851Duty to deduct sums representing income taxU.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 [F1basic 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
F1Words 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)
C1S. 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))