Income Tax Act 2007 section 986

Meaning of "qualifying uncertificated eligible debt security unit"

Section 986 defines what counts as a "qualifying uncertificated eligible debt security unit", which is relevant because interest paid on such instruments by deposit-takers or building societies can be paid gross (without deduction of tax).

• The instrument must represent a right to receive at least £50,000 (excluding interest), or the foreign currency equivalent at the time of deposit
• The amount must be payable at a single specified time within five years of the deposit being made
• The uncertificated unit must correspond to the issue of a certificate of deposit under the current terms of the eligible debt security
• Key terms such as "eligible debt security", "uncertificated", and "unit" take their meanings from the Uncertificated Securities Regulations 2001