Explanatory note

These Regulations, which come into force on 6th February 1989, further amend the Income Tax (Building Societies) Regulations 1986 (“the 1986 Regulations”).

Regulation 1 provides for citation and commencement and regulation 2 for interpretation.

Regulation 3 amends Regulation 2(1) of the 1986 Regulation in two respects: paragraph (a) inserts a definition of “general client account deposit” and paragraph (b) amends the definition of “qualifying time deposit” by increasing the maximum specified period before the expiration of which the loan must be repaid from one of less than twelve months beginning on the date the deposit is made to one of five years beginning on that date.

Regulation 4 amends Regulation 6(1) of the 1986 Regulations (gross payments) so that a payment of interest made to a building society by a building society on a loan made by a building society may be a gross payment and so that a gross payment may be made in respect of a general client account deposit.