A4.121 Payments of interest—banks and building societies
Note that these provisions are repealed with effect from 31 March 2012 and replaced with new data-gathering powers under FA 2011, Sch 23, see A6.325–A6.345.
TMA 1970, s 17 provides that a bank or building society carrying on a trade or business which includes the receipt or retention of money on which interest is payable, can be required by notice from HMRC to make a return of interest paid or credited by it in a year of assessment in the ordinary course of that business, whether or not it was paid under deduction of income tax1.
The notice may not require a return of interest paid in a year of assessment which ended more than three years before the issue of the notice2.
A 'bank' has the meaning in ITA 2007, s 9913. The section applies to the National Savings Bank as if it were a trade or business carried on by the Director of Savings4. A return may be required in respect of a branch, and the notice can be served on the branch manager5.
References in these provisions to 'interest' include references to an 'alternative finance return' under ITA 2007, Pt 10A (ss 564A–564Y)6 or CTA 2009, Pt 6 Ch 6 (ss 501–521)7. In the case of returns to be made under these provisions by building societies,