The Income Tax (Building Societies) (Dividends and Interest) Regulations 1990

Joint accounts

9.—(1) The conditions prescribed by this regulation apply where more than one person is beneficially entitled to a payment of a dividend or interest arising on an account held with a building society.

(2) The prescribed conditions are that—

(a) a certificate referred to in regulation 5 is given by or on behalf of—

(i) each person beneficially entitled to the payment of a dividend or interest, or

(ii) one or more (but not all) of such persons individually; and

(b) a notice under paragraph (6) relating to the payment of a dividend or interest—

(i) has not been given to the Board by the building society, or

(ii) has been so given and has subsequently been cancelled by the building society under paragraph (7).

(3) Where the condition in paragraph (2)(a)(i) was satisfied but a certificate has ceased to be valid at any time by reason of the occurrence of one of the circumstances specified in sub-paragraph (a), (b), (c) or (d) of regulation 6(3), this paragraph shall apply in relation to a payment of a dividend or interest made—

(a) after that time, or

(b) where sub-paragraph (d) of regulation 6(3) applies—

(i) after the expiry of a period of 30 days following the date of issue of the notice referred to in that sub-paragraph, or

(ii) after such date falling within that period as the building society may at its option determine.

(4) Subject to paragraph (6), where the condition in paragraph (2) (a)(ii) is satisfied or paragraph (3) applies, for the purposes of these Regulations and of deduction of tax pursuant to regulation 3, it shall be assumed that each person is beneficially entitled in equal shares to the payment of a dividend or interest and accordingly—

(a) payment of so much of the dividend or interest as by virtue of this paragraph corresponds to the share of any person by or on behalf of whom a certificate was given shall be made without deduction of tax pursuant to paragraph (1)(n) of regulation 4, and

(b) payment of the remainder of the dividend or interest shall be made under deduction of tax pursuant to regulation 3.

(5) Tax deducted from a payment within paragraph (4)(b) shall, for all the purposes of the Income Tax Acts, be treated as income tax paid by the person or persons to whom the payment is treated as being made.

(6) A building society may by notice inform the Board of its intention that, in circumstances where the condition in paragraph (2)(a)(ii) is satisfied or paragraph (3) applies, the whole of a payment of a dividend or interest referred to in the notice shall be made under deduction of tax pursuant to regulation 3 and, subject to paragraph (7), where such notice is given paragraph (4) shall not apply and tax shall accordingly be deducted by the building society from any payment to which the notice relates and which is made after the date of the notice.

(7) A building society may by notice to the Board (in this paragraph referred to as “the cancellation notice”) cancel a notice given under paragraph (6) and, where a notice is cancelled, paragraph (4) shall apply to any payment of a dividend or interest to which the notice formerly related and which is made after the date of the cancellation notice.