I-4b. Data-holder notices

- Persons paying interest

(1) A person by or through whom interest is paid or credited is a relevant data-holder.
(2) For the purposes of this paragraph, the following are to be treated as interest—
(a) a dividend in respect of a share in a building society,
(b) an amount to which a person holding a deeply discounted security is entitled on the redemption of that security,
(c) a foreign dividend, and
(d) an alternative finance return.
(3) In sub-paragraph (2)—
“alternative finance return” means—
(a) an alternative finance return within the meaning of Part 10A of ITA 2007, and
(b) an alternative finance return within the meaning of Part 6 of CTA 2009;
“building society” means a building society within the meaning of the Building Societies Act 1986;
“deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005;
“foreign dividend” means any annual payment, interest or dividend payable out of, or in respect of the funds or securities of—
(a) a body of persons that is not resident in the United Kingdom, or
(b) a government or public or local authority in a country outside the United Kingdom." (FA 2011, Sch 23, para 12)

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Relevant data

"(1) The relevant data for a data-holder of the type described in paragraph 12 of Schedule 23 are information and documents relating to accounts or sums on which relevant interest is payable, including but not limited to the data in regulations 8, 9 and 10.

(2) “Relevant interest” means interest paid or credited—

(a) on money received or retained in the United Kingdom; and

(b) either without deduction of income tax or after deduction of income tax." (SI 2012/847, r.5)

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Not relevant data

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"Information relating to the following payments is not relevant data for the purposes of a data-holder of the type described in paragraph 12—

(a) a payment in respect of a certificate of deposit within the meaning given by section 1019 of the Income Tax Act 2007;

(b) a payment in respect of an investment or a deposit held by a branch of a person to whom a data-holder notice is issued, where the branch is situated in a territory other than the United Kingdom;

(c) . . .

(d) a payment in respect of an investment under a plan provided for by regulations made under Chapter 3 of Part 6 of the Income Tax (Trading and Other Income) Act 2005;

(e) a payment to or a receipt for a person other than an individual (in whatever capacity the individual is acting), except where the case falls within regulation 9(c) or 10(d) or where the relevant data-holder is carrying on a trade or business and, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon;

(f) any other payment not falling within any of paragraphs (a) to (e) which is specified in the data-holder notice as being a payment in respect of which information is not required."  (SI 2012/847, r.6)

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"(1) Information is not relevant data for the purposes of a data-holder of the type described in paragraph 12 if it is in respect of a relevant dormant account before the balance of the account is paid out to the account-holder following a repayment claim (such payment being referred to in this regulation as the repayment claim being “settled”).

(2) Where a repayment claim to the balance of a dormant account is settled, all interest paid, credited or included in the balance of the account, during and at the end of the relevant dormant period, is relevant data for the purposes of paragraph 12 and shall be treated—

(a) as paid at the time the repayment claim is settled; and

(b) as if the bank or building society in question had retained the balance of the account, in the ordinary course of the operations of its trade or business.

(3) If the data-holder notice specifies the year of assessment in which the relevant dormant period for any account ends, the notice shall (unless it states otherwise) be deemed to require as relevant data the inclusion of information for all relevant dormant accounts, in respect of which repayment claims were settled in that year.

(4) Information in respect of a relevant dormant account which, at the time it first became a relevant dormant account, was a plan provided for by regulations made under Chapter 3 of Part 6 of the Income Tax (Trading and Other Income) Act 2005 (individual investment plans) is not relevant data for the purpose of paragraph 12.

(5) In this regulation—

“relevant dormant account” has the meaning in section 39(2) of the Finance Act 2008;

“relevant dormant period” means the period between the time when a dormant account becomes a relevant dormant account and the time at which a repayment claim is settled; and

“repayment claim” means a repayment claim mentioned in section 5(6) of the Dormant Bank and Building Society Accounts Act 2008 (“the Dormant Accounts Act”).

Other terms used have the same meaning as in the Dormant Accounts Act." (SI 2012/847, r.7)

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