The Income Tax (Building Societies) (Dividends and Interest) Regulations 1990

Consequences of notice under regulation 6(3)(d)

7.—(1) Where the Board issue a notice under regulation 6(3)(d)—

(a) they shall at the same time send a copy to the person referred to in the notice;

(b) subject to paragraphs (2) and (3), no further certificate under regulation 5 may be given by or on behalf of the person referred to in the notice in respect of an account specified in the notice;

(c) the building society may at its option deduct tax pursuant to regulation 3 from payments of dividends or interest referred to in regulation 6(3)(d) which are made within the period of 30 days referred to in that regulation.

(2) If the Board are satisfied, as a result of information received following the issue of a notice under regulation 6(3)(d), that the person referred to in the notice either—

(i) was not liable at the date of the notice, and has not since become liable, to pay an amount by way of income tax, or

(ii) is no longer liable to pay such an amount,

• they shall cancel the notice and give notice of the cancellation to the building society and the person referred to in the notice under regulation 6(3)(d).

(3) Where a notice of cancellation is issued by the Board under paragraph (2), a further certificate may be given in accordance with the conditions of regulation 5 by or on behalf of the person referred to in the notice under regulation 6(3)(d).