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HMRC internal manual

Company Taxation Manual

Building societies: Deduction of income tax: return periods

The rules for the deduction of income tax by building societies require 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 are due within 14 days of the end of the return period.

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

A set-off under CTA2010/S967 (2) (formerly ICTA88/S7(2)) may be claimed in respect of the income tax deducted from payments received by a society provided that the payment is taken into account in computing its income chargeable to corporation tax.

Where a company receives interest from which income tax has been deducted, the company may also claim under ITA07/SS952&953 to have that income tax set-off against the income tax liability under ITA07/S946. However, it cannot set off the same income tax which has already been set off under any claim made under CTA2010/S967 (see CTM35125).