Every agreement for payment of interest, rent or other annual payment in full without allowing deduction of tax is void1, but there is no prohibition against a provision in an agreement that interest etc is to be such an amount as after deduction of income tax for the time being in force will amount to a fixed yearly sum2. In such a case the deduction allowable in computing total income is the amount of the fixed yearly sum plus the appropriate addition for income tax
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234