The Income Tax (Interest Payments) (Information Powers) (Amendment) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Interest Payments) (Information Powers) Regulations 1992 (S.I. 1992/15) (“the principal Regulations”) in relation to payments of interest by banks and other persons that are made, credited or received on or after 6th April 2001.

Regulation 1 provides for citation, commencement and effect.

Regulation 2 introduces regulations 3 to 10.

Regulation 3 inserts a definition of “Building Societies Regulations”, and amends the definition of “payment”, in regulation 2 of the principal Regulations.

Regulation 4 substitutes for regulation 3 of the principal Regulations a regulation that lists payments information on which is not required to be contained in a return under section 17 of the Taxes Management Act 1970 (c. 9) (“section 17”) or furnished to an inspector of taxes under section 18 of that Act (“section 18”).

Regulations 5 and 6 make consequential amendments to regulations 4 and 5 of the principal Regulations in the light of the substituted regulation 3 of the principal Regulations. Regulation 5 also makes a consequential amendment to regulation 4 of the principal Regulations in the light of the amendments made by regulation 7 to regulation 6 of the principal regulations.

Regulation 7 amends regulation 6 of the principal Regulations by adding to the list of further information that is required to be contained in a return under section 17 or furnished to the inspector under section 18.

Regulation 8 inserts a new section 6A in the principal Regulations providing for the form in which a return under section 17 is to be delivered.

Regulation 9 makes consequential amendments to regulation 7 of the principal Regulations in the light of the amendments made by regulations 7 and 8.

Regulation 10 adds regulations 8 to 12 to the principal Regulations dealing with information that the Board of Inland Revenue may require, and inspection and retention of documents, in order to ensure that a return under section 17, or information furnished to the inspector under section 18, is correct and complete.

The costs to savings institutions arising from the amendments made by these Regulations are the subject of a Regulatory Impact Assessment entitled “Abolition of Withholding Tax on Bond Interest and Extension of Routine Information Powers on Savings Income”. A copy of this Regulatory Impact Assessment has been placed in the library of the House of Commons or may be obtained from Inland Revenue, International Division, Room 509B, Melbourne House, Aldwych, London WC2B 4LL, or from the Inland Revenue website at http://www.inlandrevenue.gov.uk.