ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change has no implications for the amount of tax paid, who pays it or when. It affects (in principle but not in practice) only administrative matters. Change 148: Deduction of tax: manufactured interest on UK securities: tax statements: section 975
This change brings the rules for tax statements about manufactured interest on UK securities into line with the rules for tax statements about actual interest on UK securities.
Paragraph 3(8) and (9) of Schedule 23A to ICTA deal with statements about manufactured interest on UK securities paid under deduction of tax. Section 352 of ICTA deals with statements about actual interest on UK securities paid under deduction of tax.
Paragraph 3(8) and (9) of Schedule 23A to ICTA and section 352 of ICTA are very similar. They differ in two respects.
First, under section 352, the statement is to be provided “if the recipient so requests in writing”. By contrast, under paragraph 3(8), “the interest manufacturer shall, on paying the manufactured interest, provide” the statement. But since in both cases the recipient can enforce the duty to provide the statement, this does not appear to make any practical difference.
Second, paragraph 3(8)(d) requires the statement to include the date of the payment by the interest manufacturer, but section 352 imposes no such requirement. Neither does the rule about tax statements relating to manufactured overseas dividends in regulation 15 of the Income Tax (Manufactured Overseas Dividends) Regulations 1993 (SI 1993/2004).
These differences are believed to be due to historical accident. This Act therefore conforms the rewritten paragraph 3(8) and (9) to section 352.
Accordingly, section 975 of this Act, which is based on section 352 of ICTA, applies without modification to manufactured interest on UK securities paid under deduction of tax.