Section 878 Interest paid by banksC1C2
United Kingdom
The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest made by a bank if that payment is made in the ordinary course of its business.
But that duty does apply to such a payment if it is treated as a payment of yearly interest by virtue of section 874(5A).
Section 991 (meaning of “bank”) applies for the purposes of this section.
Annotations
Textual amendments
- F1
S. 878(1A) inserted (with effect in accordance with Sch. 11 para. 12(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 11 para. 4
Modifications
- C1
S. 878 modified (1.1.2010) by The Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 7(1)
- C2
S. 878 excluded (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209), regs. 1(1), 9(a)
Notes on Part 15
Modifications
- C1
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)