.png)
.png)
A UK resident individual has lent money to a UK discretionary settlement to enable it to carry out a capital project. Interest is to be paid on the loan for a period that will exceed one year.
Is there any requirement for the settlement to deduct savings-rate tax at 20% from the interest payments made? And, if there is such a requirement, how does one account for the tax deducted and then paid over to HMRC?
Taxation readers' clarification on these points would be gratefully received.
Query T16,691 — Interested.
A UK resident individual has lent money to a UK discretionary settlement to enable it to carry out a capital project. Interest is to be paid on the loan for a period that will exceed one year.
Is there any requirement for the settlement to deduct savings-rate tax at 20% from the interest payments made? And if there is such a requirement how does one account for the tax deducted and then paid over to HMRC?
Taxation readers' clarification on these points would be gratefully received.
Query T16 691 — Interested.
Reply by Southern Man
Logically one would think that the rules relating to the deduction of tax from interest annual payments etc. should be simple; the subject hardly seems to be technically complicated: a payment is made — does one deduct and retain or pay over the tax? However there always seems to be...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
