Commentary

A4.120 Payments of interest—general

Administration and compliance

A4.120 Payments of interest—general

A4.120 Payments of interest—general

Note that these provisions are repealed with effect from 31 March 2012 and replaced with new data-gathering powers under FA 2011, Sch 23, see A6.325–A6.345.

In general terms, any person by or through whom interest has been paid may be required, on receipt of a notice from an HMRC officer, to give specified details of such interest paid in any year of assessment1.

This provision applies to officers in any public office or in any department of the Crown2, but does not apply to interest paid by a bank or building society in the ordinary course of its business, when a different return has to be made under TMA 1970, s 17 (see A4.121)3.

The notice may require information in respect of interest paid or credited, whether or not under deduction of income tax, and dividends on shares in a building society4. References in these provisions to 'interest' include references to an 'alternative finance return' under ITA 2007, Pt 10A (ss 564A–564Y)5 or CTA 2009, Pt 6 Ch 6 (ss 501–521)6. Interest is treated as received by a person if it is received by another person at his direction or with his consent, and the definition of interest is extended to include any amount to which a person holding a 'deeply discounted security' is entitled on its redemption, and any 'foreign dividend'7.

The notice may not require information about interest

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