Part 4Savings and investment income
Chapter 2Interest
Charge to tax on interest
369Charge to tax on interest
(1)
Income tax is charged on interest.
(2)
The following sections extend what is treated as interest for certain purposes—
section 372 (building society dividends),
section 373 (open-ended investment company interest distributions),
section 376 (authorised unit trust interest distributions),
section 379 (industrial and provident society payments),
section 380 (funding bonds), and
section 381 (discounts).
(3)
For exemptions, see in particular—
(a)
Chapter 2 of Part 6 (national savings income),
(b)
Chapter 3 of Part 6 (income from individual investment plans),
(c)
Chapter 4 of Part 6 (SAYE interest),
(d)
Chapter 6 of Part 6 (income from FOTRA securities),
(e)
sections 749 to 756 (interest arising from repayment supplements, tax reserve certificates, damages for personal injury, employees' share schemes, repayments of student loans, the redemption of funding bonds and interest on certain foreign currency securities), and
(f)
sections 757 to 767 (interest and royalty payments).
(4)
Subsection (1) is also subject to sections 714(5), 716(4) and 720(7) of ICTA (exemptions for interest on securities within the accrued income scheme).