manner that the profits in respect of each industry can be readily ascertained; and

(b.) That in any year by reference to which the pre-war standard of profits is calculated a loss has been sustained in respect of any one or more of such industries;

the Commissioners may, if they think fit, in computing the profits standard, disregard that loss.

(6.) Where the Commissioners are satisfied that during the last 6 pre-war trade years, owing to trading losses

(a.) Any former assets of any trade or business have ceased to form part of the assets of that trade or business; or

(b.) The money borrowed in respect of the trade or business or the debts of the trade or business have increased; the Commissioners shall, for the purpose of ascertaining the capital of the trade or business in any case where the percentage standard is adopted, compute the capital as though there had been no such loss of assets or increase of borrowed money or debts.

(7.) 6 years shall be substituted for 3 years in sub-section (4) of section 41 of the principal Act (which provides for the adjustment of excess profits duty in respect of unremunerative capital).

(8.) The excess profits duty of a society registered under the Industrial and Provident Societies Acts may, if the society so requires, instead of being computed as provided for by paragraph 10 of Part I of the fourth Schedule to the principal Act, be computed as follows:

The amount of excess profits (if any) arising on commercial transactions with non-members shall be separately ascertained in accordance with the general principles of the principal Act, and there shall be added thereto the amount (if any) by which the profit or surplus arising from transactions with members per pound sterling of turnover in the accounting period exceeds the like profit or surplus in the pre-war trade year or average of years taken as the basis of computation for the purpose of the pre-war standard of profits in respect of such commercial transactions as aforesaid, multiplied by the number of pounds sterling of turnover in the accounting period; and excess profits duty shall be charged on the sum of those amounts:

Provided that the method of computation hereby laid down shall not be adopted for ascertaining the amount of any deficiency or loss for the purposes of sub-section (3) of section 38 of the principal Act, nor shall any duty computed under this provision be repaid or remitted by reason of a deficiency or loss in any other accounting period computed as provided for by the said paragraph 10.

Regulations made by the Commissioners for the purpose

of carrying the foregoing provision into effect may provide for defining and ascertaining turnover and the profit or surplus per pound sterling thereof, and for the application of that provision to new societies, and for extending, subject to such modifications as may be prescribed, to cases where duty is computed under that provision any of the general principles of the principal Act as to relief from duty.

27. Where part of an accounting period or of an accounting year, or of any period in respect of part of which munitions Exchequer payments are chargeable, is after, and part before, the beginning of the 1st day of January, 1917, the total excess profits and any deficiencies or losses arising in any such accounting period, and the total excess rent for any such accounting year, and the total profits in respect of part of which munitions Exchequer payments are chargeable, shall be apportioned between the time up to, and the time. after, that date in proportion to the number of months or fractions of months before and after that date respectively.

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28. In this Part of this Act references to the principal Act, or to "- The Munitions of War Act, 1915," or to any provisions of those Acts, shall be construed as references to those Acts or provisions as amended by any subsequent enactment, and the expression the Commissioners means the Commissioners of Inland Revenue, and the expression "munitions Exchequer payments" in this Part of this Act and in any other enactment, includes any sums payable into the Exchequer under section 4 of "The Munitions of War Act, 1915," on account of the excess of the net profits of a controlled establishment.

PART IV.-Death Duties.

29. Section 14 of The Finance Act, 1900,’* as extended by "The Death Duties (Killed in War) Act, 1914," and section 46 of "The Finance (No. 2) Act, 1915," shall apply in the case of a master or a member of the crew of a ship or a fishing boat dying, whether before or after the passing of this Act, from causes arising out of the operations of the present war and within twelve months from the occurrence to which death is due, in like manner as it applies in the case of a person dying from such wounds, accident, or disease as are mentioned in the said section 14, with this qualification, that the Treasury shall act on the recommendation of the Board of Trade instead of on that of the Secretary of State or the Admiralty.

PART V.-Stamps.

30.—(1.) The following exemption shall be added to the exemptions under the head "Letter or power of attorney and commission, factory, mandate, or other instrument in the nature thereof," in the First Schedule to "The Stamp Act, 1891," namely:

(4.) Letter or power of attorney for the sale, transfer, or acceptance of any of the Government or parliamentary stocks or funds.

(2.) Section 81 of the said Act and sub-head (5) of the head"Letter or power of attorney, and commission, factory, mandate, or other instrument in the nature thereof," in the First Schedule to the said Act, and section 11 of "The Finance Act, 1895,"* are hereby repealed.

(3.) This section shall be deemed to have been in force as from the 26th day of March, 1917.

PART VI.-National Debt and Loans.

31. In the financial year ending the 31st day of March, 1918, that portion of the permanent annual charge for the national debt which is not required for the annual charges directed by The National Debt and Local Loans Act, 1887," or any other Act, to be paid out of that charge, shall not be paid.

32. (1.) The Treasury shall by regulations establish a depreciation fund in connection with the 5 per cent. war loan 1929-1947 and the 4 per cent. war loan 1929-1942 in accordance with the terms upon which those loans were raised, and may issue out of the Consolidated Fund or the growing produce thereof from time to time such sums as may be required for the purposes of that fund:

Provided that the aggregate sums so issued shall at no time exceed an amount equal to one-eighth of 1 per cent. per month, calculated as from the 17th day of February, 1917, of the total nominal value of the stock and bonds of those loans originally created whether as a result of subscriptions or conversions.

(2.) The regulations may provide-

(a.) For the manner in which the fund is to be applied, including the purchase for cancellation from any Government account of stock or bonds purchased between the said 17th day of February and the passing of this Act in anticipation of the establishment of the fund; and

(b.) For the cancellation of any stock or bonds to the purchase of which the fund has been applied.

• Vol. LXXXVII, page 961.

(3.) The Treasury may, if they think fit at any time, for the purpose of providing for the issue of sums out of the Consolidated Fund under this section or for the repayment to that fund of all or any part of the sums so issued, borrow money in any manner in which money is authorised to be borrowed for the purposes of the present war; and all sums so borrowed shall be paid into the Exchequer.

33. Any expenses incurred in connection with the redemption of any securities issued under "The War Loan Act, 1916," shall be charged and paid out of the Consolidated Fund or the growing produce thereof in the same manner as expenses incurred in connection with the redemption of securities issued under "The War Loan Act, 1914,' and The War Loan Act, 1915 "; and sub-section (5) of section 1 of The War Loan Act, 1916," shall have effect accordingly.

34.-(1.) The Treasury may by regulations prescribe as securities to be accepted in payment of any death duty or excess profits duty or munitions Exchequer payments any stock or bonds forming part of any issue made for raising money in connection with the present war, and any such regulations may specify different securities in respect of different duties and payments, and may prescribe the limitations and conditions subject to which any securities will be accepted, and any person from whom any sum is due on account of any death duty or excess profits duty or munitions Exchequer payments may pay that sum or any part thereof by means of the transfer, in accordance with and subject to the provisions of such regulations as aforesaid, to the Commissioners of Inland Revenue of an appropriate amount (ascertained as hereinafter mentioned) of any stock or bonds authorised by the regulations.

(2.) Any stock or bonds so transferred shall be accepted by the Commissioners of Inland Revenue in satisfaction of the amount.

(3.) Any stock or bonds so transferred shall be deemed to mature for payment on the date of the transfer, but the principal payable on maturity shall be deemed to be a sum equal to the price of issue, and the principal and interest of the stock or bonds when received by the Commissioners of Inland Revenue shall be brought to account as revenue in such manner as the Treasury may direct.

(4.) Stocks or bonds so transferred shall for the purposes of this section be valued at the price of issue with the addition of any interest accrued due at the date of transfer but then remaining unpaid, after deducting the amount of any interest which may be receivable by the transferor after that date:

Provided that in the case of excess profits duty and munitions Exchequer payments

(a.) If the transfer takes place after the date when the duty or payments become payable there shall be deducted from the value so attributed to the stock or bonds the amount of any interest which accrued due on the stock or bonds after that date; and

(b.) If the transfer takes place before that date, a sum equal to the value thereof so ascertained as aforesaid shall be deemed to be money deposited under section 54 of "The Finance Act, 1916," and interest thereon shall be allowed in accordance with that section.

(5.) For the purposes of this section interest shall be deemed to accrue from day to day.

(6.) Section 61 of "The Finance Act, 1916," is hereby repealed.

35.-(1.) It shall be lawful and shall be deemed always to have been lawful for a trustee to borrow for the purpose of subscribing to or investing in any securities which have been or may be issued in connection with any Government loan raised for the purpose of the present war, and a trustee shall not be liable for any loss resulting from any borrowing so authorised or from any subscription to or investment in such securities or the sale of any securities for the purpose of such subscription or investment, or from the exercise of any option to convert any securities into securities so issued, whether such borrowing, subscription, investment or sale, or the exercise of such option, was before or after the passing of this Act; and trustees and other persons acting in any fiduciary character are hereby expressly authorised to exercise without the consent of any other person, such powers of borrowing, subscription, investment, sale, or conversion, notwithstanding any thing in any instrument creating the

trust:

Provided that

(a.) In the case of transactions after the passing of this Act, a trustee shall before borrowing for the purpose aforesaid give notice of his intention so to do to the persons for the time being beneficially entitled to the income of the trust fund and the amount borrowed shall not exceed the value for the time being of the trust fund.

(b.) For the purpose of transactions after the passing of this Act the power to borrow for the purpose of investing in any such securities shall be deemed not to include a power to borrow for the purpose of purchasing any such securities at any time after the subscription list has been closed, or, in the case of any such securities which are issued on application