Taxes Consolidation Act 1997 section 410

Group payments

Section 410 allows payments between related companies — such as charges on income — to be made without deduction of income tax where certain group or consortium relationships exist between companies resident in relevant territories.

• Where both the paying and receiving companies are resident in a relevant Member State (EU, certain EEA states with an Irish tax treaty, or the UK), payments that would otherwise require income tax to be withheld may be made gross where the companies are in a 51% group or one is a consortium-owned trading or holding company of which the recipient is a member.
• A consortium exists where 75% or more of a company's ordinary share capital is owned by five or fewer companies resident in a relevant territory, each holding at least 5%; for 51% group purposes, share capital held through a share-dealing company or a company not resident in a relevant territory is disregarded.
• The relief applies to payments that are charges on income (or would be but for specific exclusions), but does not apply to payments received on investments where a profit on the sale of those investments would be a trading receipt of the recipient.
• From 23 December 2025, Finance Act 2025 extended the rules so that shareholdings held by companies resident in treaty partner countries — including those where a treaty has been agreed but is not yet formally in force — are recognised when calculating 51% group membership.

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