- Latest available (Revised)
- Point in Time (06/04/2005)
- Original (As enacted)
Point in time view as at 06/04/2005. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
There are currently no known outstanding effects for the Finance (No. 2) Act 1997, Section 37.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)The Taxes Act 1988 shall be amended as follows.
(2)In section 50 (Treasury direction for payment of public revenue dividends without deduction of tax), before subsection (1) there shall be inserted the following subsection—
“(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.”
(3)In that section—
(a)in subsection (1), after “following securities” there shall be inserted “ in so far as they are not gilt-edged securities ”;
(b)in subsection (2), after “by virtue of” there shall be inserted “ subsection (A1) above or of ”;
(c)in subsection (3), for “to which subsection (1) above applied” there shall be substituted “ the interest on which is to be paid without deduction of income tax ”; and
(d)in subsections (4) and (5), for the words “two months”, in each place where they occur, there shall be substituted “ one month ”.
(4)In subsection (7) of that section, after “requires” there shall be inserted the following definition—
““gilt-edged securities” means any securities which—
(a)are gilt-edged securities for the purposes of the 1992 Act; or
(b)will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they were issued,”.
(5)Section 51A (interest on gilt-edged securities held under authorised arrangements to be paid without deduction of tax) shall cease to have effect.
F1(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)In [F2section 722A(5), and in paragraph 3A(2)(a) of Schedule 23A, (which] define “gilt-edged securities” by reference to section 51A of the Taxes Act 1988), for “51A” there shall be substituted, in each case, “ 50 ”.
(8)Subject to subsections (9) to (13) below, this section has effect in relation to payments of interest falling due on or after 6th April 1998.
(9)Subsection (3)(d) above has effect in relation to applications made and notices given at any time on or after the day on which this Act is passed.
(10)Where—
(a)any person holds any gilt-edged securities in relation to which a direction was given under section 50(1) of the Taxes Act 1988 at any time before 6th April 1998, and
(b)that person at any time before that date made an application under section 50(2) of that Act with respect to those securities,
that application (unless withdrawn) shall have effect in relation to any interest on those securities to which section 50(A1) of that Act applies as it previously had effect in relation to any interest on those securities to which that direction applied.
(11)[F3Section 50] of the Taxes Act 1988 shall have effect in relation to any gilt-edged securities issued before 6th April 1998 which—
(a)are securities the interest on which, if paid immediately before that date, would have fallen to be paid after deduction of income tax, and
(b)are registered within the meaning of section 50 of that Act but are not securities in relation to which any direction under section 50 of that Act was given before that date,
as if the appropriate person had so made an application under section 50(2) of that Act as to enable that application to take effect in relation to payments of interest made on or after that date.
(12)In subsection (11) above “the appropriate person” means—
(a)in the case of securities transferred before 6th April 1998 but after the time when the balance was struck for a dividend on them falling due on or after that date, the person who held the securities at the time when the balance was so struck;
(b)in any other case, the person holding the securities in question immediately before 6th April 1998.
(13)Section 50(5) of the Taxes Act 1988 shall have effect in relation to an application treated as made by virtue of subsection (11) above as if a notice withdrawing that application was capable of being given at any time on or after the passing of this Act.
Textual Amendments
F1S. 37(6) repealed (31.7.1998 with effect as mentioned in Sch. 27 Pt. III(3) Note of the amending Act) by 1998 c. 36, ss. 37(3), 165, Sch. 27 Pt. III(3) Note; S.I. 1999/619, art. 2
F2Words in s. 37(7) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 497 (with Sch. 2)
F3Words in s. 37(11) substituted (28.7.2000 with effect as mentioned in s. 111(6)(a) of the amending Act) by 2000 c. 17, s. 111(5)
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: