Income Tax Act 2007 section 929

Overview of Chapter

Section 929 provides an overview of the rules allowing certain payments made by companies, local authorities and qualifying partnerships to be paid without deducting income tax at source (paid "gross"), where those payments would normally require such deductions.

• Companies, local authorities and qualifying partnerships may pay certain amounts gross, without deducting income tax, where they reasonably believe the payment qualifies as an "excepted payment"
• HMRC officers have the power to issue directions removing this gross payment exception in specific cases
• Sections 933 to 937 set out the detailed conditions that determine when a payment qualifies as an excepted payment, and section 932 defines what constitutes a "qualifying partnership"
• Where a payer makes a gross payment under a reasonable but ultimately incorrect belief that it was an excepted payment, section 938 sets out the consequences