Income Tax Act 2007 sections 154–155

Deduction by deposit-takers: discretionary or accumulation settlements

Sections 154–155 previously dealt with the obligation of deposit-takers to deduct income tax from interest paid to trustees of discretionary or accumulation settlements, but these provisions have been repealed.

• Sections 154–155 originally required deposit-takers to deduct tax from interest paid to trustees of discretionary or accumulation settlements.
• These provisions were repealed by Finance Act 2016, Schedule 6, paragraph 23.
• The repeal formed part of the wider changes removing the obligation on banks and building societies to deduct income tax at source from savings interest.
• Since the repeal, interest paid to such trustees is paid gross, with any tax liability accounted for through self-assessment.