Income Tax Act 2007 section 849

Interaction with other Income Tax Acts provisions

Section 849 explains how the duty to deduct income tax at source under Part 15 interacts with various other tax provisions, including double taxation relief, exempt income, alternative finance arrangements, and certain specific exemptions.

• Double taxation regulations under TIOPA 2010 can disapply or modify the normal duty to deduct tax at source where relief is available under a double taxation treaty
• Payments or parts of payments that are exempt from income tax under Part 6 of ITTOIA 2005 are generally ignored when applying the deduction at source rules, unless another provision says otherwise
• Alternative finance arrangements (such as profit share return and alternative finance return) are treated as interest for deduction at source purposes, bringing them within certain chapters of Part 15
• Special exemptions from the duty to deduct at source applied in connection with the London Olympic Games and Paralympic Games under FA 2006