Part 15

Deduction of income tax at source
Chapter 3

Deduction from certain payments of yearly interest

Exceptions from duty to deduct

Interest paid on advances from banks
879
1
The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on an advance from a bank if, at the time when the payment is made, the person beneficially entitled to the interest is within the charge to corporation tax as respects the interest or is a bank that would be within the charge to corporation tax as respects the interest apart from section 18A of CTA 2009.
2
Section 991 (meaning of “bank”) applies for the purposes of this section.
3
Subsection (1) applies to the European Investment Bank as if the words from “if” to the end were omitted.
4
An order under subsection (2)(e) of section 991 designating an international organisation as a bank may provide that subsection (1) applies to the organisation with the modification mentioned in subsection (3).
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)
Words in s. 879(1) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 19, 31