(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.