Exception from duties to deduct for excepted paymentsU.K.
930Exception from duties to deduct sums representing income taxU.K.
(1)The duties to deduct sums representing income tax mentioned in subsection (2) do not apply to a payment if—
(a)it is made by a company, local authority or qualifying partnership, and
(b)at the time the payment is made, the company, authority or partnership reasonably believes that it is an excepted payment.
(2)The duties to deduct are those under—
(a)section 874(2) (certain payments of yearly interest),
(b)section 889(4) (payments in respect of building society securities),
(c)section 901(4) (annual payments made by persons other than individuals),
(d)section 903(7) (patent royalties),
(e)section 906(5) (certain royalty payments etc where the owner lives abroad),
(f)section 910(2) (proceeds of a sale of patent rights paid to non-UK residents),
(g)section 919(2) (manufactured interest on UK securities: payments by UK residents etc), and
(h)section 928(2) (chargeable payments connected with exempt distributions).
(3)Subsection (1) has effect subject to any directions under section 931.
(4)Subsection (1) does not apply to a payment made by a company, or qualifying partnership, acting as trustee or agent for another person.
931Power to make directions disapplying section 930U.K.
(1)An officer of Revenue and Customs may give a direction to a company, local authority or qualifying partnership directing that section 930 is not to apply in relation to any payment that—
(a)is made by the company, authority or partnership after the giving of the direction, and
(b)is specified in the direction or is of a description so specified.
(2)A direction under this section may be given only if the officer has reasonable grounds for believing, as respects each payment to which the direction relates, that the payment will not be an excepted payment at the time it is made.
(3)A direction under this section may be varied or revoked by a later direction.
(4)A variation or revocation of a direction under this section has effect only in relation to payments made after the date of the variation or revocation.
932Meaning of “qualifying partnership”U.K.
For the purposes of this Chapter a partnership is a “qualifying partnership” if any partner in the partnership is a company or a local authority.