Finance Act 2022

Amendment to FA 2008

2 For section 39 of FA 2008 (dormant bank and building society accounts) substitute—

“39 Dormant assets

(1) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a) modify Chapters 2 and 3 of Part 15 of ITA 2007 (deduction of income tax on interest payments at source) in relation to interest paid or credited in respect of a relevant dormant asset, and

(b) provide that, for the purposes of Chapter 2 of Part 4 of ITTOIA 2005 (charge to income tax on interest), such interest is to be treated as not being paid until the time (if any) at which the balance of the dormant asset is paid out following a claim made by virtue of—

(i) section 1(2)(b) or 2(2)(b) of the 2008 Act, or

(ii) section 2(2)(b), 5(2)(b), 5(3)(b), 8(2)(b), 12(2)(b), 14(2)(b) or 22(1) of the 2022 Act.

(2) A relevant dormant asset is an asset in respect of which an amount is to be, or has been, transferred by an institution—

(a) to an authorised reclaim fund, with the result that section 1 of the 2008 Act or section 2, 5, 8, 12 or 14 of the 2022 Act applies in relation to the asset, or

(b) to an authorised reclaim fund and one or more charities, with the result that section 2 of the 2008 Act applies in relation to the asset.

(3) Interest paid or credited in respect of a relevant dormant asset includes interest paid or credited by a person who administers the asset on behalf of an authorised reclaim fund after the balance has been transferred.

(4) In this section—

• “the 2008 Act” means the Dormant Bank and Building Society Accounts Act 2008;

• “the 2022 Act” means the Dormant Assets Act 2022;

• “asset” means an asset within the scope of the dormant assets scheme (see section 1(6) of the 2022 Act);

• “authorised reclaim fund” has the same meaning as in the Dormant Assets Acts 2008 to 2022.”