Part 15

Deduction of income tax at source
Chapter 2

Meaning of “relevant investment” for purposes of section 876

Deposit-takers and relevant investments

Investments which are relevant investments
856
1
An investment is a relevant investment for the purposes of section 876 if it meets—
a
the individual interest condition (see subsection (3)),
b
the Scottish partnership condition (see subsection (4)),
c
the personal representative condition (see subsection (5)), or
d
the settlement condition (see subsection (6)).
2
But an investment is not a relevant investment if any of sections 863 to 870 prevent it from being a relevant investment.
3
An investment meets the individual interest condition if the only persons beneficially entitled to interest on the investment are individuals.
4
An investment meets the Scottish partnership condition if—
a
a Scottish partnership is beneficially entitled to all interest on the investment, and
b
that partnership consists only of individuals.
5
An investment meets the personal representative condition if personal representatives are entitled to any interest on the investment and they receive it in that capacity.
6
An investment meets the settlement condition if all interest on the investment is income arising to the trustees of a discretionary or accumulation settlement and they receive it in that capacity.
For the meaning of “discretionary or accumulation settlement”, see section 873(1).
Pt. 15 Ch. 2 heading substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 4
Word in s. 856(2) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 10(3)
Words in s. 856(1) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 10(2)
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)