Income Tax Act 2007 section 966

Duty to deduct and account for sums representing income tax

Section 966 sets out the obligation to deduct and account for income tax when payments or transfers are made in connection with activities performed in the UK by non-UK resident entertainers and sportspeople.

• When a non-UK resident performer (entertainer, sportsman or sportswoman) carries out a relevant activity in the UK and a connected payment or transfer is made, the payer must deduct income tax from any payment and account for it to HMRC
• It does not matter whether the payment or transfer goes to the performer or to someone else, nor does the timing of the payment or transfer affect the obligation
• Where a transfer of value (rather than a cash payment) is made in connection with the activity, the person making the transfer must still account to HMRC for a sum representing income tax, even though there is no cash from which to deduct
• Certain prescribed types of payments or transfers are exempt from this requirement, and the terms "relevant activity" and "connected" are defined by reference to prescribed descriptions