48 Securities of foreign states.U.K.
(1)M1Subject to subsection (3) below, no tax shall be chargeable in respect of—
(a)dividends payable in the United Kingdom on the securities of any state or territory outside the United Kingdom, or
(b)any dividends or proceeds chargeable apart from this subsection under paragraph 3 or 4 of Schedule C,
if it is proved, on a claim in that behalf made to the Board, that the person owning the securities and entitled to the dividends or proceeds is not resident in the United Kingdom.
(2)Where—
(a)securities are held under a trust, and
(b)the person who is the beneficiary in possession is the sole beneficiary in possession and can, by means either of revocation of the trust or of the exercise of any powers under the trust, call upon the trustees at any time to transfer the securities to him absolutely free from any trust,
that person shall for the purposes of subsection (1) above be deemed to be the person owning the securities.
(3)Where any income of any person is, by virtue of any provision of the Tax Acts (and in particular, but without prejudice to the generality of the preceding words, by virtue of Chapter III of Part XVII) to be deemed to be income of any other person, that income is not exempt from tax by virtue of this section by reason of the first-mentioned person not being resident in the United Kingdom.
(4)M2Paragraph 1 of Schedule C shall not apply, in the case of dividends payable out of any public revenue other than the public revenue of the United Kingdom, if the securities in respect of which the dividends are payable are held in a recognised clearing system.