The Manufactured Interest (Tax) Regulations 1997

Application of the Tax Acts to manufactured interest on which recipients are accountable for tax

3.—(1) Schedule 16(1) shall apply in relation to the collection of income tax on payments of manufactured interest to which paragraph (2) applies (“specified payments”) as if references in that Schedule, other than the reference in paragraph 5 of that Schedule, to relevant payments made by a company were references to specified payments.

(2) The payments of manufactured interest specified in this paragraph are payments in relation to which the recipients are liable to account for income tax under paragraph 3(5) of Schedule 23A.

(3) The recipient of a payment of manufactured interest to which paragraph (2) applies (or would apply but for regulation 4(1)) or, as the case may be, any person claiming title through or under him, shall be treated for the purposes of the Tax Acts as if the payment had borne income tax by deduction.

(1)

Schedule 16 was amended by section 149(3)(d) of the Finance Act 1989 (c. 26), paragraph 13 of Schedule 14 to the Finance Act 1990 (c. 29) and paragraphs 10 to 13 of Schedule 23 to the Finance Act 1996.