Income Tax Act 2007 sections 161–162

Deduction by deposit-takers, building societies etc: collection of tax

Sections 161 and 162 set out the transitional rules for bringing deposit-takers, building societies and certain other companies within the income tax deduction-at-source collection regime (Chapter 15 of Part 15) from 6 April 2007 onwards, including how payments straddling that date are to be treated.

• The collection rules in Chapter 15 of Part 15 apply to return periods that both fall within accounting periods ending on or after 6 April 2007 and themselves end on or after that date.
• Payments made before 6 April 2007 in an accounting period that straddles that date are caught by the new rules if they would have qualified under section 946 had they been made on or after 6 April 2007.
• Such payments are treated as section 946 payments if they fall in a return period that itself straddles 6 April 2007 — that is, one beginning before and ending on or after that date.
• Payments made in an even earlier return period within the same straddling accounting period are also brought in and treated as section 946 payments.

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