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Income Tax Bill


Income Tax Bill
Part 15 — Deduction of income tax at source
Chapter 15 — Collection: deposit-takers, building societies and certain companies

467

 

Returns of income tax

949     

Payments in an accounting period

(1)   

This section applies if a person makes a section 946 payment on a date which

falls within an accounting period of the person.

(2)   

The person must deliver a return to an officer of Revenue and Customs for each

5

return period—

(a)   

which falls within the accounting period, and

(b)   

in which the person makes a section 946 payment.

(3)   

The person must deliver the return within 14 days after the end of the return

period to which it relates.

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(4)   

The return must show the amount of—

(a)   

any section 946 payments made by the person in the return period, and

(b)   

the income tax payable by the person in respect of those payments (see

section 951).

950     

Payments otherwise than in an accounting period

15

(1)   

This section applies if a person makes a section 946 payment on a date which

does not fall within an accounting period of the person.

(2)   

The person must deliver a return to an officer of Revenue and Customs within

14 days after the date on which the payment is made.

(3)   

The return must show the amount of—

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(a)   

the payment, and

(b)   

the income tax payable by the person in respect of that payment (see

section 951).

Collection and payment of income tax

951     

Collection and payment of income tax

25

(1)   

Income tax in respect of a section 946 payment is due, from the person who

makes the payment, on the date by which the return on which the payment

must be included is required to be delivered.

(2)   

The income tax due is equal to the sum which the person is required to deduct

from the payment under the applicable provision mentioned in section 946.

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(3)   

The income tax is payable by the person without an officer of Revenue and

Customs making any assessment.

Set-off

952     

Conditions for a set-off claim

(1)   

A person who makes a section 946 payment may make a set-off claim if

35

conditions A and B are met at the end of a return period which falls within an

accounting period of the person.

 
 

Income Tax Bill
Part 15 — Deduction of income tax at source
Chapter 15 — Collection: deposit-takers, building societies and certain companies

468

 

(2)   

Condition A is that in the return period the person has—

(a)   

made a section 946 payment, or

(b)   

received a payment on which the person has suffered income tax by

deduction.

(3)   

Condition B is that at the end of the return period there is—

5

(a)   

a net amount of income tax suffered (see subsection (4)), and

(b)   

a net amount of income tax payable (see subsection (5)).

(4)   

There is a net amount of income tax suffered at the end of a return period if—

(a)   

the person has received any payments on which income tax has been

suffered by deduction in the return period or in any previous return

10

period which falls within the accounting period, and

(b)   

the amount of income tax so suffered by the person on those payments

exceeds the amount of such income tax treated as repaid for the

accounting period to date as a result of any previous set-off claim.

(5)   

There is a net amount of income tax payable at the end of a return period if—

15

(a)   

the person has made any section 946 payments in the return period or

in any previous return period which falls within the accounting period,

and

(b)   

the amount of income tax payable by the person in respect of those

payments exceeds the amount of such income tax treated as paid for the

20

accounting period to date as a result of any previous set-off claim.

953     

How a set-off claim works

(1)   

A set-off claim is a claim for the net amount of income tax suffered at the end

of the return period to be set off against the net amount of income tax payable

at the end of the return period.

25

(2)   

The effect of a claim is that, to the extent of the set-off—

(a)   

the income tax comprised in the net amount of income tax suffered is

treated as repaid, and

(b)   

the income tax comprised in the net amount of income tax payable is

treated as paid.

30

(3)   

Accordingly—

(a)   

any liability of the person making the set-off claim to pay any of the

income tax treated as paid under subsection (2)(b) is discharged, and

(b)   

any of that income tax which has been paid is to be repaid to the person.

(4)   

A set-off claim must be made in a return under section 949 for the return

35

period.

(5)   

A return may be made under that section for the purposes of making a set-off

claim despite the fact that the person making the claim may not have made any

section 946 payments in the return period.

(6)   

Income tax suffered which is taken into account in a set-off claim may not also

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be taken into account for the purposes of—

(a)   

section 7(2) of ICTA (income tax deducted from payments to UK

resident company to be set off against corporation tax), or

(b)   

section 11(3) of that Act (income tax deducted from payments to non-

UK resident company to be set off against corporation tax).

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Income Tax Bill
Part 15 — Deduction of income tax at source
Chapter 15 — Collection: deposit-takers, building societies and certain companies

469

 

(7)   

Income tax suffered by a deposit-taker is to be taken into account in a set-off

claim only if the payment on which the income tax is suffered is to be taken into

account in calculating the deposit-taker’s liability to corporation tax.

   

“Deposit-taker” has the same meaning as in Chapter 2 (see section 853).

954     

Proceedings begun after a set-off claim is made

5

(1)   

If a set-off claim has been made no proceedings for collecting income tax which

would have to be discharged if the claim were allowed may be brought until

the claim is finally determined.

(2)   

Subsection (1) does not affect the date when the income tax is due.

(3)   

Any income tax underpaid as a result of this section must be paid when the

10

claim is finally determined.

(4)   

In this section “proceedings” includes proceedings by way of distraint or

attachment.

955     

Proceedings begun before a set-off claim is made

(1)   

This section applies if—

15

(a)   

a person has made a set-off claim, and

(b)   

before the claim was made, proceedings were brought for collecting

income tax assessed, or interest on income tax assessed, under section

956 or 957.

(2)   

No effect is to be given to the set-off claim so as to affect or delay the collection

20

or recovery of the income tax, or of interest on that income tax, until the claim

is finally determined.

(3)   

Any income tax overpaid as a result of this section must be repaid when the

claim is finally determined.

(4)   

In this section “proceedings” includes proceedings by way of distraint or

25

attachment.

Assessments and errors

956     

Assessments where section 946 payment included in return

(1)   

This section applies if any income tax in respect of a section 946 payment which

is included in a return under this Chapter has not been paid at or before the

30

date mentioned in section 951.

(2)   

An officer of Revenue and Customs may make an assessment on the person

who made the payment.

(3)   

Income tax may be assessed under this section whether or not it has been paid

when the assessment is made.

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957     

Assessments in other cases

(1)   

This section applies if an officer of Revenue and Customs thinks—

(a)   

that there is a section 946 payment which should have been included in

a return under this Chapter and which has not been so included, or

 
 

Income Tax Bill
Part 15 — Deduction of income tax at source
Chapter 15 — Collection: deposit-takers, building societies and certain companies

470

 

(b)   

that a return under this Chapter is otherwise incorrect.

(2)   

An officer of Revenue and Customs may make an assessment, to the best of the

officer’s judgement, on the person who made the return, or who should have

made one.

958     

Payer’s duty to deliver amended return

5

(1)   

This section applies if a person who has made a section 946 payment becomes

aware that—

(a)   

anything which should have been included in a return delivered by the

person under this Chapter has not been so included,

(b)   

anything which should not have been included in a return delivered by

10

the person under this Chapter has been so included, or

(c)   

any other error has occurred in a return delivered by the person under

this Chapter.

(2)   

The person must deliver an amended return correcting the error to an officer

of Revenue and Customs without delay.

15

(3)   

If the person delivers an amended return such assessments, adjustments, set-

offs or payments or repayments of income tax as are necessary for achieving

the objective mentioned in subsection (4) must be made.

(4)   

The objective is that the resulting liabilities to income tax (including interest on

unpaid or overpaid income tax) of the person or any other person are the same

20

as they would have been if a correct return had been delivered.

959     

Application of Income Tax Acts provisions about time limits for assessments

(1)   

This section deals with the application of the provisions of the Income Tax Acts

about time limits for making assessments.

(2)   

So far as the provisions refer or relate to—

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(a)   

the tax year for which an assessment is made, or

(b)   

the year to which an assessment relates,

   

they apply to assessments under this Chapter despite the fact that an

assessment under this Chapter may relate to a return period which is not a tax

year.

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(3)   

Subsection (4) applies if an assessment under this Chapter relates to income tax

due in respect of a payment required to be included in a return for a return

period under section 949 (payments in an accounting period).

(4)   

In that case, for the purposes of the provisions mentioned in subsection (1), the

assessment is treated as made for the tax year in which the return period ends.

35

(5)   

Subsection (6) applies if an assessment under this Chapter relates to income tax

due in respect of a payment required to be included in a return under section

950 (payments otherwise than in an accounting period).

(6)   

In that case, for the purposes of the provisions mentioned in subsection (1), the

assessment is treated as made for the tax year in which payment is made.

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