Income Tax (Trading and Other Income) Act 2005 section 618

Payments received after deduction of tax

Section 618 deals with the treatment of income tax that has been deducted at source from annual payments before they reach the recipient.

• When an annual payment is made, income tax may be deducted at source before the payment reaches the recipient.
• The tax deducted is treated as though the recipient themselves had paid that income tax.
• This means the recipient receives credit for the tax already deducted, avoiding double taxation.
• This treatment applies specifically to annual payments falling within this chapter of the legislation.