Finance Act 2016

Amendments of Chapter 2 of Part 15 of ITA 2007 U.K.

3 U.K. Chapter 2 of Part 15 of ITA 2007 (deduction of income tax at source by deposit-takers and building societies) is amended in accordance with paragraphs 4 to 18.

4 U.K. For the Chapter heading substitute “ Meaning of “relevant investment” for purposes of section 876 ”.

5 (1) Section 850 (overview of Chapter) is amended as follows. U.K.

(2) For subsection (1) substitute—

“(1) This Chapter has effect for the purposes of section 876 (duty under section 874 to deduct tax from payments of yearly interest: exception for deposit-takers).”

(3) Omit subsection (2) (which introduces sections 851 and 852).

(4) In subsection (4)(b) (which introduces sections 858 to 870), for “858” substitute “ 863 ”.

(5) In subsection (5) (which introduces sections 871 to 873), for “871 to” substitute “ 872 and ”.

(6) In subsection (6) (interpretation), for the words from “Chapter—” to “crediting” substitute “ Chapter, crediting ”.

6 U.K. Omit section 852 (power to disapply section 851).

7 U.K. In section 853(1) (meaning of “deposit-taker”), after “In this Chapter” insert “ and section 876 ”.

8 U.K. In section 854(3) (meaning of “relevant investment” in section 851(1)(b)), for “851(1)(b)” substitute “ 876(1)(b) ”.

9 U.K. For section 855(1) (meaning of “investment”) substitute—

“(1) In this Chapter, and section 876, “investment” means a deposit with a deposit-taker.”

10 (1) Section 856 (meaning of “relevant investment”) is amended as follows. U.K.

(2) In subsection (1), for “this Chapter” substitute “ section 876 ”.

(3) In subsection (2) (exceptions), for “858” substitute “ 863 ”.

11 U.K. In section 857 (treating investments as being or not being relevant investments) omit “or building society” in each place.

12 U.K. Omit—

(a) sections 858 to 861 (investments which are not relevant investments and in relation to which duty under section 874 does not apply), and

(b) the italic heading preceding section 858.

13 U.K. In the italic heading preceding section 863, for “Other investments” substitute “ Investments ”.

14 U.K. In sections 863, 864, 865 and 868(4) (investments with deposit-takers or building societies) omit “or building society” in each place.

15 U.K. Omit sections 868(3), 869 and 870(2) (investments with building societies).

16 U.K. Omit section 871 (power to make regulations to give effect to Chapter).

17 U.K. In section 872 (power to amend Chapter)—

(a) in subsection (2) (different provision for different deposit-takers)—

(i) for “which amends this Chapter in its application to deposit-takers may do so” substitute “ may amend this Chapter ”, and

(ii) in each of paragraphs (a) and (b), for “relation” substitute “ its application ”, and

(b) omit subsections (4) and (5) (which refer to provisions repealed by this Act).

18 U.K. Omit section 873(3) to (6) (interpretation of section 861).