Overview Deduction by deposit-takers: discretionary or accumulation settlements
3385.These paragraphs rewrite the transitional provision in section 481(5B) of ICTA, parts of section 86 of FA 1995 and the Deposit-Takers (Interest Payments) (Discretionary or Accumulation Trusts) Regulations 1995 (SI 1995/1370) about certain deposits made before 6 April 1995.
3386.Under section 481(5B) of ICTA deposits made before 6 April 1995 are not liable to deduction of tax where, prior to making the payment, the deposit-taker has not received notification that the income arises to trustees of a discretionary or accumulation trust.
3387.In accordance with Change 5 in Annex 1, references to “the Board” in section 481(5B)(b) of ICTA have been replaced with “an officer of Revenue and Customs”.
3388.Under section 482(11)(ab) and (12) of ICTA, the Commissioners for Her Majesty’s Revenue and Customs have power to make regulations in relation to the notification under section 481(5B) of ICTA and the circumstances in which the deposit-taker can delay acting on such a notification. This provision has not been rewritten as it is obsolete.
3389.The regulations in SI 1995/1370 were made under section 482(11)(ab) of ICTA. These regulations provide that a deposit-taker will not have to deduct tax from a payment made within 30 days of receipt of a notification that the income arises to trustees of a discretionary or accumulation trust and have been incorporated into the transitional provision. See Change 126 in Annex 1 (enactment of regulations). This Act also revokes SI 1995/1370. See Schedule 3 to this Act (Repeals and revocations).
3390.In accordance with Change 5 in Annex 1, references to “the Board” in regulation 5 of SI 1995/1370 have been replaced with “an officer of Revenue and Customs”.