Section 967 — Income Tax Act 2007: Calculation of sums representing income tax

Calculation of sums representing income tax 967 1 The sums representing income tax mentioned in section 966(3) and (4) are to be calculated in accordance with prescribed rules.

2 But the sums must not exceed the relevant proportion of the payment concerned or of the value of what is transferred. “ Relevant proportion ” means a proportion equal to the basic rate of income tax for the tax year in which the payment or transfer is made.

3 Regulations made by the Treasury may provide, in relation to a transfer to which section 966 applies, that for the purposes of the Tax Acts the value of what is transferred is to be calculated in accordance with prescribed rules.

4 In particular, rules may include provision—

a for the calculation of an amount representing the actual value of what is transferred, b for that amount to be treated as a net amount corresponding to a gross amount from which income tax at the basic rate has been deducted, and c for the gross amount to be taken to be the value of what is transferred.