C1Part 15Deduction of income tax at source
Chapter 3Deduction from certain payments of yearly interest
Exceptions from duty to deduct
888AF1Qualifying private placements
1
The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on a qualifying private placement.
2
“Qualifying private placement” means a security—
a
which represents a loan relationship to which a company is a party as debtor,
b
which is not listed on a recognised stock exchange, and
c
in relation to which such other conditions as the Treasury may specify by regulations are met.
3
The conditions which may be specified under subsection (2)(c) include conditions relating to—
a
the security itself,
b
the loan relationship represented by the security,
c
the terms on which, or circumstances under which, the security or loan relationship is entered into,
d
the company which is party to the loan relationship as debtor,
e
any person by or through whom a payment of interest on the security is made, or
f
the holder of the security.
4
Regulations under this section may make provision about the consequences of failing to make a deduction under section 874, in respect of a payment of interest on a security, in cases where the person required to make the deduction had a reasonable, but mistaken, belief that the security was a qualifying private placement.
5
Regulations under this section may—
a
make different provision for different cases;
b
contain incidental, supplemental, consequential and transitional provision and savings.
6
In this section “loan relationship” has the same meaning as in Part 5 of CTA 2009.
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)