|
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Other investments which are not relevant investments |
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796 | General client account deposits |
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(1) | An investment is not a relevant investment if it is a general client account |
| |
| |
(2) | An investment is a general client account deposit for the purposes of this |
| 5 |
| |
(a) | it is a deposit held by a deposit-taker or building society in a client |
| |
| |
(b) | provision made under any enactment requires the person whose |
| |
account it is to make payments representing interest to some or all of |
| 10 |
the clients for whom, or on whose account, that person received the |
| |
sums deposited in the account. |
| |
(3) | But an investment is not a general client account deposit if the account in which |
| |
it is held is identified by the deposit-taker or building society as one in which |
| |
sums are held only for one or more particular clients of the person whose |
| 15 |
| |
797 | Qualifying uncertificated eligible debt security units |
| |
An investment is not a relevant investment if it is a deposit in respect of which |
| |
a deposit-taker or building society has issued a qualifying uncertificated |
| |
eligible debt security unit (see section 920). |
| 20 |
798 | Qualifying certificates of deposit |
| |
An investment is not a relevant investment if it is a deposit in respect of which |
| |
a deposit-taker or building society has issued a qualifying certificate of deposit |
| |
| |
799 | Qualifying time deposits |
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(1) | An investment is not a relevant investment if it is a qualifying time deposit. |
| |
(2) | An investment is a qualifying time deposit for the purposes of this section if— |
| |
(a) | it is a deposit consisting of a loan of at least £50,000, |
| |
(b) | the terms of the deposit require its repayment at a specified time within |
| |
5 years beginning with the date on which it is made, |
| 30 |
(c) | those terms do not make provision for the transfer of the right to |
| |
| |
(d) | those terms prevent partial withdrawals of, or additions to, the deposit. |
| |
(3) | If a deposit is denominated in a foreign currency, subsection (2)(a) has effect as |
| |
if it referred to an amount which is at least the equivalent in that currency of |
| 35 |
£50,000 at the time the deposit is made. |
| |
800 | Lloyd’s premium trust funds |
| |
(1) | An investment is not a relevant investment if it forms part of a premium trust |
| |
fund of an underwriting or former underwriting member of Lloyd’s. |
| |
|
| |
|
| |
|
(2) | In this section “premium trust fund” has the meaning given in section 184 of |
| |
| |
801 | Investments held outside the United Kingdom |
| |
(1) | An investment with a deposit-taker is not a relevant investment if— |
| |
(a) | the deposit-taker is UK resident for income tax purposes or corporation |
| 5 |
| |
(b) | the investment is held at a branch of the deposit-taker situated outside |
| |
| |
(2) | An investment with a deposit-taker is not a relevant investment if— |
| |
(a) | the deposit-taker is non-UK resident for income tax purposes or |
| 10 |
corporation tax purposes, and |
| |
(b) | the investment is not held at a branch of the deposit-taker situated in |
| |
| |
(3) | An investment with a building society is not a relevant investment if it is held |
| |
at a branch of the building society situated outside the United Kingdom. |
| 15 |
(4) | For the purposes of this section an investment is held at a branch of a deposit- |
| |
taker or building society if the investment is recorded in its books as a liability |
| |
| |
802 | Sale and repurchase of securities |
| |
(1) | An investment is not a relevant investment if it is a loan which is treated as |
| 20 |
made to a building society by virtue of section 607 (treatment of price |
| |
differences under repos). |
| |
(2) | An investment is not a relevant investment if it is an amount of cash which is— |
| |
(a) | received by a building society in connection with a repo in |
| |
circumstances where section 607 applies, and |
| 25 |
(b) | required as a result of a variation in the value of the securities in respect |
| |
of which the repo is made as security for performance by the parties to |
| |
the repo of their obligations under it. |
| |
(3) | In this section “repo” has the same meaning as in Part 11 (see section 569). |
| |
| 30 |
(1) | An investment with a deposit-taker is not a relevant investment if— |
| |
(a) | it is a loan made by a deposit-taker in the ordinary course of its business |
| |
| |
(b) | it is a debt on a security which is listed on a recognised stock exchange, |
| |
| 35 |
(c) | it is a debt on a debenture issued by the deposit-taker (see section 956). |
| |
(2) | An investment with a building society is not a relevant investment if— |
| |
(a) | it is a loan made by a bank (as defined in section 925), or |
| |
(b) | it is a security (including a share) issued by a building society which is |
| |
listed, or capable of being listed, on a recognised stock exchange. |
| 40 |
|
| |
|
| |
|
| |
804 | Power to make regulations to give effect to Chapter |
| |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations make provision— |
| |
(a) | about the giving of information by deposit-takers, building societies |
| 5 |
| |
(b) | about the inspection of deposit-takers’ and building societies’ books, |
| |
documents and other records by officers of Revenue and Customs, and |
| |
(c) | generally for giving effect to this Chapter. |
| |
(2) | Regulations under this section may contain incidental, supplemental, |
| 10 |
consequential and transitional provision and savings. |
| |
(3) | In this section “appropriate person” means a person who, in relation to an |
| |
investment, falls within any of the following— |
| |
| |
| 15 |
| |
| |
805 | Power to make orders amending Chapter |
| |
(1) | The Treasury may by order amend this Chapter for the purposes of providing |
| |
that investments of a kind specified in the order are, or are not, relevant |
| 20 |
| |
(2) | An order under this section which amends this Chapter in its application to |
| |
deposit-takers may do so— |
| |
(a) | in relation to all deposit-takers, or |
| |
(b) | in relation to such deposit-takers or classes of deposit-taker as the order |
| 25 |
| |
(3) | An order under this section may contain incidental, supplemental, |
| |
consequential and transitional provision and savings. |
| |
(4) | An order under this section may not amend section 785 (power to make |
| |
regulations disapplying section 784). |
| 30 |
(5) | An order under this section may not amend section 803(2)(b) for the purpose |
| |
of providing that securities of the kind mentioned in that provision are relevant |
| |
| |
806 | Discretionary or accumulation settlements |
| |
(1) | A settlement is a discretionary or accumulation settlement for the purposes of |
| 35 |
this Chapter if any income arising to the trustees would (unless treated as |
| |
income of the settlor) be to any extent income within subsection (2) for the tax |
| |
| |
(2) | Income is within this subsection so far as it is— |
| |
(a) | accumulated or discretionary income as defined in section 480 (other |
| 40 |
than income arising under a trust established for charitable purposes |
| |
|
| |
|
| |
|
only or an unauthorised unit trust in relation to which section 504 |
| |
| |
(b) | an amount of a type set out in section 482 (unless the trust is a unit trust |
| |
scheme or the amount is income arising under a trust established for |
| |
charitable purposes only or is excluded by section 481(5)). |
| 5 |
(3) | A person is a beneficiary under a discretionary or accumulation settlement for |
| |
the purposes of this Chapter if— |
| |
(a) | the person is an actual or potential beneficiary under the settlement, |
| |
| |
(b) | condition A or B is met in relation to the person. |
| 10 |
(4) | Condition A is that the person is, or will or may become, entitled under the |
| |
settlement to receive some or all of any income under the settlement. |
| |
(5) | Condition B is that some or all of any income under the settlement may be paid |
| |
to or used for the benefit of the person in the exercise of a discretion conferred |
| |
| 15 |
(6) | The references in subsections (4) and (5) to any income under the settlement |
| |
include a reference to any capital under the settlement so far as it represents |
| |
amounts originally received by the trustees as income. |
| |
| |
Deduction from certain payments of yearly interest |
| 20 |
Duty to deduct sums representing income tax |
| |
807 | Duty to deduct from certain payments of yearly interest |
| |
(1) | This section applies if a payment of yearly interest arising in the United |
| |
| |
| 25 |
(b) | by a local authority, |
| |
(c) | by or on behalf of a partnership of which a company is a member, or |
| |
(d) | by any person to another person whose usual place of abode is outside |
| |
| |
(2) | The person by or through whom the payment is made must, on making the |
| 30 |
payment, deduct from it a sum representing income tax on it at the savings rate |
| |
in force for the tax year in which it is made. |
| |
| |
(a) | sections 808 to 821 as to circumstances in which the duty to deduct a |
| |
sum under this section is disapplied, and |
| 35 |
(b) | Chapter 11 (payments between companies etc) for a further exception |
| |
from the duty to deduct under this section. |
| |
(4) | See also regulations made under section 17(3) of F(No.2)A 2005 (authorised |
| |
| |
(a) | for provision treating certain amounts shown in the distribution |
| 40 |
accounts of authorised investment funds as payments of yearly |
| |
| |
|
| |
|
| |
|
(b) | for exceptions from the duty to deduct under this section which would |
| |
otherwise apply to such payments. |
| |
(5) | For the purposes of subsection (1) the following are to be treated as payments |
| |
| |
(a) | a payment of interest made by a registered industrial and provident |
| 5 |
society in respect of any mortgage, loan, loan stock or deposit, and |
| |
(b) | any interest, dividend, bonus or other sum payable to a shareholder of |
| |
such a society by reference to the amount of the shareholder’s holding |
| |
in the share capital of the society. |
| |
(6) | For the purposes of subsection (1)— |
| 10 |
(a) | a payment made by a company in a fiduciary or representative capacity |
| |
is not to be treated as a payment made by the company, and |
| |
(b) | a payment made by a local authority in a fiduciary or representative |
| |
capacity is not to be treated as a payment made by the local authority. |
| |
(7) | For provision about the collection of income tax in respect of a payment from |
| 15 |
which a sum must be deducted under this section— |
| |
(a) | see Chapter 15 if the person making the payment is a UK resident |
| |
| |
(b) | otherwise see Chapter 16. |
| |
Exceptions from duty to deduct |
| 20 |
808 | Interest paid by building societies |
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest made by a building society. |
| |
809 | Interest paid by deposit-takers |
| |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| 25 |
apply to a payment of interest in respect of which a deposit-taker has a duty to |
| |
deduct under section 784. |
| |
(2) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment in respect of which a deposit-taker would have a duty to |
| |
deduct under section 784 but for— |
| 30 |
(a) | regulations under section 785, or |
| |
(b) | any of sections 791 to 794. |
| |
810 | UK public revenue dividends |
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest in respect of a UK public revenue dividend. |
| 35 |
811 | Interest paid by banks |
| |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest made by a bank if that payment is made in the |
| |
ordinary course of its business. |
| |
(2) | Section 925 (meaning of “bank”) applies for the purposes of this section. |
| 40 |
|
| |
|