INCOME TAX. A tax upon incomes. It is payable upon incomes from sources within the United Kingdom, and upon incomes from sources outside the United Kingdom but received within the United Kingdom.
A return of income must be made yearly upon the forms provided for the purpose.
The rates for the year beginning April 6, 1909, (and for 1910,) are :— Where an individual, whose total income exceeds £160 but does not exceed £500, has a child or children living under the age of sixteen at the commencement of the year for which the tax is charged, he is entitled, in respect of every such child, to relief from income tax to the amount of the income tax upon £10 (Section 68, Finance (1909-10) Act, 1910).
Where the total joint income of a husband and wife does not exceed £500, a wife can separate her claim for exemption or abate ment from that of her husband on account of profits derived from any business carried on by means of her own personal labour, provided the husband is assessable under Schedule D, and that his income is uncon nected with the business of his wife.
If an owner of land or houses, not exceed ing L8 annual value, proves to the satis faction of the surveyor of taxes that the cost to him of maintenance, repairs, insurance and management, on the average of the five preceding years, has exceeded the allowances of one-eighth and one-sixth respectively allowed by Section 35, Finance Act, 1594, he may claim repayment on so much of the excess as does not exceed one-eighth of the annual value of the land and one-twelfth of the annual value of the house ; i.e., the total allowance under both statutes must not exceed one-fourth of the value (Section 69. Finance (1909-10) Act, 1910).
With regard to persons residing abroad, Section 71 of the above Act, enacts : " (1) No exemption, abatement, or relief under the Income Tax Acts which depends wholly or partially on the total income of an individual from all sources shall be given to any person, unless the person claiming the exemption, abatement, or relief is resident in the United Kingdom : Provided that any person who is or has been employed in the service of the Crown or who is employed in the service of any missionary society abroad or in the service of any of the native states under the protectorate of the British Crown, and any person resident in the Isle of Alan or Channel Islands and any person resident abroad who satisfies the Commissioners that he is so resident for the sake of health, shall be entitled to any relief, exemption, or abatement to which he would be entitled if he were resident in the United Kingdom, and if his total income from all sources were calcu lated as including any income in respect of which income tax may not be chargeable as well as income in respect of which income tax is chargeable.
" (2) Income tax shall not be payable in respect of the interest or dividends of any securities of a foreign state or a British possession which are payable in the United Kingdom, where it is proved to the satisfaction of the Commissioners that the person owning the securities and entitled to the interest or dividends is not resident in the United Kingdom ; but, save as provided by this or any other Act, no allowance shall be given or repayment made in respect of the income tax on the interest or dividends on the securities of any foreign state or any British posses sion which are payable in the United Kingdom.
Relief from income tax under this sub-section may be given by the Commissioners either by vay of allowance or repayment on a claim being made to them for the purpose within six months of the end of the year fur which the income tax is charged." There are five schedules for the annual return of income, viz. :— Schedule A.—For income from property in lands and buildings and sporting rights.
The tax under this Schedule is commonly called " Property Tax.") Schedule B.—For income from the occupation of land.