As for the Income Tax, only 20 per cent. of
the proposed 40 per cent. increase will be levied during the remainder (that is, the second half) of the current financial year. The following table shows the old and new rates :- Revised Tax for remainder of Old Tax. New Tax. Current Year.
Unearned income ... 2e. Gcl. in .9 ... 3s. 6d. 3s.
Earned income is. ad. in £ 2s. id. ls.
(roughly) (roughly) The lowest income to be taxed will in future be £130, instead of £100. In other words, a man earning £2 10s. a week will in future be taxed. Abatements are also reduced. A striking change is introduced in the former anomalous taxation of farmers' incomes. Their assessment under Schedule B is to be taken as the rent paid, instead of one-third of the rent. The farmer still has the option of being brought under Schedule D and taxed on the profits of his business. Income Tax is to be paid half-yearly by persons directly assessed, and quarterly by employees of all kinds. If a person can prove that his income is less by one-fifth than the income on which he has paid tax, the whole of the additional tax will be refunded, To take examples of the new tax, an income of £501 paid, at the old rate, £26 5s. At the current rate it will pay £35 18s. 5id., and next year £41 15s. 5d. An income of £1,000 paid, at the old rate, £75. At the current rate it will pay £89 11s. 8d., and next year £104 3s. 4d.
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