SAIM9150 | Deduction of tax: collection arrangements: deposit takers, building societies and companies

Payments by deposit takers, building societies and companies

ITA07/PT15/CH15/S945 to S962 applies a common regime for accounting to HMRC for the tax deducted from payments of interest, etc.

This machinery was formerly set out in ICTA88/SCH16 (CTM35200 onwards) and in the bank and building society regulations (SAIM9020). The regulations applicable to deposit takers and building societies, and the power to modify them, remain.

Inter-company payments

Payments made by UK companies to other UK companies (and local authorities, etc.) are exempt from the duty to deduct tax if they reasonably believe the payments concerned are ‘excepted payments’. CTM35200 onwards has more details with the time limits set out at CTM35160.