[F1349D Section 349A(1): consequences of reasonable but incorrect beliefU.K.
(1)Where—
(a)a payment is made by a company [F2or local authority] without an amount representing the income tax on the payment being deducted from the payment,
(b)at the time the payment is made, the company [F3or authority] reasonably believes that one of the conditions specified in section 349B is satisfied,
(c)if the company [F3or authority] did not so believe, tax would be deductible from the payment under section 349, and
(d)[F4none] of the conditions specified in section 349B is satisfied at the time the payment is made,
section 350 applies as if the payment were within section 349 (and Schedule 16 applies as if tax were deductible from the payment under section 349).
[F5(2)In this section—
“company” includes a partnership of which any member is a company; and
“local authority” includes a partnership of which any member is a local authority.]]
Textual Amendments
F1Ss. 349A-349D inserted (with application in accordance with s. 85(4) of the amending Act) by Finance Act 2001 (c. 9), s. 85(1)
F2Words in s. 349D(1)(a) inserted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(4)(a)(i)
F3Words in s. 349D(1)(b)(c) inserted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(4)(a)(ii)
F4Word in s. 349D(1)(d) substituted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(4)(a)(iii)
F5S. 349D(2) substituted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(4)(b)