# The Income Tax (Manufactured Interest) Regulations 1992, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations, which come into force on 24th September 1992, are made under provisions in section 737 of, and Schedule 23A to, the Income and Corporation Taxes Act 1988 ( “section 737” and “Schedule 23A” respectively). Section 737 was amended by, and Schedule 23A was inserted by, section 58 of, and Schedule 13 to, the Finance Act 1991. The Regulations contain provisions which apply to manufactured interest in respect of United Kingdom securities.
The Regulations are in a number of parts, of which Part I is general. Regulation 1 provides for citation and commencement, regulation 2 contains definitions, and regulation 3 is introductory. Regulation 4 provides that these Regulations apply only to manufactured interest on United Kingdom securities.
Part II of the Regulations (regulation 5) provides that manufactured interest which constitutes an amount representative of a periodical payment of yearly interest and is paid by a company resident in the United Kingdom in circumstances where, by virtue of the rules of the stock exchange governing the transaction, the payment required to be made in respect of the interest is of the amount of the interest before deduction of tax, shall be treated in relation to the company making the payment as a payment of interest other than yearly interest, and not as the gross amount of a periodical payment of yearly interest pursuant to paragraph 3(2) of Schedule 23A.
Part III of the Regulations contains administrative provisions relating to Schedule 23A in connection with payments of manufactured interest by companies resident in the United Kingdom.
Regulation 6 contains a definition used in this part.
Regulation 7 makes provision for different types of manufactured interest to be shown separately in a return under Schedule 16 to the 1988 Act.
Regulation 8 provides for information to be furnished by a United Kingdom resident company to the recipient of a payment of manufactured interest made by the company.
Regulation 9 provides for section 21 of the Taxes Management Act 1970 ( “the Management Act”) to apply with modifications in the case of payments of manufactured interest by United Kingdom resident companies.
Part IV of the Regulations contains administrative provisions relating to section 737 in connection with payments of manufactured interest by persons other than companies resident in the United Kingdom.
Regulation 10 contains definitions used in this part.
Regulation 11 provides for information to be furnished by the maker to the recipient of a payment of manufactured interest.
Regulation 12 provides for section 21 of the Management Act to apply with modifications in the case of payments of manufactured interest by persons other than companies resident in the United Kingdom.
Part V of the Regulations modifies section 737 and Schedule 16 to the 1988 Act in relation to payments of manufactured interest by non-resident companies which carry on a trade through a branch or agency in the United Kingdom.
Regulation 13 contains a definition used in this part.
Regulation 14 makes provision for the modification of section 737 and Schedule 16 to the 1988 Act in connection with the deductibility and offsetting of income tax on manufactured interest.

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Source: https://www.legislation.gov.uk/uksi/1992/2074/note (the official version)
Page: https://openlegislation.uk/income-tax-manufactured-interest-regulations-1992/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.