PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE

CHAPTER V COMPUTATIONAL PROVISIONS

Deductions

F186A Charitable donations: contributions to agent’s expenses.

(1)

This section applies where—

(a)

a person (the employer) is liable to make to any individual payments from which income tax falls to be deducted F2under PAYE regulations, and

(b)

the employer withholds sums from those payments in accordance with F3an approved scheme and pays the sums to an approved agent.

F4(1A)

In subsection (1)(b) “approved scheme” and “approved agent” have the same meaning as in section 714 of ITEPA 2003.

(2)

Any relevant expenditure incurred by the employer on or after 16th March 1993—

(a)

shall be deducted in computing for the purposes of Schedule D the F5profits of a trade, profession or vocation carried on by the employer, or

F6(b)

if the employer is a company with investment business, shall be treated as expenses of management deductible under section 75.

(3)

Relevant expenditure is expenditure incurred in making to the agent any payment in respect of expenses which have been or are to be incurred by the agent in connection with his functions under the scheme.