Section 147 — Finance Act 2003: Sub-contractor deductions etc: interest on late payment or repayment

Sub-contractor deductions etc: interest on late payment or repayment 147 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 In the Social Security Contributions and Benefits Act 1992 (c. 4) and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), in paragraph 6 of Schedule 1 (power to combine collection of national insurance contributions with tax) after sub-paragraph (4A) insert— 4B Interest required to be paid, by virtue of sub-paragraph (2)(a) or (b) above, by regulations under sub-paragraph (1) above shall be paid without any deduction of income tax and shall not be taken into account in computing any income, profits or losses for any tax purposes. .

3 In section 22 of the Teaching and Higher Education Act 1998 (c. 30) (student loans), after subsection (9) insert— 10 Interest required to be paid, by virtue of subsection (5)(d), by regulations under this section shall be paid without any deduction of income tax and shall not be taken into account in computing any income, profits or losses for any tax purposes. .

4 In Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14)) (student loans), after paragraph (9) insert— 10 Interest required to be paid, by virtue of paragraph (5)(d), by regulations under this Article shall be paid without any deduction of income tax and shall not be taken into account in computing any income, profits or losses for any tax purposes. .

5 In its application to the computation of income, profits or losses for an accounting period (in the case of a company) or a year of assessment (in the case of a person who is not a company), this section has effect in relation to—

a accounting periods ending on or after 9th April 2003, or b 2003-04 and subsequent years of assessment.