- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (08/10/1996)
- Gwreiddiol (Fel y'i Deddfwyd)
Version Superseded: 19/03/1997
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Income and Corporation Taxes Act 1988, Section 349 is up to date with all changes known to be in force on or before 02 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)M1Where—
(a)any annuity or other annual payment charged with tax under Case III of Schedule D, not being interest; or
(b)any royalty or other sum paid in respect of the user of a patent; or
(c)any rent, royalty or other payment which, by section F1. . . 120, is declared to be subject to deduction of income tax under this section or section 348 as if it were a royalty or other sum paid in respect of the user of a patent,
is not payable or not wholly payable out of profits or gains brought into charge to income tax, the person by or through whom any payment thereof is made shall, on making the payment, deduct out of it a sum representing the amount of income tax thereon .
This subsection does not apply to any payment to which section 687 applies [F2or to any payment which is a relevant payment for the purposes of Chapter VIIA of Part IV] .
(2)M2Subject to subsection (3) below and to any other provision to the contrary in the Income Tax Acts, where any yearly interest of money chargeable to tax under Case III of Schedule D [F3(as that Schedule has effect apart from the modification made for the purposes of corporation tax by section 18(3A))] is paid—
(a)otherwise than in a fiduciary or representative capacity, by a company [F4 (other than a building society)] or local authority; or
(b)by or on behalf of a partnership of which a company is a member; or
(c)by any person to another person whose usual place of abode is outside the United Kingdom;
the person by or through whom the payment is made shall, on making the payment, deduct out of it a sum representing the amount of income tax thereon for the year in which the payment is made.
(3)Subsection (2) above does not apply—
(a)to interest payable in the United Kingdom on an advance from a bank carrying on a bona fide banking business [F5on an advance from a bank, if at the time when the interest is paid the person beneficially entitled to the interest is within the charge to corporation tax as respects the interest]; or
(b)to interest paid by [F6a bank in the ordinary course of its] business; or
(c)to any payment to which section 124 applies; or
(d)to any payment to which section 369or 479(1) F7 applies; [F8or
F9(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F10(e)to any payment which is a relevant payment for the purposes of Chapter VIIA of Part IV; or]
(f)to any payment in respect of which a liability to deduct income tax is imposed by section 480A(1); or
(g)to any payment in respect of which a liability to deduct income tax would be imposed by section 480A(1) if conditions prescribed by regulations under section 480B were not fulfilled. [F11or]]
[F12(h)to any payment in respect of which a liability to deduct income tax would, but for section 481(5)(k), be imposed by section 480A(1).]
and subsection (1)above does not apply to any small maintenance payment within the meaning of section 351 F13.
[F14(3AA)In this section “bank” has the meaning given by section 840A.]
[F15(3AB)An order under section 840A(1)(d) designating an organisation as a bank for the purposes of paragraph (a) of subsection (3) above may provide that that paragraph shall apply to the organisation as if the words from “if” to the end were omitted.]
[F16(3A)Subject to subsection (3B) below and to any other provision to the contrary in the Income Tax Acts, where—
(a)any dividend or interest is paid in respect of a security issued by a building society other than a qualifying certificate of deposit [F17and other than a qualifying deposit right]], and
(b)the security was [F18listed], or capable of being [F18listed], on a recognised stock exchange at the time the dividend or interest became payable,
the person by or through whom the payment is made shall, on making the payment, deduct out of it a sum representing the amount of income tax thereon for the year in which the payment is made.
(3B)Subsection (3A) above does not apply to any payment to which section 124 applies.
[F19(4)In [F20this section]] —
“ dividend” has the same meaning as in section 477A,
[F20“ qualifying certificate of deposit” means a certificate of deposit, as defined in section 56(5), under which—
the amount payable by the issuing society, exclusive of interest, is not less than £50,000 (or, for a deposit denominated in foreign currency, not less than the equivalent of £50,000 at the time when the deposit is made), and
the obligation of the society to pay that amount arises after a period of not more than five years beginning with the date on which the deposit is made; and
[F21“qualifying deposit right” means a right to receive an amount (with or without interest) in pursuance of a deposit of money, where—
the right subsists under an arrangement falling within section 56A,
no certificate of deposit, as defined in section 56(5), has been issued in respect of the right at the time the dividend or interest concerned is paid, and
the conditions set out in paragraphs (a) and (b) in the definition of “qualifying certificate of deposit” apply; and]
“security” includes share.]
Textual Amendments
F1Words in s. 349(1)(c) repealed (with effect in accordance with Sch. 29 Pt. 8(22) Note of the repealing Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(22)
F2Words in s. 349(1) inserted (29.4.1996) by Finance Act 1996 (c. 8), Sch. 29 para. 5(1)
F3Words in s. 349 inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 18 (with Sch. 15)
F4Words in s. 349(2)(a) inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 52(1), Sch. 11 para. 1(2)
F5Words in s. 349(3)(a) substituted (with application in accordance with Sch. 37 para. 8(1)-(6) of the amending Act) by Finance Act 1996 (c. 8), Sch. 37 para. 3(a)
F6Words in s. 349(3)(b) substituted (with application in accordance with Sch. 37 para. 8(7)(8) of the amending Act) by Finance Act 1996 (c. 8), Sch. 37 para. 3(b)
F8S. 349(3)(e)-(g) and the word "or" inserted (26.7.1990) by Finance Act 1990 (c. 29), s. 30, Sch. 5 para. 10(2)(4) (for payments made on or after 6th April 1991).
F9S. 349(3)(e) (which was inserted 26.7.1990 by Finance Act 1990 (c. 29), s. 30, Sch. 5 para. 10(2)(4)) repealed (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:1), ss. 52(1), 123, Sch. 11 para. 1(3), Sch. 19 Pt. V
F10S. 349(3)(e) inserted (29.4.1996) by Finance Act 1996 (c. 8), Sch. 29 para. 5(2)
F11Word in s. 349(3), at the end of para. (g), inserted (27.7.1993 ) by 1993 c. 34, s.59
F12S. 349(3)(h) inserted (27.7.1993) by 1993 c. 34, s. 59
F13 Words repealed by 1988(F) s.148and Sch.14 Part IVfor payments made on or after 6April 1989.
F14S. 349(3AA) inserted (with application in accordance with Sch. 37 para. 8 of the amending Act) by Finance Act 1996 (c. 8), Sch. 37 para. 2(1)(2)(b)
F15S. 349(3AB) inserted (29.4.1996) by Finance Act 1996 (c. 8), Sch. 37 para. 4
F16S. 349(3A)(3B) inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 52(1), Sch. 11 para. 1(4).
F17Words in s. 349(3A)(a) inserted (with application in relation to arrangements made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 34, Sch. 8 paras. 2(2), 6.
F18Word in s. 349(3A)(b) substituted (with effect in accordance with Sch. 38 para. 6(7) of the amending Act) by Finance Act 1996 (c. 8), Sch. 38 para. 6(1)(2)(e)
F19S. 349(4) inserted (26.7.1990) by Finance Act 1990 (c. 29), s. 30, Sch. 5 para. 10(3)(4) (for payments made on or after 6th April 1991).
F20S. 349(4): definitions of "qualifying certificate of deposit" and "security" substituted for words in s. 349(4) (25.7.1991) by Finance Act 1991 (c. 31), s. 52(1), Sch. 11 para. 1(5)
F21S. 349(4): definition of "qualifying deposit right" inserted (with application in relation to arrangements made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 34, Sch. 8 paras. 2(3), 6
Modifications etc. (not altering text)
C1S. 349 excluded (3.5.1994) by Finance Act 1994 (c. 9), s. 174
C2 See S.I. 1986 No.482 (in Part III Vol.5) regn. 2(2)—application of s.349(1)for the purposes of S.I. 1986 No.482 (Building Society Regulations).
C3 See S.I. 1986 No.482 (in Part III Vol.5) regn. 2(2)—application of s.349(1)for the purposes of S.I. 1986 No.482 (Building Society Regulations).
C4 See—1970(M) s.106—avoidance of agreements for payment without deduction of tax, etc.1989 s.94and Sch.11 para.18—deep gain securities.1989 s.116—certain interest on Eurobonds to Netherlands Antilles subsidiaries made on or after 1April 1989.
C5S. 349(3)(a) applied (with modifications) (29.4.1996) by The European Investment Bank (Designated International Organisation) Order 1996 (S.I. 1996/1179), art. 4
C6S. 349(3)(b)(3AA) modified (29.4.1996) by Finance Act 1996 (c. 8), Sch. 37 para. 8(8)
Marginal Citations
M1Source-1970 s.53(1); 1973 s.17(1); 1971 Sch.6 21
M2Source-1970 s.54(1), (2); 1971 Sch.6 22; 1982 s.26(1); 1984 ss.27(2), 35(1); 1970 s.65(2)
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