Section 919 | Manufactured interest on UK securities: payments by UK residents etc

From legislation.gov.uk

16 September 2026

(1)This section applies if—^F1

(a)a person pays a manufactured payment as mentioned in section 614ZC(1),^F1

(b)the amount payable is representative of interest on UK securities (“manufactured interest”), and^F1

(c)the person —^F1

(i)is UK resident, or^F1

(ii)pays the manufactured interest in the course of a trade carried on in the United Kingdom through a branch or agency.^F1

(1A)But this section does not apply if—^F2

(a)the manufactured interest is paid by a UK resident company in the course of a trade carried on through a permanent establishment in a territory outside the United Kingdom, and^F2

(b)section 18A of CTA 2009 has effect in relation to the company for the accounting period in which it is paid.^F2

(2)The payer of the manufactured interest must, on making the payment, deduct from the gross amount of the manufactured interest a sum representing income tax on it at the savings basic rate in force for the tax year in which the payment is made.^F3

(3)The “gross amount” of manufactured interest is equal to the gross amount of the interest of which it is representative.

(4)This section is subject (in particular) to—^F4

section 921 (cases where interest on underlying securities paid gross), and

Chapter 11 (payments between companies etc: exception from duties to deduct).

(5)For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—

(a)see Chapter 15 if the payer of the manufactured interest is a company, and

(b)otherwise see Chapter 16.

(6)In subsection (1) “UK securities” means securities of—^F5

(a)the government of the United Kingdom,^F5

(b)a local authority in the United Kingdom,^F5

(c)another public authority in the United Kingdom, or^F5

(d)a UK resident company or other UK resident body.^F5

(7)But “UK securities” does not include shares in a UK resident company.^F5

(8)In this section “securities” includes loan stock or any similar security.^F5