|
| |
|
(3) | Regulations made by the Treasury may provide, in relation to a transfer to |
| |
which section 899 applies, that for the purposes of the Tax Acts the value of |
| |
what is transferred is to be calculated in accordance with prescribed rules. |
| |
(4) | In particular, rules may include provision— |
| |
(a) | for the calculation of an amount representing the actual value of what |
| 5 |
| |
(b) | for that amount to be treated as a net amount corresponding to a gross |
| |
amount from which income tax at the basic rate has been deducted, and |
| |
(c) | for the gross amount to be taken to be the value of what is transferred. |
| |
901 | Treatment of sums representing income tax |
| 10 |
(1) | This section applies if, in accordance with section 899(3) or (4), a person pays a |
| |
sum to the Commissioners for Her Majesty’s Revenue and Customs. |
| |
(2) | The sum is treated as paid on account of a liability of another person to income |
| |
| |
(3) | The liability and the other person are to be found in accordance with |
| 15 |
| |
(4) | If the sum exceeds the liability concerned, the Commissioners must pay so |
| |
much of the sum as is appropriate to the other person. |
| |
(5) | If no liability is found, the Commissioners must pay the sum to the recipient of |
| |
the relevant payment or transfer. |
| 20 |
(6) | The relevant payment or transfer is the payment or transfer— |
| |
(a) | to which section 899 applies, and |
| |
(b) | which gave rise to the payment of the sum. |
| |
(7) | A reference to a sum in this section does not include anything representing |
| |
| 25 |
| |
(1) | The Treasury may by regulations— |
| |
(a) | make provision enabling the Commissioners for Her Majesty’s |
| |
Revenue and Customs to serve notices requiring persons who make |
| |
payments or transfers to which section 899 applies to give them |
| 30 |
prescribed information in respect of such payments or transfers, |
| |
(b) | make provision requiring persons who make payments or transfers to |
| |
which section 899 applies to make, at prescribed times and for |
| |
prescribed periods, returns to the Commissioners containing |
| |
prescribed information about payments or transfers and the income tax |
| 35 |
for which those persons are accountable in respect of them, |
| |
(c) | make provision for the collection and recovery of such income tax, for |
| |
assessments and claims to be made in respect of it, and for the payment |
| |
| |
(d) | adapt, or modify the effect of, any enactment relating to income tax for |
| 40 |
the purpose of making any provision mentioned in paragraphs (a) to |
| |
| |
|
| |
|
| |
|
(2) | The Treasury may also by regulations make provision generally for giving |
| |
effect to this section and sections 899 to 901 (including different provision for |
| |
different cases or descriptions of case). |
| |
| |
(1) | For the purposes of the Tax Acts a payment to which section 899 applies is |
| 5 |
treated as if it were not reduced by the deduction of a sum representing income |
| |
| |
(2) | An officer of Revenue and Customs may disclose, to any person who appears |
| |
to the officer to have an interest in the matter, information relevant to |
| |
determining whether section 899 applies to a payment or transfer. |
| 10 |
(3) | An officer is not precluded from doing so by any obligation as to secrecy |
| |
imposed by statute or otherwise. |
| |
(4) | In this section and sections 899 to 902— |
| |
(a) | references to a payment include references to a payment by way of loan |
| |
| 15 |
(b) | references to a transfer do not include references to a transfer of money |
| |
but, subject to that, include references to— |
| |
(i) | a temporary transfer (as by way of loan), and |
| |
(ii) | a transfer of a right (whether or not a right to receive money). |
| |
(5) | In sections 899 to 902 “prescribed” means prescribed by regulations made by |
| 20 |
| |
| |
904 | Income tax due in respect of income of non-resident landlords |
| |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations make provision for— |
| 25 |
(a) | the collection, from non-resident landlord representatives of a |
| |
prescribed description, of prescribed amounts of income tax in respect |
| |
of non-resident landlord income, and |
| |
(b) | the assessment and recovery of the income tax on or from such persons. |
| |
(2) | “Non-resident landlord income” means income of a person whose usual place |
| 30 |
of abode is outside the United Kingdom (“the non-resident”) and which is or |
| |
| |
| |
(b) | as the profits of a UK property business under Chapter 3 of Part 3 of |
| |
| 35 |
(3) | “Non-resident landlord representative” means— |
| |
(a) | a person by whom any sums are payable to the non-resident which are |
| |
to be treated as receipts of a Schedule A business, or a UK property |
| |
business, carried on by the non-resident, or |
| |
(b) | a person who acts on behalf of the non-resident in connection with the |
| 40 |
management or administration of any such business. |
| |
|
| |
|
| |
|
(4) | A non-resident landlord representative who must pay prescribed amounts of |
| |
income tax to the Commissioners for Her Majesty’s Revenue and Customs |
| |
under regulations under this section is entitled— |
| |
(a) | to be indemnified by the non-resident for all such payments, and |
| |
(b) | to retain out of any sums otherwise due from the representative to the |
| 5 |
non-resident, or received by the representative on behalf of the non- |
| |
resident, sums representing income tax sufficient for meeting any |
| |
liabilities under the regulations to make such payments. |
| |
(5) | Subsection (4)(b) applies whether the liability is one which the representative |
| |
has discharged or to which the representative is subject. |
| 10 |
905 | Regulations under section 904 |
| |
(1) | Regulations under section 904 may, in particular, include all or any of the |
| |
| |
(a) | provision for the amount of any income tax in respect of non-resident |
| |
landlord income, which is to be paid to the Commissioners for Her |
| 15 |
Majesty’s Revenue and Customs, to be calculated by reference to |
| |
| |
(b) | provision for the determination in accordance with the regulations of |
| |
the period for which, the circumstances in which and the times at which |
| |
any payments are to be made to the Commissioners, |
| 20 |
(c) | provision for requiring the payment of interest on amounts which are |
| |
not paid to the Commissioners at the times required under the |
| |
| |
(d) | provision as to the certificates to be given in prescribed circumstances |
| |
to the non-resident by a non-resident landlord representative, and as to |
| 25 |
the particulars to be included in any such certificate, |
| |
(e) | provision for the making of repayments of income tax to the non- |
| |
resident and for such repayments to be made in prescribed cases to |
| |
non-resident landlord representatives, |
| |
(f) | provision for the payment of interest by the Commissioners on sums |
| 30 |
repaid under the regulations, |
| |
(g) | provision for the rights and obligations arising under the regulations to |
| |
depend on the giving of such notices and the making of such claims and |
| |
determinations as may be prescribed, |
| |
(h) | provision for the making and determination of applications for |
| 35 |
requirements of the regulations not to apply in certain cases, and for the |
| |
variation or revocation, in prescribed cases, of the determinations made |
| |
| |
(i) | provision for appeals with respect to questions arising under the |
| |
| 40 |
(j) | provision requiring non-resident landlord representatives within |
| |
section 904(3)(b) who are of a prescribed description to register with the |
| |
| |
(k) | provision requiring persons registered with the Commissioners and |
| |
other non-resident landlord representatives of a prescribed description |
| 45 |
to make returns and supply prescribed information to the |
| |
Commissioners and to make available prescribed books, documents |
| |
and other records for inspection on behalf of the Commissioners, |
| |
(l) | provision for the partnership, as such, to be treated as the non-resident |
| |
landlord representative if a liability to make a payment under the |
| 50 |
|
| |
|
| |
|
regulations arises from amounts payable or things done in the course |
| |
of a business carried on by persons in partnership, and |
| |
(m) | provision which, in relation to payments of income tax to be made by |
| |
virtue of section 904 or to sums retained in respect of such payments, |
| |
applies (with or without modifications) any enactment or subordinate |
| 5 |
legislation having effect apart from section 904 with respect to cases in |
| |
which tax is or is treated as deducted from any income. |
| |
(2) | Interest required to be paid by regulations under section 904 is to be paid |
| |
without deduction of a sum representing income tax and is not to be taken into |
| |
account in calculating any income, profits or losses for any tax purposes. |
| 10 |
(3) | Regulations under section 904 may— |
| |
(a) | make different provision for different cases, and |
| |
(b) | contain incidental, supplemental, consequential and transitional |
| |
| |
(4) | Provision made by virtue of subsection (3)(b) may, in particular, in connection |
| 15 |
with any other provision made by regulations under section 904, modify the |
| |
operation in any case of section 59A of TMA 1970 (payments on account of |
| |
| |
(5) | In this section and section 904 “prescribed” means prescribed by, or |
| |
determined by an officer of Revenue and Customs in accordance with, |
| 20 |
regulations made by the Commissioners for Her Majesty’s Revenue and |
| |
Customs under section 904. |
| |
(6) | See section 121(2)(c) of FA 2006 which prevents certain distributions of Real |
| |
Estate Investment Trusts being non-resident landlord income for the purposes |
| |
of regulations under section 904. |
| 25 |
Real Estate Investment Trusts |
| |
906 | Income tax due in respect of distributions |
| |
(1) | The Treasury may make regulations providing for the assessment, collection |
| |
and recovery of income tax where— |
| |
(a) | a distribution to which subsection (2) or (3) applies is made, and |
| 30 |
(b) | tax is or may become chargeable in respect of the distribution (whether |
| |
by virtue of section 121(1) of FA 2006 (distributions: liability to tax) or |
| |
| |
(2) | This subsection applies to a distribution if— |
| |
(a) | it is made by a company to which Part 4 of FA 2006 applies (Real Estate |
| 35 |
| |
(b) | it is a distribution of profits or gains (or of both) of C (tax-exempt). |
| |
(3) | This subsection applies to a distribution if— |
| |
(a) | it is made by the principal company of a group to which Part 4 of FA |
| |
| 40 |
(b) | it is a distribution of amounts shown in the financial statements of G |
| |
(property rental business) as— |
| |
(i) | profits and gains of UK resident members of the group, or |
| |
(ii) | profits and gains of the property rental business in the United |
| |
Kingdom of non-UK resident members of the group. |
| 45 |
|
| |
|
| |
|
| |
“C (tax-exempt)” has the meaning given by section 105(3)(b) of FA 2006, |
| |
“G (property rental business)” has the meaning given by paragraph 2 of |
| |
| |
“group” and “principal company” have the meanings given by section 134 |
| 5 |
| |
“property rental business” has the meaning given by section 104 of that |
| |
Act (read with paragraph 32(2) of Schedule 17 to that Act). |
| |
(5) | References in this section to a UK resident company have the same meaning as |
| |
in Schedule 17 to FA 2006 (see paragraph 3(1) of that Schedule). |
| 10 |
(6) | In this section “gains” includes chargeable gains. |
| |
907 | Regulations under section 906 |
| |
(1) | Regulations under section 906 may, in particular— |
| |
(a) | require a company to deduct sums representing income tax at the basic |
| |
rate before payment of distributions, |
| 15 |
(b) | specify classes of shareholder to whom distributions may be made |
| |
without deduction of such sums, |
| |
(c) | make provision about the calculation of the sums to be deducted by a |
| |
| |
(d) | require a company to account for income tax equal to the sums |
| 20 |
| |
(e) | apply an enactment (with or without modification) in respect of cases |
| |
where a sum representing income tax is deducted or treated as |
| |
| |
(f) | specify the time at which a distribution is to be treated as made by a |
| 25 |
| |
(g) | specify periods in respect of which payments of income tax are to be |
| |
| |
(h) | specify times at which payments of income tax are to be made, |
| |
(i) | make provision about the making of claims and determinations in |
| 30 |
respect of over-payment or under-payment (which may include |
| |
| |
(j) | include provision requiring the payment of interest in respect of late |
| |
payments of income tax (which may— |
| |
(i) | provide for payment without deduction of sums representing |
| 35 |
| |
(ii) | allow interest paid as a deduction from profits of the company’s |
| |
| |
(k) | require a company to provide a shareholder with a statement in writing |
| |
containing specified information, |
| 40 |
(l) | make provision about the repayment to a shareholder of sums |
| |
deducted and paid to the Commissioners for Her Majesty’s Revenue |
| |
and Customs in respect of income tax, |
| |
(m) | make provision for the payment of interest in respect of repayments |
| |
| 45 |
(n) | require notices to be given by or to a company, |
| |
(o) | require a company to make returns, and |
| |
|
| |
|
| |
|
(p) | require a company to make records available to the Commissioners for |
| |
Her Majesty’s Revenue and Customs for inspection. |
| |
(2) | A reference in subsection (1) to a distribution in respect of profits of tax-exempt |
| |
business includes a distribution made after Part 4 of FA 2006 has ceased to |
| |
| 5 |
(3) | A distribution which is treated as having been made by virtue of section |
| |
107(9)(b) of FA 2006 is also to be treated as having been made for the purposes |
| |
of regulations under section 906. |
| |
(4) | Regulations under section 906— |
| |
(a) | may make provision which applies generally or only in specified cases |
| 10 |
| |
(b) | may make different provision for different cases or circumstances, and |
| |
(c) | may contain incidental, supplemental, consequential and transitional |
| |
| |
(5) | In subsections (1) and (2), so far as they apply to cases within section 906(1)(a), |
| 15 |
“profits” includes gains (including chargeable gains). |
| |
(6) | In this section “tax-exempt business” has same meaning as in Part 4 of FA 2006 |
| |
(see section 107(2) of that Act). |
| |
| |
| 20 |
| |
908 | Statements about deduction of income tax |
| |
(1) | Subsection (2) applies if a person makes a payment from which a sum |
| |
representing income tax must be deducted under any provision of Chapters 2 |
| |
to 7 or under section 852 or 861. |
| 25 |
(2) | If the recipient requests it in writing, the person must provide the recipient |
| |
with a statement showing— |
| |
(a) | the gross amount of the payment, |
| |
(b) | the amount of the sum deducted, and |
| |
(c) | the actual amount paid. |
| 30 |
(3) | Subsection (4) applies if the trustees of an unauthorised unit trust are treated |
| |
as making a deemed payment to a unit holder (“U”). |
| |
(4) | If U requests it in writing, the trustees must provide U with a statement |
| |
| |
(a) | the gross amount of the payment, |
| 35 |
(b) | the amount of the deemed deduction from the payment, and |
| |
(c) | the amount of the payment after the deemed deduction. |
| |
(5) | A statement under this section must be in writing. |
| |
(6) | The duty to comply with a request under subsection (2) or (4) is enforceable by |
| |
the recipient or U (as the case may be). |
| 40 |
|
| |
|
| |
|
(7) | In this section “deemed deduction”, “deemed payment” and “the gross |
| |
amount” have the same meanings as in Chapter 13 (see section 874(6)). |
| |
909 | Arrangements for payments of interest less tax or at specified net rate |
| |
(1) | This section applies if— |
| |
(a) | provision is made for the payment of interest, and |
| 5 |
(b) | the interest is payable without deduction of a sum representing income |
| |
| |
| |
(a) | whenever the provision was made, and |
| |
(b) | whether it was made orally or in writing. |
| 10 |
(3) | If the provision is for the payment of interest “less tax” (or uses words to similar |
| |
effect) it is to be read as if the words “less tax” (or the equivalent words) were |
| |
| |
(4) | Subsection (5) applies if the provision is (however worded)— |
| |
(a) | for the payment of interest to which subsection (6) applies, and |
| 15 |
(b) | for that interest to be paid at such a rate (“the gross rate”) that the |
| |
amount of interest payable at that rate is, after deduction of a sum |
| |
representing income tax, equal to the amount of interest payable at a |
| |
specified rate (“the net rate”). |
| |
(5) | In that case the provision is to be read as if it were for the payment of interest |
| 20 |
| |
(6) | This subsection applies to— |
| |
(a) | interest on which the recipient is chargeable to income tax, which falls |
| |
within Chapter 2 of Part 4 of ITTOIA 2005 but which is not relevant |
| |
| 25 |
(b) | interest on which the recipient is chargeable to corporation tax under |
| |
| |
910 | Payments to companies |
| |
(1) | The provisions of this Part relating to the deduction from payments of sums |
| |
representing income tax are not affected by the fact that the recipient is a |
| 30 |
company not chargeable to income tax on the payment. |
| |
(2) | References in subsection (1) to payments received by a company— |
| |
(a) | include payments received by another person on behalf of or in trust for |
| |
| |
(b) | do not include payments received by the company on behalf of or in |
| 35 |
trust for another person. |
| |
(3) | For further provision about payments received by companies, see— |
| |
(a) | sections 7(2) and 11(3) of ICTA (set-off of income tax deducted at source |
| |
against liability to corporation tax), and |
| |
(b) | section 885 (set-off of income tax suffered against income tax payable |
| 40 |
| |
|
| |
|