Regulation 16 The reputable intermediary condition: consequences of reasonable but incorrect belief

This regulation applies if conditions A to D are met.

Condition A is that an interest distribution is made by an investment trust or prospective investment trust.

Condition B is that the investment trust or prospective investment trust, in reliance on the reputable intermediary condition being met with respect to the recipient of the interest distribution, does not comply with the deduction obligation in relation to the interest distribution.

Condition C is that the deduction obligation would apply but for the reputable intermediary condition being met.

Condition D is that (contrary to the belief of the investment trust or prospective investment trust) the recipient is in fact ordinarily resident in the United Kingdom.

The following provisions of the Income Tax Act 2007 have effect as if the deduction obligation applied—