{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-878",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-878.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/878",
  "kind": "section",
  "number": "878",
  "heading": "Interest paid by banks",
  "text": "(1) 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.\n(1A) 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).\n(2) Section 991 (meaning of “bank”) applies for the purposes of this section.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "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"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 878 modified (1.1.2010) by The Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 7(1)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "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)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/878",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}