Income Tax Act 2007

Deduction from certain UK public revenue dividends U.K.

165 (1) This paragraph applies if— U.K.

(a) any person holds any gilt-edged securities in relation to which a direction was given under section 50(1) of ICTA at any time before 6 April 1998, and

(b) that person at any time before that date made an application under section 50(2) of that Act with respect to those securities.

(2) The person is treated as having made a deduction at source application under section 895 in respect of the securities which (unless withdrawn) is treated as having effect from that date.

166 (1) This paragraph applies in relation to any gilt-edged securities issued before 6 April 1998 which— U.K.

(a) are securities the interest on which, if paid immediately before that date, would have fallen to be paid after deduction of income tax, and

(b) are registered within the meaning of section 895 but are not securities in relation to which any direction under section 50 of ICTA was given before that date.

(2) Chapter 5 of Part 15 has effect as if the appropriate person had made a deduction at source application under section 895 in respect of the securities so as to enable that application to have effect from (and including) that date.

(3) In sub-paragraph (2) “the appropriate person” means—

(a) in the case of securities transferred before 6 April 1998 but after the time when the balance was struck for a dividend on them falling due on or after that date, the person who held the securities at the time when the balance was struck,

(b) in any other case, the person holding the securities in question immediately before 6 April 1998.