Part 15

Deduction of income tax at source
Chapter 6

Deduction from annual payments and patent royalties

Duty to deduct from annual payments

Deduction from commercial payments made by individuals
900
1
This section applies to any payment made in a tax year if—
a
it is a qualifying annual payment,
b
the person who makes it is an individual, and
c
it is made for genuine commercial reasons in connection with the individual's trade, profession or vocation.
2
The individual 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.
3
Income tax equal to the sum required to be deducted is to be collected through the individual's self-assessment return (see Chapter 17).
Ss. 900, 901 applied by S.I. 2006/964, reg. 46B(2) (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2013 (S.I. 2013/1772), regs. 1(1), 2(2))
S. 900 excluded (1.1.2011) by The London Olympic Games and Paralympic Games Tax Regulations 2010 (S.I. 2010/2913), regs. 1, 3(3) (with regs. 9, 11)
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)
Ss. 900, 901 applied by S.I. 2009/3001, reg. 124B(2) (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Offshore Funds (Tax) (Amendment No. 3) Regulations 2013 (S.I. 2013/1770), regs. 1(1), 2(3))