if any) as may be prescribed by the regulations and for requiring such persons to apply for such discharge books ; b for requiring the holders of discharge books to produce them to such persons and in such circumstances as may be prescribed by the regulations ; c for the surrender of discharge books in such circum stances as may be prescribed by the regulations; d for any incidental or supplementary matters for which the Board think it expedient for the purposes of the regulations to provide; and any provision of the regulations having effect by virtue of paragraph (a) of this subsection may be so framed as to apply to all such persons as are mentioned in that paragraph or any description of such persons and as to have effect subject to any exemptions for which provision may be made by the regulations. 2 Regulations under this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £10. Returns of births and deaths in ships, etc. 72 1 The Board of Trade may make regulations — a requiring the master of any ship registered in the United Kingdom to make a return to a superintendent or proper officer for transmission to the Registrar General of Shipping and Seamen of any birth or death occurring in the ship and of the death, wherever occurring outside the United Kingdom, of any person employed in the ship, and to notify any such death to such person (if any) as the deceased may have named to him as his next of kin ; and b requiring the master of any ship not registered in the United Kingdom which calls at a port in the United Kingdom in the course of or at the end of a voyage to make a return to a superintendent for transmission to the Registrar General of Shipping and Seamen o any birth or death of a citizen of the United Kingdom and Colonies which has occurred in the ship during the voyage. 2 Regulations under this section may require the Registrar General of Shipping and Seamen to send a certified copy o any return made thereunder to the Registrar General for England and Wales, the Registrar General of Births, Death and Marriages for Scotland or the Registrar General for Northern Ireland, as the case may require. 3 The Registrar General to whom any such certified copies are sent shall record the information contained therein in a register kept by him for the purpose and to be called the marine register, and may also record in that register such additional information as appears to him desirable for the purpose of ensuring the completeness and correctness of the register; and the enactments relating to the registration of births and deaths in England, Scotland and Northern Ireland shall have effect as if the marine register were a register of births (other than stillbirths) or deaths or certified copies of entries in such a register and had been transmitted to the Registrar General in accordance with those enactments. 4 Regulations under the preceding provisions of this section may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £20. 5 Regulations under this section may contain provisions for authorising the registration of the following births and deaths occurring outside the United Kingdom in circumstances where no return is required to be made under the preceding provisions of this section — a any birth or death of a citizen of the United Kingdom and Colonies which occurs in a ship not registered in the United Kingdom ; b any death of a citizen of the United Kingdom and Colonies who has been employed in such a ship which occurs elsewhere than in the ship ; and c any death of a person who has been employed in a ship registered in the United Kingdom which occurs elsewhere than in the ship. Reports of shipping casualties 73 1 Where any such casualty as is mentioned in section 55(1) of this Act has occurred in the case of a ship or ship's boat and, at the time it occurred, the ship was registered in the United Kingdom, the owner or master of the ship shall, as soon as practicable, and in any case not later than twenty-four hours after the ship's arrival at the next port, report the casualty to the Board of Trade, giving a brief description of it and stating the time and place where it occurred, the name and official number of the ship, its position at the time of the report and the next port of call. 2 If the owner or master of a ship fails without reasonable cause to comply with the preceding provisions of this section he shall be liable on summary conviction to a fine not exceeding £100. Handing over of documents on change of master 74 If a person ceases to be the master of a ship registered in the United Kingdom during a voyage of the ship he shall deliver to his successor the documents relating to the ship or its crew which are in his custody ; and if he fails without reasonable cause to do so he shall be liable on summary conviction to a fine not exceeding £100. Admissibility in evidence and inspection of certain documents 75 1 The following documents shall be admissible in evidence and, when in the custody of the Registrar General of Shipping and Seamen, shall be open to public inspection, that is to say. — a crew agreements, lists of crews made under section 69 of this Act and notices given under this Act of additions to or changes in crew agreements and lists of crews; b the official log book of any ship kept under section 68 of this Act and, without prejudice to section 695(2) of the Merchant Shipping Act 1894, any document purporting to be a copy of an entry therein and to be certified as a true copy by the master of the ship; c documents purporting to be submissions to or decisions by superintendents or proper officers under section 10 of this Act; d returns or reports under section 72 of this Act or under regulations made under section 19 of this Act. 2 A certificate issued under section 43 of this Act shall be admissible in evidence. Inspections Inspections 76 1 For the purpose of seeing that the provisions of the Merchant Shipping Acts and regulations and rules made thereunder are duly complied with any of the following persons, that is to say. — a a surveyor of ships ; b a superintendent; c any person appointed by the Board of Trade, either generally or in a particular case, to exercise powers under this section; may at all reasonable times go on board a ship and inspect the ship and its equipment or any part thereof, any articles on board, and any document carried in the ship in pursuance of the Merchant Shipping Acts or regulations or rules made thereunder ; and if the ship is registered in the United Kingdom the powers conferred by this subsection may also be exercised outside the United Kingdom and may be so exercised by a proper officer as well as by the persons mentioned in paragraphs (a) to (c) of this subsection. 2 A person exercising powers under this section shall not unnecessarily detain or delay a ship but may, if he considers it necessary in consequence of an accident or for any other reason, require a ship to be taken into dock for a survey of its hull or machinery. 3 Where any such person as is mentioned in paragraphs (a) to (c) of subsection (1) of this section has reasonable grounds for believing that there are on any premises provisions or water intended for supply to a ship registered in the United Kingdom which, if provided on the ship, would not be in accordance with regulations under section 21 of this Act, he may enter the premises and inspect the provisions or water for the purpose of ascertaining whether they would be in accordance with those regulations. 4 If any person obstructs a person in the exercise of his powers under this section, or fails to comply with a requirement made under subsection (2) thereof, he shall be liable on summary conviction to a fine not exceeding £100. Stowaways, unauthorised presence on board ship and master's power of arrest Stowaways 77 1 If a person, without the consent of the master or of any other person authorised to give it, goes to sea or attempts to go to sea in a ship registered in the United Kingdom he shall be liable on summary conviction to a fine not exceeding £100 or to imprisonment for a period not exceeding three months. 2 Nothing in section 686 of the Merchant Shipping Act 1894 shall be taken to limit the jurisdiction of any court in the United Kingdom to deal with an offence under this section which has been committed in a country outside the United Kingdom by a person who is not a British subject. Unauthorised presence on board ship 78 Where a ship registered in the United Kingdom or any other country is in a port in the United Kingdom and a person who is neither in Her Majesty's service nor authorised by law to do so — a goes on board the ship without the consent of the master or of any other person authorised to give it; or b remains on board the ship after being requested to leave by the master, a constable, or an officer of the Board of Trade or of customs and excise ; he shall be liable on summary conviction to a fine not exceeding £20. Master's power of arrest 79 The master of any ship registered in the United Kingdom may cause any person on board the ship to be put under restraint if and for so long as it appears to him necessary or expedient in the interest of safety or for the preservation of good order or discipline on board the ship. Administrative provisions Registrar General of Shipping and Seamen 80 1 The Board of Trade shall appoint, and may remove, an officer to be styled the Registrar General of Shipping and Seamen, who shall exercise such functions as are conferred on him by the Merchant Shipping Acts and keep such records and perform such other duties as the Board of Trade may direct. 2 The Board of Trade may appoint and remove persons to perform on behalf of the Registrar General of Shipping and Seamen such of his functions as the Board or the Registrar General of Shipping and Seamen may direct. Appointment of superintendents 81 The Board of Trade shall appoint, and may remove, officers to be styled mercantile marine superintendents, who shall exercise the functions conferred on superintendents by the Merchant Shipping Acts. Appointment of wreck commissioners 82 1 The Lord Chancellor may appoint such number of persons as he thinks fit to be wreck commissioners and may remove any wreck commissioners appointed by him. 2 Before appointing a person to act as wreck commissioner in Northern Ireland the Lord Chancellor shall consult the Lord Chief Justice of Northern Ireland. Remuneration of wreck commissioners and assessors 83 There shall be paid to any wreck commissioner or assessor appointed under this Act such remuneration, out of moneys provided by Parliament, as the Lord Chancellor may with the consent of the Treasury determine. Fees 84 The Board of Trade may with the consent of the Treasury make regulations prescribing fees to be paid in respect of the issue or recording of any certificate, licence or other document or the doing of any other thing in pursuance of this Act. Miscellaneous Amendment of Merchant Shipping (Safety Convention) Act 1949 85 1 For sections 3 and 6 of the Merchant Shipping (Safety Convention) Act 1949 there shall be substituted the sections set out in Schedule 1 to this Act. 2 In section 5(2) of that Act (rules for direction finders) the words " being ships of sixteen hundred tons gross tonnage or upwards " shall be omitted. 3 Before making rules under any of those sections the Board of Trade shall consult with organisations in the United Kingdom appearing to them representative of persons who will be affected by the rules. Nautical publications 86 1 The Board of Trade may make rules specifying such charts, directions or information as appear to the Board necessary or expedient for the safe operation of ships and those rules may require ships registered in the United Kingdom, or such descriptions of ships registered in the United Kingdom as may be specified in the rules, to carry, either at all times or on such voyages as may be specified in the rules, copies of the charts, directions or information so specified. 2 If a ship goes to sea or attempts to go to sea without carrying copies of the charts, directions or information which it is required to carry by rules under this section the master or owner shall be liable on summary conviction to a fine not exceeding £100. The merchant navy uniform 87 1 The Board of Trade may make regulations prescribing a uniform, to be known as the merchant navy uniform, for the use of persons serving in ships registered in the United Kingdom, and distinguishing marks to be worn, as part of the uniform, by persons so serving in different positions or in different circumstances. 2 Regulations under this section may prescribe the persons by whom and the circumstances in which the merchant navy uniform or any part of it may be worn. 3 If a person wears the merchant navy uniform or any part of it, or wears anything bearing the appearance of the uniform or any part of it, when he is not authorised by regulations under this section to wear the uniform or that part he shall be liable on summary conviction to a fine not exceeding £50. 4 Where any design, within the meaning of the Registered Designs Act 1949, which forms part of the merchant navy uniform has been registered under that Act and the Board of Trade are the registered proprietor thereof their copyright in the design shall, notwithstanding section 8 of that Act, continue so long as the design remains so registered. 5 Nothing in this section shall prohibit or restrict the use of the merchant navy uniform or any part of it for the purposes of any stage, film or television performance, unless the use is such as to bring the uniform into disrepute. Increase of penalty for sailing while ship under detention 88 In section 692(1) of the Merchant Shipping Act 1894 (enforcing detention of ship) for the words " one hundred pounds " there shall be substituted the words " two hundred pounds ". Dealing with deserters under reciprocal agreements 89 1 Subject to subsection (5) of this section, this section applies to any country to which, immediately before the coming into operation of the repeal by this Act of section 238 of the Merchant Shipping Act 1894, that section applied by virtue of an Order in Council made under it or having effect as if made under it. 2 Where a seaman deserts in the United Kingdom from a ship registered in a country to which this section applies, a justice of the peace may, on the application of a consular officer of that country and on information on oath, issue a warrant for the arrest of the seaman. 3 Where a seaman has been arrested on a warrant issued under this section a magistrates' court may, on proof of the desertion, order him to be conveyed on board his ship. 4 Where a seaman is liable to be arrested under this section, any person who, knowing or believing that he has deserted, does without lawful authority or reasonable excuse any act with intent to impede his arrest shall be liable on summary conviction to a fine not exceeding £20. 5 Her Majesty may by Order in Council direct that this section shall cease to apply to any country specified in the Order. 6 In its application to Scotland this section shall have effect as if for the reference to a justice of the peace there were substituted a reference to a sheriff, magistrate or justice of the peace, for the reference to a magistrates' court a reference to a court of summary jurisdiction within the meaning of the Summary Jurisdiction (Scotland) Act 1954, and for the reference to information on oath a reference to evidence on oath. 7 In its application to Northern Ireland this section shall have effect as if in subsection (3) for the reference to a magistrates' court there were substituted a reference to a court of summary jurisdiction. Adaptation to metric units 90 The Board of Trade may by regulations provide for such adaptations of any enactments contained in the Merchant Shipping Acts as appear to them appropriate for the purpose of replacing references therein to units other than metric units by references to metric units which are either equivalent thereto or such approximations thereto as appear to the Board desirable for the purpose of securing that the enactments as adapted are expressed in convenient terms. Tonnage measurement and certificates 91 For subsections (5) and (6) of section 1 of the Merchant Shipping Act 1965 (tonnage regulations) there shall be substituted the following subsections — 5 Regulations under this section may make provision for the alteration (notwithstanding section 82 of the principal Act) of the particulars relating to the registered tonnage of a ship. 6 Regulations under this section may provide for the issue by the Board of Trade or by persons appointed by such organisations as may be authorised in that behalf by the Board of Trade of certificates of the registered tonnage of any ship or of the tonnage which is to be taken for any purpose specified in the regulations as the tonnage of a ship not registered in the United Kingdom, and for the cancellation and delivery up of such certificates in such circumstances as may be prescribed by the regulations. 6A Regulations under this section requiring the delivery up of any certificate may make a failure to comply with the requirement an offence punishable on summary conviction with a fine not exceeding £100. Unregistered ships and ships registered outside the United Kingdom Unregistered ships 92 The Board of Trade may make regulations specifying any description of British ships which are not registered in the United Kingdom or elsewhere and directing that such of the provisions of this Act and of regulations and rules made thereunder as may be specified in the regulations shall extend to ships of that description and to masters and seamen employed in them, with such exceptions, adaptations or modifications as may be so specified. Ships registered in independent Commonwealth countries 93 1 Her Majesty may by Order in Council direct that such of the provisions of this Act and of regulations and rules made thereunder as may be specified in the Order shall extend, with such exceptions, adaptations or modifications as may be so specified, to ships registered in any independent Commonwealth country so specified and to masters and seamen employed in them. 2 The modifications that may be made by an Order in Council under this section with respect to the ships registered in any country and the masters and seamen employed in them include the substitution, for any provision of this Act or of regulations or rules made thereunder, of a corresponding provision of the law of that country, with such exceptions, adaptations or modifications as appear to Her Majesty expedient. 3 In this section " independent Commonwealth country " means any country for the time being specified in section 1 (3) of the British Nationality Act 1948. Power to extend Act to certain territories outside the United Kingdom, and to ships registered therein 94 Her Majesty may by Order in Council give with respect to any of the following territories, that is to say — a the Isle of Man ; b any of the Channel Islands ; c any colony; d any territory outside Her Majesty's dominions in which for the time being Her Majesty has jurisdiction ; either or both of the following directions — i that such of the provisions of this Act and of regulations and rules made thereunder as may be specified in the Order shall apply to ships registered in that territory and to masters and seamen employed in them, with such exceptions, adaptations or modifications as may be specified in the Order, as they apply to ships registered in the United Kingdom and to masters and seamen employed in them ; ii that such of the provisions of this Act and of any regulations and rules made thereunder as may be specified in the Order shall extend to that territory, with such exceptions, adaptations or modifications as may be specified in the Order, as part of the law of that territory. Fishing vessels and non-sea-going ships Fishing vessels 95 1 In the application of this Act to fishing vessels and persons serving in them — a sections 6, 29 to 32, 34 to 38, 89 and 93 do not apply and the provisions contained in Part I of Schedule 2 to this Act apply in addition to the other provisions of this Act; and b sections 7 and 8 apply as set out in Part II of that Schedule; and nothing in Schedule 2 to this Act applies to fishing vessels not registered in the United Kingdom or to persons serving in them. 2 Section 15 of this Act does not apply to so much of the wages of a seaman employed in a fishing vessel as is in any manner related to the catch. 3 In its application to persons serving in fishing vessels section 87 of this Act shall have effect as if for the words " merchant navy uniform", wherever they occur, there were substituted the words " fishing fleet uniform ". 4 Nothing in section 11 of this Act shall affect the operation of Part II of the Administration of Justice Act 1970 in relation to wages due to a person employed in a fishing vessel; and the provisions of the Magistrates' Courts Act (Northern Ireland) 1964 and the Judgments (Enforcement) Act (Northern Ireland) 1969 relating to the attachment of wages shall apply in relation to such wages as they apply in relation to other wages. 5 The Board of Trade may grant exemptions from any requirements of this Act or of any regulations made under this Act — a with respect to any fishing vessel or to a fishing vessel of any description ; or b with respect to any person or a person of any description serving in a fishing vessel or in a fishing vessel of any description ; and nothing in any other provision of this Act conferring a power to provide for or grant exemptions shall be taken to restrict the power conferred by this subsection. 6 In this Act " fishing vessel" means a vessel which is for the time being employed in sea fishing, but does not include a vessel used otherwise than for profit. Non-sea-going ships 96 1 The preceding provisions of this Act other than sections 19, 20, 43 to 60, 88, 90 and 91 do not apply to ships which are not sea-going ships or to masters or seamen employed in ships which are not sea-going ships. 2 In relation to ships which are not sea-going ships section 45 of this Act shall have effect as if for the words " goes to sea or attempts to go to sea " there were substituted the words " plies or attempts to ply " and the words " if in the United Kingdom " were omitted; and where such a ship may be detained in pursuance of that section, section 692 of the Merchant Shipping Act 1894 shall have effect, in relation to it, as if subsections (2) to (4) were omitted and in subsection (1) for the words " proceeds to sea " there were substituted the word " plies ", for the words " sends the ship to sea " there were substituted the words " causes the ship to ply " and the words " any British consular officer " were omitted. Supplementary Interpretation 97 1 In this Act — " crew agreement " has the meaning assigned to it by section 1(2) of this Act; " enactment " includes an enactment of the Parliament of Northern Ireland; " proper officer " means a consular officer appointed by Her Majesty's Government in the United Kingdom and, in relation to a port in a country outside the United Kingdom which is not a foreign country, also any officer exercising in that port functions similar to those of a superintendent; " relief and maintenance " includes the provision of surgical or medical treatment and such dental and optical treatment (including the repair or replacement of any appliance) as cannot be postponed without impairing efficiency; " ship's boat " includes a life-raft; and " the Merchant Shipping Acts " means the Merchant Shipping Acts 1894 to 1967, the Fishing Vessels (Safety Provisions) Act 1970 and this Act 2 References in this Act to going to sea include references to going to sea from any country outside the United Kingdom. 3 For the purposes of this Act a seaman is discharged from a ship when his employment in that ship is terminated. 4 For the purposes of this Act a seaman discharged from a ship in any country and left there shall be deemed to be left behind in that country notwithstanding that the ship also remains there. 5 References in this Act to dying in a ship include references to dying in a ship's boat and to being lost from a ship or ship's boat. 6 Any power conferred by this Act to provide for or grant an exemption includes power to provide for or grant the exemption subject to conditions. 7 If the Parliament of Northern Ireland passes provisions amending or replacing any enactment of that Parliament referred to in this Act the reference shall be construed as a reference to the enactment as so amended or, as the case may be, as a reference to those provisions. Expenses and receipts 98 1 Any expenses incurred by the Board of Trade under this Act shall be defrayed out of moneys provided by Parliament. 2 Any fees received by the Board of Trade under this Act shall be paid into the Consolidated Fund. Regulations and rules 99 1 Any regulations or rules made under this Act shall be made by statutory instrument, which, except in the case of regulations made under section 36 of this Act or paragraph 2 of Schedule 2 to this Act, shall be subject to annulment in pursuance of a resolution of either House of Parliament. 2 Before making regulations under any provision of this Act other than sections 84 and 90 the Board of Trade shall consult with organisations in the United Kingdom appearing to them representative of masters and seamen who will be affected by the regulations and of persons employing such masters and seamen. Amendments, savings, transitional provisions and repeals 100 1 The enactments mentioned in Schedule 3 to this Act shall have effect subject to the minor and consequential amendments specified therein. 2 This Act shall have effect subject to the savings and transitional provisions contained in Schedule 4 to this Act. 3 The enactments specified in Schedule 5 to this Act (which include some which are obsolete and some not affected by the preceding provisions of this Act) are hereby repealed to the extent specified in the third column of that Schedule. Citation, construction and commencement 101 1 This Act may be cited as the Merchant Shipping Act 1970. 2 This Act, the Merchant Shipping Acts 1894 to 1967 and the Fishing Vessels (Safety Provisions) Act 1970 may be cited together as the Merchant Shipping Acts 1894 to 1970. 3 This Act shall be construed as one with the Merchant Shipping Acts 1894 to 1967 and the Fishing Vessels (Safety Provisions) Act 1970. 4 This Act shall come into force on such date as the Board of Trade may by order made by statutory instrument appoint, and different days may be so appointed for different provisions of this Act. SCHEDULES SCHEDULE 1 Sections substituted for sections 3 and 6 of Merchant Shipping (Safety Convention) Act 1949 Section 85. Radio rules. 3 1 The Board of Trade may make rules (in this Act called " radio rules ") requiring ships to which this section applies to be provided with radio equipment of such a nature (but not including a radio navigational aid) as may be prescribed by the rules and to maintain such a radio service and to carry such number of radio officers or operators, of such grades and possessing such qualifications, as may be so prescribed ; and the rules may contain provisions for preventing so far as practicable electrical interference by other apparatus on board with the equipment provided under the rules. 2 This section applies to — a sea-going ships registered in the United Kingdom ; b other sea-going ships while they are in the United Kingdom or the territorial waters thereof. 3 Radio rules shall include such requirements as appear to the Board of Trade to implement the provisions of the Convention for the Safety of Life at Sea signed in London on 17th June 1960 as from time to time amended, so far as those provisions relate to radio telegraphy and radio telephony. 4 Without prejudice to the generality of the preceding provisions of this section, radio rules may — a prescribe the duties of radio officers and operators, including the duty of keeping a radio log-book ; b apply to any radio log-book required to be kept under the rules any of the provisions of any regulations with respect to official log-books made under section 68 of the Merchant Shipping Act 1970. 5 If any radio officer or operator contravenes any rules made in pursuance of subsection (4)(a) of this section, he shall be liable to a fine not exceeding £10 ; and if radio rules are contravened in any other respect in relation to any ship, the owner or master of the ship shall be liable on conviction on indictment to a fine not exceeding £500, or on summary conviction to a fine not exceeding £100. 6 If a ship to which this section applies is not provided with radio equipment or radio officers or operators in conformity with radio rules the ship, if in the United Kingdom, may be detained. Radio navigational aids. 6 1 The Board of Trade may make rules — a requiring ships to which this section applies to be provided with such radio navigational aids, other than direction finders, as may be specified in the rules and prescribing requirements which such radio navigational aids are to comply with ; b prescribing requirements which radio navigational aids, other than direction-finders and other than such as are provided in pursuance of rules made under the preceding paragraph, are to comply with when carried in ships to which this section applies ; c prescribing requirements which apparatus designed for the purpose of transmitting or reflecting signals to or from radio navigational aids is to comply with if it is apparatus in the United Kingdom or apparatus off the shores of the United Kingdom but maintained from the United Kingdom ; and the requirements prescribed under paragraph (a) or (b) of this subsection may include requirements relating to the position and method of fitting of the radio navigational aids. 2 This section applies to — a ships registered in the United Kingdom ; b other ships while they are within any port in the United Kingdom. 3 If a ship to which this section applies proceeds, or attempts to proceed, to sea without carrying such navigational aids as it is required to carry by rules made under subsection (1) of this section or carrying radio navigational aids not complying with rules made under that subsection, the owner or master of the ship shall be liable on summary conviction to a fine not exceeding £100. 4 If any person establishes or operates any such apparatus as is mentioned in subsection (1)(c) of this section and the apparatus does not comply with rules made thereunder, he shall be liable on summary conviction to a fine not exceeding £100. SCHEDULE 2 Fishing Vessels Section 95. PART I Additional Provisions Regulations relating to crew agreements 1 1 The Board of Trade may make regulations prescribing the procedure to be followed in connection with the making of crew agreements between persons employed in fishing vessels and persons employing them and prescribing the places where such crew agreements are to be made or where an agreement with any person may be added to those contained in such a crew agreement. 2 Regulations under this paragraph may make a contravention of any provision thereof an offence punishable on summary conviction with a fine not exceeding £50 or such less amount as may be specified in the regulations. Offences 2 1 For the purpose of maintaining discipline on board fishing vessels and ensuring the safe and efficient operation of such vessels the Board of Trade may by regulations specify any misconduct on board of or in relation to a fishing vessel which, but for section 95(1)(a) of this Act, would be an offence under section 29, 30 or 31 thereof, and provide for its being an offence punishable on summary conviction with a fine not exceeding £100 or such less amount as may be specified in the regulations. 2 Regulations under this paragraph may apply section 32 of this Act with such modifications as may be required to substitute in it for the reference to section 29, 30(b) and 30(c) of this Act a reference to the corresponding provisions of the regulations. 3 Regulations under this paragraph may make different provision for different descriptions of fishing vessel or fishing vessels of the same description in different circumstances. 4 No regulations shall be made under this paragraph unless a draft thereof has been laid before Parliament and approved by resolution of each House of Parliament. Production of certificates and other documents of qualification 3 Any person serving or engaged to serve in a fishing vessel and holding any certificate or other document which is evidence that he is qualified for the purposes of section 43 of this Act shall on demand produce it to any person who is a British sea-fishery officer for the purposes of the Sea Fisheries Acts (within the meaning of the Sea Fisheries Act 1968); and if he fails to do so without reasonable cause he shall be liable on summary conviction to a fine not exceeding £20. Hours of work 4 1 The Board of Trade may make regulations prescribing maximum periods of duty and minimum periods of rest for seamen employed in fishing vessels, and such regulations may make different provision for different descriptions of fishing vessels or seamen employed in them or for fishing vessels and seamen of the same description in different circumstances. 2 If any provision of regulations made under this paragraph is contravened in the case of any seaman employed in a fishing vessel the persons employing him and the master shall each be liable on summary conviction to a fine not exceeding £100. Reports of and inquiries into injuries 5 1 Where the master or a member of the crew of a fishing vessel is injured during a voyage, an inquiry into the cause and nature of the injury may be held by a superintendent or proper officer. 2 The superintendent or proper officer holding an inquiry under this section shall for the purposes of the inquiry have the powers conferred on an inspector by section 729 of the Merchant Snipping Act 1894 and shall make a report of his findings to the Board of Trade. PART II Sections 7 and 8 set out as they apply to Fishing Vessels and Persons Employed in them 7 Except as provided by or under this Act or any other enactment, the wages due to a seaman under a crew agreement relating to a fishing vessel shall be paid to him in full. 8 1 Subject to regulations made under section 9 or 62 of this Act, the persons employing any seaman under a crew agreement relating to a fishing vessel shall deliver to him at a time prescribed by regulations under this section an account of the wages due to him under that crew agreement and of the deductions subject to which the wages are payable. 2 Where the wages of any person employed in a fishing vessel are in any manner related to the catch the persons employing him shall at a time prescribed by regulations under this section deliver to the master an account (or, if the master is the person employing him, make out an account) showing how those wages (or any part thereof related to the catch) are arrived at and shall make the account available to the crew in such manner as may be prescribed by the regulations. 3 Where there is a partnership between the master and any members of the crew of a fishing vessel the owner of the vessel shall at a time prescribed by regulations under this section make out an account showing the sums due to each partner in respect of his share and shall make the account available to the partners. 4 The Board of Trade may make regulations prescribing the time at which any account required by this section is to be delivered or made out and the manner in which the account required by subsection (2) or (3) of this section is to be made available. 5 If a person fails without reasonable cause to comply with the preceding provisions of this section he shall be liable on summary conviction to a fine not exceeding £20. SCHEDULE 3 Minor and Consequential Amendments Section 100. The Conspiracy and Protection of Property Act 1875 1 For section 16 of the Conspiracy and Protection of Property Act 1875 there shall be substituted the following section: — 16 Section 5 of this Act does not apply to seamen. The Merchant Shipping Act 1894 2 In subsection (1) of section 689 of the Merchant Shipping Act 1894 for the words " seaman or apprentice ", in both places, there shall be substituted the words " or seaman ". 3 In subsection (1) of section 695 of that Act, after the words " shall be evidence" there shall be inserted the words " and in Scotland sufficient evidence " ; and in subsection (2) of that section, after the words "admissible in evidence" there shall be inserted the words " and be evidence, and in Scotland sufficient evidence, of those matters ". 4 In section 742 of that Act, in the definition of " seaman ", for the words " masters, pilots and apprentices duly indentured and registered " there shall be substituted the words " masters and pilots ". The Pilotage Act 1913 5 In section 17(1)(l) of the Pilotage Act 1913 for the words from " a mate's certificate " to " 1894 " there shall be substituted the words " such certificate issued under the Merchant Shipping Act 1970 as may be specified in the byelaws ". 6 In paragraph (b) of the proviso to section 23(1) of that Act for the words from " a mate's certificate " to " 1894 " there shall be substituted the words " such certificate issued under the Merchant Shipping Act 1970 as is specified in the byelaw " and for the words " such a certificate of competency" there shall be substituted the words " a certificate so specified ". 7 In section 25 of that Act for the words "certificates of competency recognised under Part II of the Merchant Shipping Act 1894 " there shall be substituted the words " certificates issued under the Merchant Shipping Act 1970 ". The Illegal Trawling (Scotland) Act 1934 8 In section 1(6) of the Illegal Trawling (Scotland) Act 1934 for the words " at each mercantile marine office " there shall be substituted the words " at the office of each mercantile marine superintendent ". The Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939 9 In section 6(3) of the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939, for the words from " section one hundred and seventy-six" to " deceased seamen" there shall be substituted the words " section 66 of the Merchant Shipping Act 1970 (disposal of property of deceased seamen) ". The Merchant Shipping Act 1964 10 For subsection (2) of section 10 of the Merchant Shipping Act 1964 there shall be substituted the following subsection — 2 Subsection (6) of section 3 of the Act of 1949 (detention of ships not conforming with radio rules) shall apply in relation to the portable radio apparatus so required to be carried by the boats or life rafts on any ship as it applies in relation to the radio equipment of the ship. The Administration of Estates (Small Payments) Act 1965 11 In section 6 of the Administration of Estates (Small Payments) Act 1965 there shall be added at the end of subsection (1)(b) the words and c section 66(2) of the Merchant Shipping Act 1970 . The Merchant Shipping (Load Lines) Act 1967 12 In section 10(2) of the Merchant Shipping (Load Lines) Act 1967, paragraph (a) shall be omitted, and in paragraph (b) for the words from " in such form " to the end of the paragraph there shall be substituted the words " to be posted up in some conspicuous place on board the ship, which shall be in such form and containing such particulars relating to the depth to which the ship is for the time being loaded as may be specified in regulations made by the Board of Trade under this Act; ". The Hovercraft Act 1968 13 The enactments and instruments with respect to which provision may be made by an Order in Council under section 1(1)(h) of the Hovercraft Act 1968 shall include this Act and any instrument made under it. The Income and Corporation Taxes Act 1970 14 In section 414(1) of the Income and Corporation Taxes Act 1970 the word " or" shall be added at the end of paragraph (a), and paragraph (c) and the word " or " preceding it shall be omitted. SCHEDULE 4 Savings and Transitional Provisions Section 100. 1 The repeals made by this Act shall not be taken to extend to any country outside the United Kingdom and shall not affect any Order in Council providing for the extension of any enactments to any country outside the United Kingdom or any power to vary or revoke such an Order in Council. 2 The repeal by this Act of sections 145 and 146 of the Merchant Shipping Act 1894 shall not affect the operation, in relation to a seaman's money order issued before the coming into force of the repeal, of regulations under section 145(2) or of section 146. 3 The repeal by this Act of sections 148 to 153 of the Merchant Shipping Act 1894 shall not affect the operation of those sections in relation to any deposit received under section 148 before the coming into force of the repeal; but the Board of Trade may by regulations make provision for the repayment of such deposits within such period as may be specified by or under the regulations and for the transfer to the National Savings Bank of any deposit not repaid before the end of that period. 4 The repeal by this Act of section 254 of the Merchant Shipping Act 1894 shall not affect the operation of that section in relation to any return made under it and any marine register book kept under that section shall be treated as part of a marine register kept under section 72 of this Act. 5 Any licence granted under section 110 of the Merchant Shipping Act 1894 shall have effect as if granted under section 6 of this Act. 6 Any regulations made under section 1 of the Merchant Shipping Act 1948 shall have effect as if made under section 20 of this Act. 7 Any reference in regulations made under section 1 of the Merchant Shipping Act 1965 to regulations made under section 1 of the Merchant Shipping Act 1948 shall be construed as including a reference to regulations made under section 20 of this Act. 8 The references in section 57 of this Act to an inquiry or formal investigation held under this Act shall be construed as including references to an inquiry or formal investigation held under section 466, 468 or 471 of the Merchant Shipping Act 1894. 9 The references in section 60 of this Act to a certificate which has been cancelled or suspended under this Act shall be construed as including references to a certificate which has been cancelled or suspended under the provisions repealed by this Act. 10 For the purposes of section 87 of this Act the registration of any design under Part II of the Patents and Designs Act 1907 shall be deemed to be a registration under the Registered Designs Act 1949. SCHEDULE 5 Enactments Repealed Section 100. Chapter Short Title Extent of Repeal 57 & 58 Vict. c. 60 . The Merchant Shipping Act 1894. In section 19, the words from " each " to " cause ". In section 85(3), the words " in the ship's official log book, and also ". Part II. Sections 268 to 270. Section 271(3). Sections 289 to 355. In section 356, paragraph (a). Sections 357 and 358. Section 359(2). In section 360, subsections (1) and (2). Sections 361 and 362. In section 363, the words " or emigrant ship ". Sections 364 and 365. Section 369. In section 370, in the definition of " fishing boat ", the words from " but " to " profit" and the definitions of " second hand " and " voyage ". Section 371. Sections 376 to 417. Section 423. Sections 425 and 426. Section 436(3). In section 458(1), the words from " and in every " to " on board any ship ". In section 463, the words " or apprentice" wherever they occur. Part VI except section 478 and sections 487 to 490. In section 487(3), the words from " by the local marine board " to " board ". Section 507. In section 676, in subsection (1), in paragraph (b), the words " Second and " and the words from " including " to the end of the paragraph, and paragraphs (d) and (f). In section 677, paragraph (a), in paragraph (b) the words from " and the remuneration " to the end of the paragraph, and paragraph (e). Section 690. In section 714, the words " local marine boards and ". In section 716, the words " Second, Fourth and ". In section 721, the word " Second ". In section 722, subsection (2)(a). Section 725. In section 745(1)(b), the words " savings bank or ". Schedules 5 to 8. 6 Edw. 7. c. 48 . The Merchant Shipping Act 1906. Sections 9 and 12. Section 14. In section 16(1), the words "whether cabin or steerage passengers ". Sections 17 to 20. Sections 23 and 24. Parts III and IV. Sections 56 to 68. Section 74. Section 81. Section 82(1). Schedule 1. 1 & 2 Geo. 5. c. 8 . The Merchant Shipping (Seamen's Allotment) Act 1911. The whole Act. 4 & 5 Geo. 5. c. 42 . The Merchant Shipping (Certificates) Act 1914. The whole Act. 9 & 10 Geo. 5. c. 62 . The British Mercantile Marine Uniform Act 1919. The whole Act. 9 & 10 Geo. 5. c. 92 . The Aliens Restriction (Amendment) Act 1919. Section 5. 10 & 11 Geo. 5. c. 65 . The Employment of Women, Young Persons and Children Act 1920. In section 1, subsections (2) and (5), and in subsection (6) the sub - paragraph beginning " This section, so far as it relates to employment in a ship" and, in the sub-paragraph following it, the words " or in any ship " and paragraphs (b) and (d). Schedule, Part IV. 13 & 14 Geo. 5. c. 4 . The Fees (Increase) Act 1923. In section 2, subsection (1)(b) and (c), the word " or " preceding subsection (1)(b) and subsections (2) and (4). 13 & 14 Geo. 5. c. 40 . The Merchant Shipping Acts (Amendment) Act 1923. The whole Act. 15 & 16 Geo. 5. c. 42 . The Merchant Shipping (International Labour Conventions) Act 1925. The whole Act. 24 & 25 Geo. 5. c. 18 . The Illegal Trawling (Scotland) Act 1934. In section 6 the words " mercantile marine office ". 1 & 2 Geo. 6. c. 4 . The Merchant Shipping (Superannuation Contributions) Act 1937. The whole Act. 1 & 2 Geo. 6. c. 30 . The Sea Fish Industry Act 1938. Part IV. 9 & 10 Geo. 6. c. 26 . The Emergency Laws (Transitional Provisions) Act 1946. In Schedule 2, the entry relating to the Merchant Shipping Act 1894. 11 & 12 Geo. 6. c. 10 . The Emergency Laws (Miscellaneous Provisions) Act 1947. Section 2(2). 11 & 12 Geo. 6. c. 44 . The Merchant Shipping Act 1948. The whole Act. 12 & 13 Geo. 6. c. 29 . The Consular Conventions Act 1949. Section 5(1). 12 & 13 Geo. 6. c. 43 . The Merchant Shipping (Safety Convention) Act 1949. Section 2(3). In section 5(2) the words " being ships of sixteen hundred tons gross tonnage or upwards". Section 18(5). Section 19(1)(d). In section 22, subsections (6) and (7). 14 Geo. 6. c. 9 . The Merchant Shipping Act 1950. Sections 1 to 3. Section 6. Schedules 1 and 2. 15 & 16 Geo. 6. and 1 Eliz. 2. c. 14 . The Merchant Shipping Act 1952. The whole Act. 1 & 2 Eliz. 2. c.20 . The Births and Deaths Registration Act 1953. Section 13(3). 1 & 2 Eliz. 2. c. 47 . The Emergency Laws (Miscellaneous Provisions) Act 1953. Section 4. 1963 c. 49 . The Contracts of Employment Act 1963. Section 6(2)(b). 1964 c. 47 . The Merchant Shipping Act 1964. Section 11. 1965 c.19 (N.I.) . The Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965. Section 6(1)(b). 1965 c. 32 . The Administration of Estates (Small Payments) Act 1965. In Part I of Schedule 1, the entry relating to the Merchant Shipping Act 1894. 1966 c. 20 . The Ministry of Social Security Act 1966. Section 37. In section 38, paragraph (c) and the word " and " preceding that paragraph. Schedule 5. In Schedule 6, paragraphs 1 and 2. 1966 c. 28 (N.I.) . The Supplementary Benefits &c. Act (Northern Ireland) 1966. Section 41. Schedule 4. 1967 c. 25 (N.I.) . The Births and Deaths Registration Act (Northern Ireland) 1967. Section 28(5). 1967 c. 26 . The Merchant Shipping Act 1967. The whole Act. 1967 c. 27 . The Merchant Shipping (Load Lines) Act 1967. In section 10, in subsection (1), paragraph (b) and the word " and " immediately preceding that paragraph, and in subsection (2), paragraph (a). 1968 c. 34 (N.I.) . The Children and Young Persons Act (Northern Ireland) 1968. In Schedule 7, paragraphs 1 and 2. 1969 c. 48 . The Post Office Act 1969. In Part III of Schedule 6 the entry relating to section 141 of the Merchant Shipping Act 1894. 1970 c. 10 . The Income and Corporation Taxes Act 1970. In section 414, in subsection (1), paragraph (c) and the word " or " preceding that paragraph, and in subsection (7) the definition of " seamen's savings bank ".

The Transport Act 1968 (Commencement No. 10) Order 1970 The Secretary of State for the Environment, in exercise of his powers under section 166 of the Transport Act 1968 and of all other enabling powers, hereby makes the following Order: — 1 This Order may be cited as the Transport Act 1968 (Commencement No. 10) Order 1970. 2 Part II of Schedule 10 to the Transport Act 1968 and section 165(d) of, and Part IV of Schedule 18 to, that Act shall come into force on 1st December 1970. Signed by authority of the Secretary of State. S.M.A. Banister An Under Secretary in the Department of the Environment 26th November 1970

The Consular Relations (Privileges and Immunities) (Kingdom of Greece) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Kingdom of Greece) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer of the Kingdom of Greece of which the Kingdom of Greece or any person acting on its behalf is the owner or lessee. 4 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the Kingdom of Greece who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted. 2 The conditions referred to in paragraph (1) of this Article are that the consular officer or employee concerned — a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. W. G. Agnew

The Consular Relations (Privileges and Immunities) (Kingdom of the Netherlands) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Kingdom of the Netherlands) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the Kingdom of the Netherlands who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted. 2 The conditions referred to in paragraph (1) of this Article are that the consular employee concerned — a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. W.G. Agnew

The Consular Relations (Privileges and Immunities) (United States of Mexico) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”) Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:- 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (United States of Mexico) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer of the United States of Mexico of which the United States of Mexico or any person acting on its behalf is the owner or lessee. 4 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the United States of Mexico who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted. 2 The conditions referred to in paragraph (1) of this Article are that the consular employee concerned — a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. W.G. Agnew

The Rules of the Supreme Court (Amendment No. 3) 1970 We, the Rule Committee of the Supreme Court, being the authority having for the time being power under section 99(4) of the Supreme Court of Judicature (Consolidation) Act 1925 to make, amend or revoke rules regulating the practice and procedure of the Supreme Court of Judicature, hereby exercise those powers and all other powers enabling us in that behalf as follows: — 1 1 These Rules may be cited as the Rules of the Supreme Court (Amendment No. 3) 1970. 2 Rules 1 to 4 and 7 to 9 of these Rules shall come into operation on 1st October 1970 and Rules 5 and 6 on 15th February 1971. 3 In these Rules an Order referred to by number means the Order so numbered in the Rules of the Supreme Court 1965 , as amended . 4 The Interpretation Act 1889 shall apply to the interpretation of these Rules as it applies to the interpretation of an Act of Parliament. 2 The following paragraph shall be added to Order 1, rule 4: — 3 In these rules “ decimal currency ” means the new currency provided for by the Decimal Currency Act 1967 , and where it is necessary for the purposes of these rules to calculate the amount in decimal currency corresponding to an amount in shillings and pence, the calculation shall be made in accordance with Schedule 1 to the Decimal Currency Act 1969 . 3 The following sub-paragraph shall be added to Order 6, rule 2(1): — d where the action is brought to enforce a right to recover possession of goods, with a statement showing the value of the goods. 4 The following paragraph shall be inserted in Order 18, rule 6, after paragraph (3): — 3A Where a pleading contains a claim for a sum of money which includes an amount expressed in shillings and pence, the equivalent of that sum in decimal currency must also be stated in the pleading. 5 The following paragraph shall be added to Order 42, rule 1: — 4 A judgment or order for the payment of a sum of money must state that sum in decimal currency. 6 The following paragraph shall be added to Order 45, rule 1: — 5 In any writ or order issued or made to enforce a judgment or order for the payment of money, the amount to be recovered must be stated in decimal currency. 7 Appendix 2 to Order 62 shall be amended as follows: — 1 In the heading to the Appendix immediately under the words “SCALE OF COSTS” there shall be inserted the following note: — ( In this Appendix decimal equivalents are shown in italics and brackets ). 2 For Parts I to IX there shall be substituted the following: — PART I INSTITUTION ETC. , OF PROCEEDINGS Item £ s. d. (£) 1. Drawing, issuing, filing and service on one party of writ of summons (including statement of claim indorsed thereon), originating summons, notice of originating motion, third party notice 2 10 0 to 10 0 0 ( 2·50 ) to ( 10·00 ) 2. Issue and service on one party of concurrent writ of summons or originating summons 15 0 ( 0·75 ) Note to items 1 and 2 References in these items to service on one party of a writ of summons shall, in relation to a writ of summons issued in an Admiralty action in rem , be construed as references to service of the writ on a ship or on a registrar as the circumstances of the case require. 3. Renewing writ of summons issued — ( a ) in Admiralty action 6 0 0 ( 6·00 ) ( b ) in any other action 2 0 0 ( 2·00 ) including drawing and filing affidavit, attending on application for renewal and obtaining order. 4. Drawing, presenting, filing and service on one party of — ( a ) petition assigned to the Probate, Divorce and Admiralty Division 2 10 0 to 10 0 0 ( 2·50 ) to ( 10·00 ) ( b ) any other petition Discretionary Discretionary 5. Drawing, issuing, filing and service on one party of notice of motion (other than an originating motion) 1 5 0 to 5 0 0 ( 1·25 ) to ( 5·00 ) 6. Drawing, filing and service on one party of — ( a ) case or special case stated by party or parties to any cause or matter Discretionary Discretionary ( b ) case or special case stated by Restrictive Practices Court, inferior court of civil jurisdiction, statutory tribunal, Commissioners for the general or special purposes of the Income Tax Acts, Minister of the Crown, arbitrator or umpire Discretionary Discretionary ( c ) notice of appeal (including notice of the grounds of the appeal) from decision given on an investigation or inquiry under Part VI of the Merchant Shipping Act 1894, or from an order or decision of a naval court under the said Part VI Discretionary Discretionary Note to item 6 This item includes service on one party of notice that the case referred to in paragraph (b) thereof has been entered for hearing. 7. Drawing, filing and service on one party of statement of claim (if not indorsed on writ), or other pleading, answer to petition, claim in a reference under Order 75, rule 41 2 10 0 to 10 0 0 ( 2·50 ) to ( 10·00 ) 8. Drawing, filing and service on one party of particulars of pleading and drawing and service on one party of request for such particulars 1 5 0 to 10 0 0 ( 1·25 ) to ( 10·00 ) 9. Drawing and filing of Preliminary Act, drawing notice of filing and service on one party of such notice Discretionary Discretionary 10. Drawing amendment of document referred to in item 1, 4, 5 or 7, and service on one party of amended document 1 0 0 to 3 0 0 ( 1·00 ) to ( 3·00 ) 11. Drawing notice of writ of summons for service out of the jurisdiction 15 0 ( 0·75 ) 12. Drawing any document, attending on any application and doing any other work necessary to obtain — ( a ) order for substituted service of any document, ( b ) order giving leave to serve any document out of the jurisdiction, and obtaining order Discretionary Discretionary PART II PROCEEDINGS IN CHAMBERS 13. Drawing, issuing, filing and service on one party of summons — ( a ) to proceed under a judgment or order 1 5 0 ( 1·25 ) ( b ) for order in terms of annexed minutes 1 5 0 ( 1·25 ) ( c ) to extend time 1 5 0 ( 1·25 ) 14. Drawing, issuing, filing and service on one party of summons for directions or notice under Order 25, rule 7 — ( a ) in Admiralty action Discretionary Discretionary ( b ) in any other action 1 5 0 to 3 0 0 ( 1·25 ) to ( 3·00 ) 15. Drawing, issuing, filing and service on one party of summons to attend at chambers (other than summons referred to in item 13 or 14) 1 5 0 to 3 0 0 ( 1·25 ) to ( 3·00 ) 16. Drawing brief on an interlocutory application or on further consideration thereof, including copy for counsel 1 0 0 to 7 10 0 ( 1·00 ) to ( 7·50 ) 17. Attending to obtain appointment for hearing before judge, master or registrar 15 0 ( 0·75 ) 18. Attending to deliver papers required for use of judge, master or registrar in chambers 15 0 ( 0·75 ) 19. Attending hearing of summons or application in chambers 1 10 0 to 12 0 0 per day ( 1·50 ) to ( 12·00 ) per day 20. Attending registrar of the Chancery Division — ( a ) to bespeak (where necessary) and to settle draft minutes of order — (i) if certified for special allowance by registrar under paragraph 6 of Part X of this Appendix Discretionary not exceeding 6 0 0 Discretionary not exceeding ( 6·00 ) (ii) if not so certified 1 10 0 ( 1·50 ) ( b ) to pass and enter order 1 10 0 ( 1·50 ) 21. Attending to draw up and enter any order, where item 20 does not apply 15 0 ( 0·75 ) PART III DISCOVERY AND INSPECTION 22. Drawing, filing and service of — ( a ) affidavit of documents or list of documents 3 0 0 ( 3·00 ) ( b ) interrogatories for examination of a party to to ( c ) affidavit in answer to interrogatories including, when appropriate, attending deponent to be sworn and copy for service. 12 10 0 ( 12·50 ) 23. Attending to inspect, or produce for inspection, documents production of which for inspection is required by order of the Court or by virtue of any provision of Order 24 — for the first hour or part of an hour 1 10 0 ( 1·50 ) for every subsequent half hour or part thereof 15 0 ( 0·75 ) PART IV PREPARATION FOR TRIAL, ETC 24. Drawing and issue of — ( a ) writ of subpoena ad testificandum or writ of habeas corpus ad testificandum for one, two or three witnesses 15 0 ( 0·75 ) ( b ) writ of subpoena duces tecum, for each witness, including filing of praecipe, attending to obtain writ and copy for service. 15 0 ( 0·75 ) Where the writ mentioned in paragraph (a) is for more than one witness, copy for service on each additional witness 2 6 ( 0·15 ) 25. Drawing and service of notice — ( a ) to produce for inspection document referred to in pleading or affidavit 15 0 ( 0·75 ) ( b ) to produce document at trial or hearing 15 0 ( 0·75 ) ( c ) to admit any document or fact including copy for service. 15 0 ( 0·75 ) 26. Instructions for trial or hearing of any cause or matter, whatever the mode of trial or hearing Discretionary Discretionary 27. Instructions for appeal from an interlocutory or final order or judgment Discretionary Discretionary Note to items 26 and 27 These items are intended to cover the doing of any work, not otherwise provided for, necessarily or properly done in preparing for a trial, hearing or appeal, or before a settlement of the matters in dispute, including — ( a ) taking instructions to sue, defend, counterclaim or appeal, or for any pleading, particulars of pleading, affidavit, preliminary act or claim in a reference under Order 75, rule 41; ( b ) considering the facts and law; ( c ) attending on and corresponding with client; ( d ) interviewing and corresponding with witnesses and potential witnesses and taking proofs of their evidence; ( e ) arranging to obtain reports or advice from experts and plans, photographs and models; (f) making search in Public Record Office and elsewhere for relevant documents; ( g ) inspecting any property or place material to the proceedings; ( h ) perusing pleadings, affidavits and other relevant documents; ( i ) where the cause or matter does not proceed to trial or hearing, work done in connection with the negotiation of a settlement; and ( j ) the general care and conduct of the proceedings. 28. Drawing instructions to counsel to advise in writing or in conference, including copy for counsel 1 0 0 to 7 10 0 ( 1·00 ) to ( 7·50 ) 29. Attending counsel in conference 2 10 0 ( 2·50 ) And for every half hour beyond the first 1 0 0 ( 1·00 ) Note to item 29 This item includes attending to make appointment for conference. 30. Drawing brief with observations to counsel and proofs of evidence — per brief or A3 ISO page 16 0 ( 0·80 ) per foolscap or A4 ISO page (in each case proportionately for less) 10 0 ( 0·50 ) 31. Attending counsel to procure certificate that cause is proper to be heard as a short cause and on registrar to mark same 1 0 0 ( 1·00 ) 32. Attending to obtain appointment to examine witness and on examination of witness before any commissioner, officer of the Court or other person appointed to examine him or under Order 75, rule 30 4 0 0 to 12 0 0 per day ( 4·00 ) to ( 12·00 ) per day PART V TRIAL OR HEARING 33. Attending at court for purpose of — ( a ) any application relating to or consequent on trial or hearing of a cause or matter 1 10 0 to 5 0 0 ( 1·50 ) to ( 5·00 ) ( b ) trial or hearing of a cause or matter for each day — (i) on which cause or matter is included in list of causes or matters to be tried or heard but on which trial or hearing is not begun 1 10 0 to 8 0 0 ( 1·50 ) to ( 8·00 ) (ii) of trial or hearing 3 0 0 to 15 0 0 ( 3·00 ) to ( 15·00 ) ( c ) hearing deferred judgment 3 0 0 to 8 0 0 ( 3·00 ) to ( 8·00 ) Note to item 33 Where the Court is not sitting at the Royal Courts of Justice, then, unless it is sitting in the town in which the solicitor practises, the solicitor shall also be allowed travelling and out of pocket expenses reasonably, incurred by him, and where the Court is sitting at the Royal Courts of Justice and the costs of the attendance at court of a country solicitor are allowed, that solicitor shall also be allowed such expenses so incurred. 34. Attending to obtain certificate of associate or master, drawing, and attending to enter, judgment, other than judgment given in Admiralty cause or matter 1 10 0 ( 1·50 ) 35. Attending to obtain judgment in Admiralty cause or matter, decision on reference under Order 75, rule 41 and grounds of decision 15 0 ( 0·75 ) PART VI TAXATION 36. Drawing bill of costs, per foolscap or A4 ISO page (proportionately for less) 10 0 ( 0·50 ) 37. Obtaining reference to taxing officer or appointment for taxation or (where the taxation proceedings arise out of proceedings in the Probate, Divorce and Admiralty Division) attending to lodge bill of costs 1 0 0 ( 1·00 ) Note to item 37 This item includes drawing the statement referred to in rule 21(4) of this Order. 38. Attending taxation, completing bill of costs, producing vouchers for disbursements and attending to obtain taxing officer's certificate or order 3 0 0 to 12 0 0 ( 3·00 ) to ( 12·00 ) Or if bill of costs does not exceed £20 and is taxed at same time as some other bill in the same proceedings 2 0 0 ( 2·00 ) 39. Drawing objections to decision of taxing officer on taxation, or answers to objections, including copies for service and filing, delivery to one party of such objections or answers and attending hearing of review by taxing officer 3 0 0 to 12 0 0 ( 3·00 ) to ( 12·00 ) PART VII EXECUTION 40. Drawing, and attending to obtain issue of, writ of execution. Necessary copies of any such writ shall be allowed. 1 0 0 ( 1·00 ) 41. Drawing notice of renewal of writ of execution required by Order 46, rule 8 15 0 ( 0·75 ) Procuring renewal of writ of execution in accordance with the said rule 8 15 0 ( 0·75 ) PART VIII GENERAL AND MISCELLANEOUS Attendances 42. To obtain — ( a ) consent of person to act as next friend or guardian ad litem and consent or approval of any other interested party 1 10 0 to 3 0 0 ( 1·50 ) to ( 3·00 ) ( b ) any other consent 15 0 ( 0·75 ) Note to item 42 This item includes drawing the form of consent or approval. 43. To give consent 15 0 ( 0·75 ) 44. To enter appearance 1 5 0 ( 1·25 ) If appearance entered for more than one person at the same time, for each additional person 2 6 ( 0·15 ) Note to item 44 This item includes copy and service of notice of appearance. 45. To search — ( a ) for appearance 15 0 ( 0·75 ) ( b ) for appearance and to obtain certificate of non-appearance 1 0 0 ( 1·00 ) 46. To register memorandum of a lis pendens 1 0 0 ( 1·00 ) Note to item 46 This item shall not be allowed on a taxation of costs in accordance with rule 28(2). 47. At Central Office or any registry to file any document 15 0 ( 0·75 ) 48. At Central Office or any registry to bespeak or search for affidavit 15 0 ( 0·75 ) 49. To enter order amending record by striking out or adding a party or consolidating causes or matters 15 0 ( 0·75 ) 50. To — ( a ) set down action, summons or appeal for trial or hearing 15 0 ( 0·75 ) ( b ) enter special case, or set down point of law, for argument 15 0 ( 0·75 ) ( c ) enter for hearing case or special case stated by Restrictive Practices Court, inferior court of civil jurisdiction, statutory tribunal, Commissioners for the general or special purposes of the Income Tax Acts, Minister of the Crown, arbitrator or umpire 15 0 ( 0·75 ) ( d ) enter for hearing reference to Admiralty registrar, district registrar or official referee 15 0 ( 0·75 ) 51. On the appropriate officer to certify that cause or matter set down for trial or hearing is settled or is for any other reason not to be included in list for trial or hearing 15 0 ( 0·75 ) 52. On a deponent swearing, or solicitor or clerk deposing to, any affidavit other than an affidavit of service 15 0 ( 0·75 ) 53. To examine abstract of title with deeds in connection with any cause or matter, per hour 2 10 0 ( 2·50 ) 54. To produce deeds for examination with abstract of title in connection with any cause or matter — for the first hour or part thereof 2 0 0 ( 2·00 ) for each subsequent half hour or part thereof 1 0 0 ( 1·00 ) 55. To stamp document with inland revenue stamp 15 0 ( 0·75 ) 56. To search for and obtain certificates of birth, marriage or death, for every 3 certificates obtained at the same registry at the same time 15 0 ( 0·75 ) 57. To make a general search for certificates of birth, marriage or death, per hour 1 10 0 ( 1·50 ) 58. On printer to insert advertisement in London Gazette or other paper, for each publication 15 0 ( 0·75 ) 59. On counsel with brief, case for written opinion or instructions to settle any document 15 0 ( 0·75 ) Or where counsel's fee is 20 guineas or more 1 10 0 ( 1·50 ) 60. Attendance not provided for or allowed under any other item 15 0 ( 0·75 ) Attendances etc. , at the Accountant General's office 61. To obtain directions for lodgment of money in court, and at Bank of England to pay in or deposit money and obtain receipt 3 0 0 ( 3·00 ) 62. To draw and lodge documents required to authorise payment out of money lodged in court and to receive payment 1 0 0 ( 1·00 ) 63. To bespeak power of attorney to receive money out of court, obtain execution of power, stamp and lodge it, receive money and send it to grantor Discretionary Discretionary 64. To identify person entitled to receive cheque 2 0 0 ( 2·00 ) 65. To lodge securities in court or procure transfer of securities into or out of court Discretionary Discretionary Note to item 65 This item includes all attendances required in connection with the lodgment or transfer and the preparation of any document so required. 66. To procure certificate, or re-dating of certificate, of funds in court 1 0 0 ( 1·00 ) Or where more than one certificate is procured or re-dated at same time Discretionary Discretionary 67. To procure transcript of account 1 0 0 ( 1·00 ) 68. Drawing request for payment by post, obtaining signature and lodging request 1 10 0 ( 1·50 ) 69. Preparing, where person entitled to receive interest or other periodical payments, evidence of life or of the fulfilment of any conditions affecting the payments Discretionary Discretionary 70. Drawing certificate required by the Accountant General under rule 89 of the Supreme Court Funds Rules 1927. Discretionary Discretionary 71. Procuring certificate of Commissioners of Inland Revenue required by rule 66 of the Supreme Court Funds Rules 1927 and lodging it with the Accountant General 1 10 0 ( 1·50 ) Drawing documents 72. Case for opinion of counsel before institution of proceedings, including copy for counsel 1 0 0 to 10 0 0 ( 1·00 ) to ( 10·00 ) 73. Affidavit of service 2 0 0 ( 2·00 ) Note to item 73 This item includes engrossing affidavit, attending to have it sworn and file it. 74. Affidavit, other than affidavit of service, per foolscap or A4 ISO page (proportionately for less) 10 0 ( 0·50 ) 75. Preparation for marking by commissioner of oaths of exhibit to affidavit, for each exhibit 3 0 ( 0·15 ) 76. Advertisement to be signed by master 15 0 ( 0·75 ) Note to item 76 This item includes attending chambers to obtain signature. 77. Minutes of order, accounts, statements and other documents required for use in court or chambers — per foolscap or A4 ISO page 10 0 ( 0·50 ) per account (double foolscap or A3 ISO page) (in each case proportionately for less) 1 0 0 ( 1·00 ) 78. Pedigree, for each completed ring 2 0 ( 0·10 ) 79. Memorandum of a lis pendens, including copy thereof 15 0 ( 0·75 ) Note to item 79 This item shall not be allowed on a taxation of costs in accordance with rule 28(2). Notices, etc. 80. Drawing or filling up a notice to a creditor requiring him to prove his claim or informing him that cheque may be received from the Accountant General 1 6 ( 0·10 ) 81. Drawing any notice not otherwise provided for, for service or any request under Order 6, rule 5(3) 2 6 ( 0·10 ) Copies, etc. 82. Copy of document not otherwise provided for — ( a ) Typed top copy — per quarto or A5 ISO page 3 0 ( 0·15 ) per foolscap or A4 ISO page 5 0 ( 0·25 ) per draft page 6 0 ( 0·30 ) per brief or A3 ISO page (in each case proportionately for less) 8 0 ( 0·40 ) ( b ) Photographic, printed and carbon copies — per quarto or A5 ISO page 1 6 ( 0·07 ) per foolscap or A4 ISO page 2 0 ( 0·10 ) per draft page 3 0 ( 0·15 ) per brief or A3 ISO page (for printed and carbon copies only, in each case proportionately for less) 4 0 ( 0·20 ) 83. Examining proof print Included in item 82( b ) Included in item 82 ( b ) Letters, etc. 84. Circular 5 0 ( 0·25 ) Short or similar 8 0 ( 0·40 ) Other (or according to length and complexity) 15 0 ( 0·75 ) 85. Letters, messages and telephone calls not provided for or allowed under any other item Discretionary Discretionary Perusal 86. Perusing any document not provided for or allowed under any other item Discretionary Discretionary Service 87. Where more than one attendance is necessary to effect service on, or delivery to, one party of document referred to in Part I of this Appendix or in item 13, 14, 15 or 39 thereof, or where service is effected within the jurisdiction otherwise than by personal attendance or by post or is effected out of the jurisdiction Discretionary Discretionary 88. Where document referred to in Part I of this Appendix or in item 13, 14, 15 or 39 thereof is required to be served on, or delivered to, more than one person, service on, or delivery to, each additional person — ( a ) if required to be served personally or delivered 10 0 to 1 10 0 ( 0·50 ) to ( 1·50 ) ( b ) if service by post authorised 5 0 ( 0·25 ) 89. Service or delivery of any document not provided for or allowed under any other item — ( a ) if required to be served personally or delivered 10 0 ( 0·50 ) ( b ) if service by post authorised 5 0 ( 0·25 ) In addition to the amount allowed under paragraph (a) hereof, a mileage allowance in respect of each mile after the first two miles between the place at which service or delivery is effected and the nearest place of business of the solicitor effecting it 2 0 ( 0·10 ) PART IX ADDITIONAL PROCEEDINGS ARISING ONLY IN CONNECTION WITH ADMIRALTY CAUSES AND MATTERS 90. Procuring issue and service of warrant of arrest 6 0 0 ( 6·00 ) Note to item 90 This item includes procuring the warrant, affidavits and other documents required in connection with the issue and service of the warrant and any attendances required to procure its issue and service, the swearing of any such affidavit and the filing of any such document. 91. Procuring issue of instrument of release under Order 75, rule 13 6 0 0 ( 6·00 ) Note to item 91 This item includes drawing the instrument and other documents required in connection with the issue of the instrument, obtaining any consent so required and any attendances required to procure the issue of the instrument and the filing of any such document. 92. Procuring entry, renewal or withdrawal of caveat against the issue of a warrant, the release of property or the payment of money out of court 1 0 0 ( 1·00 ) Note to item 92 This item includes drawing and filing any document required to procure the entry, renewal or withdrawal and any attendances so required. 93. Giving bail — ( a ) one surety 7 0 0 ( 7·00 ) ( b ) two sureties 7 10 0 ( 7·50 ) Note to item 93 This item includes drawing the bail bond, affidavits and other documents required in connection with the giving of bail and any attendances required to procure the signing of the bond, the swearing of any such affidavit and the filing and service of any such document 94. Giving guarantee or undertaking in lieu of bail 4 0 0 ( 4·00 ) Note to item 94 This item includes preparing the guarantee or undertaking and any attendances required to procure the signing and stamping thereof. Note to items 93 and 94 The commission or fee paid to a person becoming surety to a bail bond or giving a guarantee or undertaking in lieu of bail, not exceeding £1 per cent. of the amount for which the bond, guarantee or undertaking is given, shall be allowed on taxation. 95. Obtaining bail 3 10 0 ( 3·50 ) Note to item 95 This item includes perusing notice of bail and other relevant documents and any attendance to make enquiries as to sufficiency of sureties or to ensure that documents relating to bail have been filed. 96. Obtaining — ( a ) guarantee in lieu of bail 3 10 0 ( 3·50 ) ( b ) undertaking in lieu of bail 2 0 0 ( 2·00 ) Note to item 96 This item includes perusing the guarantee or undertaking and other relevant documents. 97. Procuring the issue and execution of commission of appraisement or of appraisement and sale 3 0 0 ( 3·00 ) Note to item 97 This item includes drawing and filing any document required in connection with the issue and execution of the commission and any attendances so required. 98. Attending adverse solicitor to limit questions in dispute on reference under Order 75, rule 41 2 10 0 ( 2·50 ) And for every half hour beyond the first 1 0 0 ( 1·00 ) 99. Negotiating agreement under Order 75, rule 35 1 10 0 to 5 0 0 ( 1·50 ) to ( 5·00 ) Note to item 99 This item includes taking instructions in connection with the agreement, drawing and filing the agreement and any attendances required in connection with the negotiation, making and filing of the agreement. 100. Negotiating agreement with respect to amount of damages, interest or other sums payable by opposite party Discretionary Discretionary Note to item 100 This item includes any attendances and other work done in connection with the calculation of, and in obtaining agreement as to, the amount payable. 8 Order 66, rule 1, shall be amended as follows: — 1 At the beginning before the word “Unless” there shall be inserted the figure “(1)” . 2 After the words “8 inches wide” there shall be inserted the words “or A4 ISO” . 3 At the end there shall be added the following paragraph: — 2 In these rules the expressions “A3”, “A4” and “A5” followed by the letters “ ISO ” mean respectively the size of paper so referred to in the specifications of the International Standards Organisation. 9 Order 66, rule 4(1), shall be revoked. Hailsham of St. Marylebone, C Parker of Waddington, C.J Denning, M.R J.E.S. Simon, P Cyril Salmon, L.J John Pennycuick, V-C John R. Willis, J Nigel Bridge, J E.S. Fay Oliver Lodge W.O. Carter Dated 30th July 1970

The Iron and Steel (Pension Schemes) (Transfer) Regulations 1970 The Secretary of State in exercise of his powers under section 40 of the Iron and Steel Act 1949, as revived and amended by section 31 of the Iron and Steel Act 1967, and all other powers in that behalf enabling him, after consultation with the British Steel Corporation and such organisations as appear to him to be representative of persons concerned, hereby makes the following regulations: — Citation and Commencement 1 1 These regulations may be cited as the Iron and Steel (Pension Schemes) (Transfer) Regulations 1970, shall come into operation on 31st December 1970 and, subject to paragraph (2) hereof, shall have effect from that date. 2 Regulation 5 shall have effect as from 1st April 1970. Interpretation 2 1 In these regulations — “ pension ” has the meaning assigned thereto by the Iron and Steel Act 1949; “ pension fund ” in relation to a scheduled scheme means all investments and moneys which, or the income from which, can be applied at the date of the coming into operation of these regulations for the purposes of paying pensions; “ pension rights ” has the meaning assigned thereto by the Iron and Steel Act 1949; “ the principal scheme ” means the British Steel Corporation Staff Superannuation Scheme approved by the Minister of Power on 7th July 1969; “ scheduled scheme ” means a pension scheme specified in the Schedule. 2 The Interpretation Act 1889 shall apply to the interpretation of these regulations as it applies to the interpretation of an Act of Parliament. Transfer of pension funds of and policies of assurance relating to scheduled schemes 3 1 The pension fund of each of the scheduled schemes, and every right of trustees of a scheduled scheme to receive moneys on the occurrence of certain events by virtue of a policy of assurance held for the purposes of that scheme together with every obligation of the trustees under that policy, shall on these regulations coming into operation be transferred by virtue of these regulations and without further assurance to the trustees of the principal scheme. 2 The pension funds aforesaid and the moneys received in respect of the said rights together with the pension fund constituted under the principal scheme shall be invested and managed as one fund in accordance with the provisions of the principal scheme relating to the investment and management of the pension fund established under the principal scheme. 4 1 A certificate, signed by a trustee of the principal scheme and by any person in whom the pension fund or any part thereof or a right as aforesaid transferred by these regulations was vested, that the pension fund or that part or that right was so transferred, or a copy of the said certificate certified by a trustee of the principal scheme to be a true copy thereof, shall be received by all persons responsible for the registration or inscription of the title to the pension fund or that part thereof or by the assurers, as the case may be, as evidence that it was transferred as aforesaid. 2 Every person in whom was vested the pension fund or any part thereof or a right transferred as aforesaid shall do all things necessary, or which the trustees of the principal scheme may require to be done, for the purpose of ensuring — a the due registration or inscription of the title of the trustees of the principal scheme to the pension fund or transfer of the right, as the case may be; b the delivery to the said trustees of any document constituting evidence of the said registration, inscription or transfer; and c the receipt by the said trustees of all dividends or interest in respect of the pension fund so transferred due for payment after the date of the coming into operation of these regulations. Provisions of scheduled schemes 5 1 The provisions of a scheduled scheme which relate to eligibility for the payment of benefits and which provide for the payment of contributions shall continue in effect, except that all payments of benefits due under those provisions (including those outstanding immediately before 1st April 1970) shall be made by the trustees of the principal scheme from the fund constituted by regulation 3, and all contributions due under those provisions (including those outstanding immediately before 1st April 1970) shall be made to the said trustees for payment into the said fund. 2 Any power or discretion to pay a benefit conferred by the provisions of a scheduled scheme on any person shall be exercisable by the trustees of the principal scheme in place of the person invested with that power or discretion by the scheduled scheme. 3 Any trustee of a scheduled scheme who would but for the operation of these regulations have been entitled to payment of a sum by way of an indemnity from the pension fund of that scheme shall be so entitled from the fund constituted by regulation 3, and the trustees of the principal scheme shall accordingly pay him that sum. 4 Except as provided by this regulation the provisions of a scheduled scheme shall cease to have effect. Elections under principal scheme 6 1 This regulation applies to an election made by a member of a scheduled scheme under a provision of the principal scheme to receive benefits provided for in the principal scheme instead of benefits provided for in the scheduled scheme. 2 The trustees of the principal scheme shall ensure that an election to which this regulation applies shall not operate so as to place any person (other than the person exercising the election) having pension rights under the scheduled scheme in a worse position than he would have been had the election not been exercised, and the said trustees shall make such payments to that person as may be necessary to secure that result. John Davies Secretary of State for Trade and Industry Dated 18th December 1970 SCHEDULE Regulation 2(1) Tube Investments Limited — Iron & Steel Division No. 1 General Staff Pension Scheme Tube Investments Limited — Iron & Steel Division No. 1 Administrative Staff Pension Scheme Tube Investments Limited — Iron & Steel Division No. 2 Staff Pension Scheme Tube Investments Limited — Iron & Steel Division No. 3 Administrative Staff Pension Scheme Tube Investments Limited — Iron & Steel Division Administrative Staff Life Assurance Scheme Park Gate Iron & Steel Co. Ltd. General Staff Superannuation Fund Park Gate Iron & Steel Co. Ltd. Administrative Staff Superannuation Scheme Park Gate Iron & Steel Co. Ltd. Pension and Life Assurance Scheme Renishaw Iron Co., Ltd. Staff Pension and Assurance Scheme The L.A.P. Retirement Benefits Scheme for the Park Gate Iron & Steel Co. Ltd. That part of the Tube Investments Limited 1962 Scheme for Executive Staff which relates to persons who are or have been officers of a company that has come into public ownership and which is a divided pension scheme under the Iron and Steel (Pension Scheme) Regulations 1967

The Evidence (Federal Republic of Germany) Order 1970 At the Court at Buckingham Palace, the 29th day of May 1970 Present, The Queen's Most Excellent Majesty in Council Whereas Her Majesty in Council is satisfied that there exist in the Federal Republic of Germany and Land Berlin (West Berlin) public registers kept under the authority of the laws of the Federal Republic of Germany and Land Berlin (West Berlin) and recognised by the courts thereof as authentic records, and that those registers are regularly and properly kept: Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 5(1) of the Oaths and Evidence (Overseas Authorities and Countries) Act 1963 and all other powers in that behalf in Her vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Evidence (Federal Republic of Germany) Order 1970. 2 This Order extends to all parts of the United Kingdom. 3 The registers of the Federal Republic of Germany and Land Berlin (West Berlin) specified in the first column of the Schedule to this Order shall be deemed to be public registers kept under the authority of the laws of the Federal Republic of Germany and Land Berlin (West Berlin) and recognised by the courts thereof as authentic records and to be documents of such a public nature as to be admissible as evidence of the matters regularly recorded therein. 4 For the purposes of the preceding Article all matters recorded in the registers shall be deemed, until the contrary is proved, to be regularly recorded therein. 5 Subject to any requirements of rules of court, a document which purports to be issued in the Federal Republic of Germany or Land Berlin (West Berlin) as an official copy of an entry in a register specified in the first column of the Schedule to this Order and which purports to be authenticated as such in the manner specified in that Schedule, shall, without evidence as to the custody of the register or of inability to produce it and without any further or other proof, be received as evidence that the register contains such an entry. 6 Nothing in this Order shall be taken to prohibit or restrict the admission in evidence of any copy, extract, summary, certificate or other document whatsoever which, apart from the provisions of this Order, would be admissible as evidence of any particular matter, or to affect any power which, otherwise than by virtue of this Order, is exercisable by any court with respect to the admission of documents in evidence. W.G. Agnew SCHEDULE Register Certifying Officer Mode of Authentication Register of Births The Registrar (Der Standesbeamte). The signature and seal or stamp of the certifying officer. Register of Marriages The Registrar (Der Standesbeamte). The signature and seal or stamp of the certifying officer. Register of Deaths The Registrar (Der Standesbeamte). The signature and seal or stamp of the certifying officer.

The Consular Relations (Privileges and Immunities) (Federal Republic of Germany) Order 1970 At the Court at Buckingham Palace, the 17th day of December 1970 Present, The Queen's Most Excellent Majesty in Council Whereas a draft of this Order has been laid before and approved by resolution of each House of Parliament in accordance with section 14(1) of the Consular Relations Act 1968 (hereinafter referred to as “ the Act ”): Now, therefore, Her Majesty, by virtue and in exercise of the powers conferred on Her by section 3(1) of the Act or otherwise in Her Majesty vested, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: — 1 This Order may be cited as the Consular Relations (Privileges and Immunities) (Federal Republic of Germany) Order 1970 and shall come into operation on 1st January 1971. 2 The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament. 3 The like exemption from dues and taxes as is accorded under Article 32 in Schedule 1 to the Act to the residence of the career head of a consular post shall be extended to the residence of a career consular officer or a consular employee of the Federal Republic of Germany of which the Federal Republic of Germany or any person acting on its behalf is the owner or lessee. 4 1 Paragraph 2 of Article 50 in Schedule 1 to the Act (exemption from customs duties) shall be applied in regard to consular employees of the Federal Republic of Germany who satisfy the conditions set out in paragraph (2) of this Article as if the words “in respect of articles imported at the time of first installation” were omitted. 2 The conditions referred to in paragraph (1) of this Article are that the consular employee concerned — a is not a citizen of the United Kingdom and Colonies, a person who is a British subject by virtue of section 2, 13 or 16 of the British Nationality Act 1948 or the British Nationality Act 1965, or a British protected person within the meaning of the said Act of 1948, and b does not carry on any private gainful occupation in the United Kingdom, and c is not permanently resident in the United Kingdom. 5 A consular bag exchanged between a consular officer of the Federal Republic of Germany in the United Kingdom and the Government, a diplomatic mission or another consular post of the Federal Republic of Germany shall be accorded the treatment which is accorded to a diplomatic bag by Article 27 in Schedule 1 to the Diplomatic Privileges Act 1964. W. G. Agnew