Taxation in the United Kingdom/Legislation/Section 7 of the Income and Corporation Taxes Act 1988
Subsection (1) provides that no payment made by a UK resident company shall be treated as income tax, and also that a requirement to withhold income tax imposed by the Income Tax Acts stands notwithstanding that the company is not within the charge to income tax itself.
Subsection (2) provides that subject to provision for the contrary, a UK resident company that has received a payment net of withheld income tax may set that income tax off against its corporation tax liability of the accounting period in which the receipt is brought into the corporation tax charge, or would have been brought into the corporation tax charge but for an exemption from corporation tax.
Subsection (3) disapplies subsection (2) for a payment of loan interest to which Section 369 of ICTA applies. Section 369 deals with mortgage relief at source. As mortgage relief at source no longer applies, this subsection no longer has any practical effect.
Subsection (4) expands, for the purposes of this section, the references to payments received by a company to include references to payments received by another person on behalf of or in trust for the company. It also excludes money received by a company on behalf of or in trust for another person.