2(1)Where a payment is made (to whatever person) and it has a connection of a prescribed kind with the relevant activity, the person by whom it is made shall on making it deduct out of it a sum representing income tax and shall account to the Board for the sum.
(2)The sum mentioned in sub-paragraph (1) above shall be such as is calculated in accordance with prescribed rules but shall in no case exceed the relevant proportion of the payment concerned; and "relevant proportion" here means a proportion equal to the basic rate of income tax for the year of assessment in which the payment is made.
(3)Where a transfer is made (to whatever person) and it has a connection of a prescribed kind with the relevant activity, the person by whom it is made shall account to the Board for a sum representing income tax.
(4)The sum mentioned in sub-paragraph (3) above shall be such as is calculated in accordance with prescribed rules but shall in no case exceed the relevant proportion of the value of what is transferred; and
"relevant proportion" here means a proportion equal to the basic rate of income tax for the year of assessment in which the transfer is made.
(5)References in this paragraph and in the following provisions of this Schedule to a payment include references to a payment by way of loan of money.
(6)References in this paragraph and in the following provisions of this Schedule to a transfer do not include references to a transfer of money but, subject to that, include references to a temporary transfer (as by way of loan) and to a transfer of a right (whether or not a right to receive money).
(7)This paragraph shall not apply to payments or transfers of such a kind as may be prescribed.
