Section 449 | Relief for other persons

(1)This section applies to a payment made in a tax year if—

(a)the person who makes it is not an individual,

(b)a sum representing income tax is required by section 901(3) ... (deduction from annual payments ...) to be deducted from it, and^F1

(c)the payment is not deductible in calculating the person's income from any source.

(2)The person who makes the payment is entitled to relief for the tax year equal to the gross amount of the payment.

(3)But this is subject to the restrictions in subsections (4) and (5)....^F2

(4)Relief is not given for the payment so far as it is ineligible for relief (see section 450).

(5)The total amount of relief given under this section to a person for a tax year cannot be greater than the amount of the person's modified net income for the tax year (see section 1025).

(6)The relief is given by deducting the amount of the relief in calculating the person's net income for the tax year (see Step 2 of the calculation in section 23).