ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change is in taxpayers’ favour in principle. But it is expected to have no practical effect as it is in line with current practice. Change 161: Deduction of tax: visiting performers: Schedule 1 (section 48 of ITEPA)
This change makes it explicit that a “transfer” which is subject to deduction under the rules about visiting performers in Chapter 18 of Part 15 of this Act is not subject to the rules about the provision of services through intermediaries in Chapter 8 of Part 2 of ITEPA.
Section 48(2)(b) of ITEPA provides that “payments” which are subject to deduction under section 555 of ICTA are not also subject to the operation of Chapter 8 of Part 2 of ITEPA. But it says nothing about “transfers”.
In practice “transfers” are also regarded as excluded from the operation of Chapter 8. The insertion of a reference to “transfer” into section 48(2)(b) of ITEPA makes it explicit that transfers caught by Chapter 18 of Part 15 of this Act are not also subject to the rules set out in Chapter 8 of Part 2 of ITEPA.