Income and Corporation Taxes Act 1988

483 Determination of reduced rate for building societies and composite rate for banks etc

(1) In every year of assessment the Treasury shall by order determine a rate which shall, for the following year of assessment, be—

(a) the reduced rate for the purposes of section 476; and

(b) the composite rate for the purposes of section 479.

(2) The order made under subsection (1) above in each year of assessment shall—

(a) be made before 31st December in that year; and

(b) be based only on information relating to periods before the end of the year of assessment in which the order is made.

(3) Whenever they exercise their powers under this section the Treasury shall aim at securing that (assuming for the purposes of this subsection that the amounts payable by building societies under section 476 and by deposit-takers under section 479 are income tax) the total income tax becoming payable to, and not being repayable by, the Crown is (when regard is had to the operation of those sections) as nearly as may be the same in the aggregate as it would have been if those sections had not been enacted.

(4) If the order made under section 26 of the [1984 c. 43.] Finance Act 1984 in the year 1987-88 is made in pursuance of subsection (4) of that section, that order shall, notwithstanding that that subsection is not re-enacted by this Act, apply for the purposes of sections 476 and 479 for the year 1988-89.

(5) For the purposes of enabling the Treasury to comply with the requirements of subsection (3) above, the Board may by notice require any deposit-taker (within the meaning of section 481) or building society to furnish to the Board such information about its depositors as the Board may reasonably require for those purposes.

In this subsection “depositors”, in relation to a building society, includes shareholders.