Taxes Management Act 1970 section 17

Interest paid or credited by banks, building societies etc. without deduction of income tax

Section 17 deals with the reporting obligations of banks, building societies and other deposit-takers when they pay or credit interest without deducting income tax.

• Banks, building societies and similar institutions must report to HMRC when they pay or credit interest without deducting income tax.
• This reporting requirement applies where interest is paid gross, typically to non-taxpayers or where a specific exemption from deduction at source applies.
• The information must be provided in the form and manner specified by HMRC, ensuring the tax authority can identify recipients of gross interest.
• The provision was amended by Finance Act 2011 to align with updated data-gathering powers introduced under Schedule 23 of that Act.

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