Income Tax Act 2007 section 847

Overview of Part

Section 847 provides a roadmap to the Part of the Act that deals with the deduction of income tax at source, setting out which chapters cover which types of payments, collection rules, special regimes and general provisions.

• Duties to deduct income tax at source apply to several categories of payment, including yearly interest, building society securities, UK public revenue dividends, annual payments, patent royalties, intellectual property payments, manufactured payments and non-commercial payments by companies.
• Special rules modify or disapply the deduction duties in certain circumstances — notably for royalty payments (Chapter 8), payments between companies (Chapter 11), funding bonds (Chapter 12), deposit-takers (Chapter 2) and tax avoidance involving non-UK residents (Chapter 14).
• Separate chapters govern the collection of the tax deducted (Chapters 15–17) and specific deduction-at-source regimes for visiting performers, non-resident landlords and Real Estate Investment Trusts (Chapter 18).
• General provisions cover deduction statements, payments involving companies or public departments, and exemptions for designated international organisations, certain derivative contract payments and interest on foreign currency securities; PAYE and the construction industry scheme also operate as deduction-at-source regimes.