# The Income Tax (Manufactured Interest) Regulations 1992, Regulation 5: Tax treatment of certain manufactured interest


(1) For the purposes of the provision of the Tax Acts prescribed by paragraph (2), the manufactured interest prescribed by paragraph (3) and paid by an interest manufacturer prescribed by paragraph (4) shall be treated, in relation to that interest manufacturer and in the circumstances prescribed by paragraph (5), as mentioned in paragraph (6) below and not as mentioned in paragraph 3(2) of Schedule 23A.
(2) The provision prescribed by this paragraph is section 349(2) of the Taxes Act.
(3) The manufactured interest prescribed by this paragraph is any amount which–
(a) is representative of a periodical payment of yearly interest on United Kingdom securities, and
(b) is paid in the circumstances prescribed by paragraph (5).
(4) The interest manufacturer prescribed by this paragraph is a company resident in the United Kingdom.
(5) The circumstances prescribed by this paragraph are where, pursuant to the rules of the stock exchange governing the transaction, the payment made in respect of the interest is of the amount of the interest before deduction of tax.
(6) The manufactured interest referred to in paragraph (1) shall be treated as a payment of interest other than yearly interest.

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Source: https://www.legislation.gov.uk/uksi/1992/2074/regulation/5 (the official version)
Page: https://openlegislation.uk/income-tax-manufactured-interest-regulations-1992/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.