Part 15U.K.Deduction of income tax at source

Chapter 2U.K.[F1Meaning of “relevant investment” for purposes of section 876]

[F2Investments] which are not relevant investmentsU.K.

863General client account depositsU.K.

(1)An investment is not a relevant investment if it is a general client account deposit.

(2)An investment is a general client account deposit for the purposes of this section if—

(a)it is a deposit held by a deposit-taker F3... in a client account, and

(b)provision made under any enactment requires the person whose account it is to make payments representing interest to some or all of the clients for whom, or on whose account, that person received the sums deposited in the account.

(3)But an investment is not a general client account deposit if the account in which it is held is identified by the deposit-taker F3... as one in which sums are held only for one or more particular clients of the person whose account it is.

864Qualifying uncertificated eligible debt security unitsU.K.

An investment is not a relevant investment if it is a deposit in respect of which a deposit-taker F4... has issued a qualifying uncertificated eligible debt security unit (see section 986).

865Qualifying certificates of depositU.K.

An investment is not a relevant investment if it is a deposit in respect of which a deposit-taker F5... has issued a qualifying certificate of deposit (see section 985).

866Qualifying time depositsU.K.

(1)An investment is not a relevant investment if it is a qualifying time deposit [F6made before 6 April 2012].

(2)An investment is a qualifying time deposit for the purposes of this section if—

(a)it is a deposit consisting of a loan of at least £50,000,

(b)the terms of the deposit require its repayment at a specified time within 5 years beginning with the date on which it is made,

(c)those terms do not make provision for the transfer of the right to repayment, and

(d)those terms prevent partial withdrawals of, or additions to, the deposit.

(3)If a deposit is denominated in a foreign currency, subsection (2)(a) has effect as if it referred to an amount which is at least the equivalent in that currency of £50,000 at the time the deposit is made.

867Lloyd's premium trust fundsU.K.

(1)An investment is not a relevant investment if it forms part of a premium trust fund of an underwriting or former underwriting member of Lloyd's.

(2)In this section “premium trust fund” has the meaning given in section 184 of FA 1993.

868Investments held outside the United KingdomU.K.

(1)An investment with a deposit-taker is not a relevant investment if—

(a)the deposit-taker is UK resident for income tax purposes or corporation tax purposes, and

(b)the investment is held at a branch of the deposit-taker situated outside the United Kingdom.

(2)An investment with a deposit-taker is not a relevant investment if—

(a)the deposit-taker is non-UK resident for income tax purposes or corporation tax purposes, and

(b)the investment is not held at a branch of the deposit-taker situated in the United Kingdom.

F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)For the purposes of this section an investment is held at a branch of a deposit-taker F8... if the investment is recorded in its books as a liability of that branch.

F9869Sale and repurchase of securitiesU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

870Other investmentsU.K.

(1)An investment with a deposit-taker is not a relevant investment if—

(a)it is a loan made by a deposit-taker in the ordinary course of its business or activities,

(b)it is a debt on a security which is listed on a recognised stock exchange, or

(c)it is a debt on a debenture issued by the deposit-taker (see section 1022).

F10(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .