Taxes Consolidation Act 1997 section 59

Charge to tax of income from which tax has been deducted

Section 59 sets out how income from which tax has already been deducted at source is to be treated when calculating an individual's total income for tax purposes.

• Where tax has been withheld from income under Schedule C, Schedule D, or sections 237/238 (annual payments), the full gross amount before any deduction must be included in the individual's total income.
• The gross income is treated as chargeable under Case IV of Schedule D and is taxed on the basis of the actual amount arising in the year of assessment.
• The individual receives a tax credit equal to the amount of tax already deducted at source, which is set against the tax due on their total income.
• Sections 237 and 238 relate to annual payments — section 237 covers payments made wholly out of taxed income, while section 238 covers payments not made out of taxed income.