530P New Scheme of Relevant Contracts Tax

Section 530P provides that RCT deducted shall be treated as a payment on account of income tax or corporation tax; that RCT deductions will be available for offset against other tax liabilities of a subcontractor; that RCT deductions which are not required to meet the income tax or corporation tax liability of a subcontractor,, or are not required to meet other tax liabilities of a subcontractor will be available for refund, subject to the provisions of section 865 governing the repayment of tax; that no amount of RCT deductions shall be treated as a payment on account, set off or refunded more than once; and that no amount of RCT deductions set off or refunded shall be treated as a payment on account.

Relevant Date: Finance Act 2021