Income Tax Act 2007 section 936

Recipients who are to be paid gross

Section 936 identifies specific types of recipients whose payments are treated as excepted payments, meaning that income tax does not need to be deducted at source before paying them.

• Payments to certain public bodies, charities, and exempt organisations are excepted from the requirement to deduct income tax at source and may be paid gross
• Qualifying recipients include local authorities, health service bodies, most Crown departments, charities, eligible bodies with charitable exemptions, and scientific research associations
• Pension-related recipients who qualify include registered pension scheme administrators, sub-scheme administrators under split scheme regulations, trustees of Parliamentary pension funds, and persons entitled to income from certain overseas pension funds
• The Treasury has the power to amend the list of qualifying recipients by order, whether by adding new categories, restricting existing ones, or otherwise altering who is entitled to be paid gross