
1 

(1) These Regulations may be cited as the Gilt-edged Securities (Periodic Accounting for Tax on Interest) (Amendment No. 2) Regulations 1996 and shall come into force on 21st May 1996.
(2) These Regulations have effect in relation to all payments of interest on relevant gilt-edged securities made without deduction of tax on or after 6th April 1996.
2 
In these Regulations “the principal Regulations” means the Gilt-edged Securities (Periodic Accounting for Tax on Interest) Regulations 1995, and “regulation” means a regulation of those Regulations.
3 
In regulation 9(1)—
(a) for the words “paragraph (2)” there shall be substituted the words “paragraphs (2) and (2A)”;
(b) for the words “basic rate” there shall be substituted the words “lower rate”.
4 
In regulation 9(2) for the words “Where the basic rate” there shall be substituted the words “Subject to paragraph (2A) below, where the lower rate”.
5 
After regulation 9(2) there shall be inserted the following paragraph—“
(2A) In the case of a return period which begins before but includes 6th April 1996, the amount of income tax for which a relevant company is to be accountable pursuant to paragraph (1) above for that return period shall be ascertained after considering the period before 6th April 1996 separately from the period after 5th April 1996; and “income tax on the aggregate amount of excess gilt interest received” in paragraphs (2) and (3) of regulation 10 and “income tax nominally attributable to the amount of excess gilt interest paid” in regulations 11(2) and 12(2) shall be construed accordingly.”
6 
In regulations 13(2), 13(7), 14(2), 14(7) and 14(12) for the words “basic rate” there shall be substituted the words “lower rate”.
Simon Burns
Liam Fox
Two of the Lords Commissioners of Her Majesty’s Treasury
29th April 1996