Part 14

Income tax liability: miscellaneous rules
Chapter 4

Other miscellaneous rules

Government securities held by non-UK resident central banks
840
1
No liability to income tax arises in respect of income from securities which is—
a
income payable out of the public revenue of the United Kingdom, and
b
income of a bank, or the issue department of a bank, to which this section applies for the time being.
2
But subsection (1) does not prevent the income from being taken into account in calculating profits, gains or losses of a business carried on in the United Kingdom.
3
Her Majesty may by Order in Council direct that this section applies to a bank or its issue department if it appears to Her Majesty that the bank—
a
is non-UK resident, and
b
is entrusted by the government of a territory outside the United Kingdom with the custody of the territory's principal foreign exchange reserves.
4
No recommendation may be made to Her Majesty in Council to make an order under this section unless a draft of the order has been laid before and approved by a resolution of the House of Commons.