(1)M1Where a person who is an entertainer or sportsman of a prescribed description performs an activity of a prescribed description in the United Kingdom (“a relevant activity”), this Chapter shall apply if he is not resident in the United Kingdom in the year of assessment in which the relevant activity is performed.
(2)M2Where 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.
(3)M3Where 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)M4The sums mentioned in subsections (2) and (3) above shall be such as are calculated in accordance with prescribed rules but shall in no case exceed the relevant proportion of the payment concerned or of the value of what is transferred, as the case may be; and “relevant proportion” here means a proportion equal to the basic rate of income tax for the year of assessment in which the payment or, as the case may be, the transfer is made.
(5)M5In this Chapter—
(a)references to a payment include references to a payment by way of loan of money; and
(b)references 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).
(6)M6This section shall not apply to payments or transfers of such a kind as may be prescribed.
(7)M7Regulations may—
(a)make provision enabling the Board to serve notices requiring persons who make payments or transfers to which subsection (2) or (3) above applies to furnish to the Board particulars of a prescribed kind in respect of payments or transfers;
(b)make provision requiring persons who make payments or transfers to which subsection (2) or (3) above applies to make, at prescribed times and for prescribed periods, returns to the Board containing prescribed information about payments or transfers and the income tax for which those persons are accountable in respect of them;
(c)make provision for the collection and recovery of such income tax, provision for assessments and claims to be made in respect of it, and provision for the payment of interest on it;
(d)adapt, or modify the effect of, any enactment relating to income tax for the purpose of making any such provision as is mentioned in paragraphs (a) to (c) above.
(8)M8Where in accordance with subsections (2) to (7) above a person pays a sum to the Board, they shall treat it as having been paid on account of a liability of another person to income tax or corporation tax; and the liability and the other person shall be such as are found in accordance with prescribed rules.
(9)Where the sum exceeds the liability concerned, the Board shall pay such of the sum as is appropriate to the other person mentioned in subsection (8) above.
(10)Where no liability is found as mentioned in subsection (8) above, the Board shall pay the sum to the person to whom the payment or transfer to which subsection (2) or (3) above applies, and which gave rise to the payment of the sum concerned to the Board, was made.
(11)In construing references to a sum in subsections (8) to (10) above, anything representing interest shall be ignored.
Modifications etc. (not altering text)
C1 See 1988(F) s.130(7)—payment of outstanding tax by migrating companies.
C2 For regulations see Part III Vol.5 (under
“Entertainers and sportsmen”).
Marginal Citations
M1Source-1986 Sch.11 1
M2Source-1986 Sch.11 2(1)
M3Source-1986 Sch.11 2(3)
M4Source-1986 Sch.11 2(2), (4)
M5Source-1986 Sch.11 2(5), (6)
M6Source-1986 Sch.11 2(7)
M7Source-1986 Sch.11 3(1)
M8Source-1986 Sch.11 4
(1)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F2(2)If—
(a)under section 13(5) of ITTOIA 2005 a payment made to a person is treated as made instead to the performer, and
(b)the person to whom the payment is actually made is a company within the charge to corporation tax,
the company is treated for corporation tax purposes as if the payment had not been made to it.]
(3)Regulations may provide—
(a)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)that any liability to [F4corporation tax] which would, apart from subsection (2) above, arise in relation to the payment shall not arise or shall arise only to a prescribed extent.
(4)M9References in this section to a payment include references to a transfer.
(5)M10This section shall not apply unless the payment or transfer is one to which section 555(2) or (3) applies, and subsections (2) and (3) above shall not apply in such circumstances as may be prescribed.
Textual Amendments
F1S. 556(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 230(2), Sch. 3 (with Sch. 2)
F2S. 556(2) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 230(3) (with Sch. 2)
F3S. 556(3)(a) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 230(4)(a), Sch. 3 (with Sch. 2)
F4Words in s. 556(3)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 230(4)(b) (with Sch. 2)
Modifications etc. (not altering text)
C3 For regulations see Part III Vol.5 (under
“Entertainers and sportsmen”).
Marginal Citations
M9Source-1986 Sch.11 6(4) 7(6)
M10Source-1986 Sch.11 6(2), 7(5)
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Word in s. 557 sidenote substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a), Sch. 7 para. 1
F6S. 557 repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 231, Sch. 3 (with Sch. 2)
(1)M11A payment to which subsection (2) of section 555 applies shall be treated for the purposes of the Tax Acts as not diminished by the sum mentioned in that subsection.
(2)Regulations may provide that for the purposes of the Tax Acts the value of what is transferred by a transfer to which section 555(3) applies shall be calculated in accordance with prescribed rules.
(3)In particular, rules may include provision for the calculation of an amount representing the actual worth of what is transferred, 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 for the gross amount to be taken to be the value of what is transferred.
(4)M12No obligation as to secrecy imposed by statute or otherwise shall preclude the Board or an authorised officer of the Board from disclosing to any person who appears to the Board to have an interest in the matter information which may be relevant to determining whether section 555(2) or (3) applies to a payment or transfer.
(5)M13Regulations may make provision generally for giving effect to this Chapter, and may make different provision for different cases or descriptions of case.
(6)M14In this Chapter—
“regulations” means regulations made by the Treasury; and
“prescribed” means prescribed by regulations.