|
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812 | Interest paid on advances from banks |
| |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest on an advance from a bank if, at the time when |
| |
the payment is made, the person beneficially entitled to the interest is within |
| |
the charge to corporation tax as respects the interest. |
| 5 |
(2) | Section 925 (meaning of “bank”) applies for the purposes of this section. |
| |
(3) | Subsection (1) applies to the European Investment Bank as if the words from |
| |
“if” to the end were omitted. |
| |
(4) | An order under subsection (2)(e) of section 925 designating an international |
| |
organisation as a bank may provide that subsection (1) applies to the |
| 10 |
organisation with the modification mentioned in subsection (3). |
| |
813 | Interest paid on advances from building societies |
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest on an advance from a building society. |
| |
814 | National Savings Bank interest |
| 15 |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest on deposits with the National Savings Bank. |
| |
815 | Quoted Eurobond interest |
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest on a quoted Eurobond (see section 921). |
| 20 |
816 | Interest on loan to buy life annuity |
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest to which section 369 of ICTA applies (interest on |
| |
loan to buy life annuity payable under deduction of tax). |
| |
817 | Relevant foreign income |
| 25 |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest which is chargeable to income tax as relevant |
| |
| |
(2) | For the meaning of “relevant foreign income”, see section 923. |
| |
818 | Authorised persons dealing in financial instruments |
| 30 |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest made by a person authorised for the purposes |
| |
| |
(a) | the person’s business consists wholly or mainly of dealing in financial |
| |
instruments as principal, and |
| 35 |
(b) | the payment is made by that person in the ordinary course of that |
| |
| |
(2) | For the meaning of “financial instrument”, see section 917. |
| |
|
| |
|
| |
|
819 | Interest paid by recognised clearing houses etc |
| |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest made by a recognised clearing house (“RCH”) |
| |
or recognised investment exchange (“RIE”) if— |
| |
(a) | the RCH or RIE is carrying on business as the provider of a central |
| 5 |
counterparty clearing service, and |
| |
(b) | the interest is paid in the ordinary course of that business, on margin or |
| |
other collateral deposited with it by users of the service. |
| |
(2) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to interest treated by virtue of section 607 (treatment of price differences |
| 10 |
under repos) as paid by an RCH or RIE in respect of contracts made by it as the |
| |
provider of a central counterparty clearing service. |
| |
| |
“central counterparty clearing service” means the service provided by an |
| |
RCH or RIE to the parties to a transaction where there are contracts |
| 15 |
between each of the parties and the RCH or RIE (in place of, or as an |
| |
alternative to, a contract directly between the parties), and |
| |
“recognised clearing house” and “recognised investment exchange” have |
| |
the same meaning as in FISMA 2000 (see section 285 of that Act). |
| |
820 | Industrial and provident society payments |
| 20 |
(1) | The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to either of the following payments if they are payable to a person whose |
| |
usual place of abode is in the United Kingdom— |
| |
(a) | a payment of interest made by a registered industrial and provident |
| |
society in respect of any mortgage, loan, loan stock or deposit, or |
| 25 |
(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. |
| |
(2) | A registered industrial and provident society must, within 3 months after the |
| |
end of each of its accounting periods, deliver to an officer of Revenue and |
| 30 |
Customs a return containing the information mentioned in subsection (3). |
| |
| |
(a) | the name and place of residence of every person to whom the society |
| |
has, as a result of this section, made one or more payments in the period |
| |
amounting in total to at least £15 without deducting a sum (or sums) |
| 35 |
representing income tax, and |
| |
(b) | the amount so paid in the period to each of those persons. |
| |
(4) | See section 486(7) of ICTA as to the consequences of not making a return as |
| |
required by subsection (2). |
| |
(5) | In this Chapter “registered industrial and provident society” means a society |
| 40 |
registered or treated as registered under the Industrial and Provident Societies |
| |
Act 1965 (c. 12) or the Industrial and Provident Societies Act (Northern Ireland) |
| |
| |
(6) | For the purposes of this section crediting interest (or amounts treated as |
| |
interest) counts as paying it. |
| 45 |
|
| |
|
| |
|
| |
The duty to deduct a sum representing income tax under section 807 does not |
| |
apply to a payment of interest made by virtue of the contractual term implied |
| |
by section 1(1) of the Late Payment of Commercial Debts (Interest) Act 1998 |
| |
(c. 20) (statutory interest). |
| 5 |
| |
Deduction from payments in respect of building society securities |
| |
822 | Payments in respect of building society securities |
| |
(1) | This section applies to any payment made in a tax year if— |
| |
(a) | it is a payment of a dividend or interest in respect of a security issued |
| 10 |
by a building society, and |
| |
(b) | conditions A and B are met in relation to the security. |
| |
(2) | Condition A is that the security was listed or capable of being listed on a |
| |
recognised stock exchange at the time the dividend or interest became payable. |
| |
(3) | Condition B is that the security is not— |
| 15 |
(a) | a qualifying certificate of deposit (see section 919), |
| |
(b) | a qualifying uncertificated eligible debt security unit (see section 920), |
| |
| |
(c) | a quoted Eurobond (see section 921). |
| |
(4) | The person by or through whom the payment is made must, on making it, |
| 20 |
deduct from it a sum representing income tax on it at the savings rate in force |
| |
| |
(5) | For provision about the collection of income tax in respect of a payment from |
| |
which a sum must be deducted under this section— |
| |
(a) | see Chapter 15 if the person making the payment is a UK resident |
| 25 |
| |
(b) | otherwise see Chapter 16. |
| |
(6) | See also Chapter 11 (payments between companies) for an exception from the |
| |
duty to deduct sums representing income tax under this section. |
| |
| 30 |
“dividend” includes any distribution (whether or not described as a |
| |
| |
“security” includes a share (and, in particular, a permanent interest |
| |
bearing share as defined in section 117 of TCGA 1992). |
| |
|
| |
|
| |
|
| |
Deduction from payments of UK public revenue dividends |
| |
| |
| |
(1) | This Chapter contains provision about the deduction of sums representing |
| 5 |
income tax from payments of UK public revenue dividends. |
| |
(2) | Section 824 defines “UK public revenue dividend”. |
| |
(3) | Section 825 contains a duty to deduct sums representing income tax from |
| |
payments of UK public revenue dividends unless they are payable gross. |
| |
(4) | Sections 826 and 827 explain when such payments are payable gross. |
| 10 |
(5) | Sections 828 and 829 make provision for the making, and withdrawal, of |
| |
applications for payments to be subject to the duty to deduct under this |
| |
| |
(6) | Section 830 contains a regulation-making power in connection with payments |
| |
from which sums must be deducted under this Chapter. |
| 15 |
824 | Meaning of “UK public revenue dividend” |
| |
In this Chapter “UK public revenue dividend” means any income from |
| |
| |
(a) | is paid out of the public revenue of the United Kingdom or Northern |
| |
| 20 |
(b) | is not interest on local authority stock. |
| |
Duty to deduct sums representing income tax |
| |
825 | Duty to deduct from certain UK public revenue dividends |
| |
(1) | This section has effect if— |
| |
(a) | a payment of a UK public revenue dividend is made, and |
| 25 |
(b) | it is not payable gross under section 826. |
| |
(2) | The person by or through whom the payment is made must, on making the |
| |
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. |
| |
(3) | For provision about the collection of income tax in respect of a payment from |
| 30 |
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. |
| |
|
| |
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