Income Tax Act 2007

Payments which are payable gross

893 Payments of UK public revenue dividends which are payable gross

(1) A payment of a UK public revenue dividend is payable gross if—

(a) it is a payment of interest on gross-paying government securities, and

(b) no deduction at source application has effect in respect of the securities at the time the payment is made (see section 895).

(2) In this Chapter “gross-paying government securities” means—

(a) gilt-edged securities (see section 1024), or

(b) securities which are the subject of a Treasury direction under section 894(1) or (3).

894 Treasury directions

(1) The Treasury may direct that any securities to which subsection (2) applies are gross-paying government securities.

(2) This subsection applies to any securities, so far as they are not gilt-edged securities, issued or treated as issued under—

(a) the National Loans Act 1939 (c. 117), or

(b) the National Loans Act 1968 (c. 13).

(3) The Treasury may, at the request of the Department of Finance and Personnel for Northern Ireland, direct that any securities issued under section 11(1)(c) of the Exchequer and Financial Provisions Act (Northern Ireland) 1950 (c. 3 (N.I.)) are gross-paying government securities.

(4) In relation to any securities which are gross-paying government securities by virtue of a direction under subsection (3)—

(a) references in sections 895 and 896 to “the Registrar” are to be read as references to the bank in the books of which the securities are registered or inscribed, and

(b) references in those sections to the Treasury are to be read as references to the Department of Finance and Personnel for Northern Ireland.

(5) A direction under subsection (1) or (3) in respect of any securities may provide that the direction is to have effect in relation only to payments of interest on the securities made on or after a date specified in the direction.