The Income Tax (Deposit-takers) (Interest Payments)Regulations 1990

Obsolescent accounts

8.—(1) The condition prescribed by this regulation is that, subject to paragraphs (3) and (4), a payment of interest arising on an account held with a deposit-taker is not a payment in respect of which a written application has been made to the Board by the deposit-taker in the circumstances specified in paragraph (2) to the effect that, notwithstanding the provisions of regulations 5 and 9, the payment should be made under deduction of tax pursuant to section 480A(1).

(2) The circumstances specified in this paragraph are where—

(a) the account to which the payment relates is of a class which, prior to 6th April 1991, had ceased to be available to a person desiring to open a new account;

(b) the application, which may relate to more than one such class of account—

(i) gives sufficient particulars of each such class to enable the Board to determine whether the application is validly made, and

(ii) is made not less than 30 days before the first date after 5th April 1991 on which a payment of interest arising on any account to which the application relates is to be made.

(3) An application under paragraph (1) shall be of no effect if within 30 days after receipt of the application the Board notify the deposit-taker concerned that, having regard to paragraph (2), they are not satisfied that the application is validly made.

(4) A deposit-taker may by notice to the Board—

(a) cancel an application made under paragraph (1), or

(b) vary the application so that it ceases to relate to certain accounts;

and where the application is so cancelled or varied, the condition prescribed by this regulation shall cease to apply to payments of interest arising on accounts to which the application formerly related and made after the date of the notice.