Income Tax Act 2007 (c. 3)

Part 15 U.K. Deduction of income tax at source

Modifications etc. (not altering text)

C1 Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)

Chapter 1 U.K. Introduction

847 Overview of Part U.K.

(1) This Part deals with deduction of income tax at source.

(2) The following Chapters contain duties to deduct sums representing income tax from certain payments—

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Chapter 3 (certain payments of yearly interest),

(c) Chapter 4 (payments in respect of building society securities),

(d) Chapter 5 (payments of UK public revenue dividends),

(e) Chapter 6 (annual payments and patent royalties),

(f) Chapter 7 (other payments connected with intellectual property),

(g) Chapter 9 (manufactured payments), and

(h) Chapter 10 (non-commercial payments by companies).

(3) Chapters 6 and 7 are subject to Chapter 8 which makes special provision in relation to the deduction of sums representing income tax from royalty payments.

(4) Chapter 11 contains provision disapplying some of the duties to deduct where payments are made between companies etc.

(5) The following Chapters contain further provision in connection with the deduction (or deemed deduction) of sums representing income tax from certain payments (or deemed payments)—

[F2 (za) Chapter 2 (interpretation of section 876 in Chapter 3: exception for deposit-takers),]

(a) Chapter 12 (funding bonds),

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and

(c) Chapter 14 (tax avoidance: directions for deductions from payments to non-UK residents).

(6) Chapters 15 to 17 contain provision about the collection of income tax in respect of payments from which sums are required to be deducted (or from which sums are treated as deducted) under the preceding Chapters.

(7) Chapter 18 deals with regimes involving the deduction of income tax at source which apply in the case of—

(a) visiting performers,

(b) non-resident landlords, and

(c) Real Estate Investment Trusts.

(8) Chapter 19 makes general provision for this Part including—

(a) provision about the giving of statements about deduction of income tax,

(b) provision about payments where the recipient is a company or where the payer is a public department, and

(c) exceptions from duties to deduct for payments made by designated international organisations, some payments under derivative contracts and for some payments of interest on foreign currency securities.

(9) The following provisions also deal with deduction of income tax at source—

(a) Part 11 of ITEPA 2003 (Pay As You Earn), and

(b) Chapter 3 of Part 3 of FA 2004 (construction industry scheme).

Textual Amendments

F1 S. 847(2)(a) omitted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 6 para. 21(a)

F2 S. 847(5)(za) inserted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 21(b)

F3 S. 847(5)(b) omitted (6.4.2014) by virtue of The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 37(10) (with reg. 32)