Commentary on Sections Overview Overview Section 953: How a set-off claim works
2917.This section sets out the effects of a claim to set off income tax suffered against income tax payable. It is based on section 480A(3) and (4) of, and paragraphs 5 and 7 of Schedule 16 to, ICTA, and paragraph 4 of Schedule 11 to FA 1991.
2918.Subsection (2) confirms that, to the extent of the set-off, income tax which has been suffered is treated as repaid. This ensures that the amount of income tax suffered and used in the set-off claim cannot be used again in another claim. Further, to the extent of the set-off, income tax payable is treated as paid.
2919.Subsection (3) sets out further results of any set-off claim. Where a claim is allowed, the liability to pay income tax treated as paid is discharged. Where income tax has already been paid and the set-off is allowed, the amount will be repaid.
2920.Subsections (4) and (5) require the claim to be made on a return for the return period under section 949 whether or not a section 946 payment has been made in the return period in question. See Change 143 in Annex 1 and the commentary on section 949.
2921.Subsection (7) confirms that a claim for set-off by a deposit-taker can be made only where the claimant is subject to corporation tax. So set-off claims cannot be made by deposit-takers who are not companies.