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Amendment of Part 36 of Principal Act (miscellaneous special provisions)
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29. Part 36 of the Principal Act is amended by inserting the following after section 845B:
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“Treatment of Additional Tier 1 instruments
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845C. (1) In this section—
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‘Additional Tier 1 instrument’ means an instrument which qualifies, or has qualified, as an Additional Tier 1 instrument under Article 52 of the Capital Requirements Regulation;
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‘Capital Requirements Regulation’ means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 201321
on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/201222
;
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‘coupon’ means a distribution, within the meaning of Article 4 of the Capital Requirements Regulation, in respect of an Additional Tier 1 instrument.
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(2) For the purposes of the Tax Acts, an Additional Tier 1 instrument shall be regarded as a debt instrument.
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(3) For the purposes of the Tax Acts, a coupon in respect of an Additional Tier 1 instrument—
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(a) shall be regarded as interest, and
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(b) shall not be regarded as a distribution or a charge on income.
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(4) Section 64 shall apply, with any necessary modifications, to an Additional Tier 1 instrument as it applies to a quoted Eurobond.
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(5) This section shall not apply to an Additional Tier 1 instrument that forms part of any arrangement or scheme the main purpose, or one of the main purposes, of which is avoidance of liability to tax.”.
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21OJ No. L176, 27.6.2013, p.1
22OJ No. L201, 27.7.2012, p.1 |
