Section 921 | Cases where interest on underlying securities paid gross

(1)This section applies to manufactured interest which is representative of interest on—

(a)gilt-edged securities, or

(b)securities which are not gilt-edged securities but on which the interest is payable without deduction of income tax.

(2)Section 919(2) does not require any deduction of a sum representing income tax to be made on the payment of the manufactured interest.

(3)In this section “manufactured interest” has the same meaning as in section 919.^F1