Taxes Consolidation Act 1997 section 1087

Charge and deduction of income tax not charged or deducted before passing of annual Act

Section 1087 deals with the collection of income tax on annual payments where the rate of tax has been increased by a Finance Act but payments were made before that Act was passed.

• Where tax has not been deducted at the increased rate from interest, dividends or other annual payments made before the Finance Act is passed, the shortfall is charged under Schedule D Case IV
• Revenue may require the payer to furnish a list of payees' names, addresses and payment amounts
• The payer may recoup the shortfall by making an additional deduction from the next payment to the payee, or recover it as a debt if no future payment arises
• These provisions do not apply to distributions within the meaning of Part 6 Chapter 2