Commentary

A4.433 Commercial payments made by individuals

Administration and compliance

A4.433 Commercial payments made by individuals

A4.433 Commercial payments made by individuals

Annual payments arising in the UK, and made by an individual1, are exempt from income tax, with two exceptions:

  1.  

    (a)     payments made for genuine commercial reasons in connection with the individual's trade, profession or vocation2; and

  2.  

    (b)     payments in return for taxable consideration which do not meet the conditions specified in ITTOIA 2005, s 7293 (see A4.439)

Where an individual makes a qualifying annual payment (see A4.432) within (a) above, he must, on making the payment, deduct a sum representing income tax at the basic rate in

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