Commentary on Sections Part 10: Miscellaneous income Overview Section 977: Charge to tax on annual payments not otherwise charged
2482.This section applies the charge to corporation tax on income to annual payments not charged elsewhere. It is based on sections 9 and 18 of ICTA. The corresponding rule for income tax is in section 683 of ITTOIA.
2483.Subsection (1) applies the charge to corporation tax on income to residual annual payments. The charge to tax in the source legislation is in respect of “any annuity or other annual payment”. The reference to “any annuity or other” is omitted because most annuities are charged to tax not under this Chapter but under Part 5 (loan relationships). Including a reference to annuities might therefore be misleading.
2484.The words “whether inside or outside the United Kingdom” in Schedule D Case III (b) are also omitted. The place of payment is only one of a number of factors derived from case law which may be taken into account in determining the source of annual payments.
2485.The source legislation excludes “any payment chargeable under Schedule A”. It is not necessary to rewrite this as sections 209, 270, 277 and 280 apply the charge to corporation tax on income to property income.
2486.Subsection (2) ensures that any exemption resulting from the application of the charge to corporation tax on income to other income is not reversed by the application of that charge under this Chapter.
2487.Subsection (3) rewrites “or whether annually or at shorter or longer intervals”.