Section 908 — Income Tax Act 2007: Royalty payments etc made through UK resident agents

Royalty payments etc made through UK resident agents 908 1 If—

a a payment to which section 906 applies is made through an agent who is UK resident, and b the agent is entitled as against the owner of the right to deduct a sum as commission for services provided, section 906(5) and Chapters 8 (deduction at special rates), 15 and 16 (collection) apply as if the amount of the payment were the amount net of the sum deductible as commission.

2 But if the person by or through whom the payment is made does not know the commission is payable, or does not know its amount—

a the sum representing income tax required to be deducted under section 906 must be calculated in the first instance on the total amount of the payment, and b the return to be made under Chapter 15 or the account of the payment under Chapter 16, must be based on that total amount.