Income Tax Act 2007 section 930

Exception from duties to deduct sums representing income tax

Section 930 provides an exception from the normal obligation to deduct income tax at source, allowing companies, local authorities and qualifying partnerships to make certain payments gross where they reasonably believe those payments are excepted payments.

• Companies, local authorities and qualifying partnerships are excused from deducting income tax at source if they reasonably believe a payment is an excepted payment at the time it is made
• The exception covers a wide range of payment types including yearly interest, building society securities, annual payments, patent royalties, intellectual property royalties paid abroad, patent rights sale proceeds to non-UK residents, manufactured interest and chargeable payments connected with exempt distributions
• The exception is subject to any directions issued by HMRC under section 931, which can disapply the relief in specific circumstances
• The exception does not apply where a company or qualifying partnership is making the payment in its capacity as trustee or agent for another person