Joint accounts
13.—(1) Where—
(a)more than one person is beneficially entitled to a payment of interest on a relevant investment, and
(b)a certificate is given by or in respect of—
(i)one or more (but not all) of the persons beneficially entitled to the payment of interest, or
(ii)each person beneficially entitled to the payment of interest but one or more of the certificates has ceased to be valid at any time due to the occurrence of one of the circumstances specified in sub-paragraphs (a), (b), (c), or (d) of regulation 11(2) (circumstances in which a certificate ceases to be valid),
for the purposes of these Regulations and section 851, it shall be assumed that those persons are beneficially entitled to the payment of interest in equal shares.
(2) Where paragraph (1) applies, payment of—
(a)so much of the interest as corresponds to the share of any person by, or in respect of whom, a certificate was supplied and has not ceased to be valid shall be made without deduction of tax under regulation 4, and
(b)the remainder of the interest—
(i)must be made under deduction of tax in accordance with section 851, and
(ii)the amount so deducted must be treated as income tax paid by the person or persons to whom the payment is treated as being made for all purposes of the Income Tax Acts(1).
This is subject to paragraph (4).
(3) Where paragraph (2)(b) applies, in the case of a certificate which ceases to be valid the deduction of tax pursuant to section 851 must be made—
(a)as soon as the certificate has ceased to be valid, or
(b)where regulation 12 (notice of deduction) applies, in accordance with paragraph (5) of that regulation.
(4) Where paragraph (1) applies—
(a)a relevant financial institution may by notice inform an officer that the whole of the payment of interest referred to in the notice shall be made under deduction of tax in accordance with section 851; and
(b)an amount representing income tax shall accordingly be deducted by the relevant financial institution from the payment to which the notice relates and which is made after the date of the notice.
(5) A relevant financial institution may by notice to an officer (“the cancellation notice”)—
(a)cancel a notice given under paragraph (4), and
(b)where a notice is so cancelled, paragraph (2) shall apply to any payment of interest to which the notice formerly related and which is made after the date of the cancellation notice.
“The Income Tax Acts” has the meaning given in Schedule 1 to the Interpretation Act 1978 (c. 30).