Finance Act 2016 (c. 24)

SCHEDULES

SCHEDULE 6 Deduction of income tax at source

PART 2 Deduction of tax from yearly interest: exception for deposit-takers

2 In section 876 of ITA 2007 (interest paid by deposit-takers), for subsections (1) and (2) substitute—

“(1) The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on an investment if—

(a) the payment is made by a deposit-taker, and

(b) when the payment is made, the investment is a relevant investment.

(1A) In this section “deposit-taker”, “investment” and “relevant investment” have the meaning given by Chapter 2.”