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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Income Tax: collection of tax on annual payments: set off of tax suffered by deduction


IT deducted from any payment received by a company in an accounting period can be set-off against any IT it is liable to pay in respect of the section 946 payments made by it in that period.

The claim for set-off is included in a return made under Chapter 15.

The company will also get a repayment of IT paid in an earlier return period if it has had tax deducted from a payment received later in the same accounting period.

Where IT suffered by deduction is used for the purposes of a claim under Chapter 15 the same tax is not to be set off against the company’s CT liability under CTA10/S967 and 968 (CTM35220).