PART IIIU.K.[F1GOVERNMENT SECURITIES]

Textual Amendments

F1Pt. 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)

Government securities: interest payable without deduction of taxU.K.

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

[F2(A1)The interest on registered gilt-edged securities (whenever issued and whatever the terms on which they were issued) shall be paid without deduction of income tax.]

(1)M1The Treasury may direct that any of the following securities [F3in so far as they are not gilt-edged securities], that is to say—

(a)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)any securities issued or deemed to be issued under the M2National Loans Act 1939 or issued under the M3National Loans Act 1968;

(c)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 F5. . . .

(2)M4The holder of any registered securities the interest on which is by virtue of [F6subsection (A1) above or of] directions given under subsection (1) above payable without deduction of tax may make an application to the Bank 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 [F7the interest on which is to be paid without deduction of income tax].

(4)M5An application under subsection (2) above shall be made in such form as the Bank with the approval of the Treasury may prescribe, and any application made less than [F8one 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(5)An application made under subsection (2) above may at any time be withdrawn by notice to the Bank in such form as the Bank may with the approval of the Treasury prescribe, but an application so withdrawn shall, notwithstanding the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 [F8one month] after the date the notice is received at the Bank.

(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—

Textual Amendments

F2S. 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)

F3Words 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)

F4S. 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)

F5Words 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)

F6Words 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)

F7Words 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)

F8Words 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)

F9S. 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)

Modifications etc. (not altering text)

C1S. 50 modified (with effect in accordance with s. 37(8)(12) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(11)

C2S. 50(5) modified (with effect in accordance with s. 37(8) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 37(13)

Marginal Citations

M1SOURCE-1970 s. 101(1)

M4SOURCE-1970 s. 101(2)

M5SOURCE-1970 s. 101(3)–(6)