Finance Act 1995

108 Payments on account of income tax. U.K.

(1) In subsection (1) of section 59A of the Management Act (payments on account of income tax)—

(a) there shall be inserted at the beginning the words “ Subject to subsection (9) below, ”; and

(b) in paragraph (a), for the words “has been assessed” there shall be substituted the words “ is assessed ”.

(2) In subsection (2) of that section, for the words “subsection (4)” there shall be substituted the words “ subsections (4) and (4A) ”.

(3) After subsection (4) of that section there shall be inserted the following subsection—

“(4A) If as regards the year immediately preceding the year of assessment—

(a) the taxpayer is assessed to income tax under section 9 of this Act after the date on or before which either payment on account is required to be made, or

(b) his assessment to income tax under that section is amended after that date,

then, subject to subsections (3) and (4) above and to any subsequent application of this subsection, the amount of the payment on account shall be, and shall be deemed always to have been, equal to 50 per cent. of the relevant amount as determined on the basis of the assessment or, as the case may be, the assessment as amended.”

(4) In subsection (5) of that section—

(a) after the words “the taxpayer makes a claim under subsection (3) or (4) above” there shall be inserted the words “ or subsection (4A) above applies ”; and

(b) after the words “whether by the repayment of amounts paid on account” there shall be inserted the words “ , by the making of payments or further payments on account ”.

(5) For subsection (8) of that section there shall be substituted the following subsections—

“(8) In this section, in relation to a year of assessment, any reference to the amount of any income tax deducted at source is a reference to the amount by which the aggregate of the following, namely—

(a) any income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of the year, and

(b) any amounts which, in respect of the year, are to be deducted at source under section 203 of the principal Act in subsequent years, or are tax credits to which section 231 of that Act applies,

exceeds the aggregate of any amounts which, in the year, are deducted at source under the said section 203 in respect of previous years.

(9) If, at any time before the 31st January next following a year of assessment, an officer of the Board so directs—

(a) this section shall not apply, and shall be deemed never to have applied, as regards that year to any person specified in the direction; and

(b) there shall be made all such adjustments, whether by the repayment of amounts paid on account or otherwise, as may be required to give effect to the direction.”