Explanatory note

These Regulations, which come into force on 1st June 1987, amend the Income Tax (Building Societies) Regulations 1986 (“the 1986 Regulations”).

Regulation 1 provides for citation and commencement.

Regulation 2 provides for interpretation.

Regulation 3(a) amends the definition of“qualifying certificate of deposit”in regulation 2(1) of the 1986 Regulations in relation to deposits denominated in a foreign currency.

Regulation 3(b) further amends the definition of“qualifying certificate of deposit”in regulation 2(1) of the 1986 Regulations by increasing the period, within which the obligation of a building society to pay the amount payable by it must arise, from less than twelve months beginning on the date of issue of the certificate to five years beginning on that date.

Regulation 3(c) amends the definition of“qualifying time deposit”in regulation 2(1) of the 1986 Regulations, by removing the requirement that the deposit must be in sterling.

Regulation 4 amends regulation 6(1) of the 1986 Regulations (gross payments) so that a payment to a 51 per cent. subsidiary company of a building society may be made gross where the building society and the subsidiary company jointly elect that the payment should be so made.

Regulation 5 makes procedural amendments to Regulation 6 of the 1986 Regulations consequent on the power to make gross payments to subsidiary companies