Part 15Deduction of income tax at source
Chapter 4Deduction from payments in respect of building society securities
889Payments in respect of building society securities
1
This section applies to any payment made in a tax year if—
a
it is a payment of a dividend or interest in respect of a security issued by a building society, and
b
conditions A and B are met in relation to the security.
2
Condition A is that the security was listed or capable of being listed on a recognised stock exchange at the time the dividend or interest became payable.
3
Condition B is that the security is not—
a
a qualifying certificate of deposit (see section 985),
b
a qualifying uncertificated eligible debt security unit (see section 986), or
c
a quoted Eurobond (see section 987).
4
The person by or through whom the payment is made must, on making it, deduct from it a sum representing income tax on it at the savings rate in force for the tax year.
5
For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—
a
see Chapter 15 if the person making the payment is a UK resident company, and
b
otherwise see Chapter 16.
6
See also Chapter 11 (payments between companies) for an exception from the duty to deduct sums representing income tax under this section.
7
In this section—
“dividend” includes any distribution (whether or not described as a dividend), and
“security” includes a share (and, in particular, a permanent interest bearing share as defined in section 117 of TCGA 1992).