The Income Tax (Manufactured Interest) (Amendment) Regulations 1996

• Citation: S.I. 1996/1227
• Sections: 10

Section 1 Citation and commencement

These Regulations may be cited as the Income Tax (Manufactured Interest) (Amendment) Regulations 1996 and shall come into force on 28th May 1996.

Section 2 Interpretation

In these Regulations “the principal Regulations ” means the Income Tax (Manufactured Interest) Regulations 1992 and “regulation” means a regulation of the principal regulations.

Section 3 Amendments to the principal Regulations

In regulation 2—

(a) the definitions of “approved manufactured payment” and “unapproved manufactured payment” shall be omitted;

(b) after the definition of “market maker” there shall be inserted the following definition—

“Schedule 16” means Schedule 16 to the Taxes Act;

Section 4 Amendments to the principal Regulations

Regulation 2A shall be omitted.

Section 5 Amendments to the principal Regulations

In regulation 3(d) for the words from “section 737” to “Act” there shall be substituted “Schedule 16”.

Section 6 Amendments to the principal Regulations

Regulations 6 and 7 shall be omitted.

Section 7 Amendments to the principal Regulations

In regulation 9—

(a) In paragraph (1) for the words “qualifying persons” there shall be substituted “any qualifying person”;

(b) after paragraph (3) there shall be added—

(4) In this regulation “qualifying person” means an interest manufacturer which—

(a) is a company resident in the United Kingdom, and

(b) makes payments of manufactured interest other than payments in respect of gilt-edged securities.

Section 8 Amendments to the principal Regulations

In regulation 10, the definition of “qualifying dividend manufacturer” shall be omitted.

Section 9 Amendments to the principal Regulations

In regulation 12, the word “qualifying”, in both places where it occurs, shall be omitted.

Section 10 Amendments to the principal Regulations

For Part V of the principal Regulations there shall be substituted the following Part—

MODIFICATION OF SCHEDULE 16

Interpretation of Part V

(13) In this part of these Regulations, “dividend manufacturer” has the meaning given by regulation 10.

Modification of Schedule 16

(14)

(1) In the case specified in paragraph (2), Schedule 16 shall apply with the modification prescribed by paragraph (3).

(2) The case specified is any case where the dividend manufacturer is a company which is not resident in the United Kingdom but carries on a trade through a branch or agency in the United Kingdom.

(3) The modification prescribed is that Schedule 16 shall apply as if the reference in paragraph 7 of that Schedule to “section 7(2)” were a reference to “section 11(3)”.