^^^^«t5''<'*^'- -wT'T •••"■^ -■- ." ■■'■••..-V- 
 
 HJ 
 
 1981 
 
 A7 
 
 Id 16 
 
 UC-NRLF 
 
 jiiiiiiiiiii >|i|i>|||i|ll< Pi|>l|lll|l!|llll II I 
 
 $c ns ifi7 
 
/ 
 
 Uv '• 
 
 
 Finance Act, 1916. 
 
 [6 & 7 Geo. 5. Ch. 24.] 
 
 jire. '^ §» *- 
 
 ARRANGEMENT OF SECTIONS. 
 
 A.D. 191«. 
 
 Part I. 
 Customs and Excise. 
 
 Section. 
 
 1. Increased duties on cocoa. 
 
 2. Increased duties on coffee. 
 
 3. Increased duties on cMcory. 
 
 4. Increased Excise duty on coffee substitutes, «fcc. 
 6. Increased Customs duties on sugar. 
 
 6. Increased Excise duties on sugar. 
 
 7. Customs duties on table waters. 
 
 8. Customs duty on cider. 
 
 9. Licence duty in respect of table waters and cider. 
 
 10. Duties on mechanical lighters. 
 
 11. Reduction of duty on herb beer. 
 
 12. Exemption of school entertainments from entertainments 
 
 duty. 
 
 13. Provisions as to motor cars used as hackney carriages. 
 
 14. Extension of relief in respect of motor car licence duty. 
 
 15. Motor spirit licence duty. 
 
 16. Supplemental provisions as to motor spu-it licence duty. 
 
 17. Continuance of Customs duties imposed under the Einance 
 
 (No. 2) Act, 1915. 
 
 18. Continuance of Excise duties imposed under the Einance 
 
 (No. 2) Act, 1915. 
 
 19. Drawback on beer for export in respect of sugar and 
 
 glucose. 
 
 20. Provision as to alteration of rates of drawback where rates 
 
 of duty are altered. 
 
 21. Allowance of drawback on the exportation of goods manu- 
 
 factured with dried fruits. 
 [Frice4sid.] A . ^ 
 
 370213 
 
/"' 
 
 [Ch. 24.] Finance Act, 1916, [6 & 7 Geo. 5.1 
 
 Suction. 
 
 1»D. 1916. 22. Drawback on exported coffee and chicory and mixtures of 
 coffee and chicory. 
 
 23. Power by Order in Council to modify section 1 of the 
 
 Immature Spirits Restriction Act, 1915, as regards rum. 
 
 Part II. 
 Income Tax. 
 
 24. Income tax for 1916-17. 
 
 25. Modification of relief given with respect to earned 
 
 income. 
 
 26. Graduation of tax on unearned income in case of incomes 
 
 not exceeding 2,000Z. 
 
 27. Additional income tax on securities which the Treasury are 
 
 willing to purchase. 
 
 28. Continuation of relief under 5 Geo. 5. c. 7. s. 13. 
 
 29. Belief where income of year is less than assessed income. 
 
 30. Hight of soldiers and sailors to pay reduced rates of income 
 
 tax in respect of their pay. 
 
 31. Provision as to service in the navy or army. 
 
 32. Reduction of income tax when margin above a certain 
 
 limit is small. 
 83. Extension of relief in respect of children. 
 34i. Declaration as to the effect of section 20 (1) (5) of 
 
 5 & 6 Geo. 5. c. 89. 
 
 35. Collection of tax by means of stamps in certain cases. 
 
 36. Limitation of relief from income tax in respect of insurance 
 
 premiums. 
 
 37. Income tax relief on war insurance premiums. 
 
 38. Amendments of law with respect to income tax on 
 
 woodlands. 
 
 39. Repayment of income tax on sums deducted from profits 
 
 under Munitions of War Act, 1915. 
 
 40. Charging of income tax on dividends, &c. amounting to 
 
 fifty shillings exactly. 
 
 41. Income tax on dividends on Exchequer bonds issued through 
 
 the Post Office. 
 
 42. Exemption of interest under war savings certificates from 
 
 income tax. 
 
[6 & 7 Geo. 5.J Finance Act, 1916. [Ch. 24.] 
 
 Section. 
 
 43. Relief in respect of Colonial income tax. A.D. 1916. 
 
 44. Provision as to Gk)vernment securities issued free of tax. 
 
 Part III. 
 Excess Profits Duty. 
 
 45. Continuance and increase of rate of excess profits duty. 
 
 46. Increase of rate of excess mineral rights duty. 
 
 47. Computation of excess profits duty in case of sale of ships. 
 
 48. Adjustment of excess profits duty and munitions Ex- 
 
 chequer payments in case of controlled establishments. 
 
 49. Provisions as to directors' fees. 
 
 50. Further provision as to profits applied in extinction of 
 
 previous losses. 
 
 51. Provision as to accounting period. 
 
 52. Provision as to accumulating profits. 
 
 53. Application of s. 35 of the Einance (No. 2) Act, 1915, to 
 
 munitions Exchequer payments. 
 
 54. Deposit of sums for payment of excess profits duty. 
 
 55. Amendment of section 40 (3) of the principal Act. 
 
 56. Exemption from excess profits duty of businesses carried on 
 
 under the court. 
 
 57. Definition. 
 
 Part IV. 
 National Debt and Loans. 
 
 58. Limited power to borrow on Exchequer bonds for Ways 
 
 and Means purposes. 
 
 59. Suspension of new sinking fund. 
 
 60. Arrangements for exchange of securities issued under War 
 
 Loan Acts. 
 
 61. Power to transfer Exchequer bonds in satisfaction of death 
 
 duties. 
 
 62. Repeal of 29 & 30 Vict. c. 25. s. 4. 
 
 63. Exemption from taxation of municipal securities issued in 
 
 America. 
 
 64. Payment of interest on Exchequer bonds in certain cases 
 
 without deduction of income tax. 
 
 65. Lost or destroyed Exchequer bonds. 
 
 520-77. A 2 iii 
 
[Ch. 24.] Fmance Act, 1916. [6 «& 7 Geo. 5.] 
 
 Section. 
 jL.D. 1916. 66. Transfer of stock on authority of order of a court. 
 
 67. Indemnity on transfer of Government stock. 
 
 68. Extension of section 2 of Government War Obligations 
 
 Act, 1915. 
 
 Part V. 
 General. 
 
 69. Construction, repeal, and short title. 
 
 SCUEDCLES. 
 
 Jv 
 
[6 & 7 Geo. 6.] Finance Act, 1916. [Ch. 24.] 
 
 CHAPTER 24. 
 
 An Act to grant certain duties of Customs and Inland A.D. 1916. 
 Revenue (including Excise), to alter other duties, and 
 to amend the Law relating to Customs and Inland 
 Revenue (including Excise) and the National Debt, and 
 to make further provision in connexion with Finance. 
 
 [19th July 1916.] 
 
 Most Gracious Sovereign, 
 
 WE, Your Majesty's most dutiful and loyal subjects the 
 Commons of the United Kingdom of Great Britain and 
 Ireland in Parliament assembled, towards raising the necessary 
 supplies to defray Your Majesty's pubUc expenses, and making 
 an addition to the public revenue, have freely and voluntarily 
 resolved to give and 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 
 King'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. 
 
 1. In lieu of the present duties on cocoa there shall, Increased 
 as from the fifth day of April nineteen hundred and sixteen. ^"*'*** **° 
 
 * cocoa. 
 
 be charged, levied, and paid on cocoa imported into Great 
 
 A3 1 
 
[Ch. 24.] 
 
 Finance Act, 1916. 
 
 [6 & 7 Geo. 5.] 
 
 A.D. 1916. Britain or Ireland the following duties of Customs, that is to 
 say : — 
 
 
 Up to and including the 
 
 Twenty-first day of June 
 
 nineteen hundred and sixteen. 
 
 After that Date. 
 
 Cocoa - - - - 
 
 the lb. 
 
 £ s. d. 
 -006 
 
 the cwt. 
 
 £ *. 
 - 2 2 
 
 d. 
 
 
 Cocoa (husks and shells) - 
 
 the cwt. 
 
 - 12 
 
 the cwt. 
 
 - 6 
 
 
 
 Cocoa butter - - - 
 
 the lb. 
 
 -006 
 
 the lb. 
 
 - 
 
 H 
 
 Increased 
 duties on 
 coffee. 
 
 Increased 
 duties on 
 chicory. 
 
 Increased 
 Excise duty 
 on coffee 
 substitutes, 
 
 &0. 
 
 2. In lieu of the present duties on coffee there shall, as from 
 the fifth day of April nineteen hundred and sixteen, be charged, 
 levied, and paid on coffee imported into Great Britain or Ireland 
 the following duties of Customs, that is to say: — * 
 
 £ s. d. 
 
 i : Coffee (not kiln-dried, roasted, or ground) the cwt. 2 2 
 
 Coffee (kiln-dried, roasted, or ground) - the lb. 6 
 
 3. — (1) In lieu of the present duties of Customs on chicory 
 there shall, as from the fifth day of April nineteen hundred 
 and sixteen, be charged, levied, and paid on chicory imported 
 into Great Britain or Ireland the following duties of Customs, 
 that is to say: — 
 
 £ 8. d. 
 Chicory, raw or kiln-dried - - the cwt. 1 19 8 
 
 Chicory, roasted or ground - - the lb. 6 
 
 (2) In lieu of the present Excise duty on chicory there 
 shall, as from the fifth day of April nineteen hundred and 
 sixteen, be charged, levied, and paid the following Excise duty, 
 that is to say : — 
 
 £ 8. d. 
 
 Chicory, raw or kiln-dried - - the cwt. 1 18 6 
 
 and so in proportion for any less quantity. 
 
 4. In lieu of the present Excise duty in respect of coffee 
 substitutes there shall, as from the fifth day of April nineteen 
 hundred and sixteen, be charged, levied, and paid on any article 
 or substance prepared or manufactured for the purpose of being 
 
 ~2 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Cn. 24,] 
 
 in imitation of, or in any respect to resemble, or to serve as a A.D. 1916. 
 .substitute for, coffee or chicory, and on any mixture of any 
 such article or substance with coffee or chicory, the following 
 Excise duty, that is to say : — 
 
 £ 8. d. 
 For every quarter of a pound of any such 
 article, substance, or mixture which is sold 
 or kept for sale in the United Kingdom - IJ 
 
 5. In lieu of the present Customs duties, drawbacks, and Increased 
 allowance in respect of sugar, molasses, glucose, and saccharin ^"■*<>™» 
 there shall, as from the fifth day of April nineteen himdred sugar, 
 and sixteen, be charged, levied, and paid the duties specified in 
 the first column of Part I. of the First Schedule to this Act, and 
 there shall be paid and allowed the drawbacks and allowance set 
 out in Part II. of that Schedule. 
 
 6. — (1) In lieu of the present Excise duties, drawbacks, and Increased 
 allowance in respect of sugar, molasses, glucose, and saccharin ^^^*^® 
 there shall, as from the fifth day of April nineteen hundred sugar, 
 and sixteen, be charged, levied, and paid the duties specified in 
 the second column of Part I. of the First Schedule to this Act, and 
 there shall be paid and allowed the drawbacks and allowance 
 set out in Part II. of that Schedule. 
 
 (2) The provisions of Part III. of the First Schedule to 
 the Finance (No. 2) Act, 1915, shall apply to the Excise duties 5&6Greo.5. 
 under this section. °* ®^' 
 
 7. — (1) There shall, as from the first day of May nineteen Customs 
 hundred and sixteen, be charged, levied, and paid upon table duties on 
 waters as defined by tliis section imported into Great Britain or 
 Ireland, the following duties of Customs, that is to say : — 
 
 On table waters which contain as the result of the ordinary 
 process of manufacture, or are prepared in the ordinary' 
 process of manufacture with, sugar or other sweetening 
 material, or which are fermented beverages, a duty at th<> 
 rate of f ourpence per gallon ; and 
 
 On any other table waters a duty at the rate of eightpence 
 per gallon. 
 
 A 4 8 
 
[Oh. 24.] - Finance jlct, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916. (2) In this section " table waters " includes any aerated waters 
 
 and any beverages to be sold or kept for sale in bottles, or in 
 casks or other corked or closed receptacles, other than — 
 
 (a) Any liquor for the retail sale of which an Excise licence 
 6 Geo. 5. was at the time of the passing of the Einance 
 
 ** * (New Duties) Act, 1916, required ; and 
 
 (ft) Syrups or other liquors intended to be consumed only 
 in a diluted form. 
 
 Customs 8. There shall, as from the first day of May nineteen hundred 
 
 oidw^'^ and sixteen, be charged, levied, and paid on cider and perry 
 
 imported into Great Britain or Ireland a duty of Customs at the 
 
 rate of fourpence per gallon. 
 
 Licence duty 9. There shall be charged, levied, and paid on a licence to 
 
 toblefwaters ^® taken out annually, in cases where such a licence is required 
 »nd cider. under section six of the Einance (New Duties) Act, 1916, by 
 
 persons who sell table waters and by persons who sell cider or 
 
 perry, an Excise duty of ten shillings. 
 
 Duties on 10. — (1) There shall be charged, levied, and paid on any 
 
 ^hterel"^ tinder box, tinder lighter, or other mechanical and portable 
 contrivance for producing a spark or flame (in this Act referred 
 to as mechanical lighters), imported into Great Britain or Ireland, 
 a duty of Customs of one shilling in the case of mechanical 
 lighters requiring the use of spirit, and of sixpence in any 
 other case. 
 
 (2) There shall be charged, levied, and paid on any 
 mechanical lighter manufactured in Great Britain or Ireland, an 
 Excise duty of one shilling in the case of mechanical lighters 
 requiring the use of spirit, and of sixpence in any other case. 
 
 (3) If any person manufactures for sale a mechanical 
 lighter without paying duty in accordance with this section, 
 that person shall be liable in respect of each offence to an 
 Excise penalty of fifty pounds. 
 
 (4) The Commissioners of Customs and Excise may make 
 regulations prohibiting the manufacture of mechanical lighters 
 except by persons holding a licence and having made entry for 
 the purpose, and for fixing the date of the expiration of the 
 licence, and also for regulating the manufacture of mechanical 
 lighters and the removal from the manufactory of mechanical 
 lighters with a view to securing and collecting the Excise duty 
 
[6 & 7 Geo. 5.] Mnance Act, 1916. [Ch. 24.] 
 
 imposed by this Act, and may by those regulations apply to A.D. 1916. 
 the Excise duty on mechanical lighters and to manufacturers of 
 mechanical lighters any enactments relating to any duty of 
 Excise or Customs and to persons carrying on any trade subject 
 to the laws of Excise. 
 
 If any person acts in contravention of, or fails to comply 
 with, any of those regulations, the article in respect of which 
 the offence was committed shall be forfeited, and the person 
 committing the offence shall be liable in respect of each offence 
 to an Excise penalty of fifty pounds. 
 
 11. — (1) The table-water duty charged under section four Reduction of 
 of the Finance (New Duties) Act, 1916, and the duty of J^^^''^"*' 
 Customs on table waters charged under this Act shall be 
 reduced in the case of herb beer so as to be at the rate of 
 twopence per gallon. 
 
 (2) " Herb beer " means the beverage usually known as 
 herb beer or botanic beer, but does not include ginger beer. 
 
 12. Entertainments duty within the meaning of section one Exemption 
 
 of the Einance (New Duties) Act, 1916, shall not be charged on f^^^^l^l 
 
 payments for admission to any entertainment where the Com- ments from 
 
 missioners of Customs and Excise are satisfied — entertam- 
 
 ments dutj. 
 
 (a) that the entertainment is provided by or on behalf of a 
 
 school or other educational institution ; and 
 
 (b) that the school or institution is not conducted or estab- 
 
 lished for profit ; and 
 
 (c) that the entertainment is provided solely for the purpose 
 
 of promoting some object in connexion with the 
 school or institution ; and 
 
 (d) that all the persons taking part as performers in the 
 
 entertainment are persons who are under the age of 
 sixteen years and who are receiving or have received 
 instruction in the school or institution. 
 
 13. — (1) It is hereby declared that a motor car is not Provisions 
 exempt under subsection (3) of section eighty-six of the Finance ** '° ™ j*®*" 
 (1909-10) Act, 1910, as being a hackney carriage within the hackney 
 meaning of section four of the Customs and Inland Revenue Act, carriages. 
 1888, if the car is used on any occasion as a carriage within iGeoTcS 
 the meaning of subsection (3) of the said section four. 51 & 52 Vict. 
 
 6 ••«• 
 
[Ch. S4.] 
 
 Finance Acty 1916. 
 
 [6 & 7 Geo. 5.] 
 
 A.D. 1916. 
 
 3 Edw. 7. 
 c. 36. 
 
 Extension 
 of relief in 
 respect of 
 motor car 
 licence duty. 
 
 Motor spirit 
 licence duty. 
 
 (2) There shall be exhibited on every motor car which is 
 exempted from duty under section eighty-six of the Finance 
 (1909-10) Act, 1910, as amended by this or any other Act, as 
 being a hackney carriage, in conjunction with the mark fixed on 
 the car indicating the registered number of the car and the 
 council with which the car is registered, a distinctive sign indi- 
 cating that the car is so exempt, and regulations made by the 
 Local Government Board under the Motor Car Act, 1903, shall 
 provide for the sign to be so exhibited. 
 
 The penalties imposed by subsection (4) of section two of 
 the Motor Car Act, 1903, shall apply to the sign to be exhibited 
 under this provision as they apply to the marks to be fixed 
 under that section. 
 
 14. — (1) Subsection (4) of section eighty-six of the ^Finance 
 (1909-10) Act, 1910 (which provides for the repayment in certain 
 cases to duly qualified medical practitioners of half the duty 
 on motor car licences), shall apply to registered veterinary 
 surgeons in like manner as it applies to duly qualified medical 
 practitioners. 
 
 (2) If any person proves to the satisfaction of the Commis- 
 sioners of Customs and Excise that any motor car kept by him has 
 during any year, or any continuous part of a year not being less 
 than two months, been used exclusively for the purpose of any 
 ambulance or hospital work, or any other work undertaken by 
 agreement with the Government in connexion with any naval 
 or military services, he shall be entitled to the repayment of any 
 duty paid for that year under section eighty-six of the Einance 
 (1909-10) Act, 1910, on the licence for the car, or of a pro- 
 portionate part of the duty. 
 
 15. — (1) In addition to any other duties imposed by law 
 in respect to motor spirit, there shall, on and after the first day 
 of August nineteen hundred and sixteen, be charged, levied, and 
 paid on a licence to be taken out by any person who desires to 
 be supplied with motor spirit, a duty at the rate of sixpence for 
 every gallon of motor spirit with which he is authorised to be 
 supplied by the licence : 
 Provided that — 
 
 (a) Any person using motor spirit for purposes other than 
 supplying motive power to a motor car or motor 
 cycle, or for supplying motive power to any motor 
 car or motor cycle in respect of which duty is not 
 payable under section eighty-six of the Einance 
 6 
 
[6 & 7 Geo. 6.] Finance Act, 1916. [Ch. 24.] 
 
 (1909-10) Act, 1910, shall be entitled, in accordance L.\>. 1916. 
 with regulations made under this section, to an 
 allowance or repayment of the whole duty payable 
 under this section in respect of a licence authorising 
 the supply of that motor spirit ; and 
 
 (6) Any person who, under the preceding section of this 
 Act, has received repayment of motor-car licence 
 duty by reason of the use of his car during any 
 period for any such purpose as therein mentioned 
 shall be entitled, in accordance with regulations 
 made under this section, to an allowance or repay- 
 ment of the duty payable under this section in 
 respect of the motor spirit used during that 
 period ; and 
 
 (<?) Any duly qualified medical practitioner or registered 
 veterinary surgeon using motor spirit for the purpose 
 of supplying motive power to a motor car or motor 
 cycle kept by him, while it is being used by him 
 for the purposes of his profession, shall be entitled, 
 in accordance with regulations made under this 
 section, to an allowance or repayment of half the 
 amount of duty payable under this section in 
 respect of a licence authorising the supply of that 
 motor spirit. 
 
 (2) A licence shall be in such form, and shall be issued in 
 such manner, and subject to such conditions, as may be prescribed 
 by regulations made for the purposes of this section by the Board 
 of Trade, and the regulations may provide for the use of different 
 forms of licence according to the purpose for which the supply 
 of motor spirit is required, and every licence shall specify the 
 amount of motor spirit authorised by the licence to be suppUed 
 to the holder. 
 
 E/Cgulations may provide for the surrender of any licence 
 under this section authorising the supply of motor spirit, and 
 for any consequent repayment of duty. 
 
 (3) Nothing in this section or in any provisions supplemental 
 to this section shall apply to the supply of motor spirit to 
 licensed dealers for the purpose of sale to customers, but those 
 provisions shall apply to the appropriation of motor spirit by a 
 supplier of motor spirit for purposes other than the supply to 
 customers in the same manner as they apply to obtaining a 
 supply of motor spirit. 
 
 7 
 
[Ch. 24.] 
 
 Finance Act, 191G. 
 
 [6 & 7 Geo. 5.J 
 
 A.D. 1916. (4-) In this section, and in any provisions supplemental to 
 
 this section, "motor spirit" has the same meaning as in Part 
 VI. of the Finance (1909-10) Act, 1910. 
 
 Supple- 
 meutal pro- 
 visions as to 
 motor spirit 
 
 16. — (1) A person shall not, on or after the first day of 
 August nineteen hundred and sixteen, obtain or attempt to obtain 
 a supply of motor spirit unless he is the holder of a licence for 
 licence duty, ^j^g ^jj^g being in force under the preceding section of this Act, 
 or in excess of the amount with which he is authorised to be 
 supplied by the licence. 
 
 (2) A person shall not, on or after the first day of August 
 nineteen hundred and sixteen, supply motor spirit to a person 
 who is not the holder of a licence for the time being in force 
 under the preceding section of this Act, or in excess of the 
 amount authorised to be supplied by the licence. 
 
 (3) A person supplying motor spirit shall, on or after the 
 first day of August nineteen hundred and sixteen, in such manner 
 as may be directed by regulations made under the preceding 
 section of this Act, enter on the licence of the person supplied 
 the name and address of the supplier, the amount supplied, and 
 the date on which it was supplied. 
 
 (4) A person shall not use motor spirit, with which he is 
 authorised to be supplied for any special purpose by his licence, 
 for any other purpose. 
 
 (5) If any person acts in contravention of or fails to comply 
 with any provision of this section, or makes any entry on a licence 
 which is false in any material particular, or makes any statement 
 which is false in any material particular for the purpose of 
 obtaining a licence or allowance or repayment of duty, he shall 
 be liable to an Excise penalty of one hundred pounds. 
 
 Continuance 
 of Customs 
 duties im- 
 posed under 
 the Finance 
 (No. 2) Act, 
 1915. 
 
 17. The following duties of Customs, imposed by Part I. 
 of the Pinance (No. 2) Act, 1915, shall continue to be charged, 
 levied, and paid until the first day of August nineteen hundred 
 and seventeen, that is to say: — 
 
 Duty. 
 
 Section of Act. 
 
 Increased duty on tea ------ 
 
 Additional duties on dried fruit - - - _ 
 Additional duties on tobacco - - - - - 
 Additional duty on motor spirit - - - _ 
 New import duties ------ 
 
 1 
 
 8 
 
 9(1) 
 10(1) 
 12 
 
 8 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 18. The following duties of Excise, imposed by Part I. of A..D. 1916. 
 the Finance (No. 2) Act, 1916, shall continue to be charged, conti^ance 
 levied, and paid until the first day of August nineteen hundred of Excise 
 and seventeen, that is to say:— ^sedinder 
 
 Duty. 
 
 Additional duties on tobacco - 
 Additional duty on motor spirit 
 Additional medicine duties 
 
 the FinancA 
 
 Section of Act. (No. 2) Act, 
 1915. 
 
 9(2) 
 10(2) 
 11 
 
 19. There shall be paid an additional drawback on beer. Drawback 
 under conditions to be made by the Commissioners of Customs l^^^^J-J^^ 
 
 OXUOi V ID 
 
 and Excise, in respect of imported sugar and glucose and also respect of 
 in respect of sugar and glucose made in Great Britain and ^"S*'" *°** 
 
 f o o . , . glucose. 
 
 Ireland, used in the brewing of beer for export, on its deposit 
 in bond, according to the amount of duty paid on such sugar 
 and glucose. 
 
 20. Where the rates of any duties of Customs or Excise Provision as 
 previously chargeable are altered by any resolution of the ^j ratesVf ° 
 House of Commons having statutory effect, and any Bill which drawback 
 has been introduced into the House to give effect to that ^f^^^j^^^ 
 resolution provides for an alteration of the rates of drawback altered. 
 
 to be allowed in respect of those duties, then, so long as the said 
 resolution continues to have statutory effect, drawback shall be 
 allowed in accordance with the rates provided in that Bill, 
 subject to any necessary adjustment in case the rates of 
 drawback as enacted by Parliament differ from the rates provided 
 in the Bill. 
 
 21. — (1) On the exportation or shipment for use as ships* Allowance of 
 stores of any goods in the manufacture or preparation of which ^rawback on 
 in Great Britain or Ireland any of the following articles, that is tion of good* 
 to say, dried figs, fig cake, raisins, or currants, have been used, manufac- 
 a drawback equal to the duty in respect of the quantity of the jried fruits, 
 article which appears to the satisfaction of the Treasury to have 
 been used in the manufacture or preparation of the goods shall 
 be allowed, if it is shown to the satisfaction of the Commis- 
 sioners of Customs and Excise that the duties on importation 
 have been duly paid. 
 
 (2) In allowing drawback under this section the Commis- 
 sioners of Customs and Excise may, with the assent of the 
 Treasury, relax in the case of any goods any requirements of 
 
 9 
 
[Ch. 24.] 
 
 Finance Act, 1910. 
 
 [6 & 7 Geo. 6.] 
 
 A.D. 1916. section one hundred and four and section one hundred and six 
 gg ~~ . of the Customs Consolidation Act, 1876, as to the giving of 
 c. 36, security and the examination of goods. 
 
 Drawback 
 on exported 
 coffee and 
 cliicory and 
 mixtures of 
 coffee and 
 chicory. 
 
 Power by 
 Order in 
 Council to 
 modify 
 section 1 
 of the Imma- 
 ture Spirits 
 Restriction 
 Act, 1915, 
 as regards 
 rum. 
 
 5 & 6 Geo. 5, 
 c. 46. 
 
 22. On the exportation or shipment for use as ships* 
 stores of any roasted coffee or roasted chicory, or any mixture 
 of roasted coffee and roasted chicory, there shall, if it is shown 
 to the satisfaction of the Commissioners of Customs and Excise 
 that the duties on importation or the duties of Excise, as the 
 case may he, imposed under this Act have heen duly paid, and 
 suhject to such conditions as the Commissioners may prescribe, 
 he allowed drawbacks at the following rates, that is to say : — 
 
 £ 
 2 
 
 s. 
 2 
 
 d. 
 
 
 for every 
 
 1 14 4 
 
 1 14 4 
 
 Coffee, for every hundred pounds 
 
 Chicory, for every hundred pounds 
 
 Mixtures of coffee and chicory, 
 hundred pounds - _ - 
 
 Provided that no drawback shall be allowed on any such 
 coffee, chicory, or mixture if a ay substance other than coffee, 
 chicory, or a substance necessarily or ordinarily used in the 
 manufacturing of chicory is mixed therewith. 
 
 23. — (1) His Majesty may by Order in Council substitute 
 for the period of one year specified in paragraph (c) of sub- 
 section (l) of section one of the Immature Spirits (Restriction) 
 Act, 1916, as the period for which the restriction imposed by thai 
 section is not to apply to certain imported rum delivered for home 
 consumption, and for the period of at least nine months specified 
 in the said paragraph, such longer periods respectively as His 
 Majesty thinks fit. 
 
 (2) Any Order in Council made under this section shall be 
 laid before each House of Parliament forthwith, and if an address 
 is presented to His Majesty by either House of Parliament within 
 the next subsequent twenty-one days on which that House has sat 
 next after the Order has been laid before it praying that the Order 
 may be annulled. His Majesty may annul the Order, and it shall 
 thenceforth be void, but without prejudice to the validity of any- 
 thing previously done thereunder. 
 
 (3) Any Order in Council made under this section may be 
 varied or revoked by a subsequent Order in Council made in 
 like manner. 
 
 10 
 
[6 & 7 Geo. 5.] Finance Act, 1916. * [Ch. 24.] 
 
 Part II. A.D. 1916. 
 
 Income Tax. 
 
 24. — (1) Income tax for the year beginning on the sixth income tax 
 day of April nineteen hundred and sixteen shall be charged at foTl9i&-n. 
 the rate of five shillings, and super-tax shall be charged, levied, 
 and paid for that year at the same rates as those charged for 
 the year beginning on the sixth day of April nineteen hundred 
 and fifteen. 
 
 (2) All such enactments relating to income tax, including , 
 super-tax, as were in force with respect to the duties of income 
 
 tax granted for the year beginning on the sixth day of April 
 nineteen hundred and fifteen shall (with the exception of section 
 twenty of the Finance (No. 2) Act, 1915) have full force and 
 effect with respect to any duties of income tax hereby granted. 
 
 (3) The annual value of any property which has been adopted 
 for the purpose either of income tax under Schedules A. and B. 
 
 in the Income Tax Act, 1853, or of inhabited house duty, for 16 & 17 Vict, 
 the year ending on the fifth day of April nineteen hundred and °' 
 sixteen, shall be taken as the annual value of such property for 
 the same purpose for the next subsequent year ; provided that 
 this subsection — 
 
 (a) so far as respects the duty on inhabited houses in 
 Scotland, shall be construed with the substitution 
 of the twenty-fourth day of May for the fifth day of 
 April; and 
 
 (6) shall not apply to the metropolis as defined by the 32 & 33 Vict. 
 Valuation (Metropolis) Act, 1869. ^'^'^' 
 
 25. The following subsection shall be substituted for sub- Modification 
 section (1) of section nineteen of the Finance Act, 1907 (which °? ^*^^^®^. , 
 
 • T «. i 1 1 i . (. J 1 • IT. given with 
 
 provides for the reduction of the mcome tax payable m respect respect to 
 of earned income), in lieu of that substituted by section four earned in- 
 
 of the Finance Act, 1914, namely: — ^°™^* , 
 
 7 Edw. 7. 
 
 " (1) Any individual who claims and proves in manner ^/I^kc 
 provided by this section that his total income from all c. 10. 
 sources does not exceed two thousand five hundred pounds, 
 and that any part of that income is earned income shall 
 be entitled, subject to the provisions of this section, to 
 such relief from income tax as will reduce the amount 
 payable on the earned income to the amount which 
 
 11 
 
[Oh. 24.] 
 
 Finance Act, 1916. 
 
 [6 ife 7 Geo. 5.] 
 
 A.D. 1916. 
 
 Gradnation 
 of tax on 
 anearned 
 income in 
 case of in- 
 comes not 
 exceeding 
 2,000/. 
 
 would be payable if the tax were charged on that 
 income at the rate of — 
 
 " 2s. Zd. if the total incgme does not exceed five 
 hundred pounds; 
 
 " 2*. 6c/. if the total income exceeds five hundred 
 
 pounds and does not exceed one thousand 
 
 pounds ; 
 ** 3«. Od. if the total income exceeds one thousand 
 
 pounds and does not exceed one thousand 
 
 five hundred pounds; 
 
 " 3«. Sd. if the total income exceeds one thousand five 
 
 hundred pounds and does not exceed two 
 
 thousand pounds ; 
 " 4s. 4c?. if the total income exceeds two thousand 
 
 pounds and does not exceed two thousand 
 
 five hundred pounds." 
 
 26. — (1) If any individual who has been assessed or charged 
 to income tax or has paid income tax either by way of 
 deduction or otherwise claims and proves in manner prescribed 
 by the Income Tax Acts that his total income from all sources 
 does not exceed two thousand pounds, he shall be entitled to 
 the repayment of such a part of the income tax paid by him 
 as will reduce the amount of income tax on his unearned income 
 to the amount which would have been paid if the tax were 
 charged on that income at the rate of — 
 
 3s. Od. if the total income does not exceed five hundred 
 
 pounds ; 
 3s. Qd. if the total income exceeds five hundred pounds and 
 
 does not exceed one thousand pounds ; 
 4s. Od. if the total income exceeds one thousand pounds 
 
 and does not exceed one thousand five hundred 
 
 pounds ; 
 4s. %d. if the total income exceeds one thousand five hundred 
 
 pounds and does not exceed two thousand pounds. 
 
 (2) The relief given under this section shall be in addition 
 to and not in derogation of any exemption, or other relief or 
 abatement, under the Income Tax Acts, but where any such 
 exemption, relief, or abatement is to be determined by reference 
 to the amount of the income tax on any sum, the amount of 
 the tax shall be calculated at the reduced rate. 
 12 
 
[6 & 7 Geo. 6.] Finance Act, 1916. [Cii. 24.] 
 
 (3) All the provisions of the Income Tax Acts which relate A.D. 1916. 
 to claims for exemption, relief, or abatement, or the proof to be 
 
 given with respect to those claims, shall apply to claims for 
 relief under this section and the proof to be given with respect 
 to those claims. 
 
 (4) An individual shall not be entitled to relief under this 
 section in respect of any income the tax on which he is entitled 
 to charge against any other person, or to deduct, retain, or 
 ■atisfy out of any payment which he is liable to make to any 
 other person. 
 
 (5) Section six of the Finance Act, 1914, shall cease to 4&5Geo. 5: 
 have effect. °' ^^• 
 
 27. — (1) In addition to any other income tax or super-tax Additional 
 charged under this or any other Act, there shall, subject to the o^^g^uri^ied 
 provisions of this section, be charged, levied, and paid for the year which the 
 beginning on the sixth day of April, nineteen hundred and ^[uf^^^o*'^* 
 sixteen, in respect of any part of the income of any person to purchase. 
 which this section applies an additional duty of income tax at the 
 rate of two shillings for every pound of that part of the income. 
 
 The income to which this section applies is the income 
 derived from securities which are for the time being included 
 in the Treasury special list as defined by this section, while 
 those securities are so included ; and the income shall, for the 
 purposes of this section, be deemed to be derived at the time 
 when the interest or dividends payable in respect of the^ 
 securities become payable. 
 
 (2) The additional duty under this section shall not be 
 charged on any income derived before the twenty-ninth day 
 of July, nineteen hundred and sixteen. 
 
 (3) A person shall be entitled to relief from the additional 
 duty imposed by this section — 
 
 (a) in respect of income derived between the date of the 
 publication of the Treasury special list and a date 
 twenty-eight days thereafter if the securities are 
 during that period offered to the Treasury and ulti- 
 mately become at the absolute disposal of the 
 Treasury; and 
 
 (6) in respect of income derived from any securities included 
 
 in the Treasury special list after the securities have 
 
 been placed at the absolute disposal of the Treasury ; 
 and 
 
 B 13 
 
[Ch. 24.] Fmance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916. {c) in respect of income derived from any such securities 
 
 after a person has placed the securities conditionally 
 at the disposal of the Treasury, if the securities 
 ultimately become at the absolute disposal of the 
 Treasury without unreasonable delay on the part of 
 that person; and 
 
 {d) in respect of income derived from any such securities 
 whether they ultimately become at the absolute 
 disposal of the Treasury or not, if it is shown to 
 the satisfaction of the Treasury that any delay in 
 placing or failure to place those securities at the 
 disposal of the Treasury has arisen from circumstances 
 beyond the control of the holders of the securities; 
 and 
 
 (tf) in respect of income derived from any such securities 
 held, in any country outside the United Kingdom, 
 by persons who are not domiciled in the United 
 Kingdom, or by trustees who are prevented by the 
 laws of such other country or by the terms of 
 their trust from placing the securities at the dis- 
 posal of the Treasury, and are not entitled to the 
 benefit of any indemnity conferred by Act of 
 Parliament in respect of the contravention of those 
 terms, if the securities were so held before the 
 twenty-ninth day of May nineteen hundred and 
 sixteen ; or where such securities are under the 
 jurisdiction of a court in such other country and it 
 would be contrary to the laws of such other country 
 to place such securities at the disposal of the 
 Treasury ; and 
 
 (/) in respect of income derived from any such securities 
 which are deposited with persons outside the United 
 Kingdom as a security for a loan from those persons, 
 or have otherwise been made security for a loan 
 from persons outside the United Kingdom, if they 
 were so deposited or made security before the twenty- 
 ninth day of May nineteen hundred and sixteen, or 
 after that date with the approval of the Treasury, 
 and if the Treasury are satisfied that the securities 
 cannot be released without impairing vthe security 
 for the loan; and 
 14 
 
[6 & 7 Geo. 6.] Finance Act, 1916. [Ch. 24.] 
 
 (g) in respect of income derived from any such securities A.D. 1916. 
 which are proved to the Special Commissioners to 
 be held by any company or persons concerned in 
 trade or business in any country outside the United 
 Kingdom as a condition (imposed in that country) 
 of carrying on that trade or business. 
 
 The provisions of this subsection shall apply to an offer of 
 securities for deposit in the same manner as they apply to an 
 offer of securities for sale, and securities when accepted for 
 deposit shall, while so deposited, for the purposes of this 
 subsection, be deemed to be at the absolute disposal of the 
 Treasury. 
 
 (4) The power under the Income Tax Acts, to require a 
 person to make returns for the purposes of those Acts, shall 
 include power to require him to make such returns as appear 
 to the Commissioners of Inland Revenue to be necessary for 
 the purpose of ascertaining whether any of the income of that 
 person (whether or not income tax thereon is chargeable by 
 deduction) is income to which this section applies, including 
 such particulars as to that income as the Commissioners may 
 require, and those Acts, including the provisions imposing 
 penalties, shall apply accordingly. 
 
 (5) Where any income to which this section applies is 
 derived from securities which are held on trust by more than 
 one trustee the securities may be placed at the disposal of the 
 Treasury if, where there are two trustees, one trustee and the 
 persons entitled to the income of the securities, and, where 
 there are more than two trustees, one-half or more of the 
 number of the trustees and the persons entitled to the income 
 of the securities, are willing that the securities should be so 
 placed at the disposal of the Treasury; and any action taken 
 by such trustees or beneficiaries for the purpose of placing any 
 such securities at the disposal of the Treasury shall, notwith- 
 standing anything in the terms of the trust or any rule of law 
 to the contrary, be as valid and effectual in all respects as 
 though all the trustees had consented thereto and had joined 
 therein. 
 
 (6) A person shall not be entitled to any exemption, abate- 
 ment, or relief under the Income Tax Acts (other than relief 
 depending solely on residence or domicile) in rospect of the 
 additional income tax imposed by this section, but in all other 
 respects the provisions of the Income Tax Acts relating to 
 
 B 2 15 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.3 
 
 A.D. 1916. persons who are to be chargeable with duty, assessments, and 
 appeals against those assessments, and to the collection and 
 recovery of duty, and to cases to be stated for the opinion of 
 the High Court shall, so far as they are applicable, apply 
 to the charge, assessment, collection, and recovery of duty 
 under this section: 
 
 Provided that the Treasury may give directions that the 
 additional duty imposed by this section shall, instead of being 
 charged by deduction, be charged up to the same amount by 
 direct assessment for the period, and in the cases mentioned in 
 those directions, and where any such directions are given, the 
 Income Tax Acts shall have effect accordingly. 
 
 (7) In this section — 
 
 The expression "securities" includes stocks, shares, and 
 other securities; and 
 
 The expression "the Treasury special list" means any 
 list published by the Treasury in the Gazette, and for 
 the time being in force, of securities which the Treasury 
 are willing to purchase in connection with any arrange- 
 ments for the regulation and maintenance of the foreign 
 exchanges. 
 
 Continuation 28. — (l) Section thirteen of the Finance Act, 1914 (Session 2) 
 
 under ^^ (which gives relief in respect of diminution of income due to 
 
 5 Geo. 5. war), shall apply to income tax (including super-tax) for the 
 c. 7. B. 3. current income-tax year, but with the substitution, as regards 
 postponed super-tax, of the first day of January nineteen 
 hundred and eighteen for the first day of January nineteen 
 hundred and sixteen as the date on which the postponed super- 
 tax is to become payable. 
 
 (2) Any payment of super-tax for the year beginning the 
 
 sixth day of April nineteen hundred and fifteen or for the year 
 
 beginning the sixth day of April nineteen hundred and fourteen 
 
 which has been postponed under section thirteen of the Finance 
 
 Act, 1914 (Session 2), as continued by section twenty of the 
 
 5 & 6 Geo. 5. Finance Act, 1915, or which has been postponed and further 
 
 *^' ^^- postponed under those sections, may be further postponed until 
 
 the first day of January nineteen hundred and eighteen, if the 
 
 individual from whom the payment is due proves to the 
 
 satisfaction of the Special Commissioners that his actual income 
 
 from all sources for the current income-tax year is or will be 
 
 16 
 
[6 & 7 Geo. 6.J Finance Act, 1916. [Ch. 24.]' 
 
 less than two- thirds of the income on which he was liable to be A.D. 1916. 
 charged to super-tax for the year beginning the sixth day of 
 April nineteen hundred and fifteen as respects payment of 
 super-tax for that year, and for the year beginning the sixth 
 day of April nineteen hundred and fourteen as respects payment 
 of super-tax for that year. 
 
 29. If any individual who has beeli assessed or charged to Relief 
 income tax for the current income tax year claims and proves, ^^ ®'^® !,°" 
 
 •^ . come of year 
 
 in manner provided by the Income Tax Acts, that his actual is less than 
 
 income from all sources for the year of assessment is less by assessed in- 
 come, 
 more than ten per cent, than the income on which he has been 
 
 so assessed and charged, he shall be entitled to repayment of 
 
 such part of any income tax paid by him, either by way of 
 
 deduction or otherwise, as is equal to the diSerence between 
 
 the amount of the tax so paid and the amount which would have 
 
 been so paid if he had been assessed or charged on . his actual 
 
 income for the year of assessment. 
 
 30. — (1) Where any person who, during the current income Right of sol- 
 tax year, has served or is serving as a member of any of the gatlors^opaT 
 naval or military forces of the Crown, or in service of a naval reduced rate* 
 or military character in connection with the present war for °^ ^^^corae 
 which payment is made out of money provided by Parliament, respect of 
 or in any work abroad of the British Red Cross Society or their pay. 
 the St. John Ambulance Association, or any other body with 
 similar objects, proves that he is assessed or charged to income 
 tax, or has paid income tax either by way of deduction or 
 otherwise on his pay in connection with any such service, he 
 shall be entitled to claim such relief from income tax as wUl 
 reduce the amount of income tax on that pay to the amount 
 which would have been payable if the tax were charged on 
 that pay at the rate of — 
 
 9d. if his total income from all sources does not exceed 
 
 three hundred pounds; 
 la. 3d. if his total income exceeds three hundred pounds 
 
 and does not exceed five hundred pounds ; 
 Is. 9d. if his total income exceeds five hundred pounds and 
 
 does not exceed one thousand pounds ; 
 2s. Sd. if his total income exceeds one thousand pounds and 
 
 does not exceed one thousand five hundred pounds; 
 2s. 9d. if his total income exceeds one thousand five hundred 
 
 pounds and does not exceed two thousand pounds; 
 B 3 17 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.) 
 
 A.D. 1916. 3s. Zd. if his total income exceeds two thousand pounds 
 
 ■^~" and does not exceed two thousand five hundred 
 
 pounds ; 
 
 3». Qd. if his total income exceeds two thousand five 
 hundred pounds. 
 
 (2) The relief given under this section shall be in 
 addition to and not in derogation of any exemption or other 
 relief or abatement under the Income Tax Acts, and in cases 
 where the total income does not exceed three hundred pounds 
 shall not be subject to the redaction of exemption and abate- 
 ments for which provision is made under the Pinance (No. 2) 
 Act, 1915 ; but relief in respect of earned income shall be 
 given in respect of the pay by reference to the rates under 
 this section; and in calculating any earned income on which 
 relief is to be given, any deductions from earned income made 
 under subsection (2) of section nineteen of the Einance Act, 
 1907, shall be made primarily from the pay. 
 
 (3) All the provisions of the Income Tax Acts which relate 
 to claims for exemption or relief, or the proof to be given with 
 respect to those claims, shall apply to claims for relief under 
 this section and the proof to be given with respect to those 
 claims. 
 
 Provision as 31, — (i) Por the purpose of any relief under the Income 
 
 the navy or ^ax Acts given, whether before or after the passing of this ilct, 
 
 araoy- to persons serving as members of the naval or military forces of 
 
 the Crown a person shall not be deemed to have served as a 
 
 member of the naval or military forces of the Crown unless he 
 
 has served — 
 
 {a) on the active list of the navy ; or 
 
 (6) in the army, either with the colours, or as an officer on 
 full pay or at a rate of pay which appears to the 
 Income Tax Commissioners concerned, after consulta- 
 tion with the Army Council, to be equivalent to full 
 pay, and either out of the British Islands or for at 
 least one month continuously in the British Islands. 
 
 (2) Por the purpose of the relief given to persons serving in 
 certain capacities under the second paragraph of subsection (1) 
 of section thirteen of the Finance Act, 1914 (Session 2), or 
 section twenty-five of the Mnance (No. 2) Act, 1915, relief 
 shall not be given unless there has been some such service during 
 the year in respect of which the relief is claimed. 
 IS 
 
[6 & 7 Geo. 6.] Finance Act, 1916. [Ch. 24.] 
 
 32. — (1) Where owing to the fact that the total income of A.D. 1916. 
 any person exceeds a certain limit — Reduction of 
 
 (a) he is liable to pay income tax or super-tax at a higher income tax 
 
 , when margia 
 
 rate ; or , above a 
 
 (b) he ceases to be entitled to any exemption or abate- certain limit 
 
 ment; or 
 
 ((?) he becomes entitled to a reduced exemption or 
 abatement, 
 
 the amount of income tax or super-tax payable by that person 
 shall, where necessary, be reduced so as not to exceed the sum 
 of the following amounts: — 
 
 (i) the amount which would have been payable if his 
 income had reached, but had not exceeded that 
 limit; and ■'' 
 
 (ii) the amount by which his total income exceeds that"' 
 limit. 
 
 (2) Where income tax is charged at different rates on 
 different parts of the total income, the deduction from total 
 income required in calculating the maximum duty payable 
 under this section for the purpose of bringing the total income 
 down to the limit shall be made from that part of the total 
 income which is taxed at the lowest rate. 
 
 (3) All the provisions of the Income Tax Acts which 
 relate to claims, for exemption or abatement, or the proof to 
 be given with respect to those claims, shall apply to claims 
 for relief under this section and the proof to be given with 
 respect to those claims. 
 
 33. Section sixty-eight of the Finance (1909-10) Act, 1910 Extension 
 (which gives to individuals whose total income does not exceed resrfectof^ 
 five hundred pounds relief from income tax in respect of children), children. 
 shall, as amended by any subsequent Act, have effect as if seven n 
 hundred pounds were substituted, as the limit of income, for five 
 hundred pounds. 
 
 34. It is hereby declared that paragraph {b) of subsection (1) Declaration 
 of section twenty of the Pinance (No. 2) Act, 1915, does not Q^e^t of* 
 affect the operation of section thirty-seven of that Act as respects section 20 (i) 
 the amplication of amendments made by that Act for the current ^^ ^^^ ^ 
 income tax year, and that that paragraph is accordingly to be 
 construed as if the words " if this section had not passed " were 
 substituted for the words "if this Act had not passed.'*^ 
 
 B 4 19 
 
[Oh. 24.] Mnance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D, 1916. 35. If the Commissioners of Inland Hevenue make arrange- 
 
 ^ ,,~ » ments for the collection of income tax by means of stamps 
 tax by means in any cases, they may prepare and issue any stamps required 
 of stamps lu f^j. ^j^g purpose, and the provisions (including penal provisions) of 
 54 & 55 Vict, the Stamp Duties Management Act, 1891, as amended by any 
 c. 38. subsequent Act, and section sixty-five of the Post Office Act, 
 
 c. 48. 1908, shall apply to any such stamps. 
 
 Limitation of 36. — (1) The relief given under section fifty-four of the 
 
 relief from Income Tax Act, 1853, as amended by any subsequent enact- 
 
 income tax ' ' *> » i i. j 
 
 in respect of ment, shall not, as regards insurances or contracts for deferred 
 insurance annuities made after the twenty-second day of June nineteen 
 hundred and sixteen, be given at a greater rate than that of 
 three shillings in the pound; and shall not, as regards any 
 insurance or contract for a deferred annuity, be given, notwith- 
 standing anything in paragraph {h) of subsection (2) of section 
 sixty-six of the finance (1909-10) Act, 1910, for the purposes 
 of super-tax. 
 
 (2) The said relief shall not, as regards insurances or 
 contracts for deferred annuities made after the twenty-second 
 day of June nineteen hundred and sixteen — 
 
 (a) be given except in respect of premiums or other 
 payments payable on policies for securing a capital 
 ,; sum on death, whether in conjunction with any other 
 
 ,' benefit or not; or 
 
 {h) be given in respect of premiums or payments payable 
 
 during the period of deferment in respect of a 
 
 policy of deferred assurance : 
 
 Provided that nothing in this subsection shall affect premiums 
 
 or payments payable on policies or contracts made in connection 
 
 with any superannuation or bon^ fide pension scheme for the 
 
 benefit of the employees of any employer or of persons engaged 
 
 in any particular profession, vocation, trade, or business, or on 
 
 any policy taken out by a teacher in a secondary school pending 
 
 the establishment of a superannuation or pension scheme for 
 
 those teachers. 
 
 Income tax 37.— (l) Section fifty-four of the Income Tax Act, 1853, 
 
 on war ^ amended by any subsequent enactment, shall apply to all 
 
 insurance 
 
 premiums, war insurance premiums, whether payable annually or not. 
 
 (2) War insurance premiums shall not be taken into account 
 in calculating the limit of one-sixth of the profits and gains 
 under the proviso to the said section fifty-four or the limits of 
 seven per cent, or one hundred pounds under subsection (1) of 
 section seventeen oi the Pinance Act, 1915. 
 20 
 
[6 & 7 Geo. 5.] Fmcmce Act, 1916. [Ch. 24.] 
 
 (3) In this section the expression " war insurance premium" A.D. 1916! 
 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 Commissioners to 
 whom the claim for relief is made to be attributable to those 
 risks, or either of them. 
 
 38. — (1) Any person occupying woodlands who proves to the Amendmenu 
 satisfaction of the Special Commissioners that those woodlands ^^ '*^ ^^^^ 
 are managed by him on a commercial basis, and with a view to income tax 
 the realisation of profits, shall have the same right under sub- <>» wood- 
 section (4) of section twenty-two of the Einance (No. 2) Act, 
 1915, to elect to be charged under Schedule D as a person who 
 proves those facts to the satisfaction of the General Commis- 
 sioners, but an application to prove those facts in any year in 
 respect of the same woodlands must be made either to the 
 General or Special Commissioners, and not to both. 
 
 (2) Paragraph {a) of subsection (4) of section twenty-two 
 of the Einance (No. 2) Act, 1916 (which provides that the 
 election shall extend to all woodlands managed on the same 
 estate), shall not apply to woodlands which are planted or 
 replanted after the passing of this Act, if the person occupying 
 those woodlands gives notice to the General or Special Com- 
 missioners within a year after the time when they are so planted 
 or replanted that they are to be treated for the purpose of that 
 paragraph as being woodlands on a separate estate. 
 
 (3) Section twenty-three of the Customs and Inland Revenue 53 & 54 Vict. 
 Act, 1890 (which gives relief to trading persons in case of loss), °- ®' 
 shall, where a person occupying woodlands has elected to be 
 charged to income tax in respect of those woodlands under 
 Schedule D, apply to losses on those woodlands as it applies 
 
 to losses in any trade. 
 
 39. — (1) Where in calculating for the purposes of Part II. Repa7in«»nt 
 of the Munitions of War Act, 1915, the profits of a controlled °^ ^°''°'"'' 
 establishment a deduction has been allowed under that Part of deducted 
 that Act or rules made thereunder in respect of exceptional ^'"o™ profita 
 depreciation or obsolescence of buildings, plant, or machinery, and ^onrof War 
 the sums so deducted have not been deducted or allowed in Act, 1915. 
 computing the amount upon which income tax has been paid ^ *^^ ^®°* ^* 
 in respect of those profits, there shall be allowed a repayment 
 
 21 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.] 
 
 a!.D. 1916. of income tax equal to the amount of the income tax at the 
 rate at which that tax has been paid on the amount of the 
 sums so deducted : 
 
 Provided that the repayment of income tax under this 
 section — 
 
 {a) shall he made in respect of the income tax year which 
 includes the end of the period of assessment in 
 respect of which the said deductions have been 
 allowed under the Munitions of War Act, 1915 ; and 
 
 {b) shall be deemed to have effected a reduction of the 
 income tax . assessment by the amount upon which 
 income tax has been so repaid. 
 
 (2) Any application for relief under this section shall be 
 made to the Commissioners by whom the income tax assessment 
 has been made, and those Commissioners upon proof of the facts 
 to their satisfaction shall certify to the Commissioners of Inland 
 Revenue the sum repayable, and the Commissioners of Inland 
 Revenue shall cause repayment to be made accordingly. 
 
 Charging of 40. Section ninety -five of the Income Tax Act, 184<2 (which 
 
 '^^d^V^d '®l^^®s ^o the manner of charging small dividends), shall apply 
 
 &c. amount- to cases wherc the half - yearly payment on the annuity, 
 
 ing to fifty dividend, or shares, amounts to fifty shillings and not more, as 
 
 exactly. it applies to cases where that payment does not amount to fifty 
 
 5 & 6 Vict, shillings, 
 c. 35. ^ 
 
 Income tax 41. Section three of the War Loan (Supplemental Provisions) 
 
 on dividends ^^^ 1915 (which relates to income tax on stock inscribed in the 
 on ex- ' ^ 
 
 chequer Post Office register), shall apply as though references to interest 
 bonds issued qjj ^j^^t stock included references to dividends on exchequer 
 
 through the ,-,.,, 
 
 Post Office, bonds issued through, and left in the custody of, the Post 
 5&6Geo.5. Office: 
 c. 93. 
 
 Provided that the said section as amended by this section 
 shall not apply in any case where the total amount of stock 
 and bonds held by any one person exceeds the nominal amount 
 of two hundred pounds. 
 
 Exemption 42. The accumulated interest payable in respect of any war 
 
 undef war savings Certificate issued by the Treasury through the Post Office 
 savings under which the purchaser, by virtue of an immediate payment 
 
 from^hT^om °^ fifteen shillings and sixpence, becomes entitled after five years 
 tax. to receive the sum of one pound, shaU not be liable to income 
 
 22 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 tax so long as the amount of the certificates held by the pur- A.D. 1916. 
 chaser does not exceed the amount which an individual is for 
 the time being authorised to hold imder regulations made by 
 *:he Treasury. 
 
 43. If any person who has paid, by deduction or other- Relief in 
 ^se, United Kingdom income tax for the current income tax c*F*^*i 
 year on any part of his income at a rate exceeding three income tax. 
 shillings and sixpence proves to the satisfaction of the Special 
 Commissioners that he has also paid any Colonial income tax 
 in respect of the same part of his income, he shall be entitled 
 to repayment of a part of the United Kingdom income tax 
 paid by him equal to the difference between the amount so 
 paid and the amount he would have paid if the tax had been 
 charged at the rate of three shillings and sixpence, or, if that 
 difference exceeds the amount of tax on that part of his income 
 at the rate of the Colonial income tax, equal to that amount. 
 
 In this section the expression " United Kingdom income 
 tax " means income tax charged under the Income Tax Acts ; 
 and the expression " Colonial income tax " means income tax 
 charged under any law in force in any British possession or 
 any tax so charged which appears to the Special Commissioners 
 to correspond to United Kingdom income tax. 
 
 44. — (1) Section forty-seven of the Finance (No. 2) Act, Provision m 
 1915 (which confers power on the Treasury to issue securities *® govem- 
 
 ^ . . V . ment securi- 
 
 free of taxation m certam cases), shall, so far as mcome tax ties issued 
 (including super tax) is concerned, have effect as though the ^'■®® °^ ^^* 
 reference to persons not domiciled in the United Kingdom were 
 omitted therefrom. 
 
 (2) Where securities issued under section forty-seven of 
 the Pinance (No. 2) Act, 1916, for the time being form part 
 of the investments of the foreign life assurance fund of an 
 assurance 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 income tax. 
 
 (3) "Where the Special Commissioners are satisfied that any 
 income arising abroad from the investments of the foreign life 
 assurance fund of an assurance company has been remitted to 
 the United Kingdom and invested, as part of the investments 
 of that fund, in any securities issued under section forty-seven 
 of the Finance (No. 2) Act, 1916, that income shall not be liable 
 
 23 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916. to income tax, and any income tax paid thereon shall, if necessary, 
 be repaid to the company. 
 
 (4) In this section the expressions " assurance company " 
 and " foreign life assurance fund " have the same meaning as in 
 the Finance Act, 1915. 
 
 Part III. 
 Excess Profits Duty. 
 Continuance 49.— (1) The Finance (No. 2) Act, 1915 (in this Part of 
 
 of ratTof*^^ this Act referred to as the principal Act), shall, so far as it 
 excess relates to excess profits duty, apply, unless Parliament otherwise 
 
 profits duty, determines, to any accounting period ending on or after the first 
 day of July nineteen hundred and fifteen and before the first 
 day of August nineteen hundred and seventeen, as it applies to 
 accounting periods ended after the fourth day of August nineteen 
 hundred and fourteen and before the said first day of July. 
 
 (2) Section thirty-eight of the principal Act shall, as respects 
 excess profits arising in any accounting period beginning after 
 the expiration of a year from the commencement of the first 
 . accounting period, have effect as if sixty per cent, of the excess 
 were substituted as the rate of duty for fifty per cent, of the 
 excess. 
 
 Where part of 'an accounting period is after and part 
 before the date of the expiration of a year from the commence- 
 ment of the first accounting period, the total excess profits and 
 any deficiencies or losses arising in the accounting period shall 
 be apportioned between the time up to and including, and the 
 time after, that date in proportion to the length of those times 
 respectively, and the rate attributable to the time after and the 
 time before and including that date shall respectively be sixty and 
 fifty per cent, of the excess. 
 
 In the case of trades or businesses commencing after the 
 fourth day of August nineteen hundred and fourteen, the rate 
 of duty shall be sixty per cent, of the excess in respect of 
 any accounting period ending after the fourth day of August 
 nineteen hundred and fifteen. 
 
 In calculating any repayment or set off under subsection (3) 
 of section thirty-eight of the principal Act any amount to be 
 repaid or set off on account of a deficiency or loss arising in 
 any period in respect of which duty would be payable at the 
 rate of fifty per cent, of the excess, shall be calculated by 
 reference to that rate of duty. 
 24 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 Any additional duty payable by virtue of this section in respect A.D. 1916. 
 of a past accounting period may be assessed and recovered not- 
 withstanding that duty has already been assessed in respect of 
 that period. 
 
 (3) It shall be the duty of every person chargeable to 
 excess profits duty under Part III. of the principal Act, as 
 extended by this Act, if he has not previously given notice of 
 his liability to be charged with excess profits duty in respect 
 of any accounting period, to give notice to the Commissioners 
 of Inland Revenue before the expiration of two months after 
 the termination of any accounting period in respect of which he 
 is chargeable, or, if the accounting period terminated before the 
 passing of this Act, within one month after the passing of this 
 Act. 
 
 If any person fails to give the notice required by this 
 provision he shall be liable on summary conviction to a fine not 
 exceeding one hundred pounds, and to a further fine not exceeding 
 ten pounds a day for every day during which the offence continues, 
 after conviction therefor. 
 
 46. — (1) Section forty- three of the principal Act (which Increase of 
 relates to excess mineral rights duty) shall have effect as if sixty rate of excess 
 
 o J / J mineral 
 
 per cent, of the excess were substituted as the rate of duty for rights duty, 
 fifty per cent, of the excess, in the case of minerals which have 
 become subject to a mining lease after the fourth day of August 
 nineteen hundred and fourteen for all accounting years, and in 
 the case of other minerals for any accounting year ending after 
 the completion of the first accounting year, and any additional 
 duty may be recovered accordingly. 
 
 (2) It is hereby declared that the words in subsection (1) 
 of section forty-three of the principal Act " assets of any trade 
 or business " refer only to assets of the trade or business of the 
 person receiving the rent for the right to work the minerals or 
 for the mineral wayleaves. 
 
 47. Where any ship has been sold since the fourth day of Computation 
 August nineteen hundred and fourteen, in such circumstances ^t*^*d*t 
 that the profits of the sale are not the profits of a trade or in ca«e of 
 business, the following special provisions shall, if the Commis- ^*'® °^ "^^P*- 
 sioners of Inland Revenue so require, be applied in the compu- 
 tation of the liability to excess profits duty in respect of the 
 profits arising from the use of the ship: — 
 
 (a) The pre-war standard of profits of the purchaser as 
 respects the ship shall, where the standard of the 
 
 25 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916. trade or business of the vendor is a profits standard, 
 
 be calculated by reference to the profits arising from 
 the use of the ship during the pre-war trade years, 
 and shall be ascertained in accordance with the pro- 
 visions of the principal Act, but calculated, where 
 necessary, as if the use of the ship were a separate 
 business; and where that standard is a percentage 
 standard the pre-war standard of profits as respects 
 the ship shall be the same as if the ship had not 
 been sold, or, in the case of a ship which was used 
 for the first time after the fourth day of August, 
 nineteen hundred and fourteen, shall be calculated by 
 reference to the capital represented by the ship at the 
 date when it was first used ; and the pre-war standard 
 of profits of the trade or business of the vendor and 
 of the purchaser shall respectively be reduced and 
 increased as the case may require, with any adjust- 
 ments which may be necessary to meet the case of 
 borrowed money or unpaid purchase money or other 
 similar matters : 
 
 (6) Eor the purpose of estimating separately the profits 
 arising from the use of the ship, an apportionment 
 shall, where necessary, be made of the total profits of 
 the trade or business in which the ship has been 
 used, regard being had to the earnings of the ship 
 . as compared with the earnings of the other assets 
 
 employed in the trade or business : 
 
 Any appeal under subsection (5) of section forty- 
 five of the principal Act, so far as it involves any 
 question of an apportionment imder this provision, 
 shall be to the Special Commissioners: 
 
 (<?) The power to require returns under subsection (1) of 
 section forty-four of the principal Act shall include 
 power for the Commissioners of Inland Revenue to 
 require any vendor of the ship to give such informa- 
 tion to them and to the purchaser as the Commis- 
 sioners think necessary in order to enable the 
 provisions of this section to be carried into effect : 
 
 {d) Nothing in subsection (3) of section forty of the 
 
 principal Act or in paragraph 3 of Part I. of the 
 
 , Fourth Schedule to the principal Act shall operate 
 
 so as to enable the purchaser of the ship to obtain 
 
 26 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 any greater relief than could have been obtained by A.D. 1916 
 the vendor if the ship had not been sold, other than 
 relief in connection with expenditure by the purchaser 
 on improvements or repairs : 
 
 (e) In the application of section forty-one of the principal 
 Act to any trade or business whose pre-war standard 
 of profits has been determined or adjusted under this 
 section any increase or decrease of capital attributable 
 to the purchase or sale of the ship shall be disre- 
 garded, and where any such determination or adjust- 
 ment has taken place both in respect of the sale of 
 a ship and the purchase of another ship for the same 
 trade or business, paragraph 6 of Part II. of the 
 Fourth Schedule to the principal Act shall not apply. 
 
 48. — (1) The Commissioners of Inland Revenue may treat any Adjustment 
 sums actually paid in respect of munitions Exchequer payments, pro^^trduty 
 which appear to the Commissioners to be attributable to the and muni- 
 same period and subject matter as that for which excess profits ^^^^^ ' 
 
 ^ •• ^ chequer 
 
 duty is to be paid, as a payment on account of excess profits payments 
 duty, or, if the amount of the muniticns Exchequer payments ^^ °*^n°j 
 is larger than the amount payable as excess profits duty, as estabiish- 
 extinguishing the duty for the purposes of collection; and may ments. 
 arrange with the Minister of Munitions, if in any case excess 
 profits duty is paid before the munitions Exchequer payment, for 
 the deduction of excess profits duty payments from any sums to 
 be collected in respect of munitions Exchequer payments which 
 appear to the Commissioners to be attributable to the same 
 period and subject matter as that for which the excess profits 
 duty payments have been made, or, if the amount of the excess 
 profits duty payments is greater than the amount to be collected 
 on account of munitions Exchequer payments, for the extinction 
 of the amount to be so collected. 
 
 Eor the purpose of determining the period to which any 
 profits are to be attributed under this section, profits shall be 
 deemed to accrue from day to day at a uniform rate. 
 
 (2) Any excess profits duty and any munitions Exchequer 
 payments which are remitted under this section for the purpose 
 of collection shall not be deemed to have been paid for the 
 purposes of section thirty-five of the principal Act (which 
 relates to computation of profits and gains in relation to excess 
 profits duty) as extended by this Act. 
 
 27 
 
[Ch. 24.] 
 
 Finance Act, 1916. 
 
 [6 & 7 Geo. 5.] 
 
 A.D. 1916. 
 
 Provisions as 
 to directors' 
 fees. 
 
 (3) Deductions shall not be allowed on account of munitions 
 Exchequer payments in computing profits for the purpose of excess 
 profits duty. 
 
 49. — (1) Where the pre-war standard of profits is taken to be 
 the percentage standard or is calculated by reference to the 
 statutory percentage in the case of any trade or business 
 owned or carried on by a company or other body corporate 
 whose directors have a controlling interest, the Commissioners 
 of Inland Revenue may, if they think fit, as respects any 
 accounting period, including a past accounting period, for the 
 purpose of the provisions relating to the statutory percentage 
 and for the purpose of the determination and computation of 
 profits under Part I. of the Pourth Schedule to the principal 
 Act, treat the company or body corporate as if it were a firm 
 and not a company or body corporate and the directors or any 
 of them as if they were partners in the firm. 
 
 (2) If as respects any accounting period ending on or after 
 the first day of July nineteen hundred and fifteen, the Com- 
 missioners of Inland Revenue refuse to allow a deduction in 
 respect of any increase in the remuneration of directors of any 
 trade or business, and the taxpayer is required to pay excess 
 profits duty in respect of the disallowed deduction, the taxpayer 
 shall be entitled to recover from any such director the amount 
 which the taxpayer has paid by way of excess profits duty in 
 respect of the increase ; but any amount so recovered shall, 
 unless the Commissioners otherwise direct, be treated as excess 
 profits duty paid by the director from whom it is recovered and 
 not as excess profits duty paid by the taxpayer. 
 
 (3) In this section, the expression " directors " includes any 
 managers or persons concerned in the management of the 
 trade or business who are remunerated out of the funds of the 
 trade or business. 
 
 Further 50. Paragraph 7 of Part I. of the Fourth Schedule of the 
 
 provision as principal Act (which allows deductions to be made in respect of 
 applied in pi'ofits applied in extinction of losses) shall apply to a case 
 extinction where the capital account of any trade or business shows a debit 
 of previous i^aia^ce as it applies to a case where the percentage standard is 
 adopted as the pre-war standard of profits. 
 
 51. It is hereby declared that, for the purpose of sub- 
 section (2) of section thirty-eight of the principal Act, any 
 
 Provision 
 as to 
 
 period. ° period for which the books of a trade or business have been 
 28 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 actually made up for any interim or other purpose in such a A.D. 1916. 
 manner that the profits for that period can be readily ascertained 
 is (without prejudice to the powers of the Commissioners of 
 Inland Revenue under that provision) to be taken as an 
 accounting period, notwithstanding that under the articles of . 
 association of the company carrying on the trade or business 
 or under any other regulations affecting the carrying on of tlie 
 trade or business the accounts are also required to be made up 
 for some other period, and notwithstanding that such accounts 
 are not issued. 
 
 52. It is hereby declared that, for the purpose of excess Provision a» 
 profits duty, profits of any trade or business arising and accu- f**,**^*^""^'g,, 
 mulating during any accounting period are not, during that 
 
 period, to be treated as accumulated profits within the meaning 
 of Part III. of the Pourtli Schedule to the principal Act, or as 
 capital employed in the trade or business. 
 
 53. Section thirty-five of the principal Act (which relates to Application 
 the computation of profits and gains for the purpose of income **J section 3o 
 tax in relation to excess profits duty) shall apply to sums Fit 
 
 1 nance 
 
 actually paid in respect of munitions Exchequer payments as it (No. 2) Act, 
 applies to excess profits duty, except that the relief to the tax- munitions 
 payer under subsection (2) of that section shall in all cases Exchequer 
 be given by means of repayment and not by deduction. payments. 
 
 54. Any person may deposit with the Commissioners of Deposit of 
 Inland Revenue any sums for the purpose of satisfying any sums for 
 excess profits duty which may thereafter become payable by of excels 
 him ; and sums so deposited shall be applied in payment of profi^-s '^"^y- 
 any such duty as and when it becomes payable. 
 
 In calculating the amount to be so applied in payment of 
 duty interest shall be allowed at such rate as may for the 
 time being be determined by the Treasury. 
 
 55. Subsection (3) of section forty of the principal Act Amend- 
 
 ( which provides amongst other things for the reference of certain ™®°^o rsT 
 matters for the decision of a board of referees) shall, where the of the 
 application for such a reference is made in respect of a trade F^^cipal 
 or business carried on in a controlled establishment within the 
 meaning of Part II. of the Munitions of War Act, 1915, and 
 relates to an accounting period during any part of which the 
 establishment has been so controlled, and to the postponement 
 or suspension of renewals or repairs, or to exceptional depre- 
 ciation or obsolescence of assets, or to the necessity in connexion 
 
 O 29 
 
[Ch. 24.] Finance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916, with the present war of providing plant, have effect as though 
 a referee or hoard of referees appointed or designated by the 
 Minister of Munitions for the purpose were substituted for the 
 board of referees under the principal Act. 
 
 Exemption 56. In the case of any trade or business which by reason 
 
 profits^dut^v ^^ ^^^ being unable to pay its debenture holders or creditors is 
 of businesses being carried on by a liquidator, receiver, or trustee under the 
 ^'^d^^^^th'^ court, no excess profits duty shall be levied or paid until pro- 
 court, vision has been made for payment of such unpaid debenture 
 holders or creditors. 
 
 Definition. 57. In this Part of this Act the expression " munitions 
 
 " Exchequer payments " means any sums paid into the 
 Exchequer under section four of the Munitions of War Act, 
 1915, on account of the excess of the net profits of a 
 controlled establishment. 
 
 Part IV. 
 
 National Debt and Loans. 
 
 Limited 58. — (l) The Treasury may during the continuance of the 
 
 power to present war and a period of six months thereafter borrow for the 
 
 borrow on -"^ ^ 
 
 Exchequer purpose of raising any sums which they are authorised to issue 
 bonds for q^^ q£ ^]^^ Consolidated fund under any Consolidated Eund Act 
 
 W ays and ... * n i i. • iy> 
 
 Means pur- or Appropriation Act or for the purpose of paying on any 
 
 poses. securities issued under any such Act in the same manner as they 
 
 are authorised to borrow under subsection (1) of section one of 
 
 5 & 6 Geo. 5. the War Loan Act, 1915 : 
 c. 55. 
 
 Provided that any securities issued under this section shall 
 
 be repaid or redeemed not later than five years after the date 
 
 on which they are issued. 
 
 4 & 5 Geo. 5. (2) Subsections (2) and (3) of section one of the War Loan 
 
 ^' ' Act, 1914, and subsection (2) and (3) of section fourteen of the 
 
 Einance Act, 1914 (Session 2), shall apply to any sums borrowed 
 
 under this section. 
 
 Susp«5nsion 59. In the financial year ending the thirty-first day of March 
 
 ing^funr" " ^i^®^66^ hundred and seventeen, that portion of the permanent 
 
 annual charge for the national debt which is not required for 
 50 & 51 Vict, the annual charges directed by the National Debt and Local 
 
 Loans Act, 1887, or any other Act, to be paid out of that 
 
 charge, shall not be paid. 
 30 
 
[6 & 7 Geo. 5.] Finance Act, 1916. [Ch. 24.] 
 
 60. During the continuance of the present war and a period A.D. 1916. 
 of six months thereafter, the Treasury may, for tlie purpose of Arraiige- 
 carrying out any arrangement made by them for the exchange ments for 
 of securities issued under any War Loan Act passed during the gecuHti^s** 
 continuance of the war, provide for the issue of new securities issued unJcr 
 for the purpose of the exchange and for the cancellation of the ^^rLoan 
 securities received in exchange. 
 
 61. — (1) Any person from whom any sum is due on account Power to 
 of any death duty may pay that sum or any part thereof by means tran.sfer 
 of the transfer m accordance with regulations made by the bon.is in 
 Treasury to the Commissioners of Inland Revenue of an equal satisfaction 
 amount of any Exchequer bonds forming part of an issue which duties, 
 may be approved by the Treasury for the purpose, and any 
 Exchequer bonds so transferred shall be accepted by the Com- 
 missioners in satisfaction of the amount. 
 
 (2) Any Exchequer bonds so transferred shall be deemed to 
 mature for payment on the date of the transfer, and the principal 
 and interest of the bond when received by the Commissioners of 
 Inland Jlevenue shall be brought into account as death duty 
 revenue in such manner as the Treasury direct. 
 
 (3) Exchequer bonds shall for the purposes of this section be 
 deemed to be of the amount of their nominal value with the 
 addition of any interest accrued due but remaining unpaid. 
 
 62. Section four of the Exchequer Bills and Bonds Act, Repeal of 
 1866 (which relates to the counterfoils of Exchequer Bills), shall 29 & 30 Vict, 
 cease to have effect. 
 
 63. Any securities issued in the United States of America Exemption 
 
 by a municipal corporation, county council, or other local ^!"°™ ^^*' . 
 
 I'l 1 uon of mum- 
 
 authority in the United Kingdom for the purpose of raising any cipal securi- 
 
 money which they are authorised to borrow, if issued under the *'®^ issued in 
 
 authority of the Treasury, shall not be liable to any taxation 
 
 present or future, except where they are held by persons domiciled 
 
 in the United Kingdom or by British subjects ordinarily resident 
 
 in the United Kingdom. 
 
 The expression " local authority " in this section includes 
 
 the Metropolitan Water Board and any other public body which 
 
 is recognised as a local authority for the purposes of this section 
 
 by the Local Government Board. 
 
 64. The Treasury may direct that any Exchequer bonds Payment of 
 
 issued under their authority during the continuance of the present interest on 
 
 war and a period of six months thereafter shall be issued or shall bonds in 
 
 C 2 31 
 
[Ch. 24.] 
 
 Finance Act^ 1916. 
 
 [6 & 7 Geo. 5.] 
 
 A.D. 1916. 
 
 certain cases 
 without de- 
 duction of 
 income tax. 
 
 Lost or 
 destroyed 
 Exchequer 
 bonds. 
 
 be deemed to have been issued subject to the condition that the 
 interest on those bonds shall be paid without deduction of income 
 tax, and the interest shall be so paid accordingly ; but any such 
 interest shall be accounted for and charged to income tax under 
 the third case of Schedule D, subject, however, to any provisions 
 of the Income Tax Acts with respect to exemptions or abate- 
 ments. 
 
 65. Where the Bank of England are satisfied that any 
 Exchequer bond, or any other bond to bearer issued by them 
 on behalf of the Treasury, or any coupon of any such bond has 
 been lost or destroyed, they may, if they think fit, and on such 
 conditions as they think fit, but subject to any general directions 
 of the Treasury, issue a new bond or coupon on receiving 
 indemnity to their satisfaction against the claims of all persons 
 deriving title under the bond or coupon lost or destroyed. 
 
 In the application of this section to bonds issued through 
 the Post Office the Postmaster-General shall be substituted for the 
 Bank of England. 
 
 Transfer of 66. Any order or decree of any court in the United Kingdom 
 
 au°thor*ity of whereby the right to transfer or call for a transfer of any Govern- 
 ment stock or to receive any dividends thereon is expressed to 
 be vested in any person shall be sufficient authority to the Banks 
 of England and Ireland, to the National Debt Commissioners, 
 to the Postmaster-General, and to any savings bank authority 
 to allow the transfer of the stock or to pay the dividends in 
 accordance with the order or decree. 
 
 An official extract of any such appointment as is mentioned 
 52 & 53 Vict, in section thirteen of the Judicial Factors (Scotland) Act, 1889, 
 °* ^^' shall, where any Government stock is specified in such official 
 
 extract or in a certificate under seal by the accountant of 
 court produced along with such extract as belonging to or 
 forming part of the estate under the charge of the person 
 named in the extract, be deemed for the purposes of this section 
 to be a decree whereby the right to transfer such government 
 stock is vested in the person so named. 
 
 In this section the expression " Government stock " has the 
 56 & 57 Vict, same meaning as in the Savings Bank Act, 1893, as amended by 
 any subsequent enactment. 
 
 Indemnity on 67. Where any Government stock is transferred by virtue 
 
 GovSLi'fnt o^ section forty-eight of the Finance (Nq. 2) Act, 1915, on the 
 
 Btock. authority of any probate, confirmation, or letters of administration, 
 
 or by virtue of this Act on the authority of any order or decree 
 
 32 
 
 order of a 
 court. 
 
[6 & 7 Geo. 6.] Mnance Act, 1916. [Ch. 24.] 
 
 of any court, the Bank of England or Ireland, the National A.D. 1916. 
 Debt Commissioners, the Postmaster-General, or the savings 
 bank authority, as the case may be, shall be indemnified and 
 protected, notwithstanding any defect or circumstance whatsoever 
 affecting the validity of such probate, confirmation, or letters of 
 administration, or of such order or decree. 
 
 68. — (1) Subsection (1) of section two of the Government Extension of 
 
 War Obligations Act, 1915, shall apply, and shall be deemed sfction 2 oi 
 
 always to have applied, to the sale of securities to the Treasury ^ar Obli"a- 
 
 and to securities sold to the Treasury in the same manner as it tions Act, 
 
 applies to the giving of securities to the Treasury in exchange for - . J ^ 
 
 Government securities and to securities so given in exchange. c. 96. 
 
 (2) The authority and indemnity given to persons holding 
 securities under subsection (1) of section two of the Government 
 War Obligations Act, 1915, shall apply, and shall be deemed 
 always to have applied, to directors of a company, and to any 
 person holding securities on behalf of any corporation or body of 
 persons depositing securities or giving them in exchange, or selling 
 securities, in pursuance of that subsection as amended by this 
 Act, notwithstanding any want of authority from the company, 
 corporation, or body of persons. 
 
 (3) It is hereby declared that subsection (4) of section two 
 of the Government War Obligations Act, 1915 (which removes 
 certain disqualifications attaching to Members of Parliament in 
 connection with the deposit, exchange, and sale of securities under 
 a Treasury securities deposit scheme), applies to any transactions 
 in connection with any such deposit, exchange, or sale as it 
 applies to the deposit, exchange, or sale. 
 
 Part V. 
 
 General. 
 
 69. — (1) Part I. of this Act, so far as it relates to duties Construc- 
 of Customs, shall be construed together with the Customs ^'°"' repetl, 
 Consolidation Act, 1876, and any enactments amending tliat title. 
 Act, and so far as it relates to duties of Excise shall be con- 
 strued together with the Acts which relate to the duties of 
 Excise and the management of those duties. 
 
 Part II. of this Act shall be construed together with the 
 Income Tax Acts, 1842 to 1853, and any other enactments 
 
 33 
 
[Oh. 24.] Finance Act, 1916. [6 & 7 Geo. 5.] 
 
 A.D. 1916. relating to income tax, and those enactments and Part II. of 
 this Act are in this Act referred to as the Income Tax Acts. 
 
 Part III. of this Act shall he construed together with 
 Part III. of the Finance (No. 2) Act, 1915. 
 
 (2) The Acts mentioned in the Second Schedule of this Act 
 are herehy repealed to the extent specified in the third column 
 of that Schedule. 
 
 (3) This Act may be cited as the Pinance Act, 1916. 
 
 84 
 
[6 & 7 Geo. 5.J Finance Act, 1916. 
 
 SCHEDULES. 
 
 [Ch. 24.] 
 
 PIRST SCHEDULE. 
 
 Sugar, &c. 
 Part I. — Duties. 
 
 Article. 
 
 Sugar which, when tested bj the polariscope, indi- 
 cates a polarisation exceeding ninetj-eight 
 degrees ------- the cwt. 
 
 Sugar of a polarisation not exceeding seventj-six 
 
 - the cwt. 
 
 degrees 
 Sugar of a polarisation — 
 
 Exceeding 76 and not exceeding 77 
 
 the cwt. 
 
 77 
 78 
 79 
 80 
 81 
 82 
 83 
 84 
 85 
 86 
 87 
 88 
 89 
 90 
 91 
 92 
 93 
 94 
 95 
 96 
 97 
 
 78 
 
 79- 
 
 80- 
 
 81- 
 
 82- 
 
 83- 
 
 84- 
 
 85- 
 
 86- 
 
 87- 
 
 88- 
 
 89- 
 
 90- 
 
 91- 
 
 92- 
 
 93- 
 
 94- 
 
 95- 
 
 96- 
 
 97- 
 
 98- 
 
 Molasses (except when cleared for use by a licensed 
 distiller in the manufacture of spirits) and invert sugar 
 and all other sugar and extracts from sugar which 
 cannot be completely tested by the polariscope and on 
 which duty is not specially charged by this section — 
 If containing 70 per cent, or more of sweetening 
 matter ------ the cwt. 
 
 If containing less than 70 per cent, and more than 
 
 50 per cent, of sweetening matter - the cwt. 
 
 If containing not more than 50 per cent, of 
 
 sweetening matter - - - - the cwt. 
 
 The amount of sweetening matter to be taken to be 
 the total amount of cane, invert, and other sugar 
 contained in the article as determined by analysis in 
 manner directed by the Commissioners of Customs 
 and Excise. 
 Glucose : 
 
 Solid ------- the cwt. 
 
 Liquid „ 
 
 Saccharin (including substances of a like nature or 
 use) ------. the oz. 
 
 Customs Duty. Excise Duty. 
 
 £ s. d. 
 14 
 6 9 
 
 10 
 10 
 10 
 11 
 11 
 11 
 12 
 12 
 12 
 
 11 
 2 
 4 
 7 
 
 10 
 
 3 
 6 
 9 
 
 3 
 6 
 
 10 
 2 
 6 
 
 10 
 2 
 6 
 
 10 
 2 
 6 
 
 10 
 
 8 10^ 
 6 4i 
 
 3 li 
 
 8 10 
 6 4 
 
 4 6 
 
 £ s. d. 
 11 B 
 5 7 
 
 8 
 8 
 8 
 
 10 
 10 
 10 
 
 7 4i 
 5 3^ 
 2 7i 
 
 8 1 
 6 4 
 
 4 6 
 
 A.D. 1916. 
 
 SectionB 5, 6. 
 
 [NoTB. — The charge under this Schedule of a specified amount of duty on a 
 specified weight of any article includes a charge of a proportionately less duty on 
 any less weight of any article so charged.] 
 
 86 
 
[Ch. 24.1 
 
 Finance Act, 1916. 
 
 [6 & 7 Geo. 5.] 
 
 A.D. 1916. 
 Sections 5, 6. 
 
 *Paiit II. — Drawbacks and Allowances. 
 
 (1) Customs Drawbacks under the Second Schedule of the 
 Finance Act, 1901. 
 
 Drawback to bo allowed to a refiner on molasses produced 
 in Great Britain or Ireland from imported sugar and 
 delivered by him to a licensed distiller for use in the 
 manufacture of spirits . - - - the cwt. 
 
 Other drawbacks ------- 
 
 £ s. d. 
 
 3 \\ 
 
 Arcording to the amount 
 
 of duty paid. 
 
 (2) Excise Drawbacks. 
 
 A. — Under the Third Schedule of the Finance Act, 1901 
 
 B. — Drawback to be allowed on molasses produced in 
 Great Britain or Ireland from sugar made in 
 Great Britain or Ireland and delivered to a 
 licensed distiller for use in the manufacture of 
 spirits _..--- the cwt. 
 
 C. — Drawback to be allowed in any other case on articles 
 liable to the Excise duty exported or shipped for 
 use as stores, if it is shown to the satisfaction 
 of the Commissioners of Customs and Excise that 
 the Excise duty has been duly paid - - - 
 
 According to the amount 
 of duty paid. 
 
 £ s. d. 
 2 7i 
 
 According to the amount 
 of duty paid. 
 
 (3) Allowances on Molasses used solely for the Purpose of 
 
 Food for Stock. 
 
 Allowance to a refiner on molasses under subsection (2) 
 of section one of the Revenue Act, 1903 - the cwt. 
 
 Allowance on molasses produced from sugar made in 
 Great Britain or Ireland in circumstances in which an 
 allowance would be allowed under subsection (2) of 
 section one of the Revenue Act, 1903 in respect of 
 molasses produced from imported sugar - the cwt. 
 
 £ s. d. 
 3 li 
 
 2 7^ 
 
 • The substituted drawbacks and allowances shall only take ell'ect where it is 
 shown that duty has been paid at the increased rate. 
 
 86 
 
[fl & 7 Geo. o.] 
 
 Finance Act, 1916. 
 
 [Ch. 24.] 
 
 SECOND SCHEDULE. 
 
 A.D. 1916. 
 Section 69. 
 
 Enactments Repealed. 
 
 Session and 
 Chapter. 
 
 Short Title. 
 
 Extent of Repeal. 
 
 29 & 30 Viot. 
 e. 25. 
 
 The Exchequer Bills 
 and Bonds Act, 
 1866. 
 
 Section four ; and in section twentj-six, the 
 word "four." 
 
 4 (fc 5 Geo. 6. 
 0. 10. 
 
 The Finance Act, 
 1914. 
 
 Section six. 
 
 5 & 6 G^«o. 5. 
 0.89. 
 
 The Finance (No. 2) 
 Act, 1915. 
 
 Sections two, three, fonr, fiye, and six ; 
 subsection (1) of section seven, from '^aa 
 from " to " sixteen " and from " in respect 
 of " to '' Act, and " ; subsections (2) and 
 (3) of section seven. 
 
 Printed by Eyre and Spottiswoodb, Limited, 
 
 FOR 
 
 Frederick Attbrbury, Esq., C.B., the King's Printer of Acta of Parliament. 
 
 To be purchased throueh any Bookseller or directly from 
 
 H.M. STATIONERY OFFICE at the following addresses : 
 
 IHFSRIAX Housa, KiNGSWAT, LoNPOw, W.C.2, and 28, Abingdon Strket, Loirooir. 8.W.1 i 
 
 87, Pbtbb Strekt, Manchkstbr ; 1, St. Andrew's Crescent, Cardipf ; 
 
 23, roRTH Street, Edinburgh ; 
 
 or from B. PONSONBY, Ltd., U6, Gravton Street, Dublin ; 
 
 or from the Agencies in the British Colonies and Dependencies, 
 
 the Uaited States of America and other Foreign Countries of 
 
 T. FISHER UNWIN. I;rD.. I^ondon, W.C. 
 
1 I A i 
 
 
m 
 
 ml 
 
370213 
 
 UNIVERSITY OF CALIFORNIA UBRARY 
 
J, , 
 
 t . . "'-'" ^-/. . -; ."*'■- ,V- A*. r-,v