Income Tax Act 2007 section 892

Duty to deduct from certain UK public revenue dividends

Section 892 establishes the obligation to deduct income tax at source from payments of UK public revenue dividends that are not eligible to be paid gross.

• When a UK public revenue dividend is paid and it does not qualify to be paid gross under section 893, income tax must be deducted at source.
• The person making or facilitating the payment must deduct a sum representing income tax at the basic rate for the relevant tax year.
• If the payer is a UK resident company, the collection of the deducted tax is governed by Chapter 15 of the Act.
• If the payer is not a UK resident company, the collection of the deducted tax is governed by Chapter 16 of the Act.