Part 15

Deduction of income tax at source
Chapter 15

Collection: deposit-takers, building societies and certain companies

Set-off

How a set-off claim works
953
1
A set-off claim is a claim for the net amount of income tax suffered at the end of the return period to be set off against the net amount of income tax payable at the end of the return period.
2
The effect of a claim is that, to the extent of the set-off—
a
the income tax comprised in the net amount of income tax suffered is treated as repaid, and
b
the income tax comprised in the net amount of income tax payable is treated as paid.
3
Accordingly—
a
any liability of the person making the set-off claim to pay any of the income tax treated as paid under subsection (2)(b) is discharged, and
b
any of that income tax which has been paid is to be repaid to the person.
4
A set-off claim must be made in a return under section 949 for the return period.
5
A return may be made under that section for the purposes of making a set-off claim despite the fact that the person making the claim may not have made any section 946 payments in the return period.
6
Income tax suffered which is taken into account in a set-off claim may not also be taken into account for the purposes of—
a
section 967 of CTA 2010 (income tax deducted from payments to UK resident company to be set off against corporation tax), or
b
section 968 of that Act (income tax deducted from payments to non-UK resident company to be set off against corporation tax).
7
Income tax suffered by a deposit-taker is to be taken into account in a set-off claim only if the payment on which the income tax is suffered is to be taken into account in calculating the deposit-taker's liability to corporation tax.
- “Deposit-taker” has the same meaning as in Chapter 2 (see section 853).
Words in s. 953(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 558(a) (with Sch. 2)
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)
Words in s. 953(6)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 558(b) (with Sch. 2)