vexatious, shall refer the case to the Board of Referees, and that Board shall, if they are satisfied that the application is made by or on behalf of any considerable number of persons engaged in any class of trade or business, take the application into their consideration, and determine the deduction to be allowed.

In this section

The expression deduction for wear and tear has the same meaning as in section 26 of "The Finance Act, 1907 "; and

The expression" Board of Referees " means any Board of Referees appointed for the purpose of Part III of "The Finance (No. 2) Act, 1915," or, if there is no such Board, a Board of Referees to be appointed for the purpose of this section by the Treasury.

(2.) Section 12 of The Customs and Inland Revenue Act, 1878," as amended by section 26 of "The Finance Act, 1907," shall have effect as if the references therein to diminished value by reason of wear and tear during the year of any machinery or plant included references to diminished value by reason of any machinery or plant having been temporarily out of use at any time during the year through circumstances attributable, directly or indirectly, to the present war.

(3.) In estimating the profits or gains of any trade, manufacture, adventure, or concern in the nature of trade chargeable under Schedule D, or the profits of any concern chargeable by reference to the rules of that Schedule, there shall be allowed to be deducted as expenses incurred in any year so much of any amount expended in that year in replacing any plant or machinery which has become obsolete as is equivalent to the cost of the plant or machinery replaced after deducting from that cost the total amount of any allowances which have at any time been made in estimating profits or gains as aforesaid on account of the wear and tear of that plant and machinery and any sum realised by the sale of that machinery or plant.

(4.) Section 9 of The Finance Act, 1898" (which relates to the amount of the deduction to be allowed on account of the annual value of premises), shall not apply in the case of any premises being mills, factories, or other similar premises.

25. Where a non-resident person is chargeable to income tax in the name of any branch, manager, agent, factor, or receiver in respect of any profits or gains arising from the sale of goods or produce manufactured or produced out of the United Kingdom by the non-resident person, the person in whose name the non-resident person is so chargeable may, if

he thinks fit, apply to the Commissioners by whom the assessment is made or, in case of an appeal, to the General or Special Commissioners to have the assessment to income tax in respect of those profits or gains made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold who had bought from the manufacturer or producer direct, and, on proof to the satisfaction of the Commissioners concerned of the amount of the profits on the basis aforesaid, the assessment shall be made or amended accordingly..

26. Where any lands, tenements, hereditaments or other premises of whatsoever description used for the purpose of any trade, manufacture, adventure, concern, profession, employment or vocation, are situated outside the United Kingdom, no deduction or set-off shall, in estimating the amount of annual profits or gains arising or accruing from that trade, manufacture, adventure, concern, profession, employment or vocation, in any manner be allowed on account or in respect of the annual value of those premises.

27.-(1.) Section 68 of "The Finance (1909-10) Act, 1910 "* (which, as amended by section 33 of "The Finance Act, 1916," gives to individuals whose total income does not exceed 7001. relief from income tax in respect of children), as amended by any subsequent enactments, and section 13 of "The Finance Act, 1917," shall have effect as if 800l. were substituted as the limit of income for 7001.

(2.) If any individual, who has been assessed or charged to income tax or has paid income tax either by deduction or otherwise, claims and proves in manner prescribed by the Income Tax Acts that his total income from all sources, although it exceeds 1301., does not exceed 8001., and that for the year for which the income tax is charged he has a wife living with him, or maintains at his own expense any person being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, and whose income from all sources does not exceed 251. a year, he shall be entitled in respect of his wife and in respect of every such person as aforesaid whom he so maintains to relief from income tax equal to the amount of income tax on 251.

The provisions of this sub-section which give relief to an individual in respect of a wife shall in the case of any individual being a widower be extended so as to give relief in respect of a person, being a female relative of his or of his deceased wife, who is resident with him for the purpose of having the charge and care of any child of his.

(3.) If any individual who has been assessed or charged to income tax or has paid income tax by deduction or otherwise claims and proves in manner prescribed by the Income Tax Acts that his total income from all sources, although it exceeds 800l. does not exceed 1,000l., and that he would if his income did not exceed 8001. be entitled under section 68 of "The Finance (1909-10) Act, 1910," as amended by any other enactment, or under section 13 of "The Finance Act, 1917," to relief in respect of three or more children, he shall be entitled in respect of each of those children above the number of two to relief from income tax equal to the amount of income tax on 251.

In this section the expression "relative" includes any person of whom the individual in question had the custody and whom he maintained at his own expense while that person was under the age of sixteen years, and the expression child" means a child in respect of whom relief is given under section 68 of "The Finance (1909-10) Act, 1910," as amended by any other enactment or under section 13 of "The Finance Act, 1917.”

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The provisions of sub-sections (2) and (3) of section 68 of The Finance (1909-10) Act, 1910," as amended by any subsequent enactments, shall apply to the relief given by this section, to the manner of claiming such relief, and to the proof to be given with respect thereto, as if they were herein re-enacted and in terms made applicable to this section.

28. Where a clergyman or minister of any religious denomination is in the occupation of a dwelling-house, but pays no rent therefor, he shall for the purposes of section 28 of "The Finance Act, 1907" (which allows deductions by clergymen and ministers in respect of dwelling-houses), be deemed to pay a rent equal to the annual value of the dwelling-house as assessed to income tax under Schedule A, and that section shall have effect accordingly.

29. The Treasury may direct that any securities issued under "The War Loan Acts, 1914 to 1917," or any Act amending those Acts, shall be issued or shall be deemed to have been issued subject to the condition that the interest on those securities 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 abatements.

30. The provisions of sub-sections (1) and (3) of section 33 of The Finance (No. 2) Act, 1915" (which provides for the payment of income tax by instalments in certain cases), shall apply to the case of income tax charged under No. I or No. II

of Schedule A as they apply to the cases mentioned in subsection (2) of that section.

31. Any excess profits duty which becomes chargeable by virtue only of the provisions of this Act relating to profits arising from the sale of trading stock, otherwise than in the ordinary course of trade, shall not for the purpose of the provisions of section 35 of "The Finance (No. 2) Act. 1915," which enacts that, where a person has paid excess profits duty under that Act, the amount so paid shall be allowed as a deduction in computing profits and gains for the purpose of income tax, be deemed to be excess profits duty under that Act.

32.---(1.) An insurance committee established under Part I of The National Insurance Act, 1911," shall in respect of income derived from any funds or credits of the committee under "The National Insurance (Health) Acts, 1911 to 1918," or any investment thereof, and the trustees of the special fund constituted by sub-section (6) of section 48 of The National Insurance Act, 1911," as amended by "The National Health Insurance Act, 1918," shall in respect of income derived from that fund, be entitled to exemption from income tax, and the National Health Insurance Joint Committee shall be entitled to a similar exemption in respect of any income derived from any funds held by that Committee or under the control or management of that Committee under or for the purpose of "The National Insurance (Health) Acts, 1911 to 1918.'

(2.) Any exemption granted under this section shall be claimed and allowed in the same manner as in the ease of income applicable and applied to charitable purposes and shall be in addition to and not in derogation of any other exemption under any other Act.

33. For the purpose of removing doubts, it is hereby declared that any person who has made default in paying any sum which may be levied on him in respect of income tax or inhabited house duty may, notwithstanding that he was not named in the assessment, be entered as a defaulter in a certificate under section 97 of "The Taxes Management Act, 1880," which relates to the recovery of duty refused in Scotland.

PART III.-Excess Profits Duty.

34. "The Finance (No. 2) Act, 1915 " (in this part of this Act referred to as the "Principal Act"), as amended or extended by any subsequent enactment, shall, so far as it relates to excess profits duty, apply, unless Parliament otherwise determines, to any accounting period ending on or after

August, 1919, as it applies to accounting periods ended after the 4th day of August, 1914, and before the 1st day of August 1918.

35.-(1.) For the purposes of excess profits duty the profits arising from the sale at any time after the 22nd day of April, 1918, otherwise than in the ordinary course of trade of the trading stock or part of the trading stock belonging or formerly belonging to any trade or business, shall be deemed tc be profits arising from a trade or business, and where any such sale takes place after a trade or business has ceased the trade or business shall be deemed to have been carried on up to and including the date on which the sale takes place, and the accounting period shall be taken to be such as the Commissioners of Inland Revenue may determine.

(2.) Where a trade or business has ceased, but is deemed for the purposes of this section to have been carried on for any period

(a.) The person by whom or by whose authority any trading stock is sold, whether as owner, agent, liquidator, trustee, or receiver, or other person acting in a similar capacity, shall be deemed to be the person carrying on the trade or business, and excess profits duty shall be assessed on and recoverable from that person, and nothing in sub-section (2) of section 45 of the Principal Act shall operate so as to impose any liability to duty on the purchaser of the trading stock; and

(b.) The appointment of any such liquidator, trustee or receiver, or other person shall not be treated as a change of ownership of the trade or business, and sub-section (3) of section 38 of the Principal Act and paragraph 7 of Part I of the Fourth Schedule to that Act as amended by any subsequent enactment shall have effect as if the profits arising from the sale of the trading stock had been made by the owner of the business immediately before the appointment of the liquidator, trustee, receiver, or other person, and as if the duty were payable by him.

(3.) Where any trading stock is sold together with other assets of the trade or business, the part of the consideration attributable to the trading stock shall, subject to appeal in manner provided by sub-section (5) of section 45 of the Principal Act, be determined by the Commissioners of Inland Revenue, and the part of the consideration so determined shall be deemed to be the price paid for the trading stock by the purchaser.

(4.) For the purpose of this section any trading stock which has been disposed of otherwise than by way of, sale shall be deemed to have been sold, and any such trading stock so disposed of, and any trading stock which has been sold for