CTM49365 - Building societies: Deduction of income tax: return periods

The rules for the deduction of Income Tax by building societies required returns to be made for:

  • each complete payment quarter falling within the accounting period,
  • each part of an accounting period which is not a complete payment quarter.

Returns were due within 14 days of the end of the return period.

A payment quarter is a period of three months ending on 28 or 29 February, 31 May, 31 August and 30 November.

A set-off under CTA10/S967 (2) could be claimed in respect of the Income Tax deducted from payments received by a society provided that the payment was taken into account in computing its income chargeable to Corporation Tax.

Where a company received interest from which Income Tax had been deducted, the company could also claim under ITA07/S952 and S953 to have that Income Tax set-off against the Income Tax liability under ITA07/S946.  However, it could not set off the same Income Tax which had already been set off under any claim made under CTA10/S967, see CTM35125.