Income Tax Act 2007 section 898

Overview of Chapter

Section 898 provides an overview of the rules requiring income tax to be deducted at source from qualifying annual payments and patent royalties, and signposts related exceptions and reliefs.

• Income tax must be deducted from qualifying annual payments and from royalties or other sums paid for the use of patents.
• Exceptions exist for payments between companies (Chapter 11) and for certain pensions under section 615(3) of ICTA.
• Relief for certain payments from which income tax has been deducted is available under Chapter 4 of Part 8.
• Where a payment also falls within section 906 (intellectual property payments to owners abroad), section 906 takes priority and this Chapter does not apply.