Income Tax (Earnings and Pensions) Act 2003 section 636

Person liable for tax

Section 636 identifies who is personally liable for tax on voluntary annual payments that fall within section 633, whether those payments originate from within or outside the United Kingdom.

• The person who receives or is entitled to a voluntary annual payment under section 633 is the one liable for any tax charged.
• This rule applies equally to payments made by or on behalf of persons in the United Kingdom and those outside the United Kingdom.
• For UK-source payments, this provision clarifies a point that was previously unspecified when such income was taxed under the former Schedule E.
• For payments from outside the United Kingdom, the rule carries forward the principle formerly found in section 59(1) of ICTA.