Section 940 — Income Tax Act 2007: Exception from duty to retain bonds

Exception from duty to retain bonds 940 1 This section applies if an issue of funding bonds is treated as a payment of interest (“the deemed interest”) as mentioned in section 939(1) and—

a the person by or through whom the bonds are issued is required to retain bonds under section 939(2), but b it is impracticable for the person to do so.

2 The duty to deduct a sum representing income tax from the deemed interest under this Part does not apply if the person tells the Commissioners for Her Majesty's Revenue and Customs—

a the names and addresses of the persons to whom the bonds have been issued, and b the amount of the bonds issued to each person.

3 Accordingly—

a the duty to retain bonds under section 939(2) does not apply, and b the provisions in Chapters 15 and 16 about the collection of income tax in respect of the deemed interest do not apply.