Income Tax Act 2007 (c. 3)

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

Modifications etc. (not altering text)

C1 Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)

Chapter 3 U.K. Deduction from certain payments of yearly interest

Exceptions from duty to deduct U.K.

878 Interest paid by banks U.K.

(1) The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest made by a bank if that payment is made in the ordinary course of its business.

[F1 (1A) But that duty does apply to such a payment if it is treated as a payment of yearly interest by virtue of section 874(5A).]

(2) Section 991 (meaning of “bank”) applies for the purposes of this section.

Textual Amendments

F1 S. 878(1A) inserted (with effect in accordance with Sch. 11 para. 12(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 11 para. 4

Modifications etc. (not altering text)

C2 S. 878 modified (1.1.2010) by The Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 7(1)

C3 S. 878 excluded (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209), regs. 1(1), 9(a)