The Double Taxation Relief (Taxes on Income) (General) Regulations 1970

2.—(1) The following provisions of these Regulations shall have effect where, under arrangements having effect under section 497 of the Income and Corporation Taxes Act 1970, persons resident in the territory with the Government of which the arrangements are made are entitled to exemption or partial relief from United Kingdom income tax in respect of any income from which deduction of tax is authorised or required by the Income Tax Acts.

(2) Any person who pays any such income (referred to in these Regulations as “the United Kingdom payer”) to a person in the said territory who is beneficially entitled to the income (such person being referred to in these Regulations as “the non-resident”) may be directed by a notice in writing given by or on behalf of the Board that in paying any such income specified in the notice to the non-resident he shall—

(a) not deduct tax, or

(b) not deduct tax at a higher rate than is specified in the notice, or

(c) deduct tax at a rate specified in the notice instead of at the standard rate otherwise appropriate;

and where such notice is given, any income to which the notice refers, being income for a year for which the arrangements have effect, which the United Kingdom payer pays after the date of the notice to the non-resident named therein shall, subject to the following provisions of these Regulations, be paid as directed in the notice:

Provided that income specified in a notice given under this paragraph shall not include distributions in respect of which income tax is chargeable under Schedule F.