Income Tax Act 2007 section 895

Deduction at source application

Section 895 allows holders of registered gross-paying government securities to apply for income tax to be deducted at source from interest payments on those securities.

• Holders of registered gross-paying government securities can apply to the Registrar for interest payments to be subject to income tax deduction at source, using a Treasury-approved form
• The application takes effect one month after it is made and continues until the securities change hands or the application is formally withdrawn
• Where securities are held on trust, the registered holders (trustees) can make the application without the consent of any other person, regardless of what the trust instrument says
• "Registered" includes securities entered in the Registrar's own register or in a register maintained under Companies Act 2006 regulations, which also covers gilts held in the CREST settlement system