Taxes Management Act 1970

18 Interest paid without deduction of income tax. [1969 Sch.XIII 13(1)(2)(3).] U.K.

(1) Any person by whom any interest is paid in the year 1969—70 or any subsequent year of assessment without deduction of income tax F1 [other than interest to which subsection (4) below appliesF2 ]shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—

(a) the name and address of the person to whom the interest has been paid or on whose behalf the interest has been received, and

(b) the amount of the interest so paid or received F3 ,

and any person who receives any such interest on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the interest has been received, and its amount F3 .

(2) The persons to whom [subsection (1) above F4 ] applies include any officer in any public office or in any department of the Crown.

(3) [Subsection (1) above F4 ] shall not impose any obligation on a bank carrying on a bona fide business in the United Kingdom in respect of any interest paid by the bank in the ordinary course of that business.

[(3A) A notice under this section shall not require information with respect to interest paid in a year of assessment ending more than three years before the date of the giving of the notice F5 .]

[(3B) The Board may by regulations provide as mentioned in all or any of the following paragraphs—

(a) that a person required to furnish information under subsection (1) above shall furnish at the same time such further information as is prescribed if the notice concerned specifies the information and requires it to be so furnished;

(b) that if a person is required to furnish information under subsection (1) above or under any provision made under paragraph (a) above, and the notice concerned specifies the form in which the information is to be furnished, the person shall furnish the information in that form;

(c) that a notice under subsection (1) above shall not require prescribed information;

and in this subsection “prescribed” means prescribed by the regulations.

(3C) Regulations under subsection (3B) above—

(a) shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons,

(b) may make different provision in relation to different cases or descriptions of case, and

(c) may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient F6 .]

[F7 (3D) For the purposes of this section, the payment by a building society of a dividend in respect of a share in the society shall be treated as the payment of interest.]

[(4) Where interest on any securities issued subject to the condition that interest is payable without deduction of tax is paid without deduction of tax—

(a) any person by whom such interest is paid,

(b) any person who receives, on behalf of any other person who is a registered or inscribed holder of such securities, any interest paid without deduction of tax, and

shall, on being so required by the Board, furnish to the Board—

(i) the names and addresses of the persons to whom such interest has been paid, or on whose behalf such interest has been received, or on whose behalf such securities have been purchased, and

(ii) the amount of the interest so paid or received, or the amount of the securities so purchased F8 .]

Textual Amendments

F1 See Finance Act 1990 s. 92(5)(a), (8)for insertion of words

“or after deduction of tax”

where interest is paid in the year 1991-92or a subsequent year of assessment.

F2 Income and Corporation Taxes Act 1988 Sch. 29 para. 7.Repealed by Finance Act 1988 Sch. 14 Part IVfor 1988=89and subsequent years.

F3 See Finance Act 1990 s. 92(5)(b), (c), (8),Words

“so paid or received”

and

“its amount”

replaced by

“actually paid or received and (where the interest has been paid or received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted”

and

“the amount actually received and (where the interest has been received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted”

respectively where interest is paid in the year 1991-92or in a subsequent year of assessment.

F4 Income and Corporation Taxes Act 1988 Sch. 29 para. 7(2).

F5 Finance Act 1988 (c. 39 SIF 63:1,2) s. 123(3)with respect to notices given on or after 29July 1988.

F6 See Finance Act 1990 s. 92(6), (8)for insertion of subss. (3A)and (3B)where interest is paid in the year 1991-92 or in a subsequent year of assessment.

F7 S. 18(3D) inserted (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:1), s. 52(1), Sch. 11, para. 5(1)(2)

F8 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 7Repealed by Finance Act 1988 (c. 39 SIF 63:1,2) Sch. 14 Part IVfor 1988-89and subsequent years.