Interest treated as a distribution: HMRC confirms no withholding tax | Practical Law

Interest treated as a distribution: HMRC confirms no withholding tax | Practical Law

On 26 September 2008 HMRC published Brief 47/08 relating to deduction of tax at source from interest treated as a distribution under section 209(2) of ICTA 1988. The Brief gives a reassurance that HMRC considers that section 874 of the Income Tax Act 2007 does not require deduction of tax at source from interest recharacterised as a distribution.

Interest treated as a distribution: HMRC confirms no withholding tax

Practical Law UK Legal Update 7-383-4165 (Approx. 3 pages)

Interest treated as a distribution: HMRC confirms no withholding tax

by PLC Tax
Published on 30 Sep 2008 • England, Wales
On 26 September 2008 HMRC published Brief 47/08 relating to deduction of tax at source from interest treated as a distribution under section 209(2) of ICTA 1988. The Brief gives a reassurance that HMRC considers that section 874 of the Income Tax Act 2007 does not require deduction of tax at source from interest recharacterised as a distribution.
This confirmation will be welcome for corporate payers and recipients of interest.