DEDUCTIONS ARE ALLOWED For repairs of premises occupied for the purpose of the trade, etc., and for the supply or repair of implements, utensils, or articles employed, not exceeding the sum usually expended for such purposes according to the average of the three years preceding. For debts proved to be bad ; also for doubtful debts according to their estimated value.
For the rent of premises used solely for the purposes of business, and not as a place of residence.
For a proportion, not exceeding two thirds, of the rent of any dwelling house partly used for the purposes of business.
For the annual value of any premises occupied by the owner solely for the purposes of business, and not as a place of residence, according to the amount on which duty has been paid under Schedule A.
For a proportion, not exceeding two thirds, of the annual value (according to the amount on which duty has been paid under Schedule A), of any dwelling house occupied by the owner and partly used for the purposes of business.
For any other disbursements or ex penses wholly and exclusively laid out for the purposes of the trade, etc.
No DEDUCTIONS ARE For any interest on capital, for any annual interest, annuity, or other annual payment, payable out of the profits or gains, or for any royalty, or other sum paid in respect of the user of a patent. (The duty on such interest, patent royalty, or other annual payment should he deducted from the person to whom the payment is made.) For any sums paid as salaries to partners or for drawings by partners.
For any sums invested or employed as capital in the trade or business, or on account of capital withdrawn therefrom.
For any sums expended in improvement of premises or written off for deprecia tion of land, buildings, or leases.
For any loss not connected with, or arising out of the trade, etc.
For any expenses of maintenance of the persons assessable, their families, or private establishments.
For any loss recoverable under an insurance or contract of indemnity.
For any sum paid as income tax on profits or gains, or on the annual value of trade premises.
For any premium for life insurance, or for wear and tear of machinery or plant but allowances may be claimed in respect of these items.
By the Finance Act, 1907, Section 21, s.s. 1, " Every employer, when required to do so by notice from an assessor, shall, within the time limited by the notice, prepare and deliver to the assessor a return of the names and places of residence of any persons employed by him, to whom this provision applies, and of the payments made to those persons in respect of that employment. . . ."
This provision does not apply to employees whose yearly remuneration does not exceed the sum fixed as the limit (at present for total exemption from income tax (Section 21, s.s. 1). Where the employer is a com pany, the secretary, or other officer perform ing the duties of secretary, shall be deemed to be the employer for the purposes of this provision, and any director, or person engaged in the management of the company, shall be deemed to be a person employed ,Section 21, s.s. 2i.
With regard to the deduction of income tax from foreign and colonial dividends, and from the interest on fixed deposits in colonial banks in London, the following enactments apPlY : The effect of Section 36 of 24 & 25 Viet. c. 91 is that income tax must be deducted from interest, dividends or other annual payments payable in respect of stocks or shares of any foreign or colonial company or concern, which said interest, dividends or annual payments have been intrusted to any person in the United Kingdom for payment to any persons or companies in the United Kingdom.
(The Board of Inland Revenue include under this Section the deduction of tax from the interest payable by colonial banks in London upon fixed deposits.) The Customs and Inland Revenue Act, 18S5, includes amongst the persons intrusted with the payment of such dividends, as is referred to in the above Section, the persons hereinafter described ; that is to say, " Section 26. (a) Any banker or person acting as a banker who shall sell or otherwise realise coupons or war rants for or bills of exchange pur porting to be drawn or made in payment of any (livid nds (save such as are payable in the United King dom only), and pay over the pro ceeds to any person or carry the same to his account ; b) Any person who shall by means of coupons receive from any other person, or otherwise on his behalf. obtain payment of any dividends elsewhere than in the United Kingdom ; c) Any dealer in coupons who shall pur chase coupons for anydividencls (save such as are payable in the United Kingdom only) otherwise than from a banker or person acting as a banker or another dealer in coupons.