The Double Taxation Relief (Taxes on Income) (Foreign Interest and Dividends) Regulations 1999

Interpretation

2.—(1) In these Regulations unless the context otherwise requires–

• “the cost of acquiring the asset”, in relation to a foreign dividend, means–

  (a)

  the cost of acquiring the right to the dividend (if any), and

  (b)

  the cost of acquiring the stocks, funds, shares or securities (if any) out of which, or in respect of which, the dividend is paid;

• “interbank market” means the market that exists between banks in a particular place for the purpose of borrowing and lending funds and dealing in currencies, and “the relevant interbank market” means the interbank market which is most appropriate in relation to a loan having regard to all the terms on which it was made;

• “interest period”, in relation to a loan, means–

  (a)

  any period specified in the loan agreement as a period for which interest is to be calculated, or, as the case may be, selected in accordance with that agreement by one of the parties thereto, beginning either on the date on which the loan was first made or on the expiry of the preceding interest period; or

  (b)

  where no such period is specified in the loan agreement, but interest is to be calculated under that agreement by reference to a period of at least 360 days, and is payable on two or more specified dates within that period, any period beginning immediately after one and ending on the next of those dates; or

  (c)

  in any other case, any period not exceeding one year which is appropriate in the circumstances of the loan;

• “loan agreement” means, in relation to a loan, any agreement in pursuance of which the loan is made;

• “qualifying taxpayer” has the meaning given by section 798(4) and (5)(1);

• “the specified circumstances” means circumstances in which–

  (a)

  section 798 applies, and

  (b)

  the amount of the qualifying taxpayer’s financial expenditure in relation to the earning of the foreign interest or foreign dividends in question is not readily ascertainable;

• “subsection (3)” means subsection (3) of section 798B.

(2) References in these Regulations to a particular section, without more, are to that section of the Income and Corporation Taxes Act 1988.

(1)

Section 798 was substituted by section 103(1) of the Finance Act 1998.