Income and Corporation Taxes Act 1988

350 Charge to tax where payments made under section 349. U.K.

(1) M1 Where any payment within section 349 is made by or through any person, that person shall forthwith deliver to the inspector an account of the payment, and shall be assessable and chargeable with income tax at the [F1 applicable rate] on the payment, or on so much thereof as is not made out of profits or gains brought into charge to income tax.

[F2 (1A) In subsection (1) above “the applicable rate” means the rate which is applicable to the payment under section 4 [F3 (or, where the payment is one to which subsection (1) of section 349E applies, the rate referred to in that subsection)].]

(2) M2 In section 349(1) any reference to a payment or sum as being not payable, or not wholly payable, out of profits or gains brought into charge to income tax shall be construed as a reference to it as being payable wholly or in part out of a source other than profits or gains brought into charge; and any such reference elsewhere in the Tax Acts shall be construed accordingly.

(3) M3 All the provisions of the Income Tax Acts relating to persons who are to be chargeable with income tax, to income tax assessments, and to the collection and recovery of income tax, shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this section.

(4) M4 Section 349 and this section have effect subject to the provisions of Schedule 16 which has effect for the purpose of regulating the time and manner in which companies resident in the United Kingdom—

(a) are to account for and pay income tax in respect of payments from which tax is deductible under section 349, and

(b) are to be repaid income tax in respect of payments received by them;

and for that purpose the Board may by regulations modify, supplement or replace any of the provisions of Schedule 16; and references in this Act and in any other enactment to any of those provisions shall be construed as including references to any such regulations.

(5) M5 Without prejudice to the generality of subsection (4) above, regulations under that subsection may, in relation to income tax for which a company is liable to account, modify any provision of Parts II to VI of the Management Act or apply any such provision with or without modifications.

(6) Regulations under this section may—

(a) make different provision for different descriptions of companies and for different circumstances and may authorise the Board, where in their opinion there are special circumstances justifying it, to make special arrangements as respects income tax for which a company is liable to account or the repayment of income tax borne by a company;

(b) include such transitional and other supplemental provisions as appear to the Board to be expedient or necessary.

(7) The Board shall not make any regulations under this section unless a draft of them has been laid before and approved by a resolution of the House of Commons.

Textual Amendments

F1 Words in s. 350(1) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 1996 (c. 8), Sch. 6 para. 8

F2 S. 350(1A) inserted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 1996 (c. 8), Sch. 6 para. 8

F3 Words in s. 350(1A) inserted (with application in accordance with s. 96(4) of the amending Act) by Finance Act 2002 (c. 23), s. 96(2)

Modifications etc. (not altering text)

C1 See 1970(M) s.98—penalties for non-compliance.

C2 S. 350(1) excluded (22.3.1992) by S.I. 1992/569, reg. 13(2)(d).

C3 See 1970(M) Parts IV-VI—principal provisions as to assessment, appeals and collection.

C4 See 1988(F) s.130(7)(b)—payment of outstanding tax by migrating companies.

C5 S. 350(4) amended by Finance Act 1991 (c. 31, SIF 63:1), s. 52(1), Sch. 11 para. 3(1)(2)

C6 S. 350(4) extended by Finance Act 1991 (c. 31, SIF 63:1), s. 52(1), Sch. 11 para. 3(3)

C7 (See 1970(M) Parts IV-VI—principal provisions as to assessment, appeals and collection.)and also:—1970(M) s.31(3)appeals under s.349(1)and 350to go to Special Commissioners.

C8 See 1989 s.94and Sch.11 para.18—deep gain securities.

Marginal Citations

M1 Source-1970 ss.53(2), 54(3); 1971 Sch.6 21

M2 Source-1970 s.56

M3 Source-1970 s.53(3), 54(3)

M4 Source-1970 s.53(4), 54(3); 1972 s.104, 108(1), Sch.24 16

M5 Source-1972 s.108(2)-(4)