Every agreement1 for the payment of interest2, rent or other annual payment3 in full without allowing a deduction of tax authorised by the Taxes Acts4 is void5, but only in so far as it stipulates for payment without such deduction6.
Unless the context otherwise requires, the natural meaning of an agreement to pay a specified sum 'free of tax' is that the parties intended that the payer would pay the specified sum after deducting tax, namely as a net sum, and that the gross sum payable would be calculated so as to provide for the payment of such a sum
**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