Related Commentary  Related HMRC Manuals

939(1)  This section applies if–

(a)there is an issue of funding bonds to a creditor in respect of a liability to pay interest on a debt incurred by a government, public institution, other public authority or body corporate,

(b)by virtue of section 413 of CTA 2009 or section 380 of ITTOIA 2005, the issue is treated as if it were a payment of an amount of interest (“the deemed interest”), and

(c)the person by or through whom the bonds are issued is required, under this Part, to deduct a sum representing income tax from the deemed interest.

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