Income Tax Act 2007 (c. 3)

Part 15 U.K. Deduction of income tax at source

Modifications etc. (not altering text)

C1 Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)

Chapter 2 U.K. Deduction by deposit-takers and building societies

Duty to deduct sums representing income tax U.K.

851 Duty to deduct sums representing income tax U.K.

(1) This section applies if—

(a) a deposit-taker or building society makes a payment of interest on an investment (see section 855(1)), and

(b) when the payment is made, the investment is a relevant investment (see section 856).

(2) The deposit-taker or building society must, on making the payment, deduct from it a sum representing income tax on it at the [F1 basic rate] in force for the tax year in which it is made.

(3) For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section, see Chapter 15.

Textual Amendments

F1 Words in s. 851(2) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 25

Modifications etc. (not altering text)

C2 S. 851 excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Deposit-takers and Building Societies) (Interest Payments) Regulations 2008 (S.I. 2008/2682), regs. 1(1), 4, 4A (as amended (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2011/22, regs. 1(1), 7))