PART IX ANNUAL PAYMENTS AND INTEREST
Mortgage interest relief at source
369 Mortgage interest payable under deduction of tax.
C11
F21A
In subsection (1) above “the applicable percentage” means F323 per cent..
2
Where a sum is deducted under subsection (1) above from a payment of relevant loan interest—
a
the person to whom the payment is made shall allow the deduction on receipt of the residue;
b
the borrower shall be acquitted and discharged of so much money as is represented by the deduction as if the sum had been actually paid; and
c
the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
F43
The following payments, that is to say—
a
payments of relevant loan interest to which this section applies, and
b
payments which would be such payments but for section 373(5),
shall not be allowable as deductions for any purpose of the Income Tax Acts except in so far as they fall to be treated as such payments by virtue only of section 375(2) and would be allowable apart from this subsection.
6
F5M2Sections 967(2) and 968(2) of CTA 2010 do not apply to a payment of relevant loan interest to which this section applies, but any person by whom such a payment is received shall be entitled to recover from the Board, in accordance with regulations, an amount which by virtue of subsection (2)(c) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the payment of relevant loan interest to which it relates.
F67
The following provisions of the Management Act, namely—
F7a
section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;
b
section 30 (tax repaid in error etc.) F8apart from subsection (1B),
c
F9section 86 (interest), and
d
section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid F10as respects a chargeable period as a relief which was not due.
F118
In the application of section 86 of the Management Act by virtue of subsection (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment (“the relevant year of assessment”) under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date—
a
is 1st January in the relevant year of assessment in a case where the person falling within subsection (6) above has made a relevant interim claim; and
b
in any other case, is the later of the following dates, that is to say—
i
1st January in the relevant year of assessment; or
ii
the date of the making of the payment by the Board which gives rise to the assessment.
9
In this section—
“financial year”, in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
“interim claim” means an interim claim within the meaning of the relevant regulations;
“relevant interim claim” means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person’s financial year, an interim claim made for a period falling wholly or partly within that financial year; and
“the relevant regulations” means regulations made under section 378(3) for the purposes of subsection (6) above.