Explanatory note

This Order, made pursuant to section 582A(1) of the Income and Corporation Taxes Act 1988, enables certain payments made by or on behalf of the European Bank for Reconstruction and Development, an international organisation of which the United Kingdom is a member, to be made without the obligation on the part of the payer to deduct or account for tax in respect of the payment. The payments in question are those referred to in subsections (2) to (6) of section 582A, and comprise certain annuities and other annual payments, certain payments to sub-contractors and certain payments of rents, royalties, dividends and interest.

The Agreement establishing the European Bank for Reconstruction and Development (Cmnd. 1116) was signed by the United Kingdom in Paris on 29th May 1990 and entered into force for the United Kingdom on 28th March 1991. Other immunities and privileges were conferred in relation to the Bank by the European Bank for Reconstruction and Development (Immunities and Privileges) Order 1991 (S.I. 1991/757) and the International Organisations (Tax Exempt Securities) Order 1991 (S.I. 1991/1202).