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HMRC internal manual

Savings and Investment Manual

Deduction of tax: interest in kind: certificate of tax deducted

Certificate of tax deducted

ITA07/S975 requires a person who deducts income tax from interest paid to provide the recipient, if they request it in writing, with a certificate showing the gross amount of the payment, the tax deducted and the actual amount paid.

For payments made on or after 17 July 2013 ITA07/S975A applies a similar rule in relation to:

  • interest paid in kind (SAIM2600), or
  • in the form of funding bonds (SAIM2210), where a person is required to retain bonds under ITA07/S939.

A person paying such interest must provide the recipient with a statement in writing, showing the amount of the interest paid in kind or as a funding bond, the amount of tax deducted (if any), the net amount paid, and the date of payment. Note that unlike the requirement in ITA07/S975, a certificate under ITA07/S975A is required whether or not the recipient requests it.