Section 449 — Income Tax Act 2007: Relief for other persons

Relief for other persons 449 1 This section applies to a payment made in a tax year if—

a the person who makes it is not an individual, b a sum representing income tax is required by section 901(3) ... (deduction from annual payments ...) to be deducted from it, and c the payment is not deductible in calculating the person's income from any source.

2 The person who makes the payment is entitled to relief for the tax year equal to the gross amount of the payment.

3 But this is subject to the restrictions in subsections (4) and (5) ....

4 Relief is not given for the payment so far as it is ineligible for relief (see section 450).

5 The total amount of relief given under this section to a person for a tax year cannot be greater than the amount of the person's modified net income for the tax year (see section 1025).

6 The relief is given by deducting the amount of the relief in calculating the person's net income for the tax year (see Step 2 of the calculation in section 23).