# Income Tax Act 2007, Section 878: Interest paid by banks

Extent: E+W+S+N.I.

(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.
(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).
(2) Section 991 (meaning of “bank”) applies for the purposes of this section.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/878 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-878
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.