Building societies: Deduction of income tax: main features
The main rules for the collection of income tax are set out in the Regulations in SI1990/2231and ITA07/CH15/PT15
The main features are:
- societies are required to deduct savings rate income tax from dividends and interest paid or credited in any year of assessment in respect of shares in or deposits with or loans to the society,
- societies are required to account for and pay income tax deducted,
- the categories of investors to whom societies could pay dividends and interest gross include individuals who are ordinarily resident in the UK, provided they certify on Form R85 that they are unlikely to be liable to pay income tax,
- powers for an officer of the Board to inspect a building society’s books, documents and other records, and for the society to provide information to the Board.