Commentary

A4.144 Returns of income tax deducted by companies

Administration and compliance

A4.144 Returns of income tax deducted by companies

A4.144 Returns of income tax deducted by companies

When a company makes payments from which it is required to deduct sums equivalent to income tax ('section 946 payments'), it has a duty to make returns of those payments1.

Section 946 payments are of three kinds:

  1.  

    (a)     payments by building societies and deposit-takers for years prior to 2016/17 under ITA 2007 former s 851(now repealed)2

  2.  

    (b)     certain payments by UK-resident companies3; and

  3.  

    (c)     payments of manufactured interest4 on UK securities5

A company (indeed any person) making a section 946 payment is required to make a return to an HMRC officer of such payments

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