(1)Where in accordance with a scheme approved [F1for the purposes of section 714 of the Income Tax (Earnings and Pensions) Act 2003] (donations to charity: payroll deduction scheme) an agent is to pay to a charity any sum which—
(a)is withheld by [F2a person] from a payment which an [F3individual] is entitled to receive; and
(b)is paid by the [F4person] to the agent,
the agent shall, within a period prescribed by regulations made by the Treasury, pay a supplement equal to 10% of that sum to the charity.
(2)On a claim made by an agent in such form as the Board may prescribe, the Board shall pay to the agent out of money provided by Parliament—
(a)such amounts as are required—
(i)to fund the payment of supplements falling to be paid by him; or
(ii)to reimburse him for supplements paid by him the payment of which has not been so funded; and
(b)in the case of an agent which is a charity, an amount which is equal to 10% of the aggregate of sums which—
(i)are withheld and paid as mentioned in paragraphs (a) and (b) of subsection (1) above; and
(ii)are sums to which the agent is itself entitled in its capacity as a charity.
(3)The Treasury may by regulations make provision—
(a)requiring agents to notify the Board of any failures of theirs to comply with subsection (1) above, and of the reasons for those failures;
(b)requiring agents to keep records of supplements paid by them under that subsection; and
(c)for the assessment and recovery under the Taxes Acts of amounts paid to agents under subsection (2) above which ought not to have been so paid.
The regulations may contain such supplementary and incidental provision as appears to the Treasury necessary or expedient.
(4)In this section—
[F5“agent” means an agent approved for the purposes of section 714 of the Income Tax (Earnings and Pensions) Act 2003;]
“charity” has the same meaning as in section 506 of [F6the Taxes Act 1988] and includes each of the bodies mentioned in section 507 of that Act;
“the Taxes Acts” has the same meaning as in the M1Taxes Management Act 1970.
F7(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)Subsections (1) to (4) above shall have effect in relation to supplements or other amounts payable in respect of sums withheld on or after 6th April 2000 and before [F86th April 2004]; and no claim under subsection (2) above shall be entertained if made on or after [F96th April 2005].
F7(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words in s. 38(1) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 243(2)(a) (with Sch. 7)
F2Words in s. 38(1)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 243(2)(b) (with Sch. 7)
F3Word in s. 38(1)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 243(2)(c) (with Sch. 7)
F4Word in s. 38(1)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 243(2)(d) (with Sch. 7)
F5Words in s. 38(4) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 243(3) (with Sch. 7)
F6Words in s. 38(4) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 390 (with Sch. 2)
F7S. 38(5)(7) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)
F8Words in s. 38(6) substituted (10.7.2003) by Finance Act 2003 (c. 14), s. 146(a)
F9Words in s. 38(6) substituted (10.7.2003) by Finance Act 2003 (c. 14), s. 146(b)
Marginal Citations