Section 979A — Income Tax Act 2007: FSCS payments representing interest

FSCS payments representing interest 979A 1 This section applies where a payment is made under the FSCS representing interest net of an amount equal to a sum representing income tax that would have been deducted on the payment of interest but for the circumstances giving rise to the making of payments under the FSCS.

2 A payment of the relevant gross amount is treated as having been made under the FSCS after there has been deducted from it a sum representing income tax of that amount.

3 That sum is accordingly taken into account under section 59B of TMA 1970 in determining the income tax payable by, or repayable to, the recipient. 4 “ The relevant gross amount ” means the aggregate of the amount of the payment representing interest which is made and that sum.

5 If the recipient requests it in writing, the scheme manager of the FSCS must provide the recipient with a statement showing—

a the relevant gross amount, b the amount of the sum treated as deducted, and c the amount of the payment representing interest.

6 The duty to comply with a request under subsection (5) is enforceable by the recipient.

7 In this section— “ the FSCS ” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000); “ payment representing interest ” has the same meaning as in section 380A of ITTOIA 2005.