- Latest available (Revised)
- Point in Time (30/05/1994)
- Original (As enacted)
Version Superseded: 01/05/1995
Point in time view as at 30/05/1994.
Income and Corporation Taxes Act 1988, SCHEDULE 3 is up to date with all changes known to be in force on or before 15 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
Section 44(2).
1M1The Bank of England and the Bank of Ireland as respects the dividends and the profits attached thereto payable to them out of the public revenue of the United Kingdom, or payable out of any public revenue and entrusted to them for payment and distribution, and the National Debt Commissioners, as respects the dividends payable by them or of which they have the distribution, shall, when any payment becomes due, deliver to the Board true accounts, in books provided for the purpose, of—
(a)the amounts of the dividends and profits attached thereto payable to the Bank, and
(b)all dividends entrusted to the Bank or the National Debt Commissioners for payment to the persons entitled thereto, and
(c)the amount of income tax chargeable thereon at the basic rate in force at the time of payment, without any other deduction than is allowed by the Income Tax Acts.
Modifications etc. (not altering text)
C1 See s.656 ante—purchased life annuities.
Marginal Citations
M1Source—1970 Sch.5 1; 1971 Sch.6 80
2(1)In the case of dividends and profits attached thereto payable to the Bank of England out of the public revenue of the United Kingdom, the Bank of England shall set apart the income tax in respect of the amount payable to them.
(2)M2In the case of dividends and profits attached thereto entrusted to the Bank of England for payment and distribution, dividends payable by the Bank of Ireland at its principal office in Belfast, and dividends payable by the National Debt Commissioners or of which the National Debt Commissioners have the distribution—
(a)the Bank of England, the Bank of Ireland and the National Debt Commissioners respectively shall, before any payment is made by them, retain the amount of the income tax for the purposes of the Income Tax Acts, and
(b)the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends, and shall be allowed by them on the receipt of the residue thereof, and
(c)the Bank of England, the Bank of Ireland and the National Debt Commissioners respectively shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid.
(3)In relation to dividends payable to the Bank of Ireland out of the public revenue of the United Kingdom, and public revenue dividends which are entrusted to the Bank of Ireland for payment and distribution and are not payable by that Bank out of its principal office in Belfast, the following provisions shall have effect—
(a)the money which, apart from this sub-paragraph, would be issuable to the Bank of Ireland under section 14 of the M3National Debt Act 1870, or otherwise payable to the Bank of Ireland for the purpose of dividends on securities of the United Kingdom government entered in the register of the Bank of Ireland in Dublin, shall be issued and paid to the Bank of England; and
(b)the Bank of England shall set apart and retain out of moneys so issued and paid to them the amount of the income tax on the dividends payable to the Bank of Ireland, and on the dividends on the securities of the United Kingdom government entered in the register of the Bank of Ireland in Dublin; and
(c)the Bank of England shall pay to the Bank of Ireland the residue of moneys so issued and paid to them, to be applied by the Bank of Ireland to the payment of the dividends; and
(d)the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends, and shall be allowed by them on the receipt of the residue thereof, and the Bank of England and the Bank of Ireland shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid.
Modifications etc. (not altering text)
C2 See s.821ante—under-deductions of tax from payments made before passing of annual Act.
Marginal Citations
M2Source—1970 Sch.5 2-5
3Money set apart or retained under paragraph 2 above, and the amount of any tax charged on the trading profits of the Bank of England or the Bank of Ireland, shall be paid into the general account of the Board at the Bank of England or the Bank of Ireland.
4No deduction of income tax under this Part of this Schedule shall be made from any dividends payable in respect of stock, securities or annuities standing in the name of the official custodian for charities, nor from any dividends in respect of which there is given to the Bank of England a certificate from the Charity Commissioners that the dividends are subject only to charitable trusts and are exempt from tax.
5Where any payment is made of public revenue dividends payable by any public office or department of the Crown, the appropriate officer shall retain the income tax charged and pay the same into the general account of the Board at the Bank of England or the Bank of Ireland.
Modifications etc. (not altering text)
C3 See s.821ante—under-deductions of tax from payments made before passing of annual Act.
Modifications etc. (not altering text)
C4Sch. 3 Pt. III applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 12(2)(b)
Sch. 3 Pt. III applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 13(2)(b)
6(1)M4The following persons are chargeable persons for the purposes of this Part of this Schedule—
(a)every person (other than the National Debt Commissioners or the Bank of England or the Bank of Ireland) who is entrusted with the payment of any dividends which are payable out of the public revenue of Northern Ireland, or which are payable to any persons in the United Kingdom out of any public revenue other than that of the United Kingdom or Northern Ireland;
(b)every person in the United Kingdom who is entrusted with the payment of any foreign dividends;
(c)every banker or other person in the United Kingdom who obtains payment of any dividends in such circumstances that the dividends are chargeable to tax under Schedule C, or in the case of foreign dividends, under Schedule D; and
(d)every banker in the United Kingdom who sells or otherwise realises coupons, and every dealer in coupons in the United Kingdom who purchases coupons, in such manner that the proceeds of the sale or realisation are chargeable to tax under Schedule C, or in the case of foreign dividends, under Schedule D.
F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 3 para. 6(2) repealed and superseded (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(2)(3), 6, Sch. 18 Pt. VII
Marginal Citations
M4Source—1970 Sch.5 6(a)(b)
[F26A(1)On the fourteenth day following the month in which a transaction such as is mentioned in paragraph 6 above is effected, income tax (at the [F3applicable rate] in force at the time of payment) shall become due in respect of the relevant dividends or proceeds.
(2)The tax shall be payable by the chargeable person on behalf of the persons entitled to the dividends or proceeds.
[F4(2A)Payments of tax made on any person’s behalf under this paragraph shall be treated as made for the purpose only of being applied in the discharge of that person’s liability to tax charged (otherwise than by virtue of this paragraph) on the dividends or proceeds to which the payments relate.]
(3)The tax shall be payable without the making of any assessment.
[F5(4)For the purposes of sub-paragraph (1) above the applicable rate shall be—
(a)the lower rate, in the case of a foreign dividend which is neither interest nor any other annual payment which is made otherwise than by way of dividend; and
(b)the basic rate in any other case.]]
Textual Amendments
F2Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F3Words in Sch. 3 para. 6A(1) substituted (27.7.1993 with effect in relation to transactions effected on or after 6 April 1993) by 1993 c. 34, s. 79, Sch. 6 paras. 17(1), 25(5)
F4Sch. 3 para. 6A(2A) inserted (27.7.1993 with effect in relation to transactions effected on or after 6 April 1993) by 1993 c. 34, s. 79, Sch. 6 paras. 17(2), 25(5)
F5Sch. 3 para. 6A(4) inserted (27.7.1993 with effect in relation to transactions effected on or after 6 April 1993) by 1993 c. 34, s. 79, Sch. 6 paras. 17(3), 25(5)
F66B Any tax due under paragraph 6A above shall carry interest, at the rate applicable under section 178 of the Finance Act 1989, from the date on which it becomes due until it is paid.
Textual Amendments
F6Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F76C(1)For each quarter in which a person effects a transaction in respect of which he is a chargeable person, he shall make a return to the Board.
(2)The return shall specify the chargeable person’s name and address and give, in respect of each such transaction effected by him in the quarter, correct and complete particulars of—
(a)the relevant dividends or proceeds, and
(b)the income tax on those dividends or proceeds for which he has accounted, or is accountable, under paragraph 6A above.
(3)The return shall be made within 30 days from the end of the quarter.
(4)In this paragraph and paragraphs 6D to 6F below, “quarter” means any period of three months ending with 31st March, 30th June, 30th September or 31st December.
Textual Amendments
F7Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F86D(1)Any income tax which has become due under paragraph 6A above and particulars of which are included in a return may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if it, or any part of it, was not paid on or before the date on which it became due.
(2)If it appears to the Board that there are any dividends or proceeds particulars of which ought to have been and have not been included in a return, or if the Board are not satisfied with any return, the Board may make an assessment on the chargeable person of the amount, or further amount, of income tax for which he is in their opinion accountable.
(3)Where the Board make an assessment under sub-paragraph (2) above they shall specify—
(a)which of the months in the quarter was the one in which they consider the transactions in question were effected, or
(b)where they consider that the transactions were effected in more than one of the months in the quarter, the proportion of the total amount of the assessment that is to be attributed to each of those months.
(4)Any income tax assessed under sub-paragraph (2) above shall be due within 14 days after the issue of the notice of assessment; but for the purposes of paragraph 6B above—
(a)it shall be treated as having become due on the fourteenth day following the month specified under sub-paragraph (3)(a) above, or
(b)each of the portions of it specified under sub-paragraph (3)(b) above shall be treated as having become due on the fourteenth day following the month to which it is to be attributed.
Textual Amendments
F8Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F96E(1)None of the provisions of section 29 of the Management Act (assessing procedure) except subsections (5) and (6) shall apply in relation to assessments under paragraph 6D above.
(2)For the purposes of sections 34 and 36(1) of the Management Act (time limits for making assessments), an assessment under paragraph 6D above shall be taken to relate to the year of assessment in which the quarter to which the assessment relates ends.
(3)In the application of section 36(2) of the Management Act in relation to an assessment under paragraph 6D above, for the word “year” there shall be substituted the word “quarter”.
Textual Amendments
F9Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F106FIf a person has made a payment purporting to be a payment of tax due under paragraph 6A above but it appears to the Board that—
(a)he was not liable to make any payment under that paragraph, or
(b)the sum paid exceeded his liability under that paragraph,
the Board shall make or allow to be made such repayments, adjustments or set-offs against unpaid tax as they think appropriate.
Textual Amendments
F10Sch. 3 paras. 6A-6F inserted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6
F117
Textual Amendments
F11Sch. 3 para. 7 repealed and superseded (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(2)(3), 6, Sch. 18 Pt. VII
F128
Textual Amendments
F12Sch. 3 para. 8 repealed and superseded (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(2)(3), 6, Sch. 18 Pt. VII
F139
Textual Amendments
F13Sch. 3 para. 9 repealed and superseded (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(2)(3), 6, Sch. 18 Pt. VII
F1410
Textual Amendments
F14Sch. 3 para. 10 repealed (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(3), 6, Sch. 18 Pt. VII
11M5Nothing in [F15paragraphs 6 to 6F] above shall impose on any banker the obligation to disclose any particulars relating to the affairs of any person on whose behalf he may be acting.
Textual Amendments
F15Words in Sch. 3 para. 11 substituted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(4), 6
Marginal Citations
M5Source—1970 Sch.5 11-13.
12Where income tax in respect of the proceeds of the sale or realisation of any coupon has been accounted for under this Part of this Schedule by any banker or dealer, and the coupon has been subsequently paid in such manner that income tax has been deducted from the payment under any of the provisions of this Schedule, the tax so deducted shall be repaid.
A claim under this paragraph shall be made to the Board.
13(1)F16. . . ,the Board may, by notice served on any chargeable person, require that person within such time as may be specified in the notice to make available at his premises for inspection by an officer authorised by the Board all such books and other documents in the possession or control of that person as the officer may reasonably require for the purpose of determining whether any [F17return made by that person under paragraph 6C above is] correct and complete.
(2)The Board may grant a certificate exempting any chargeable person from the provisions of sub-paragraph (1) above, and while the certificate is in force the powers conferred by that sub-paragraph shall not be exercisable in relation to that person; and any such certificate may be revoked at any time by the Board, and may contain such terms and conditions as they think proper.
Textual Amendments
F16Words in Sch. 3 para. 13(1) repealed (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(5)(a), 6, Sch. 18 Pt. VII
F17Words in Sch. 3 para. 13(1) substituted (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(5)(b), 6
14M6In this Part of this Schedule—
“dividends” includes foreign dividends, and
“foreign dividends” has the meaning given by section 123.
Marginal Citations
M6Source—1970 Sch.5 6(c), 14
Modifications etc. (not altering text)
C5Sch. 3 Pt. IV applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 12(2)(b)
Sch. 3 Pt. IV applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 13(2)(b)
15(1)M7Any person who is entrusted with the payment of any interest, dividends or other annual payments which are payable to any persons in the United Kingdom out of the public revenue of the Republic of Ireland, or out of or in respect of the stocks, funds, shares or securities of any Republic of Ireland company, society, adventure or concern, shall be relieved from the obligation imposed on him under the preceding provisions of this Schedule to pay income tax thereon on behalf of the persons entitled thereto as regards any such interest, dividends or other annual payments in respect of which he furnishes to the Board, in such form and subject to such conditions as they may prescribe, a list containing—
(a)a full description of the interest, dividends or other annual payments, and
(b)the name and address of each person who is entitled thereto, and
(c)the amount thereof to which each such person is entitled.
F18(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)Any interest, dividends or other annual payments in respect of which the person entrusted with payment is relieved from the obligation to pay income tax by virtue of sub-paragraph (1) above, shall be assessable and chargeable under Case IV or V of Schedule D, as the case may be.
(4)The Board may make such regulations as may be necessary for the purposes of this paragraph.
(5)This paragraph shall apply to—
(a)any banker or other person in the United Kingdom who obtains payment of any such interest, dividends or other annual payments as is or are mentioned in sub-paragraph (1) above; and
(b)to any person who would, apart from this paragraph, be obliged to pay income tax in respect of the proceeds of the sale or other realisation of any coupon for any such interest, dividends or other annual payments,
as it applies to any person entrusted with the payment of any such interest, dividends or other annual payments, with the substitution in a case falling within paragraph (b) above, of references to the proceeds of the sale or other realisation for references to such interest, dividends or other annual payments.
In this sub-paragraph “coupon” has the same meaning as in section 123.
Textual Amendments
F18Sch. 3 para. 15(2) repealed (16.7.1992 in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 63, 82, Sch. 11 paras. 2(3), 6, Sch. 18 Pt. VII
Marginal Citations
M7Source—1970 Sch.12 Pt.III 6; 1987 Sch.15 2(23)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: