Income Tax Act 2007 section 935

PEP and ISA managers

Section 935 sets out when a payment made to the manager of a personal equity plan (PEP) or individual savings account (ISA), or to that manager's nominee, qualifies as an excepted payment.

• A payment can be treated as an excepted payment if it meets all the conditions in this section.
• The recipient must be the plan manager of a PEP or ISA (or the manager's nominee), where the plan falls under the individual investment plan regulations in ITTOIA 2005.
• The plan manager must receive the payment specifically in respect of investments held under the plan.
• If both conditions are satisfied, the payment is excepted and is not subject to the usual obligation to deduct income tax at source.