(This note is not part of the Regulations)
The Regulations specify conditions in relation to securities further to section 888A of the Income Tax Act 2007 (c. 3) (“ITA 2007”). Section 888A of ITA 2007 was inserted by section 23 of the Finance Act 2015 (c. 11). Securities described in the Regulations (“relevant securities”) which meet the specified conditions and the conditions in section 888A(2)(a) and (b) are qualifying private placements. The duty to deduct a sum representing income tax under section 874 of ITA 2007 does not apply to such placements.
Regulation 1 includes the date the Regulations come into force and regulation 2 sets out definitions, including “relevant security”.
Regulation 3 sets out the conditions which must be met in relation to relevant securities, including the requirement for creditor certificates. Regulation 4 specifies restrictions on the term and value of relevant securities. Regulation 5 provides for the matters to be included in creditor certificates.
Regulation 6 provides for creditors to withdraw creditor certificates. Regulation 7 provides for an officer of Her Majesty’s Revenue and Customs to require the production of creditor certificates and provides for the cancellation of certificates.
A Tax Information and Impact Note covering this instrument was published on 10th December 2014 alongside the Autumn Statement 2014 and is available on the website at https://www.gov.uk/government/publications/income-tax-deduction-at-source-from-interest-paid-on-private-placementshttps.It remains an accurate summary of the impacts that apply to this instrument.