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Income Tax Bill


Income Tax Bill

xxxvi

 

Part 15

Deduction of income tax at source

Chapter 1

Introduction

847   

Overview of Part

848   

Income tax deducted at source treated as income tax paid by recipient

849   

Interaction with other Income Tax Acts provisions

Chapter 2

Deduction by deposit-takers and building societies

Introduction

850   

Overview of Chapter

Duty to deduct sums representing income tax

851   

Duty to deduct sums representing income tax

852   

Power to make regulations disapplying section 851

Deposit-takers and relevant investments

853   

Meaning of “deposit-taker”

854   

Power to prescribe persons as deposit-takers

855   

Meaning of “investment” and “deposit”

856   

Investments which are relevant investments

857   

Investments to be treated as being or as not being relevant investments

Investments which are not relevant investments: non-UK resident beneficiaries

858   

Declarations of non-UK residence: individuals

859   

Declarations of non-UK residence: Scottish partnerships

860   

Declarations of non-UK residence: personal representatives

861   

Declarations of non-UK residence: settlements

862   

Inspection of declarations

Other investments which are not relevant investments

863   

General client account deposits

864   

Qualifying uncertificated eligible debt security units

865   

Qualifying certificates of deposit

866   

Qualifying time deposits

867   

Lloyd’s premium trust funds

868   

Investments held outside the United Kingdom

869   

Sale and repurchase of securities

870   

Other investments

 
 

Income Tax Bill

xxxvii

 

Supplementary

871   

Power to make regulations to give effect to Chapter

872   

Power to make orders amending Chapter

873   

Discretionary or accumulation settlements

Chapter 3

Deduction from certain payments of yearly interest

Duty to deduct sums representing income tax

874   

Duty to deduct from certain payments of yearly interest

Exceptions from duty to deduct

875   

Interest paid by building societies

876   

Interest paid by deposit-takers

877   

UK public revenue dividends

878   

Interest paid by banks

879   

Interest paid on advances from banks

880   

Interest paid on advances from building societies

881   

National Savings Bank interest

882   

Quoted Eurobond interest

883   

Interest on loan to buy life annuity

884   

Relevant foreign income

885   

Authorised persons dealing in financial instruments

886   

Interest paid by recognised clearing houses etc

887   

Industrial and provident society payments

888   

Statutory interest

Chapter 4

Deduction from payments in respect of building society securities

889   

Payments in respect of building society securities

Chapter 5

Deduction from payments of UK public revenue dividends

Introduction

890   

Overview of Chapter

891   

Meaning of “UK public revenue dividend”

Duty to deduct sums representing income tax

892   

Duty to deduct from certain UK public revenue dividends

Payments which are payable gross

893   

Payments of UK public revenue dividends which are payable gross

894   

Treasury directions

 
 

Income Tax Bill

xxxviii

 

Deduction at source applications

895   

Deduction at source application

896   

Withdrawal of application

Regulations

897   

Power to make regulations

Chapter 6

Deduction from annual payments and patent royalties

Introduction

898   

Overview of Chapter

899   

Meaning of “qualifying annual payment”

Duty to deduct from annual payments

900   

Deduction from commercial payments made by individuals

901   

Deduction from annual payments made by other persons

902   

Meaning of “applicable rate” in section 901

Duty to deduct from patent royalties

903   

Deduction from patent royalties

Supplementary

904   

Annual payments for dividends or non-taxable consideration

905   

Interpretation of Chapter

Chapter 7

Deduction from other payments connected with intellectual property

Certain royalties etc where usual place of abode of owner is abroad

906   

Certain royalties etc where usual place of abode of owner is abroad

907   

Meaning of “relevant intellectual property right”

908   

Royalty payments etc made through UK resident agents

909   

Royalty payments: further provision

Proceeds of a sale of patent rights

910   

Proceeds of a sale of patent rights: payments to non-UK residents

Chapter 8

Chapters 6 and 7: special provision in relation to royalties

Deduction at special rates

911   

Double taxation arrangements: deduction at treaty rate

 
 

Income Tax Bill

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912   

Power to make directions disapplying section 911

913   

Interpretation of sections 911 and 912

Discretion to make payments gross

914   

EU companies: discretion to make payment gross

915   

Power to make directions disapplying section 914

916   

Duty of payee to notify if payment not exempt

917   

Supplementary

Chapter 9

Manufactured payments

Manufactured dividends

918   

Manufactured dividends on UK shares: Real Estate Investment Trusts

Manufactured interest

919   

Manufactured interest on UK securities: payments by UK residents etc

920   

Foreign payers of manufactured interest: the reverse charge

921   

Cases where interest on underlying securities paid gross

Manufactured overseas dividends

922   

Manufactured overseas dividends: payments by UK residents etc

923   

Foreign payers of manufactured overseas dividends: the reverse charge

924   

Power to reduce section 923 liability

925   

Power to provide set-off entitlement

Supplementary

926   

Interpretation of Chapter

927   

Regulation-making powers: general

Chapter 10

Deduction from non-commercial payments by companies

928   

Chargeable payments connected with exempt distributions

Chapter 11

Payments between companies etc: exception from duties to deduct

Introduction

929   

Overview of Chapter

Exception from duties to deduct for excepted payments

930   

Exception from duties to deduct sums representing income tax

931   

Power to make directions disapplying section 930

 
 

Income Tax Bill

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932   

Meaning of “qualifying partnership”

Excepted payments

933   

UK resident companies

934   

Non-UK resident companies

935   

PEP and ISA managers

936   

Recipients who are to be paid gross

937   

Partnerships

Incorrect belief that payment is an excepted payment

938   

Consequences of reasonable but incorrect belief

Chapter 12

Funding bonds

939   

Duty to retain bonds where issue treated as payment of interest

940   

Exception from duty to retain bonds

Chapter 13

Unauthorised unit trusts

941   

Deemed payments to unit holders and deemed deductions of income tax

942   

Income tax to be collected from trustees

943   

Calculation of trustees’ income pool

Chapter 14

Tax avoidance: directions for duty to deduct to apply

944   

Directions for deduction from payments to non-UK residents

Chapter 15

Collection: deposit-takers, building societies and certain companies

Introduction

945   

Overview of Chapter

946   

Payments within this section

947   

Return periods

948   

Meaning of “accounting period”

Returns of income tax

949   

Payments in an accounting period

950   

Payments otherwise than in an accounting period

Collection and payment of income tax

951   

Collection and payment of income tax

 
 

Income Tax Bill

xli

 

Set-off

952   

Conditions for a set-off claim

953   

How a set-off claim works

954   

Proceedings begun after a set-off claim is made

955   

Proceedings begun before a set-off claim is made

Assessments and errors

956   

Assessments where section 946 payment included in return

957   

Assessments in other cases

958   

Payer’s duty to deliver amended return

959   

Application of Income Tax Acts provisions about time limits for assessments

960   

Further provisions about assessments

Supplementary

961   

Relationship between Chapter and Income Tax Acts powers

962   

Power to make regulations modifying Chapter

Chapter 16

Collection: certain payments by other persons

963   

Collection of income tax on certain payments by other persons

Chapter 17

Collection through self-assessment return

964   

Collection through self-assessment return

Chapter 18

Other regimes involving the deduction of income tax at source

Visiting performers

965   

Overview of sections 966 to 970

966   

Duty to deduct and account for sums representing income tax

967   

Calculation of sums representing income tax

968   

Treatment of sums representing income tax

969   

Regulations

970   

Supplementary

Non-resident landlords

971   

Income tax due in respect of income of non-resident landlords

972   

Regulations under section 971

Real Estate Investment Trusts

973   

Income tax due in respect of distributions

974   

Regulations under section 973

 
 

Income Tax Bill

xlii

 

Chapter 19

General

Supplementary

975   

Statements about deduction of income tax

976   

Arrangements for payments of interest less tax or at specified net rate

977   

Payments to companies

978   

Application to public departments

979   

Designated international organisations: exceptions from duties to deduct

980   

Derivative contracts: exception from duties to deduct

981   

Foreign currency securities etc: exception from duties to deduct

982   

Income tax is calculated by reference to gross amounts

Interpretation

983   

Meaning of “deposit”

984   

Meaning of “financial instrument”

985   

Meaning of “qualifying certificate of deposit”

986   

Meaning of “qualifying uncertificated eligible debt security unit”

987   

Meaning of “quoted Eurobond”

Part 16

Income Tax Acts definitions etc

Chapter 1

Definitions

988   

Overview of Chapter

989   

The definitions

990   

Meaning of “Act”

991   

Meaning of “bank”

992   

Meaning of “company”

993   

Meaning of “connected” persons

994   

Meaning of “connected” persons: supplementary

995   

Meaning of “control”

996   

Meaning of “farming” and related expressions

997   

Meaning of “generally accepted accounting practice” and related expressions

998   

Meaning of “grossing up”

999   

Meaning of “local authority”

1000   

Meaning of “local authority association”

1001   

Meaning of “offshore installation”

1002   

Regulations about the meaning of “offshore installation”

1003   

Meaning of “oil and gas exploration and appraisal”

1004   

Meaning of “property investment LLP”

1005   

Meaning of “recognised stock exchange”

1006   

Meaning of “research and development”

1007   

Meaning of “unit trust scheme”

 
 

 
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Revised 5 February 2007