Commentary on Sections Overview Overview Section 851: Duty to deduct sums representing income tax
2575.This section sets out the general duty to deduct a sum representing the savings rate of income tax from interest payments made by deposit-takers and building societies on relevant investments. It is based on sections 4 and 480A of ICTA and regulation 3 of the building society regulations.
2576.In accordance with section 850(6), “interest” includes dividend payments made by building societies.
2577.The definition of “relevant investment” for building societies has been aligned to the deposit-taker regime. See Change 127 in Annex 1 and the overview commentary for this Chapter.