Income and Corporation Taxes Act 1988 (c. 1)

PART III U.K. [F1 GOVERNMENT SECURITIES]

Textual Amendments

F1 Pt. 3 heading substituted (with effect in accordance with Sch. 7 para. 32 of the amending Act) by Finance Act 1996, s. 79, Sch. 7 para. 6 (with Sch. 7 paras. 33-35)

General U.K.

44 Income tax: mode of charge. U.K.

F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 S. 44 repealed (with effect in accordance with Sch. 7 para. 32 and Sch. 41 Pt. 5(2) Note of the repealing Act) by Finance Act 1996 (c. 8), ss. 79, 205, Sch. 7 para. 7, Sch. 41 Pt. 5(2) (with Sch. 7 paras. 33-35)

45 Interpretation of Part III. U.K.

F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 S. 45 repealed (with effect in accordance with Sch. 7 para. 32 and Sch. 41 Pt. 5(2) Note of the repealing Act) by Finance Act 1996 (c. 8), ss. 79, 205, Sch. 7 para. 8, Sch. 41 Pt. 5(2) (with Sch. 7 paras. 33-35)

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 [F4 corporation] tax.

(2) [F5 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 [F6 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.

[F7 (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

F4 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)

F5 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)

F6 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)

F7 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.

F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 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.

F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9 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.

[F10 (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 [F11 or in the registers kept by the Registrar of Government Stock].

[F12 (3) In this section “dividends” means any interest, public annuities, dividends or shares of annuities.]

[F13 (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

F10 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)

F11 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)

F12 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)

F13 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)

Government securities: interest payable without deduction of tax U.K.

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

[F14 (A1) The interest on [F15 gilt-edged securities] (whenever issued and whatever the terms on which they were issued) shall be paid without deduction of income tax.]

(1) M8 The Treasury may direct that any of the following securities [F16 in so far as they are not gilt-edged securities], that is to say—

(a) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any securities issued or deemed to be issued under the M9 National Loans Act 1939 or issued under the M10 National Loans Act 1968;

(c) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 F18 . . . .

(2) M11 The holder of any registered securities the interest on which is by virtue of [F19 subsection (A1) above or of] directions given under subsection (1) above payable without deduction of tax may make an application to the [F20 Registrar] 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 [F21 the interest on which is to be paid without deduction of income tax].

(4) M12 An application under subsection (2) above shall be made in such form as the [F20 Registrar] with the approval of the Treasury may prescribe, and any application made less than [F22 one month] 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 [F20 Registrar] in such form as the [F20 Registrar] 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 [F22 one month] after the date the notice is [F23 received by] the [F20 Registrar].

(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—

• F24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F25 “gilt-edged securities” means any securities which—

  (a)

  are gilt-edged securities for the purposes of the 1992 Act; or

  (b)

  will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they were issued,]F26 . . .

• “registered” means entered in the register of the [F27 Registrar;]

• [F28 “the Registrar” means the Registrar of Government Stock, as defined in section 49(4).]

Textual Amendments

F14 S. 50(A1) inserted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(2)

F15 Words in s. 50(A1) substituted (with application in accordance with s. 112(5) of the amending Act) by Finance Act 2000 (c. 17), s. 112(1)

F16 Words in s. 50(1) inserted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(3)(a)

F17 S. 50(1)(a)(c)(d) repealed (with effect in accordance with Sch. 8 Pt. 2(13) Note of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), s. 52, Sch. 8 Pt. 2(13)

F18 Words in s. 50(1) repealed (with effect in accordance with Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), ss. 79, 205, Sch. 7 para. 11, Sch. 41 Pt. 5(2), Note (with Sch. 7 paras. 33-35)

F19 Words in s. 50(2) inserted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(3)(b)

F20 Words in s. 50 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(3)(a) (with art. 3)

F21 Words in s. 50(3) substituted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(3)(c)

F22 Words in s. 50(4)(5) substituted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(3)(d)

F23 Words in s. 50(5) 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(3)(b) (with art. 3)

F24 S. 50(7): definition of "the Bank" omitted (15.11.2004) by virtue of The Government Stock (Consequential and Transitional Provision) (No. 3) Order 2004 (S.I. 2004/2744), art. 1, Sch. para. 2(3)(c)(i) (with art. 3)

F25 S. 50(7): definition of "gilt-edged securities" inserted (with effect in accordance with s. 37(8)-(13) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(4)

F26 S. 50(7): word at the end of definition of "gilt-edged securities" omitted (15.11.2004) by virtue of The Government Stock (Consequential and Transitional Provision) (No. 3) Order 2004 (S.I. 2004/2744), art. 1, Sch. para. 2(3)(c)(ii) (with art. 3)

F27 S. 50(7): word in definition of "registered" 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(3)(c)(iii) (with art. 3)

F28 S. 50(7): definition of "the Registrar" 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(3)(c)(iv) (with art. 3)

Marginal Citations

M8 SOURCE-1970 s. 101(1)

M9 1939 c. 117.

M10 1968 c. 13.

M11 SOURCE-1970 s. 101(2)

M12 SOURCE-1970 s. 101(3)–(6)

51 Treasury directions as respects Northern Ireland securities. U.K.

(1) M13 The Treasury may, on the application of the Department of Finance and Personnel, as respects any securities to which this section applies, direct that the securities specified in the direction 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 in relation to any securities so specified and the interest thereon, section 50 shall have effect as if—

(a) the securities were securities in respect of which a direction had been given by the Treasury under subsection (1) of that section;

(b) references in that section to [F29 “the Registrar”] were (notwithstanding subsection (7) of that section) references to the bank in the books of which the securities are registered or inscribed; and

(c) the references in subsections (4) and (5) of that section to the Treasury were references to the Department of Finance and Personnel.

(2) The securities to which this section applies are securities issued under section 11(1)(c) of the M14 Exchequer and Financial Provisions Act (Northern Ireland) 1950 for money borrowed by the Department of Finance and Personnel for the purposes of making issues from the Consolidated Fund of Northern Ireland.

Textual Amendments

F29 Words in s. 51(1)(b) 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(4) (with art. 3)

Marginal Citations

M13 SOURCE-1970 s. 102

M14 1950 c. 3 (N.I.)

[F30 51AA Commencement of direction under section 50 or 51. U.K.

A direction under section 50 or 51 that any security shall be deemed to have been issued subject to the condition that the interest thereon shall be paid without deduction of tax may provide that the direction is to have effect in relation only to payments of interest made on or after such date as may be specified in the direction.]

Textual Amendments

F30 S. 51AA inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 155

[F31 51A Gilt-edged securities held under authorised arrangements. U.K.

F32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F31 S. 51A inserted (1.5.1995) by Finance Act 1995 (c. 4), s. 77

F32 S. 51A repealed (with effect in accordance with s. 37(8) and Sch. 8 Pt. 2(13) Note of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), ss. 37(5), 52, Sch. 8 Pt. 2(13)

[F33 51B Periodic accounting for tax on interest on gilt-edged securities. U.K.

F34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F33 S. 51B inserted (1.5.1995) by Finance Act 1995 (c. 4), s. 78(1)

F34 S. 51B repealed (with effect in accordance with s. 37(3) of the repealing Act and S.I. 1999/619) by Finance Act 1998 (c. 36), ss. 37(1), 165, Sch. 27 Pt. 3(3), Note

52 Taxation of interest on converted government securities and interest which becomes subject to deduction. U.K.

F35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F35 S. 52 repealed (with effect in accordance with Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), ss. 79, 205, Sch. 7 para. 12, Sch. 41 Pt. 5(2), Note (with Sch. 7 paras. 33-35)