Section 979A | FSCS payments representing interest ^F1

(1)This section applies where a payment is made under the FSCS representing interest net of an amount equal to a sum representing income tax that would have been deducted on the payment of interest but for the circumstances giving rise to the making of payments under the FSCS.^F1

(2)A payment of the relevant gross amount is treated as having been made under the FSCS after there has been deducted from it a sum representing income tax of that amount.^F1

(3)That sum is accordingly taken into account under section 59B of TMA 1970 in determining the income tax payable by, or repayable to, the recipient.^F1

(4)“The relevant gross amount” means the aggregate of the amount of the payment representing interest which is made and that sum.^F1

(5)If the recipient requests it in writing, the scheme manager of the FSCS must provide the recipient with a statement showing—^F1

(a)the relevant gross amount,^F1

(b)the amount of the sum treated as deducted, and^F1

(c)the amount of the payment representing interest.^F1

(6)The duty to comply with a request under subsection (5) is enforceable by the recipient.^F1

(7)In this section—^F1

“the FSCS” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000);

“payment representing interest” has the same meaning as in section 380A of ITTOIA 2005.