# The Income Tax (Building Societies) (Audit Powers) Regulations 1992, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations are made under sections 477A(1) and (2) and 482A of the Income and Corporation Taxes Act 1988 and come into force on 30th January 1992. They provide firstly for the furnishing of information to, and inspection of documents by, the Board in connection with payments of dividends and interest made by building societies without deduction of tax (“gross payments”) pursuant to regulation 4 of the Income Tax (Building Societies) (Dividends and Interest) Regulations 1990 (S.I. 1990/2231) (“the Building Societies Regulations”), other than payments falling within regulation 4(1)(n) of those Regulations.
Secondly, the Regulations provide that the Board’s powers referred to above to require information to be furnished and documents to be inspected shall not apply to gross payments in respect of investments of persons not ordinarily resident in the United Kingdom if the building society is approved by the Board.
Thirdly, the Regulations provide for the conditions which are required to be satisfied in order for a building society to be approved by the Board. Essentially the conditions are that the Board are satisfied that the building society will observe certain procedures for monitoring whether payments in respect of investments of the kind referred to in the preceding paragraph may continue to be made without deduction of tax, and the building society undertakes to instruct an auditor to carry out a periodical audit in respect of those procedures and investments and to furnish a report on each audit to the Board.
Fourthly, the Regulations provide for the circumstances in which approval of a building society may be terminated or the scope of approval altered, for appeals against refusal, termination or alteration of approval, and for the consequences of such termination or alteration.
Regulation 1 provides for citation and commencement.
Regulation 2 contains definitions.
Regulation 3 provides for information, including copies of documents, to be furnished to the Board in connection with gross payments of dividends and interest made by building societies.
Regulation 4 provides for inspection by the Board of copies of documents which may be required to be furnished to the Board under regulation 3.
Regulation 5 provides that an “excluded investment” is an investment of a person not ordinarily resident in the United Kingdom in respect of which payments of dividends or interest may properly be made gross under the Building Societies Regulations and which is held with a building society approved by the Board.
Regulation 6 specifies conditions which are required to be satisfied in order for a building society to be approved by the Board, including an agreement by the building society to instruct an auditor to carry out an audit in respect of the excluded investments and to furnish a report in respect of that audit to the Board.
Regulation 7 specifies the nature of the audit, and the terms and conditions of the audit agreement, referred to in regulation 6.
Regulation 8 specifies the circumstances in which approval of a building society may be terminated by the Board or by the building society, and the date on which a termination takes effect.
Regulation 9 provides that the Board may alter the scope of their approval of a building society by withdrawing approval in certain circumstances from a branch of the building society or an otherwise identifiable part of the building society’s business, and provides for the date on which such alteration of approval takes effect.
Regulation 10 provides for a right of appeal against the Board’s refusal, termination or alteration of approval.
Regulation 11 specifies the consequences of termination or restriction of approval.
Regulation 12 specifies the purposes for which information obtained by the Board under regulation 3 or 4 may be used.

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Source: https://www.legislation.gov.uk/uksi/1992/10/note (the official version)
Page: https://openlegislation.uk/income-tax-building-societies-audit-powers-regulations-1992/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.