Section 680 — Income Tax Act 2007: Interest on securities involving accrued income losses: foreign trustees

Interest on securities involving accrued income losses: foreign trustees 680 1 This section applies if—

a the trustees of a settlement are non-UK resident ... throughout a tax year in which an interest period or part of an interest period of securities falls, b the trustees' income is or includes interest from those securities, c the interest falls due at the end of that interest period, and d had the trustees been UK resident ... during a part of each such tax year the interest would have been wholly or partly exempt from income tax under section 679.

2 No liability to income tax arises as a result of Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor) in respect of so much of the interest as would have been exempt from income tax under section 679.

3 For cases where the interest period does not end with an interest payment day, see section 637 (accrued income losses treated as payments in next interest period).