Section 840 | Government securities held by non-UK resident central banks

(1)No liability to income tax arises in respect of income from securities which is—

(a)income payable out of the public revenue of the United Kingdom, and

(b)income of a bank, or the issue department of a bank, to which this section applies for the time being.

(2)But subsection (1) does not prevent the income from being taken into account in calculating profits, gains or losses of a business carried on in the United Kingdom.

(3)Her Majesty may by Order in Council direct that this section applies to a bank or its issue department if it appears to Her Majesty that the bank—

(a)is non-UK resident, and

(b)is entrusted by the government of a territory outside the United Kingdom with the custody of the territory's principal foreign exchange reserves.

(4)No recommendation may be made to Her Majesty in Council to make an order under this section unless a draft of the order has been laid before and approved by a resolution of the House of Commons.