4.—(1) Section 851 does not apply in relation to—
(a)a payment of interest, or
(b)part of a payment of interest within regulation 13(2)(a) (joint accounts),
where, in respect of the person beneficially entitled to the payment or the part of the payment, a certificate has been supplied (see regulation 5) and has not ceased to be valid (see regulation 11).
This is subject to regulation 13(3).
(2) But paragraph (1) does not apply if—
(a)the provisions of section 629 of ITTOIA 2005(1) (income paid to relevant children of settlor) apply to the payment; or
(b)a notice of deduction under regulation 12 has been issued in relation to the payment and it has not been cancelled.
(3) Where a certificate has been supplied and it has not ceased to be valid, a relevant financial institution which operates a system which refunds an amount corresponding to tax deducted from payments of interest made previously in the tax year shall—
(a)refund any such amount in relation to the investment to which the certificate relates, and
(b)recover an amount corresponding to the amount refunded on a written application to the Commissioners.
This is subject to paragraph (4).
(4) Paragraph (3) shall not apply where a relevant financial institution has given a statement under section 975 of ITA 2007 (statements about deduction of income tax), if—
(a)the statement relates to the tax year in which the certificate was given; and
(b)the statement was given prior to the receipt of the certificate.
2005 c. 5. Section 629 was amended by regulation 192 of S.I. 2005/3229 and by paragraph 34(1) of Schedule 13 to the Finance Act 2006 (c. 25).