Regulation 5 Treatment of payments

(1)

A payment in respect of a regulatory capital security is—

(a)

not a distribution for the purposes of the Tax Acts, but

(b)

is income chargeable under Chapter 2 of Part 4 of ITTOIA 2005^f1 (interest) for the purposes of income tax.

(2)

In paragraph (1), “payment” does not include a repayment of the principal amount of the security.

Annotations