SCHEDULES

SCHEDULE 6 Taxation of savings at the lower rate

The Taxes Act 1988

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1

In paragraph (a)(i) of subsection (2) of section 582 of that Act (funding bonds), for “basic” there shall be substituted “ applicable ”.

2

After that subsection there shall be inserted the following subsection—

2A

In subsection (2) above “the applicable rate”, in relation to a year of assessment, means whichever of the basic rate and the lower rate for that year is the rate at which the person by or through whom the bonds are issued would have had to deduct income tax from the amount of interest in question if that amount had been actually paid by or through him.