Abstract
If you make an annual payment it is normally considered for tax purposes as being the income of the recipient and is usually subject to income tax at the basic rate (22 per cent) by deduction at source. You should therefore deduct this tax in making each payment (different rules apply to payments between companies — 13.9.1). You will be allowed to retain all of the tax deducted provided that your income taxed at the basic or higher rate is sufficient to cover the amount of the payment.
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© 2002 Fiscal Services Ltd
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Sinclair, W. (2002). Annual payments and interest. In: St. James’s Place Tax Guide 2002–2003. Palgrave Macmillan, London. https://doi.org/10.1057/9780230287716_4
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DOI: https://doi.org/10.1057/9780230287716_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42602-7
Online ISBN: 978-0-230-28771-6
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