Commentary

A4.434 Annual payments made by other persons

Administration and compliance

A4.434 Annual payments made by other persons

A4.434 Annual payments made by other persons

Where a person other than an individual1 makes a qualifying annual payment, whether or not for commercial reasons2, that person must deduct from the payment a sum representing income tax.

HMRC have said that they consider payments of 'trail commission' passed on to investors in collective investment schemes and other investment products, including life insurance policies, to be annual payments subject to income tax and they will expect payers to deduct basic rate tax at source and investors to include such payments in self-assessment returns for 2013/14 onwards. HMRC will not seek to collect

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial