M1(1)Section 349(2) shall not apply to interest paid on any quoted Eurobond where—
(a)the person by or through whom the payment is made is not in the United Kingdom; or
(b)the payment is made by or through a person who is in the United Kingdom but either of the conditions mentioned in subsection (2) below is satisfied.
[F1(2)The conditions are—
(a)that a person who—
(i)is not resident in the United Kingdom, and
(ii)beneficially owns the quoted Eurobond
is beneficially entitled to the interest;
(b)that the quoted Eurobond is held in a recognised clearing system.
(3)The Board may by regulations provide that subsection (1)(b) above shall be taken not to apply to a payment of interest unless—
(a)the person by or through whom the payment is made (the relevant payer) has received a declaration confirming that one of the conditions of subsection (2) above is satisfied, or
(b)they have issued a notice to the relevant payer stating that they consider that one (or both) of those conditions is satisfied.
(4)Regulations under subsection (3) above may—
(a)impose requirements as to—
(i)the contents of any declaration to be made in accordance with regulations under subsection (3)(a) above,
(ii)the form and manner in which any declaration is to be provided in accordance with any such regulations, and
(iii)the keeping and production to, or to an officer of, the Board of any document in which any such declaration is contained;
(b)make provision for any such declaration to be made by the person entitled to the interest (or, as the case may be, the depositary for the recognised clearing system) or by such other person as may be prescribed by the regulations;
(c)require the relevant payer to consider the accuracy of any such declaration;
(d)make provision for notices to be issued by the Board to such persons as may be described in the regulations where the Board consider that
(i)one (or both) of the conditions of subsection (2) above, or
(ii)neither of those conditions
is satisfied in relation to interest paid on any holding of quoted Eurobonds;
(e)make provision with respect to the furnishing of information by relevant payers, including the inspection of books and other records on behalf of the Board;
(f)require relevant payers to deliver returns setting out particulars of payments made by them to which subsection (1)(b) above applies and the names and addresses of the persons entitled to them;
(g)contain such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.]
(6)In this section—
“quoted Eurobond” means a security which—
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 124(2)-(4) substituted for s. 124(2)-(5) (29.4.1996) by Finance Act 1996 (c. 8), Sch. 29 Para. 4
F2Word in s. 124(6) substituted (with effect in accordance with Sch. 38 para. 6(3) of the amending Act) by Finance Act 1996 (c. 8), Sch. 38 para. 6(1)(2)(a)
F3Definitions in s. 124(6) repealed (with effect in accordance with Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 7 para. 14(a), Sch. 41 Pt. 5(2), Note (with Sch. 7 paras. 33-35)
F4S. 124(7) repealed (with effect in accordance with Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 7 para. 14(b), Sch. 41 Pt. 5(2), Note (with Sch. 7 paras. 33-35)
Modifications etc. (not altering text)
C1S. 124(1)(b) excluded (30.7.1996) by The Income Tax (Interest on Quoted Eurobonds) Regulations 1996 (S.I. 1996/1779), regs. 3(1), 4(1) (with reg. 7(1))
Marginal Citations
M1Source—1984 s.35 (1)-(3), (5)-(8)