Section 840 — Income Tax Act 2007: Government securities held by non-UK resident central banks

Government securities held by non-UK resident central banks 840 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.