Regulation 4 Amendments to the principal Regulations

After regulation 7 there shall be inserted the following regulations—

“Payment of income tax— taxed income and tax credits

7A

The like provisions as are contained in sections 59A and 59B of the Management Act^f1 shall have effect for the year 1996-97 and subsequent years of assessment in relation to tax which—

(a)

is charged on income in accordance with section 171 of the Finance Act 1993^f2, being income falling within section 172(1)(c) of that Act, and

(b)

either—

(i)

was paid by way of deduction at source, or

(ii)

is represented by a tax credit,

as if references to income tax deducted or treated as deducted from any income or treated as paid on any income in respect of a year of assessment were references to income tax deducted or treated as deducted or paid in respect of the underwriting year corresponding to that year of assessment.

7B

The like provisions as are contained in section 824 of the Taxes Act^f3 shall have effect for the year 1996-97 and subsequent years of assessment in relation to—

(a)

any repayment of tax which was paid by way of deduction at source in respect of income charged to tax in accordance with section 171, and falling within section 172(1)(c), of the Finance Act 1993, and

(b)

any payment of the whole or part of a tax credit (to which section 824 of the Taxes Act applies by virtue of subsection (2) of that section) in respect of such income,

as if the reference in subsection (3)(b) of that section to the year of assessment for which the tax was charged was a reference to the year of assessment for which the tax was assessed on the member concerned.

Year of assessment to which taxed income and tax credits attributable

7C

The like provision as is contained in paragraph (a) of section 835(6)^f4 of the Taxes Act (total income) shall have effect for the year 1994-95 and subsequent years of assessment as if it provided that income falling within that paragraph and within section 172(1)(c) of the Finance Act 1993 should be deemed to be income of the year of assessment corresponding to the underwriting year in which it was received by the member concerned, and not income of the year of assessment referred to in that paragraph.”