Income Tax Act 2007

Introduction

945 Overview of Chapter

(1) This Chapter provides—

(a) for persons who have made payments within section 946 (“section 946 payments”) to make returns of the payments, and

(b) for the collection of income tax in respect of those payments.

(2) Sections 947 and 948 contain definitions and other provisions in relation to the following basic concepts used in the Chapter: “return period” and “accounting period”.

(3) Section 949 requires persons who have made section 946 payments to deliver returns of those payments made in return periods falling within accounting periods, and section 950 requires such persons to deliver returns of those payments made otherwise than in accounting periods.

(4) Section 951 explains—

(a) how much income tax is due from persons in respect of section 946 payments made by them, and

(b) when that income tax must be paid.

(5) Sections 952 to 955 allow persons who have made section 946 payments to make claims for income tax they have suffered to be set off against income tax payable by them in respect of the payments.

(6) Sections 956 to 960 explain what happens in cases where income tax payable in respect of section 946 payments is not paid when it is due, or where returns are incomplete or incorrect.

(7) Sections 961 and 962 contain supplementary provisions.

(8) For further provisions applying to returns and set-off claims under this Chapter, see TMA 1970 (in particular section 113(1) (returns) and section 42 and Schedule 1A (claims)).

946 Payments within this section

The payments within this section are—

(a) a payment from which a deposit-taker or building society is required to deduct a sum representing income tax under section 851,

(b) a payment from which a UK resident company is required to deduct a sum representing income tax under—

(i) section 874(2) (payments of yearly interest),

(ii) section 889(4) (payments in respect of building society securities),

(iii) section 892(2) (certain payments of UK public revenue dividends),

(iv) section 901(4) (annual payments made by persons other than individuals),

(v) section 903(7) (patent royalties),

(vi) section 906(5) (royalty payments etc where the owner lives abroad),

(vii) section 910(2) (proceeds of a sale of patent rights paid to non-UK residents),

(viii) section 928(2) (chargeable payments connected with exempt distributions), or

(ix) section 944(2) (directions for deduction from payments to non-UK residents), and

(c) a payment from which a company is required to deduct a sum representing income tax under section 919(2) (manufactured interest on UK securities: payments by UK residents etc).

947 Return periods

(1) For the purposes of this Chapter, the return periods which fall within a person’s accounting period are determined as follows.

(2) If at least one quarter date falls within the accounting period, each of the following is a return period which falls within the accounting period—

(a) any complete quarter which falls within the accounting period, and

(b) any part of the accounting period which is not a complete quarter and which—

(i) ends with the first (or only) quarter date in that period, or

(ii) begins immediately after the last (or only) quarter date in that period.

(3) If no quarter date falls within the accounting period, the accounting period itself is to be treated as a return period which falls within the accounting period.

(4) In this section—

• “quarter” means a period of three months ending—

  (a)

  unless paragraph (b) applies, with the last day of March, June, September or December, or

  (b)

  if the person mentioned in subsection (1) is a building society, with the last day of February, May, August or November, and

• “quarter date” means—

  (a)

  unless paragraph (b) applies, the last day of March, June, September or December, or

  (b)

  if the person mentioned in subsection (1) is a building society, the last day of February, May, August or November.

948 Meaning of “accounting period”

(1) In this Chapter “accounting period”, in relation to a deposit-taker who is not a company, means a period for which the deposit-taker’s accounts are drawn up.

• “Deposit-taker” has the same meaning as in Chapter 2 (see section 853).

(2) See section 12 of ICTA (basis of, and periods for, assessment) for provision about accounting periods of companies.