{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-886",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-886.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/886",
  "kind": "section",
  "number": "886",
  "heading": "Interest paid by recognised clearing houses etc",
  "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 relevant entity if—\n(a) the relevant entity is carrying on business as the provider of a central counterparty clearing service or as a central securities depository, and\n(b) the interest is paid in the ordinary course of that business, on margin or other collateral deposited with it by users of the service or as a central securities depository.\n(2) The duty to deduct a sum representing income tax under section 874 does not apply to interest treated by virtue of section 607 (treatment of price differences under repos), or paragraph 5 of Schedule 13 to FA 2007 (relief for borrower for finance charges in case of debtor repos and debtor quasi-repos), as paid by a relevant entity in respect of contracts made by it as the provider of a central counterparty clearing service or as a central securities depository .\n(3) In this section—\n“central counterparty clearing service” means the service provided by a relevant entity to the parties to a transaction where there are contracts between each of the parties and the relevant entity (in place of, or as an alternative to, a contract directly between the parties), and\n“relevant entity”, means any of the following (as defined for the purposes of FISMA 2000 by section 285 of that Act)—\n(a)a recognised clearing house;\n(b)a recognised investment exchange;\n(c)...\n(d)a third country central counterparty.\n(e) a recognised CSD;\n(f)...\n(g)a third country CSD.\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 886(1) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(a)(i) (with regs. 52-58)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 886(1)(a) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(a)(ii) (with regs. 52-58)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 886(1)(a) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 12(a)(i) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 886(1)(b) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 12(a)(ii) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 886(2) inserted (with effect in accordance with art. 3 of the commencing S.I.) by Finance Act 2007 (c. 11), s. 47(4), Sch. 14 para. 24; S.I. 2007/2483, art. 3"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 886(2) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(b) (with regs. 52-58)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 886(2) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 12(b) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 886(3) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(c)(i) (with regs. 52-58)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 886(3) inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(c)(iii) (with regs. 52-58)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in s. 886(3) omitted (31.12.2020) by virtue of The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/710), regs. 1(3), 4 (with reg. 39) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 43(l)); 2020 c. 1, Sch. 5 para. 1(1)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 886(3) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 12(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 886(3) omitted (1.4.2013) by virtue of The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 24(2)(c)(ii) (with regs. 52-58)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 886 modified (temp.) (31.12.2020) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/710), regs. 1(3), 39; 2020 c. 1, Sch. 5 para. 1(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/886",
    "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."
}