A6.332 Interest, etc

A6.332 Interest, etc

A person by or through whom interest is paid or credited is a relevant data-holder1 and the following are treated as interest for the purpose of HMRC data-gathering powers2:

  1.  

    •     a dividend in respect of a share in a building society within the meaning of the Building Societies Act 1986

  2.  

    •     an amount to which a person holding a deeply discounted security (as defined in ITTOIA 2005, s 430) is entitled on the redemption of that security

  3.  

    •     a foreign dividend, being any annual payment, interest or dividend payable out of, or in respect of, the funds or securities of:

    1.  

      –     a body of persons not resident in the UK or a government, or

    2.  

      –     local authority in a country outside of the UK, and

  4.  

    •     an alternative financial return (as defined in ITA 2007, ss 564I–564L and CTA 2009, s 511)

HMRC extended the list of 'fully reportable' countries for financial institutions' annual returns of interest paid on UK accounts to ensure that the interest element of PPI redress payments paid to individuals resident in those countries is fully reported by the financial institutions making the payments. The returns, known as the 'Payment Protection Insurance Additional Fully Reportable Countries' (PPIAFRC) returns, will have to be completed for the period starting on 6 April 2015. Notices to make PPIAFRC returns will be issued towards the end of February 2016 and returns must be submitted to HMRC by the end of June 20163. Guidance notes issued for 2015/16 give

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial