# Income Tax Act 2007, Paragraph 163


(1) In the case of payments of interest to which this paragraph applies, section 878 (exceptions from duty to deduct: interest paid by banks) has effect with the modification in sub-paragraph (2).
(2) The modification is the substitution for subsections (1) and (2) of that section of “The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest by a bank carrying on a genuine banking business in the United Kingdom.”
(3) This paragraph applies to interest payable on an advance made before 29 April 1996.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/schedule/2/paragraph/163 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/schedule-2/paragraph-163
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.