369Charge to tax on interestU.K.
(1)Income tax is charged on interest.
(2)The following sections extend what is treated as interest for certain purposes—
section 372 (building society dividends),
section 373 (open-ended investment company interest distributions),
section 376 (authorised unit trust interest distributions),
section 379 (industrial and provident society payments),
section 380 (funding bonds), and
section 381 (discounts).
(3)For exemptions, see in particular—
(a)Chapter 2 of Part 6 (national savings income),
(b)Chapter 3 of Part 6 (income from individual investment plans),
(c)Chapter 4 of Part 6 (SAYE interest),
(d)Chapter 6 of Part 6 (income from FOTRA securities),
(e)sections 749 to [F1756A](interest arising from repayment supplements, tax reserve certificates, damages for personal injury, employees' share schemes, repayments of student loans, the redemption of funding bonds [F2, certain foreign currency securities and interest on certain deposits of victims of National-Socialist persecution)] , and
(f)sections 757 to 767 (interest and royalty payments).
(4)Subsection (1) is also subject to sections 714(5), 716(4) and 720(7) of ICTA (exemptions for interest on securities within the accrued income scheme).
Textual Amendments
F1Word in s. 369(3)(e) substituted (19.7.2006) by Finance Act 2006 (c. 25), s. 64(1)(a)
F2Words in s. 369(3)(e) substituted (19.7.2006) by Finance Act 2006 (c. 25), s. 64(1)(b)