Income and Corporation Taxes Act 1988

50 United Kingdom securities: Treasury directions for payment without deduction of tax

(1) The Treasury may direct that any of the following securities, that is to say—

(a) any securities issued under the War Loan Acts 1914 to 1919 or under section 60 of the [1916 c. 89.] Finance Act 1916;

(b) any securities issued or deemed to be issued under the [1939 c. 117.] National Loans Act 1939 or issued under the [1968 c. 13.] National Loans Act 1968;

(c) any government stock issued under section 1 of the [1946 c. 46.] Bank of England Act 1946, section 1 of the [1946 c. 82.] Cable and Wireless Act 1946, section 65(1) of the [1947 c. 51.] Town and Country Planning Act 1947 or section 62(1) of the [1947 c. 53.] Town and Country Planning (Scotland) Act 1947; and

(d) any such stock as is mentioned in section 33(1) of the [1946 c. 59.] Coal Industry Nationalisation Act 1946 or section 26(1) of the [1967 c. 17.] Iron and Steel Act 1967;

shall be issued, or shall be deemed to have been issued, subject to the condition that the interest thereon shall be paid without deduction of income tax; and subject to the provisions of this section the interest shall be so paid accordingly, but shall be chargeable under Case III of Schedule D.

(2) The holder of any registered securities the interest on which is by virtue of directions given under subsection (1) above payable without deduction of tax may make an application to the Bank under this subsection requesting that income tax shall be deducted from the interest on those securities before payment thereof.

(3) Where any such application is made, income tax in respect of the interest on those securities shall, so long as they remain registered in the name of the applicant and subject to the withdrawal of the application under subsection (5) below, be deducted and charged in the same manner as if they were not securities to which subsection (1) above applied.

(4) An application under subsection (2) above shall be made in such form as the Bank with the approval of the Treasury may prescribe, and any application made less than two months before the date on which a payment of interest falls due shall only have effect as regards any payment of interest subsequent to that payment.

(5) An application made under subsection (2) above may at any time be withdrawn by notice to the Bank in such form as the Bank may with the approval of the Treasury prescribe, but an application so withdrawn shall, notwithstanding the withdrawal, continue to have effect as regards any interest payable less than two months after the date the notice is received at the Bank.

(6) Where any securities to which subsection (2) above applies are held on trust, the holders of the securities may make an application under that subsection in respect thereof without the consent of any other person, notwithstanding anything in the instrument creating the trust.

(7) In this section—

• “the Bank” means the Bank of England or the Bank of Ireland as the case requires, and

• “registered” means entered in the register of the Bank.