Finance Act 2012

Treatment of income tax deducted or repaid U.K.

9 U.K. In section 59B of TMA 1970 (payment of income tax and capital gains tax), in subsection (7), at the end insert—

“But such a reference does not include income tax repaid on a claim for repayment of income tax which—

(a) is treated as having been paid by virtue of section 520(4) of ITA 2007 (gift aid relief: income tax treated as paid by trustees of charitable trust), or

(b) has been deducted at source from income to which section 532, 533, 536 or 537 of that Act (certain sources of income exempt from income tax) applies.”

10 (1) Section 967 of CTA 2010 (set-off of income tax deductions against corporation tax: payments received by UK resident companies) is amended as follows. U.K.

(2) After subsection (4) insert—

“(5) The reference in subsection (1) to a payment received by a company does not include a reference to a payment which is exempt from tax by virtue of any of the following—

• section 472 (gifts qualifying for gift aid relief: charitable companies);

• section 475 (gifts qualifying for gift aid relief: eligible bodies);

• section 664 (exemption for interest and gift aid income: community amateur sports clubs).”

(3) In subsection (5) (as inserted by sub-paragraph (2)), after the entry for section 475 insert—

“section 486 (investment income and non-trading profits from loan relationships);

section 487 (public revenue dividends);

section 488 (certain miscellaneous income);

section 489 (income from estates in administration);”.