(1)M1 Any provision of the Income Tax Acts requiring, permitting or assuming the deduction of income tax from any amount (otherwise than in pursuance of section 203) or treating income tax as having been deducted from or paid on any amount, shall, subject to any provision to the contrary, be construed as referring to deduction or payment of income tax at the basic rate in force for the relevant year of assessment.
[F1(1A)As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.]
(2)For the purposes of [F2this section], the relevant year of assessment shall be taken to be (except where otherwise provided)—
(a)if the amount is an amount payable wholly out of profits or gains brought into charge to tax, the year in which the amount becomes due;
(b)in any other case, the year in which the amount is paid.
Textual Amendments
F1S. 4(1A) inserted (with effect in accordance with s. 73(3) of the amending Act) by Finance Act 1996 (c. 8), s. 73(2)
F2Words in s. 4(2) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 1996 (c. 8), s. 73, Sch. 6 para. 2
Marginal Citations
M1Source—1971 s.36; 1975(No. 2) s.44(6)