The Income Tax (Gilt-edged Securities) (Gross Payments of Interest) Regulations 1995

Requirements relating to approval and registration of a non-resident under regulations 5 and 6

7.—(1) The requirements referred to in regulation 5(4)(b), (5)(c) and (6)(c), and regulation 6(8)(b), (9)(c), (10)(b) and (11)(b) are that the non-resident CGO member or, as the case may be, the non-resident intermediary either—

(a) appoints a person who falls within paragraph (2) below to be responsible for securing the discharge of the obligations which fall to be discharged by the member or the intermediary under the arrangements, or

(b) agrees other arrangements with the Board designed to secure the discharge of those obligations.

(2) A person falls within this paragraph if—

(a) he is an individual resident in the United Kingdom, or

(b) he is not an individual and has a business establishment in the United Kingdom, or

(c) he is a partner whose firm has a business establishment in the United Kingdom.

(3) The appointment of a person under paragraph (1)(a) above shall not have effect unless and until notice of the appointment is given by the CGO member or intermediary to the Board.

(4) A person appointed under paragraph (1)(a) above—

(a) shall be entitled to act on behalf of the CGO member or intermediary concerned in respect of any of his functions or obligations under the arrangements,

(b) shall secure the CGO member’s or intermediary’s compliance with and discharge of any obligations of the member or intermediary under the arrangements, and

(c) shall be personally liable in respect of any failure of the CGO member or intermediary to comply with or discharge any of his obligations under the arrangements as if the obligations imposed on the member or intermediary were imposed jointly and severally on the member or intermediary and the person appointed.

(5) The Board may, by notice to the person appointed and the CGO member or intermediary, determine that the appointment shall be treated as not having fulfilled the requirements specified in paragraph (1) above where they have reason to believe that the person appointed either—

(a) has failed to secure compliance with the obligations of the member or intermediary under the arrangements, or

(b) does not have adequate resources to secure compliance with those obligations or to meet liabilities under the arrangements.