The Income Tax (Authorised Unit Trusts) (Interest Distributions) Regulations 2003
These Regulations replace the Income Tax (Authorised Unit Trusts) (Interest Distributions) Regulations 1994 (S.I. 1994/2318) and relate to certain payments of yearly interest by authorised unit trusts (“interest distributions”) which may be made without deduction of tax pursuant to sections 468M to 468P of the Income and Corporation Taxes Act 1988 (as amended by section 203 of and Part 5 of Schedule43 to the Finance Act 2003 (c. 14)). Interest distributions may be made without deduction of tax if the unit holder is a company or the trustees of a unit trust scheme, or if at the time of the payment to the unit holder the residence condition or the reputable intermediary condition is satisfied. The Regulations first modify the application of sections 468M(1)(a), 468O and 468P of the 1988 Act (cases where there is no obligation to deduct tax, residence and reputable intermediary conditions and residence declarations) in relation to interest distributions made to or received under a trust (other than a unit trust scheme). Secondly the Regulations make provision enabling the Board of Inland Revenue (“the Board”) to require authorised unit trusts to supply information and make records available for inspection in connection with the payment of interest distributions without deduction of tax.