Explanatory note

These Regulations are made under section 350 of the Income and Corporation Taxes Act 1988 (“the 1988 Act”). They modify certain provisions of Schedule 16 to the 1988 Act with the consequence that the Schedule provides the machinery for a building society to account for and pay income tax in respect of annuities or other annual payments from which tax is deductible under section 349(1) of the 1988 Act (“section 349(1) payments”). They also make transitional provision for payment of tax in respect of section 349(1) payments made by a society under the Income Tax (Building Societies) Regulations 1986 (S.I.1986/482) (“the 1986 Regulations”).

Regulation 1 provides for citation and commencement.

Regulation 2 contains definitions.

Regulation 3 modifies certain provisions of Schedule 16 to the 1988 Act so that they provide for collection of tax in respect of section 349(1) payments made by a building society including, by virtue of the definition of “section 349(1) payment” in regulation 2, payments made under the 1986 Regulations after 28th February 1991 and before 6th April 199 1. The modifications substitute references to a building society for references to a company, substitute periods for which returns of payments are to be made and limit payments received by a society under deduction of tax for the purpose of offsetting such tax against tax payable in respect of section 349(1) payments.