27.—(1) The reputable intermediary condition is met with respect to a participant on the distribution date if conditions A to C are met.
(2) Condition A is that the interest distribution is paid on behalf of the participant to a company.
(3) Condition B is that the legal owner has reasonable grounds for believing that the participant is not F1... resident in the United Kingdom.
(4) Condition C is that the company mentioned in paragraph (2)—
(a)is subject to the EC Money Laundering Directive,
(b)is subject to equivalent non-EC provisions, or
(c)is a company which—
(i)is resident in a regulating country or territory, and
(ii)is an associated company of a company which is subject to paragraph (a) or (b).
Textual Amendments
F1Word in reg. 27(3) omitted (with effect in accordance with reg. 1(2)(c) of the amending S.I.) by virtue of The Authorised Investment Funds (Tax) (Amendment) (No. 2) Regulations 2013 (S.I. 2013/2994), regs. 1(1), 7
28.—(1) This regulation applies for the purposes of Condition C in regulation 27.
(2) A company is subject to the EC Money Laundering Directive if it is a credit institution or financial institution as defined by Article 1 of Directive 91/308/EEC, as amended by Directive 2001/97/EC.
(3) A company is subject to equivalent non-EC provisions if it is required by the law of any country or territory which is not a member State to comply with requirements similar to those which, under Article 3 of that Directive (as so amended), member States must ensure are complied with by credit institutions and financial institutions.
(4) A country or territory is a regulating country or territory if it either is a member State or imposes requirements similar to those which, under Article 3 of that Directive (as so amended), member States must ensure are complied with by credit institutions and financial institutions.
(5) A company is to be treated as another's associated company if it would be so treated for the purposes of Part 11 of ICTA (close companies) (see section 416 of that Act).
29.—(1) This regulation applies if conditions A to D are met.
(2) Condition A is that an interest distribution is made to a participant.
(3) Condition B is that the legal owner, in reliance on the reputable intermediary condition being met with respect to the participant, does not comply with the deduction obligation in relation to the interest distribution.
(4) Condition C is that the deduction obligation would apply but for the reputable intermediary condition being met.
(5) Condition D is that (contrary to the belief of the legal owner) the participant is in fact F2... resident in the United Kingdom.
(6) Section 350 of ICTA M1 (charge to tax where payments made under section 349) and Schedule 16 to that Act M2 (collection of income tax on company payments which are not distributions) have effect as if the deduction obligation applied.
Textual Amendments
F2Word in reg. 29(5) omitted (with effect in accordance with reg. 1(2)(c) of the amending S.I.) by virtue of The Authorised Investment Funds (Tax) (Amendment) (No. 2) Regulations 2013 (S.I. 2013/2994), regs. 1(1), 8
Marginal Citations
M1Section 350 was amended by paragraph 8 of Schedule 6 to the Finance Act 1996 and section 96(2) of the Finance Act 2002.
M2Schedule 16 was amended by section 149(3)(d) of the Finance Act 1989 (c. 26), Part II of Schedule 23 to the Finance Act 1996, section 91 of the Finance Act 1999 (c. 16) and paragraph 19 of Part 1 of Schedule 3 to the Debt Arrangement and Attachment (Scotland) Act 2002 (asp. 17).