Section 879 — Income Tax Act 2007: Interest paid on advances from banks

Interest paid on advances from banks 879 1 The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on an advance from a bank if, at the time when the payment is made, the person beneficially entitled to the interest is within the charge to corporation tax as respects the interest or is a bank that would be within the charge to corporation tax as respects the interest apart from section 18A of CTA 2009 .

2 Section 991 (meaning of “bank”) applies for the purposes of this section.

3 Subsection (1) applies to the European Investment Bank as if the words from “if” to the end were omitted.

4 An order under subsection (2)(e) of section 991 designating an international organisation as a bank may provide that subsection (1) applies to the organisation with the modification mentioned in subsection (3).