Finance Act, 1994

Amendment of provisions relating to interest payments by certain deposit takers.

12.—(1) Chapter IV of Part I of the Finance Act, 1986 , is hereby amended—

(a) in paragraph (c) (inserted by the Finance Act, 1993 ) of subsection (1) of section 35, by the insertion, as respects the year 1994-95 and subsequent years of assessment, of the following proviso:

“Provided that, where the specified amount is so increased, references in the said sections 1 and 2 to—

(i) ‘income tax payable’ shall be construed as references to the income tax payable after credit is given, by virtue of section 4 of the Finance Act, 1974 , for appropriate tax deducted from the said payment of relevant interest, and

(ii) ‘a sum equal to twice the specified amount’ shall be construed as references to a sum equal to the aggregate of twice the specified amount (before it is so increased) and the amount of the said payment of relevant interest,”,


(b) in subsection (1) of section 37A (inserted by the Finance Act, 1992 ), by the insertion, as respects payments of relevant interest made on or after the 9th day of July, 1993, of the following paragraph after paragraph (d):

“(dd) interest paid or payable in respect of the relevant deposit or relevant deposits held in the account shall not, directly or indirectly, be linked to, or determined by, any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;”.

(2) Section 14 of the Finance Act, 1993 , is hereby amended by the insertion in subparagraph (i) of paragraph (c) of subsection (1) of “, (dd) (inserted by the Finance Act, 1994)” after “(d)”.