Part 15Deduction of income tax at source

Chapter 10Deduction from non-commercial payments by companies

928Chargeable payments connected with exempt distributions

1

This section applies to any payment chargeable to tax under section 214(1) of ICTA (chargeable payments made within 5 years of an exempt distribution).

2

The person by or through whom the payment is made must, on making the payment, deduct from it a sum representing income tax on it at the basic rate in force for the tax year in which it is made.

3

See Chapter 11 (payments between companies etc) for an exception from the duty to deduct sums representing income tax under this section.

4

For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—

a

see Chapter 15 if the person making the payment is a UK resident company, and

b

otherwise see Chapter 16.

5

In this section “payment” does not include a transfer of money's worth that is treated as a payment for the purposes of section 214 of ICTA.