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

Joint accounts

9.—(1) The conditions prescribed by this regulation apply where more than one person is beneficially entitled to a payment of interest arising on an account held with a deposit-taker.

(2) The prescribed conditions are that—

(a) a certificate referred to in regulation 5 is given by or on behalf of—

(i) each person beneficially entitled to the payment of interest, or

(ii) one or more (but not all) of such persons individually; and

(b) a notice under paragraph (6) relating to the payment of interest—

(i) has not been given to the Board by the deposit-taker, or

(ii) has been so given and has subsequently been cancelled by the deposit-taker under paragraph (7).

(3) Where the condition in paragraph (2)(a)(i) was satisfied but a certificate has ceased to be valid at any time by reason of the occurrence of one of the circumstances specified in sub-paragraph (a), (b), (c) or (d) of regulation 6(3), this paragraph shall apply in relation to a payment of interest made—

(a) after that time, or

(b) where sub-paragraph (d) of regulation 6(3) applies—

(i) after the expiry of a period of 30 days following the date of issue of the notice referred to in that sub-paragraph, or

(ii) after such date falling within that period as the deposit-taker may at his option determine.

(4) Subject to paragraph (6), where the condition in paragraph (2)(a)(ii) is satisfied or paragraph (3) applies, for the purposes of these Regulations and of deduction of tax pursuant to section 480A(1), it shall be assumed that each person is beneficially entitled in equal shares to the payment of interest and accordingly—

(a) payment of so much of the interest as by virtue of this paragraph corresponds to the share of any person by or on behalf of whom a certificate was given shall be made without deduction of tax pursuant to regulation 4(1), and

(b) payment of the remainder of the interest shall be made under deduction of tax pursuant to section 480A(1).

(5) Tax deducted from a payment within paragraph (4)(b) shall, for all the purposes of the Income Tax Acts, be treated as income tax paid by the person or persons to whom the payment is treated as being made.

(6) A deposit-taker may by notice inform the Board of his intention that, in circumstances where the condition in paragraph (2)(a)(ii) is satisfied or paragraph (3) applies, the whole of a payment of interest referred to in the notice shall be made under deduction of tax pursuant to section 480A(1), and, subject to paragraph (7), where such notice is given paragraph (4) shall not apply and tax shall accordingly be deducted by the deposit-taker from any payment to which the notice relates and which is made after the date of the notice.

(7) a deposit-taker may by notice to the Board (in this paragraph referred to as “the cancellation notice”) cancel a notice given under paragraph (6) and, where a notice is so cancelled, paragraph (4) shall apply to any payment of interest to which the notice formerly related and which is made after the date of the cancellation notice.