Income Tax Act 2007 section 978

Application to public departments

Section 978 ensures that the rules on deduction of income tax at source apply to payments made by United Kingdom government departments, overriding the principle of Crown exemption that would otherwise shield them from these obligations.

• The deduction-at-source rules in this Part apply to payments made by UK public offices and departments of the Crown
• Without this provision, Crown exemption would mean annual payments by UK government departments would fall outside the deduction-at-source regime
• Payments made by public offices and departments of Commonwealth countries (listed in Schedule 3 to the British Nationality Act 1981) or the Republic of Ireland are excluded
• Payments made by any state or province of those Commonwealth countries or the Republic of Ireland are also excluded