Made | 16th December 2003 | ||
Laid before the House of Commons | 17th December 2003 | ||
Coming into force in accordance with regulation 1(2) |
(2) In these Regulations -
subject to the qualification in regulation 17;
(3) For the purposes of these Regulations a person makes savings income payments to another person if the person -
Meaning of paying agent
3.
A paying agent is a person who -
Here a "person" includes any officer in any public office or in any government department and any savings income payments made by such a person will be treated as if the payment were made in the course of that person's business or profession.
Meaning of residual entity
4.
- (1) Subject to paragraph (2) a residual entity is an entity established in a member State other than an entity -
(2) In paragraph (1)(a) a legal person excludes -
(3) A paying agent shall regard an entity as a residual entity unless the paying agent has reason to believe, on the basis of official evidence produced by the entity to the paying agent, that sub-paragraph (a), (b) or (c) of paragraph (1) applies.
An entity which presents to the paying agent or economic operator a certificate issued by the member State in which that entity is established to the effect that it is to be treated as if it were a UCITS authorised in accordance with the UCITS Directive shall be treated as such for the purposes of this regulation.
Election by an entity to be treated as a UCITS
5.
- (1) An entity established in the United Kingdom may obtain a certificate to the effect that it is to be treated as a UCITS authorised in accordance with the UCITS Directive for the purposes of the Savings Directive in accordance with this regulation.
(2) A notice requesting the issue of a certificate shall be given to the Inland Revenue by or on behalf of the entity.
(3) The notice shall include the following information -
(d) a signed and dated declaration by the person giving notice to the effect that it is to the best of his knowledge correct and complete.
(4) The Inland Revenue will issue a certificate to that entity confirming that it is to be treated as if it were a UCITS authorised in accordance with the UCITS Directive for the purposes of the Savings Directive and that certificate shall have effect from the date specified in that certificate.
Meaning of receiving agent
6.
A receiving agent is an entity -
Meaning of relevant payee
7.
- (1) The agent shall regard a person as a relevant payee if he is an individual -
unless he provides evidence to the agent that the payment is not received or secured for his own benefit because of one of the reasons listed in paragraph (2).
(2) The reasons referred to in paragraph (1) are that the individual -
(d) acts on behalf of another individual for whose benefit the payment is received or secured.
(3) An individual who provides evidence that he is acting on behalf of a residual entity must in addition provide the name and address of that residual entity to the agent.
(4) An individual who provides evidence that he acts on behalf of another individual must in addition provide the agent with the name and address, and where appropriate the tax identification number or date and place of birth, of that individual. The individual providing the evidence must obtain and verify this information in accordance with regulation 9.
(5) If the agent has information which suggests that the individual who receives a savings income payment or for whom a savings income payment is secured may not be the relevant payee for the reason referred to in paragraph (2)(d), then paragraph (6) applies.
(6) The agent must take reasonable steps to establish who is the relevant payee and if the agent is unable to identify the relevant payee, he shall treat the individual who receives a savings income payment or for whom a savings income payment is secured as the relevant payee.
Meaning of savings income
8.
- (1) Subject to paragraphs (3) to (6) and (8) savings income is -
(2) In paragraph (1) "interest" -
(b) excludes -
(3) In respect of savings income described in paragraph (1)(b), where an agent has no information concerning the amount of interest which is accrued or capitalised at the sale, refund or redemption of a money debt the total amount of the proceeds of the sale, redemption or refund is savings income.
(4) In respect of savings income described in paragraphs (1)(c), where an agent has no information concerning the proportion of income which derives from interest the total amount of the income is savings income.
(5) In respect of savings income described in paragraphs (1)(c) and (d), subject to paragraph (9) -
there is no savings income.
(6) In respect of savings income described in paragraph (1)(d) -
(7) From 1st January 2011 paragraphs (1)(d) and (6)(a) shall have the effect with the substitution of "25%" for "40%".
(8) Subject to paragraph (9) -
there is no savings income.
(9) In the application of paragraphs (5) and (8), where the agent cannot ascertain whether or not the collective investment fund or residual entity, as appropriate, has invested 15% or less of its assets in money debts in accordance with those provisions, there is savings income.
(10) The percentages referred to in this regulation shall be determined by reference to the investment policy as laid down in the fund rules or instruments of incorporation of the collective investment fund or residual entity concerned and, failing which, by reference to the actual composition of the assets of the collective investment fund or residual entity.
(11) In this regulation a collective investment fund is -
This is subject to the following qualification.
If a collective investment fund provides arrangements for separate pooling of the contributions of the participants and the profits or income out of which payments are to be made to them and under which participants are entitled to exchange rights in one pool for rights in another, each separate pool shall be treated as a separate collective investment fund.
(12) In this regulation -
the agent must establish the identity and country of residence of that individual in accordance with this regulation.
(2) Subject to the conditions set out in this regulation, for the purposes of this regulation the country of residence means the country where the individual has his permanent address.
(3) Where contractual relations between the agent and the individual are entered into before 1st January 2004 the agent must verify the name, address and country of residence of the individual by using the information at its disposal, including information obtained pursuant to the Money Laundering Regulations 1993 and the Money Laundering Regulations 2001[8].
(4) Where contractual relations between the agent and the individual are entered into, or transactions are carried out in the absence of contractual relations, on or after 1st January 2004, the agent shall obtain and verify -
(5) The information in paragraph (4)(a) shall be verified by the presentation by the individual of his passport or official identity card to the agent.
(6) If the address does not appear on that passport or official identity card, it shall be verified by the presentation by the individual of any other documentary proof of identity to the agent.
(7) If the tax identification number is not mentioned on the passport, official identity card or any other documentary proof of identity presented by the individual, the agent shall instead verify the individual's date and place of birth on the basis of his passport or official identity card.
(8) Subject to paragraph (9), the country of residence of the individual shall be determined on the basis of his address verified in accordance with paragraphs (5) and (6).
(9) Where the individual declares his country of residence to be in a third country -
(10) The individual may present a certified copy of any of the documents referred to in this regulation.
Here "certified copy" means a copy certified or otherwise authenticated in such manner as would make it admissible in evidence in proceedings before a court.
(11) In this regulation -
Information to be reported to the Inland Revenue by paying agents making payments to relevant payees
10.
- (1) When a paying agent makes a savings income payment for the immediate benefit of a relevant payee the information prescribed by paragraph (2) must be reported by the paying agent to the Inland Revenue in accordance with regulations 14 and 15.
(2) The information prescribed is -
Information to be reported to the Inland Revenue by paying agents making payments to residual entities
11.
- (1) When a paying agent makes a savings income payment to a residual entity established in a prescribed territory the information prescribed by paragraph (2) must be reported by the paying agent to the Inland Revenue in accordance with regulations 14 and 15.
(2) The information prescribed is -
Information to be reported to the Inland Revenue by receiving agents
12.
- (1) When a receiving agent receives or secures savings income the information prescribed by paragraph (2), in respect of each relevant payee the savings income is attributable to, must be reported by the receiving agent to the Inland Revenue in accordance with regulations 14 and 15.
(2) The information prescribed is -
The amount of savings income to be reported to the Inland Revenue
13.
- (1) The information concerning the savings income prescribed by paragraph (2) must be reported by the agent to the Inland Revenue.
(2) The agent shall identify under which of the following three categories he is reporting the savings income and where the savings income is of the type prescribed by -
(3) Where the agent has reported savings income under sub-paragraph (a) or (c) of paragraph (2) no further report of the same savings income is required under sub-paragraph (b) of that paragraph.
unless the agent has already received a notice under regulation 15 from the Inland Revenue in respect of that tax year.
(2) An agent who fails to comply with paragraph (1) is liable to a penalty not exceeding £3000 determined in accordance with section 100 of the Taxes Management Act 1970[9].
(3) Sections 100A, 100B, 102, 103(4) and 118(2) of the Taxes Management Act 1970[10] apply to a penalty determined in accordance with paragraph (2).
Reports by paying and receiving agents to the Inland Revenue
15.
- (1) The Inland Revenue must send a notice to -
that he is no longer an agent.
(2) The notice must specify -
(3) For the report for the tax year in which the commencement date falls, the reference to the tax year in paragraph (2)(b) means the period beginning on the commencement date and ending at the end of the tax year in which the commencement date falls.
Here "commencement date" is the date specified in the notices under regulation 1(2).
(4) The notice may be combined with a notice issued under section 17 or 18, or under both of those sections, of the Taxes Management Act 1970[11].
(5) The agent or person, as appropriate, must make and deliver the report in accordance with the requirements specified in the notice.
(6) Paragraph (5) applies regardless of whether any savings income is reportable in accordance with these Regulations.
(5) Paragraphs (3) and (4) are without prejudice to the following provisions -
(6) Subject to paragraph (7), information obtained by the Inland Revenue under this Regulation -
(b) shall otherwise be used only for the purposes of -
(7) Paragraph (6) shall not be construed as preventing any disclosure of information under section 182(5) of the Finance Act 1989[17].
provided that no further issues of such negotiable debt securities are made on or after 1st March 2002.
(3) Where a further issue is made on or after 1st March 2002 of negotiable debt securities described in paragraphs (2)(a) and (b) issued by a Government or a related entity acting as a public authority or whose role is recognised by an international treaty, as defined in the Schedule, the entire issue of such security, consisting of the original issue and any further issue, shall be considered a money debt.
(4) If a further issue is made on or after 1st March 2002 of a negotiable debt security described in paragraphs (2)(a) and (b) issued by a person not referred to in paragraph (3), such further issue shall be considered a money debt.
(5) Where an agent cannot ascertain whether paragraphs (2) to (4) apply the entire issue of the negotiable debt security shall be considered a money debt.
(6) A negotiable debt security is a security that can be transferred from one creditor to another without the approval of the debtor.
John Heppell
Jim Murphy
Two of the Lords Commissioners of Her Majesty's Treasury
16th December 2003
Member State | Entity |
Belgium |
Vlaams Gewest (Flemish Region) Région wallonne (Walloon Region) Région bruxelloise/Brussels Gewest (Brussels Region) Communauté française (French Community) Vlaamse Gemeenschap (Flemish Community) Deutschsprachige Gemeinschaft (German-speaking Community) |
France |
La Caisse d'amortissement de la dette sociale (CADES) (Social Debt Redemption Fund) L'Agence française de développement (AFD) (French Development Agency) Réseau Ferré de France (RFF) (French Rail Network) Caisse Nationale des Autoroutes (CNA) (National Motorways Fund) Assistance publique Hôpitaux de Paris (APHP) (Paris Hospitals Public Assistance) Charbonnages de France (CDF) (French Coal Board) Entreprise minière et chimique (EMC) (Mining and Chemicals Company) |
Greece | Οργαυισµς Τηλεπικοιννωνιν Ελλδος (National Telecommunications Organisation) Οργαυισµς Σιδηροδρµων Ελλδος (National Railways Organisation) Δηµσια Επιχερηση Ηλεκτρισµο (Public Electricity Company) |
Italy |
Regions Provinces Municipalities Cassa Depositi e Prestiti (Deposits and Loans Fund) |
Portugal |
Região Autónoma de Madeira (Autonomous Region of Madeira) Região Autónoma dos Açores (Autonomous Region of Azores) Municipalities |
Spain |
Xunta de Galicia (Regional Executive of Galacia) Junta de Andalucía (Regional Executive of Andalusia) Junta de Extremadura (Regional Executive of Extremadura) Junta de Castilla-La Mancha (Regional Executive of Castilla-La Mancha) Junta de Castilla-León (Regional Executive of Castilla-León) Gobierno Foral de Navarra (Regional Government of Navarre) Govern de les Illes Balears (Government of the Balearic Islands) Generalitat de Catalunya (Autonomous Government of Catalonia) Generalitat de Valencia (Autonomous Government of Valencia) Diputación General de Aragón (Regional Council of Aragon) Gobierno de las Islas Canarias (Government of the Canary Islands) Gobierno de Murcia (Government of Murcia) Gobierno de Madrid (Government of Madrid) Gobierno de la Comunidad Autónoma del País Vasco/Euzkadi (Government of the Autonomous Community of the Basque Country) Diputación Foral de Guipúzcoa (Regional Council of Guipúzcoa) Diputación Foral de Vizcaya/Bizkaia (Regional Council of Vizcaya) Diputación Foral de Alava (Regional Council of Alava) Ayuntamiento de Madrid (City Council of Madrid) Ayuntamiento de Barcelona (City Council of Barcelona) Cabildo Insular de Gran Canaria (Island Council of Gran Canaria) Cabildo Insular de Tenerife (Island Council of Tenerife) Instituto de Crédito Oficial (Public Credit Institution) Instituto Catalán de Finanzas (Finance Institution of Catalonia) Instituto Valenciano de Finanzas (Finance Institution of Valencia |
European Bank for Reconstruction and Development European Investment Bank Asian Development Bank African Development Bank World Bank/IBRD/IMF International Finance Corporation Inter-American Development Bank Council of Europe Social Development Fund Euratom European Community Corporación Andina de Fomento (CAF) (Andean Development Corporation) Eurofima European Coal and Steel Community Nordic Investment Bank Caribbean Development Bank |
Note: The provisions of regulation 17 are without prejudice to any international obligations that member States may have entered into with respect to the international entities listed in Table 2.
Part 1 also sets out how an entity can elect to be treated as if it were a UCITS, authorised in accordance with Council Directive 85/611/EEC, for the purposes of the Directive.
Part 2 of these Regulations makes provision for -
Part 3 of these Regulations makes provision for -
Part 4 of these Regulations makes provision for audits and issues related to audits.
Part 5 of these Regulations contains transitional provisions in respect of negotiable debt securities.
A full regulatory impact assessment and a transposition note have been produced and both are available upon the Inland Revenue website at www.inlandrevenue.gov.uk or from the Inland Revenue, Cross Cutting Policy (telephone number 020 7 438 6333).
[2] OJ No. L157, 26.06.2003, p.38.back
[3] OJ No. L184, 06.07.2001, p.1, amended by Directive 2003/6/EC of the European Parliament and of the Council (OJ No. L96, 12.04.2003, p.16).back
[4] OJ No. L375, 31.12.1985, p.3, amended by Council Directive 88/220/EEC (OJ No. L100, 19.04.1988, p.31), European Parliament and Council Directive 95/26/EC (OJ No. L168, 18.07.1995, p.7), European Parliament and Council Directive 2000/64/EC (OJ No. L290, 17.11.2000, p.27), European Parliament and Council Directive 2001/107/EC (OJ No. L41, 13.02.2002, p.20), European Parliament and Council Directive 2001/108/EC (OJ No. L41, 13.02.2002, p.35).back
[6] 1992 c. 12. Section 117(11) was amended by the Financial Services and Markets Act 2000 (Consequential Amendments)(Taxes) Order 2001 (S.I. 2001/3629).back
[8] S.I. 1993/1933 and S.I. 2001/3641. Both these Regulations will be revoked and replaced by the Money Laundering Regulations 2003 (S.I. 2003/3075) on 1st March 2004.back
[9] 1970 c. 9. Section 100 was substituted by section 167 of the Finance Act 1989 (c. 26) and amended by the Finance Act 1990 (c. 29), the General and Special Commissioners (Amendment of Enactments) Regulations 1994 (S.I. 1994/1813), the Finance Act 1998 (c. 36) and the Finance Act 2001 (c. 9).back
[10] 1970 c. 9. Sections 100A, 100B and 103 were substituted, and section 102 amended, by the Finance Act 1989 (c. 26). Section 100B was amended by the General and Special Commissioners (Amendment of Enactments) Regulations 1994 (S.I. 1994/1813), the Finance Act 1994 (c. 9) and the Finance Act 1995 (c. 4). Section 118(2) was amended by the Finance Act 1970 (c. 24) and the Finance (No. 2) Act 1987 (c. 51).back
[11] 1970 c. 9. Section 17 was amended by the Finance Act 1988 (c. 36), the Finance Act 1990 (c. 29), the Finance (No.2) Act 1992 (c. 48), the Finance Act 1996 (c. 8) and the Finance Act 2000 (c. 17). Section 18 was amended by the Finance Act 1988 (c. 36), the Income and Corporation Taxes Act 1988 (c. 9), the Finance Act 1990 (c. 29) and the Finance Act 2000 (c. 17).back
[12] S.I. 1990/2231, as amended by the Income Tax (Building Societies)(Dividends and Interest)(Amendment) Regulations 2001 (S.I. 2001/404).back
[16] S.I. 1997/1154, as amended by the Open-ended Investment Companies (Tax)(Amendment) Regulations 2003 (S.I. 2003/1831).back
[17] 1989 c. 26. Section 182(5) was amended by the Tax Credits Act 1999 (c. 10).back