Part 15Deduction of income tax at source
Chapter 8Chapters 6 and 7: special provision in relation to royalties
Discretion to make payments gross
916Duty of payee to notify if payment not exempt
1
This section applies if before a payment of a royalty is made, the company beneficially entitled to the income in respect of which the payment is to be made—
a
believed that the payment was exempt from income tax as a result of section 758 of ITTOIA 2005 (exemption for certain interest and royalty payments), but
b
has subsequently become aware that any of conditions A to C in that section have ceased to be met.
2
The company must without delay notify—
a
an officer of Revenue and Customs, and
b
the company which is to make the payment.