CTM49360 | Building societies: Deduction of income tax: main features

SI1990/2231

The main rules for the collection of Income Tax are set out in the regulations SI1990/2231 and in ITA07/CHAPTER15/PART15. Following the introduction of the savings allowance, announced in the 2015 Budget, from 6 April 2016 Building societies are no longer required to deduct Income Tax at source from most dividends and interest paid or credited in any year of assessment in respect of shares in or deposits with or loans to the society under the Tax Deduction Scheme for Interest (TDSI). See SI1990/2231/REG4 regarding gross payments.