Section 895 — Income Tax Act 2007: Deduction at source application

Deduction at source application 895 1 The holder of registered gross-paying government securities may make a deduction at source application in respect of the securities.

2 A deduction at source application in respect of any securities is an application—

a for payments of interest on those securities to be subject to the duty to deduct sums representing income tax under section 892, b made to the Registrar, and c made in such form as the Registrar may, with the approval of the Treasury, prescribe.

3 A deduction at source application in respect of any securities has effect from the date which is one month after the date on which it is made until—

a the securities cease to be registered in the name of the person who made the application, or b the application ceases to have effect under section 896 following its withdrawal in accordance with that section.

4 If any registered gross-paying government securities are held on trust, the holders of the securities may make a deduction at source application in respect of them without the consent of any other person.

5 Subsection (4) applies despite anything in the instrument creating the trust.

6 In this Chapter— “ registered ” means— entered in the register of the Registrar, or entered in a register maintained in accordance with regulations under section 785 of the Companies Act 2006 (provision enabling procedures for evidencing and transferring title), and “ the Registrar ” means the person or persons appointed in accordance with regulations under section 47(1)(b) of FA 1942 (see regulation 3 of the Government Stock Regulations 2004 (S.I. 2004/1611)).