|
| |
|
960 | Further provisions about assessments |
| |
(1) | Income tax assessed on a person under this Chapter is due on the date |
| |
mentioned in section 951 and an appeal against the assessment does not affect |
| |
the date when the income tax is due under that section. |
| |
(2) | On the determination of an appeal against an assessment under this Chapter |
| 5 |
any income tax overpaid must be repaid. |
| |
(3) | Any income tax assessable under any one or more of the provisions of this |
| |
Chapter may be included in a single assessment if all the income tax is due on |
| |
| |
| 10 |
961 | Relationship between Chapter and Income Tax Acts powers |
| |
Nothing in this Chapter affects any powers conferred by the Income Tax Acts |
| |
for the recovery of income tax by means of an assessment or otherwise. |
| |
962 | Power to make regulations modifying Chapter |
| |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| 15 |
regulations modify, replace or supplement any of the provisions of this |
| |
Chapter for the purpose of regulating the time and manner in which persons |
| |
making section 946 payments— |
| |
(a) | are to account for and pay income tax which is to be collected from |
| |
them in respect of those payments, and |
| 20 |
(b) | are to be repaid income tax in respect of payments received by them. |
| |
(2) | In particular, regulations under this section may, in relation to income tax for |
| |
which a person is liable to account,— |
| |
(a) | modify any provision of Parts 2 to 6 of TMA 1970, or |
| |
(b) | apply any such provision with or without modifications. |
| 25 |
(3) | Regulations under this section may— |
| |
(a) | make different provision for different kinds of payer, |
| |
(b) | make different provision for different circumstances, and |
| |
(c) | authorise the Commissioners for Her Majesty’s Revenue and Customs, |
| |
if they think there are special circumstances justifying it, to make |
| 30 |
special arrangements in relation to— |
| |
(i) | income tax for which a person is liable to account, or |
| |
(ii) | the repayment of income tax suffered by a person. |
| |
(4) | Regulations under this section may contain incidental, supplemental, |
| |
consequential and transitional provision and savings. |
| 35 |
(5) | The Commissioners for Her Majesty’s Revenue and Customs must not make |
| |
any regulations under this section unless a draft of them has been laid before |
| |
and approved by a resolution of the House of Commons. |
| |
(6) | References in this Act and in any other enactment to any of the provisions of |
| |
this Chapter are to be read as references to those provisions as modified, |
| 40 |
replaced or supplemented by provision made by regulations under this |
| |
| |
|
| |
|
| |
|
| |
Collection: certain payments by other persons |
| |
963 | Collection of income tax on certain payments by other persons |
| |
(1) | This section makes provision for the collection of income tax in respect of— |
| |
(a) | a payment from which a person other than a UK resident company is |
| 5 |
required to deduct a sum representing income tax under— |
| |
(i) | section 874(2) (certain payments of yearly interest), |
| |
(ii) | section 889(4) (payments in respect of building society |
| |
| |
(iii) | section 892(2) (certain payments of UK public revenue |
| 10 |
| |
(iv) | section 901(4) (annual payments made by persons other than |
| |
| |
(v) | section 903(7) (patent royalties), |
| |
(vi) | section 906(5) (royalty payments etc where the owner lives |
| 15 |
| |
(vii) | section 910(2) (proceeds of a sale of patent rights paid to non- |
| |
| |
(viii) | section 928(2) (chargeable payments connected with exempt |
| |
| 20 |
(ix) | section 944(2) (directions for deduction from payments to non- |
| |
| |
(b) | a payment from which a person other than a company is required to |
| |
deduct a sum representing income tax under section 919(2) |
| |
(manufactured interest for UK securities: payments by UK residents |
| 25 |
| |
(2) | The person required to deduct the sum must deliver to an officer of Revenue |
| |
and Customs an account of the payment without delay. |
| |
(3) | An officer of Revenue and Customs may make an assessment on that person |
| |
for income tax equal to the sum required to be deducted. |
| 30 |
(4) | The provisions of the Income Tax Acts relating to— |
| |
(a) | persons chargeable to income tax, |
| |
(b) | income tax assessments, and |
| |
(c) | the collection and recovery of income tax, |
| |
| apply (unless excluded expressly or by implication) to the assessment, |
| 35 |
collection and recovery of income tax which is assessable on persons under this |
| |
| |
| |
Collection through self-assessment return |
| |
964 | Collection through self-assessment return |
| 40 |
(1) | This section applies if— |
| |
(a) | a person makes a payment from which the person is required to deduct |
| |
a sum representing income tax, and |
| |
|
| |
|
| |
|
(b) | income tax equal to the sum required to be deducted is, under section |
| |
900(3), 901(3) or 903(5) or (6), to be collected through the person’s self- |
| |
| |
(2) | This section also applies if, in accordance with section 942, income tax is to be |
| |
collected through a trustee’s self-assessment return. |
| 5 |
(3) | The income tax is to be treated for the purposes of TMA 1970 as if it were |
| |
income tax charged on the person or trustee. |
| |
(4) | Accordingly, the income tax must be taken into account for the purposes of— |
| |
(a) | the person’s or trustee’s return under section 8 or 8A of TMA 1970, and |
| |
(b) | the person’s or trustee’s assessment to income tax under section 9 of |
| 10 |
| |
| (in addition to the person or trustee’s income tax liability calculated in |
| |
accordance with Chapter 3 of Part 2 (calculation of income tax liability)). |
| |
(5) | But the relevant amount under section 59A of TMA 1970 (payments on account |
| |
of income tax) is to be calculated as if the income tax were not taken into |
| 15 |
account for the purposes of the assessment to income tax under section 9 of |
| |
| |
| |
Other regimes involving the deduction of income tax at source |
| |
| 20 |
965 | Overview of sections 966 to 970 |
| |
(1) | Sections 966 to 970 make provision for the payment of sums representing |
| |
income tax to the Commissioners for Her Majesty’s Revenue and Customs |
| |
where certain payments or transfers are made in connection with activities |
| |
performed in the United Kingdom by non-UK resident entertainers, sportsmen |
| 25 |
| |
| |
section 556 of ICTA (entertainers and sportsmen) which makes provision |
| |
in relation to such payments or transfers for the purposes of |
| |
| 30 |
Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers |
| |
under arrangements made by intermediaries), in particular section |
| |
48(2) (exclusions from the scope of the Chapter), and |
| |
sections 13 and 14 of ITTOIA 2005 (trades and trade profits: visiting |
| |
| 35 |
966 | Duty to deduct and account for sums representing income tax |
| |
(1) | This section applies if— |
| |
(a) | an entertainer, sportsman or sportswoman of a prescribed description |
| |
(“a performer”) who is non-UK resident for a tax year performs a |
| |
relevant activity in the United Kingdom in the tax year, and |
| 40 |
(b) | a payment or transfer connected with the relevant activity is made. |
| |
|
| |
|
| |
|
| |
(a) | whether the payment or transfer is made to the performer or anyone |
| |
| |
(b) | when the payment or transfer is made. |
| |
(3) | If a payment within subsection (1)(b) is made the person who makes the |
| 5 |
payment must, on making it, deduct from it a sum representing income tax and |
| |
account to the Commissioners for Her Majesty’s Revenue and Customs for the |
| |
| |
(4) | If a transfer within subsection (1)(b) is made the person who makes the transfer |
| |
must account to the Commissioners for Her Majesty’s Revenue and Customs |
| 10 |
for a sum representing income tax. |
| |
(5) | See section 967 as to the calculation of the sums representing income tax |
| |
mentioned in subsections (3) and (4). |
| |
(6) | This section does not apply to payments or transfers of such a kind as may be |
| |
| 15 |
| |
(a) | “relevant activity” means an activity of a prescribed description, and |
| |
(b) | a payment or transfer is connected with a relevant activity if it has a |
| |
connection of a prescribed kind with that activity. |
| |
967 | Calculation of sums representing income tax |
| 20 |
(1) | The sums representing income tax mentioned in section 966(3) and (4) are to be |
| |
calculated in accordance with prescribed rules. |
| |
(2) | But the sums must not exceed the relevant proportion of the payment |
| |
concerned or of the value of what is transferred. |
| |
| “Relevant proportion” means a proportion equal to the basic rate of income tax |
| 25 |
for the tax year in which the payment or transfer is made. |
| |
(3) | Regulations made by the Treasury may provide, in relation to a transfer to |
| |
which section 966 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— |
| 30 |
(a) | for the calculation of an amount representing the actual value of what |
| |
| |
(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. |
| 35 |
968 | Treatment of sums representing income tax |
| |
(1) | This section applies if, in accordance with section 966(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 |
| |
| 40 |
(3) | The liability and the other person are to be found in accordance with |
| |
| |
|
| |
|
| |
|
(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. |
| |
(6) | The relevant payment or transfer is the payment or transfer— |
| 5 |
(a) | to which section 966 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 |
| |
| |
| 10 |
(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 966 applies to give them |
| |
prescribed information in respect of such payments or transfers, |
| 15 |
(b) | make provision requiring persons who make payments or transfers to |
| |
which section 966 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 |
| |
for which those persons are accountable in respect of them, |
| 20 |
(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 |
| |
the purpose of making any provision mentioned in paragraphs (a) to |
| 25 |
| |
(2) | The Treasury may also by regulations make provision generally for giving |
| |
effect to this section and sections 966 to 968 (including different provision for |
| |
different cases or descriptions of case). |
| |
| 30 |
(1) | For the purposes of the Tax Acts a payment to which section 966 applies is |
| |
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 |
| 35 |
determining whether section 966 applies to a payment or transfer. |
| |
(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 966 to 969— |
| |
(a) | references to a payment include references to a payment by way of loan |
| 40 |
| |
(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 966 to 969 “prescribed” means prescribed by regulations made by |
| |
| |
| |
971 | Income tax due in respect of income of non-resident landlords |
| 5 |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations make provision for— |
| |
(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 |
| 10 |
(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 |
| |
of abode is outside the United Kingdom (“the non-resident”) and which is or |
| |
| |
| 15 |
(b) | as the profits of a UK property business under Chapter 3 of Part 3 of |
| |
| |
(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 |
| 20 |
business, carried on by the non-resident, or |
| |
(b) | a person who acts on behalf of the non-resident in connection with the |
| |
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 |
| 25 |
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 |
| |
non-resident, or received by the representative on behalf of the non- |
| |
resident, sums representing income tax sufficient for meeting any |
| 30 |
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. |
| |
972 | Regulations under section 971 |
| |
(1) | Regulations under section 971 may, in particular, include all or any of the |
| 35 |
| |
(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 |
| |
Majesty’s Revenue and Customs, to be calculated by reference to |
| |
| 40 |
(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, |
| |
|
| |
|
| |
|
(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 |
| 5 |
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 |
| 10 |
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 |
| 15 |
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 |
| |
| 20 |
(j) | provision requiring non-resident landlord representatives within |
| |
section 971(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 |
| 25 |
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 |
| 30 |
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 971 or to sums retained in respect of such payments, |
| |
applies (with or without modifications) any enactment or subordinate |
| 35 |
legislation having effect apart from section 971 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 971 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. |
| 40 |
(3) | Regulations under section 971 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 |
| 45 |
with any other provision made by regulations under section 971, modify the |
| |
operation in any case of section 59A of TMA 1970 (payments on account of |
| |
| |
(5) | In this section and section 971 “prescribed” means prescribed by, or |
| |
determined by an officer of Revenue and Customs in accordance with, |
| 50 |
|
| |
|