(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
All retirement benefit schemes which have applied for
approval or which have been approved which deposit funds with a
building society can arrange to receive the interest gross. They do
this by completing a Gross Payment Declaration and giving the
completed declaration to the building society. Detailed
instructions are set out in IM8095.
If interest is paid net the scheme administrator may claim
back the tax deducted from the scheme district unless the interest
was paid after the scheme administrator gave the society a Gross
Payment Declaration. Where a building society pays interest net
after it has received a Gross Payment Declaration it must put its
mistake right. It does this by recrediting the tax deducted in
error to the account and including the refund as an adjustment in
its next CT61 return.
