Regulation 29 Consequences of reasonable but incorrect belief

United Kingdom

(1)

This regulation applies if conditions A to D are met.

(2)

Condition A is that an interest distribution is made to a participant.

(3)

Condition B is that the legal owner, in reliance on the reputable intermediary condition being met with respect to the participant, does not comply with the deduction obligation in relation to the interest distribution.

(4)

Condition C is that the deduction obligation would apply but for the reputable intermediary condition being met.

(5)

Condition D is that (contrary to the belief of the legal owner) the participant is in fact F1... resident in the United Kingdom.

(6)

Section 350 of ICTA M1 (charge to tax where payments made under section 349) and Schedule 16 to that Act M2 (collection of income tax on company payments which are not distributions) have effect as if the deduction obligation applied.

Annotations

Textual amendments

F1: Word in reg. 29(5) omitted (with effect in accordance with reg. 1(2)(c) of the amending S.I.) by virtue of The Authorised Investment Funds (Tax) (Amendment) (No. 2) Regulations 2013 (S.I. 2013/2994), regs. 1(1), 8

Marginal citations

M1: Section 350 was amended by paragraph 8 of Schedule 6 to the Finance Act 1996 and section 96(2) of the Finance Act 2002.
M2: Schedule 16 was amended by section 149(3)(d) of the Finance Act 1989 (c. 26), Part II of Schedule 23 to the Finance Act 1996, section 91 of the Finance Act 1999 (c. 16) and paragraph 19 of Part 1 of Schedule 3 to the Debt Arrangement and Attachment (Scotland) Act 2002 (asp. 17).