
1 
These Regulations may be cited as the Income Tax (Manufactured Interest) (Amendment) Regulations 1996 and shall come into force on 28th May 1996.
2 
In these Regulations “the principal Regulations” means the Income Tax (Manufactured Interest) Regulations 1992 and “regulation” means a regulation of the principal regulations.
3 
In regulation 2—
(a) the definitions of “approved manufactured payment” and “unapproved manufactured payment” shall be omitted;
(b) after the definition of “market maker” there shall be inserted the following definition—“
 “Schedule 16” means Schedule 16 to the Taxes Act;”.
4 
Regulation 2A shall be omitted.
5 
In regulation 3(d) for the words from “section 737” to “Act” there shall be substituted “Schedule 16”.
6 
Regulations 6 and 7 shall be omitted.
7 
In regulation 9—
(a) In paragraph (1) for the words “qualifying persons” there shall be substituted “any qualifying person”;
(b) after paragraph (3) there shall be added—“
(4) In this regulation “qualifying person” means an interest manufacturer which—
(a) is a company resident in the United Kingdom, and
(b) makes payments of manufactured interest other than payments in respect of gilt-edged securities.”
8 
In regulation 10, the definition of “qualifying dividend manufacturer” shall be omitted.
9 
In regulation 12, the word “qualifying”, in both places where it occurs, shall be omitted.
10 
For Part V of the principal Regulations there shall be substituted the following Part—“
PART V
13 
In this part of these Regulations, “dividend manufacturer” has the meaning given by regulation 10.
14 

(1) In the case specified in paragraph (2), Schedule 16 shall apply with the modification prescribed by paragraph (3).
(2) The case specified is any case where the dividend manufacturer is a company which is not resident in the United Kingdom but carries on a trade through a branch or agency in the United Kingdom.
(3) The modification prescribed is that Schedule 16 shall apply as if the reference in paragraph 7 of that Schedule to “section 7(2)” were a reference to “section 11(3)”.”
Simon Burns
Michael Bates
Two of the Lords Commissioners of Her Majesty’s Treasury
7th May 1996