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Home / Simons-Taxes /Administration and compliance /Part A4 Returns, assessment and collection /Division A4.4 Deduction of tax at source /Deduction of tax from interest / A4.425A Deduction of tax from yearly interest—deposit-takers
Commentary

A4.425A Deduction of tax from yearly interest—deposit-takers

Administration and compliance

As indicated at A4.425, the duty to deduct tax from payments of yearly interest does not apply to payments by 'deposit-takers' of interest on 'investments' which are 'relevant investments'1. The following commentary defines the terms 'deposit taker', 'investment' and 'relevant investment'.

Meaning of deposit-taker

The following are 'deposit-takers' for these purposes2:

  1. Ìý

    •ÌýÌýÌýÌý the Bank of England

  2. Ìý

    •ÌýÌýÌýÌý a person with permission under FISMA 2000 to accept deposits which are relevant investments; however, building societies are excluded from this definition, as are friendly societies, credit unions and insurance companies

  3. Ìý

    •ÌýÌýÌýÌý a company authorised by a local authority under either the Banking Act 1979, s 48(3) or the Banking Act 1987, s 103(3), and which is exempt from the prohibition in FISMA 2000, s 19 on accepting deposits which are relevant investments

  4. Ìý

    •ÌýÌýÌýÌý a local authority

  5. Ìý

    •ÌýÌýÌýÌý a person authorised for the purposes of FISMA 2000, whose business consists wholly or mainly in dealing in financial instruments as principal, and

  6. Ìý

    •

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