IT deducted from any payment received by a company in an
accounting period can be set-off against any IT it is liable to pay
in respect of relevant payments made by it in that period.
The claim for set-off is included in a return made under
Schedule 16.
The company will also get a repayment of IT paid in an
earlier return period if it has had tax deducted from a payment
received later in the same accounting period (see AC4100, (c)(ii)
of AC4120 and (a) of AC4125).
Where IT suffered by deduction is used for the purposes of a
claim under Schedule 16 the same tax is not to be set off against
the company's CT liability under ICTA88/S7 (2) (
CTM35220).
