[CTM49370] Building societies: deduction of income tax: deduction of income tax from interest on marketable securities
A building society is required to deduct savings rate income tax from the interest paid on certain marketable securities under ITA07/S889. The requirement applies to any security including a share, which is listed, or capable of being listed, on a recognised stock exchange at the time the dividend or interest is payable.
Section 889 applies to interest on Permanent Interest Bearing Shares (PIBS) (see CTM49480) and interest on certain other marketable securities, such as index-linked stocks and negotiable bonds issued by some societies.
Interest on the following securities is not covered by section 889 and is instead payable gross: