Income Tax Act 2007 (c. 3)

SCHEDULES

SCHEDULE 2 U.K. Transitionals and savings

Part 15 U.K. Deduction of income tax at source

Deduction from certain payments of yearly interest: interest paid by banks U.K.

163 (1) In the case of payments of interest to which this paragraph applies, section 878 (exceptions from duty to deduct: interest paid by banks) has effect with the modification in sub-paragraph (2). U.K.

(2) The modification is the substitution for subsections (1) and (2) of that section of “The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest by a bank carrying on a genuine banking business in the United Kingdom.”

(3) This paragraph applies to interest payable on an advance made before 29 April 1996.