Finance Act 1996

4 (1) In section 18 (Schedule D), in subsection (1), in paragraph (b) of Schedule D, for “not charged under Schedule A, C or E” there shall be substituted “ not charged under Schedule A or E ”. U.K.

(2) In subsection (3) of that section—

(a) in Case III, in paragraph (c) for the words from “except income charged under Schedule C” to the end of the paragraph there shall be substituted “ from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland ”;

(b) in Case IV, the words “except such income as is charged under Schedule C” shall be omitted; and

(c) in Case VI, for “Schedule A, C or E” there shall be substituted “ Schedule A or E ”.

(3) Immediately before subsection (4) of section 18, there shall be inserted the following subsections—

“(3B) The references in Case IV of Schedule D to income arising from securities out of the United Kingdom, and in Case V of Schedule D to income arising from possessions out of the United Kingdom, shall be taken, in the case of relevant foreign holdings, to include references to the following—

(a) any proceeds of such a sale or other realisation of coupons for foreign dividends as is effected by a bank in the United Kingdom which pays the proceeds over or carries them into an account;

(b) any proceeds of a sale of such coupons to a dealer in coupons in the United Kingdom by a person who is not a bank or another dealer in coupons.

(3C) In this section “relevant foreign holdings” means—

(a) any securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom; or

(b) any shares or securities issued by or on behalf of a body of persons not resident in the United Kingdom;

and “securities” here includes loan stock and similar securities.

(3D) In this section “foreign dividends” means—

(a) in relation to relevant foreign holdings falling within subsection (3C)(a) above, interest or annual payments payable out of the revenue of the government or authority in question; and

(b) in relation to relevant foreign holdings falling within subsection (3C)(b) above, any dividends, interest or annual payments payable in respect of the holdings in question.

(3E) In this section—

(a) “bank” has the meaning given by section 840A; and

(b) references to coupons include, in relation to any foreign dividends, warrants for and bills of exchange purporting to be drawn or made in payment of those dividends.”

(4) In subsection (5) of that section, for “Part IV contains” there shall be substituted “ Parts III and IV contain ”.