ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change has no implications for the amount of tax due, who pays it or when. It affects (in principle and in practice) only administrative matters. Change 146: Deduction of tax: collection: deposit-takers, building societies and certain companies: power to make regulations modifying this Chapter: section 962
This change confirms that the powers to modify the provisions dealing with collection of income tax deducted at source by regulations apply to deposit-takers and building societies.
Section 350(4) of ICTA allows the Commissioners for Her Majesty’s Revenue and Customs to make regulations which modify Schedule 16 to ICTA in its application to payments covered by section 349 of ICTA. These powers do not specifically mention the making of regulations which modify Schedule 16 in its application to payments made by building societies (covered by regulations under section 477A of ICTA), or payments by deposit-takers (covered by section 480A of ICTA).
But regulations made under the powers in section 350(4) of ICTA are capable of modifying Schedule 16 as it applies to deposit-taker and building society payments.
The aim of regulation 10 of the building society regulations (SI 1990/2231) and section 480A of ICTA is that, subject to some specific modifications, the collection regime applying to section 349 payments should apply to deposit-taker and building society payments. So regulation 10 and section 480A should be read as applying Schedule 16 to ICTA as modified from time to time by regulations made under section 350(4) of that Act.
It also possible to read the power in section 350(4) as a power to modify Schedule 16 as applied by regulations under section 477A and by section 480A. And, in the case of building societies, section 477A allows regulations to be made in respect of building society payments. And regulation 10 incorporates the provisions of Schedule 16 with modifications. So section 962 of this Act reflects the regulation making power in section 477A by permitting regulations to modify Chapter 15 of Part 15 of this Act in its application to building society payments.
Section 962 allows regulations to be made modifying that Chapter in relation to any kind of section 946 payment. This reflects the general way in which the various provisions about deduction of income tax at source are brought together and rationalised in this Act.