(2) If a person who has paid, or is liable to pay United Kingdom income tax, proves that he has paid Dominion income tax in respect of the same part of his income he shall be entitled to relief from United Kingdom income tax at a rate thereon to be determined as follows (a) Li the Dominion rate of tax doe not exceed one-half of the appropriate rate of United Kingdom tax, the rate at which relief te be given shall be the Dominion rate of tax.
(b) In any other case the rate at which relief is to be given shall be one-half of the appropriate rate of United Kingdom tax.
A further section includes among the deductions that may be made on account of life insurance premiums the payment of any sum for securing a deferred annuity to a widow or provision for children after death.
How tae Tax Worgs.
A definite example of how the new provision: work out in comparison with last year will perhaps make the changes clear A man with an earned income of $1,200, his wife with an unearned come of £400 and with 3 children
Earned income Less one tenth
Add unearned income
Assessable income Personal deduction vil all wie Deduction for children Not asseesable income On this he will pay 3s. in the on £925 and 6s. in the £ on the balance: of £940—making _a total payment of £315 15s. Od. Last year he could not have made any deduetion for wife and children but would have paid: on £1,200 at 4s. 6d. in the £, and on £400 at 5s. 3d, in the £, or a total of £275.
Text read from the printed page and cleaned; old type leaves the occasional error.