Income Tax Act 2007

886Interest paid by recognised clearing houses etcU.K.
This adran has no associated Nodiadau Esboniadol

(1)The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest made by a [F1relevant entity] if—

(a)the [F2relevant entity] is carrying on business as the provider of a central counterparty clearing service [F3or as a central securities depository], and

(b)the interest is paid in the ordinary course of that business, on margin or other collateral deposited with it by users of the service [F4or as a central securities depository].

(2)The duty to deduct a sum representing income tax under section 874 does not apply to interest treated by virtue of section 607 (treatment of price differences under repos)[F5, or paragraph 5 of Schedule 13 to FA 2007 (relief for borrower for finance charges in case of debtor repos and debtor quasi-repos),] as paid by [F6a relevant entity] in respect of contracts made by it as the provider of a central counterparty clearing service [F7or as a central securities depository] .

(3)In this section—

  • “central counterparty clearing service” means the service provided by [F8a relevant entity] to the parties to a transaction where there are contracts between each of the parties and [F8the relevant entity] (in place of, or as an alternative to, a contract directly between the parties), and

  • [F9“relevant entity”, means any of the following (as defined for the purposes of FISMA 2000 by section 285 of that Act)—

    (a)

    a recognised clearing house;

    (b)

    a recognised investment exchange;

    (c)

    F10...

    (d)

    a third country central counterparty.

    (e)

    [F11a recognised CSD;

    (f)

    F10...

    (g)

    a third country CSD.]]

  • F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5Words in s. 886(2) inserted (with effect in accordance with art. 3 of the commencing S.I.) by Finance Act 2007 (c. 11), s. 47(4), Sch. 14 para. 24; S.I. 2007/2483, art. 3

F10Words in s. 886(3) omitted (31.12.2020) by virtue of The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/710), regs. 1(3), 4 (with reg. 39) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 43(l)); 2020 c. 1, Sch. 5 para. 1(1)

Modifications etc. (not altering text)