Part 15Deduction of income tax at source

Chapter 3Deduction from certain payments of yearly interest

Exceptions from duty to deduct

F1876Interest paid by deposit-takers

(1)

The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on an investment if—

(a)

the payment is made by a deposit-taker, and

(b)

when the payment is made, the investment is a relevant investment.

(1A)

In this section “deposit-taker”, “investment” and “relevant investment” have the meaning given by Chapter 2.