Income and Corporation Taxes Act 1988

Government securities: exemptions from tax U.K.

46 Savings certificates and tax reserve certificates. U.K.

(1) M1 Subject to subsections (3) to (6) below, income arising from savings certificates shall not be liable to [F1 corporation] tax.

(2) [F2 M2 Corporation tax] shall not be chargeable in respect of the interest on tax reserve certificates issued by the Treasury.

(3) M3 Subsection (1) above does not apply to any savings certificates which are purchased by or on behalf of a person in excess of the amount which a person is for the time being authorised to purchase under regulations made by the Treasury or, as respects Ulster Savings Certificates, by the Department of Finance and Personnel.

(4) Subsection (1) above does not apply to Ulster Savings Certificates unless—

(a) the holder is resident and ordinarily resident in Northern Ireland when the certificates are repaid; or

(b) the certificates were purchased by [F3 the holder and the holder] was so resident and ordinarily resident when they were purchased.

(5) A claim under this section in respect of Ulster Savings Certificates shall be made to the Board.

(6) In this section “sa00vings certificates” means savings certificates issued under section 12 of the M4 National Loans Act 1968 or section 7 of the M5 National Debt Act 1958 or Section 59 of the M6 Finance Act 1920 and any war savings certificates as defined in section 9(3) of the M7 National Debt Act 1972, together with any savings certificates issued under any corresponding enactment forming part of the law of Northern Ireland.

[F4 (7) In this section “Ulster Savings Certificates” means savings certificates issued or treated as issued under section 15 of the Exchequer and Financial Provisions Act (Northern Ireland) 1950.]

Textual Amendments

F1 Word in s. 46(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 31(2) (with Sch. 2)

F2 Words in s. 46(2) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 31(3) (with Sch. 2)

F3 Words in s. 46(4)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 31(4) (with Sch. 2)

F4 S. 46(7) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 31(5) (with Sch. 2)

Modifications etc. (not altering text)

C1 And see, as regards Ulster Savings Certificates, Part III Vol.5.

Marginal Citations

M1 SOURCE-1981 S. 34(1)

M2 SOURCE-1970 s. 98

M3 SOURCE-1981 s. 34(2)–(5); 1979 (C) s. 71(2)(a)

M4 1968 c. 13.

M5 1958 c.6.

M6 1920 c.18.

M7 1972 c. 65.

47 United Kingdom government securities held by non-residents. U.K.

F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 S. 47 repealed (with effect in accordance with s. 154(9) of the repealing Act) by Finance Act 1996 (c. 8), ss. 154(7), 205, Sch. 28 para. 1, Sch. 41 Pt. 5(18), Note (with s. 154(2)-(6))

48 Securities of foreign states. U.K.

F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 S. 48 repealed (with effect in accordance with Sch. 7 para. 32 and Sch. 41 Pt. 5(2) Note of the repealing Act) by Finance Act 1996 (c. 8), ss. 79, 205, Sch. 7 para. 9, Sch. 41 Pt. 5(2) (with Sch. 7 paras. 33-35)

49 Stock and dividends in name of Treasury etc. U.K.

[F7 (1) No tax shall be chargeable in respect of the stock or dividends—

(a) transferred, in pursuance of any Act of Parliament, to accounts in the books of the Bank of England in the name of the Treasury or the National Debt Commissioners, or

(b) transferred, in pursuance of any Act of Parliament, to the Treasury or the National Debt Commissioners and in respect of which the Treasury or those Commissioners are entered as holder in the registers kept by the Registrar of Government Stock,

but the Bank of England and the Registrar of Government Stock shall each transmit to the Board an account of the total amount thereof in those books or registers as the case may be.]

(2) No tax shall be chargeable in respect of the stock or dividends belonging to the Crown, in whatever name they may stand in the books of the Bank of England [F8 or in the registers kept by the Registrar of Government Stock].

[F9 (3) In this section “dividends” means any interest, public annuities, dividends or shares of annuities.]

[F10 (4) In this section “Registrar of Government Stock” means the person or persons appointed in accordance with regulations under section 47(1)(b) of the Finance Act 1942 (see regulation 3 of the Government Stock Regulations 2004).]

Textual Amendments

F7 S. 49(1) substituted (15.11.2004) by The Government Stock (Consequential and Transitional Provision) (No. 3) Order 2004 (S.I. 2004/2744), art. 1, Sch. para. 2(2)(a) (with art. 3)

F8 Words in s. 49(2) inserted (15.11.2004) by The Government Stock (Consequential and Transitional Provision) (No. 3) Order 2004 (S.I. 2004/2744), art. 1, Sch. para. 2(2)(b) (with art. 3)

F9 S. 49(3) inserted (with effect in accordance with Sch. 7 para. 32 of the amending Act) by Finance Act 1996 (c. 8), s. 79, Sch. 7 para. 10 (with Sch. 7 paras. 33-35)

F10 S. 49(4) inserted (15.11.2004) by The Government Stock (Consequential and Transitional Provision) (No. 3) Order 2004 (S.I. 2004/2744), art. 1, Sch. para. 2(2)(c) (with art. 3)