Part 15Deduction of income tax at source

Chapter 19General

Supplementary

979Designated international organisations: exceptions from duties to deduct

1

The Treasury may by order designate for the purposes of this section any international organisation of which the United Kingdom is a member.

2

The duty to deduct under section 874 (duty to deduct from certain payments of yearly interest) does not apply to a payment of interest made by—

a

an organisation designated under subsection (1), or

b

a partnership of which an organisation so designated is a member.

3

None of the duties to deduct under Chapters 6, 7 (deduction from annual payments, patent royalties and other payments connected with intellectual property) and 14 (directions for duty to deduct to apply in tax avoidance cases) apply to a payment made by an organisation designated under subsection (1).

4

The duties to deduct under sections 919(2) and 922(2) do not apply in a case where the payer of the manufactured interest or (as the case may be) the manufactured overseas dividend is an organisation designated under subsection (1).