Regulation 13 Duty to deduct tax from interest distributions: general

(1)

Any obligation to deduct a sum under section 874(2) of the Income Tax Act 2007^f1 is subject to the provisions of this regulation.

(2)

In this Part the “deduction obligation” means the obligation specified in paragraph (1).

(3)

The deduction obligation does not apply to the interest distribution if—

(a)

the recipient is a company (whether or not the company is resident in the United Kingdom for tax purposes);

(b)

the recipient consists of the trustees of a unit trust scheme;

(c)

the reputable intermediary condition in regulation 14 is met with respect to the recipient on the date the interest distribution is made; or

(d)

the residence condition in regulation 17 is met with respect to the recipient on the date the interest distribution is made.

(4)

But if the recipient is a company acting in the capacity of a trustee of a trust, the deduction obligation is not excluded by virtue of paragraph (3)(a).

(5)

In this regulation, “unit trust scheme” has the meaning given by section 237 of the Financial Services and Markets Act 2000^f2.

Annotations

Footnotes

f1: 2007 c. 3; section 874(2) was amended by paragraph 26 of Schedule 1 to the Finance Act 2008 (c. 9).
f2: 2000 c. 8.