Section 928 — Income Tax Act 2007: Chargeable payments connected with exempt distributions

Chargeable payments connected with exempt distributions 928 1 This section applies to any payment chargeable to tax under section 1086 of CTA 2010 (chargeable payments made within 5 years of an exempt distribution).

2 The person by or through whom the payment is made must, on making the payment, deduct from it a sum representing income tax on it at the basic rate in force for the tax year in which it is made.

3 See Chapter 11 (payments between companies etc) for an exception from the duty to deduct sums representing income tax under this section.

4 For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—

a see Chapter 15 if the person making the payment is a UK resident company, and b otherwise see Chapter 16.

5 In this section “ payment ” does not include a transfer of money's worth that is treated as a payment for the purposes of sections 1086 to 1090 of CTA 2010 (see section 1086(6) of that Act) .