The continuing validity conditionU.K.
39.—(1) The continuing validity condition is met if the qualifying certificate continues in full force and effect and has not ceased to be valid.
(2) The qualifying certificate ceases to be valid in circumstances A to E.
(3) Circumstance A is the receipt, by the legal owner, of information that the person beneficially entitled to the interest distribution has become liable to pay an amount by way of income tax for the tax year in which the payment is made.
(4) Circumstance B is the ending of the tax year in which the person beneficially entitled to the payment reaches the age of 16 in a case where paragraph (3) of regulation 37 (the supplier condition) applies.
(5) Circumstance C is the failure by a person who has given a qualifying certificate under paragraph (4) of regulation 37, but is not the holder of the holding to which the certificate for units relates, to become the holder before the first interest distribution made after the end of the tax year in which he reaches the age of 16.
(6) Circumstance D is where the Commissioners, having reason to believe that a person beneficially entitled to an interest distribution is or has become liable to pay an amount by way of income tax, by notice require the legal owner to deduct tax under section 349(2) of ICTA from interest distributions which—
(a)are made in respect of a holding specified in the notice, and
(b)are made to or for the benefit of that person after the expiry of a period of 30 days beginning with the date on which the notice is issued.
(7) Circumstance E is where the legal owner receives notification that the person by whom or on whose behalf the certificate was given has died.
(8) If the Commissioners issue a notice under paragraph (6), they must, at the same time, send a copy to the person referred to in the notice.