Statutory Instruments

2005 No. 1539

CAPITAL GAINS TAX

CORPORATION TAX

INCOME TAX

The Reporting of Savings Income Information (Amendment) Regulations 2005

Made

9th June 2005

Laid before the House of Commons

10th June 2005

Coming into force in accordance with regulation 1(2)

The Treasury, in exercise of the powers conferred upon them by section 199 of the Finance Act 2003( 1 ), make the following Regulations:

Citation and commencement

1. —(1) These Regulations may be cited as the Reporting of Savings Income Information (Amendment) Regulations 2005.

(2) These Regulations shall come into force on such date as is determined by the Treasury and specified by notices in the London, Edinburgh and Belfast Gazettes.

Amendments to the Reporting of Savings Income Information Regulations 2003

2.The Reporting of Savings Income Information Regulations 2003( 2 ) shall be amended as follows.

3. —(1) Amend regulation 2 (interpretation) as follows.

(2) In paragraph (1), for the definition of “the Savings Directive” substitute—

“ “the Savings Directive” means Council Directive 2003/48/ EC of 3 ^rd June 2003 ( 3 ) (“the Directive of 2003”) on the taxation of savings income in the form of interest payments, as amended by Council Directive 2004/66/EC 4 ) , and a reference, without more, to a numbered Article is a reference to the Article of the Directive of 2003, as so amended, which bears that number; ” .

(3) In paragraph (2)—

(a) after the definition of “agent” insert the following definitions—

“ “arrangements” means agreements or arrangements made with a territory being a dependent or associated territory of a member State in relation to the automatic exchange of information or, during the transitional period defined in Article 10 of the Savings Directive, the application of a withholding tax referred to in paragraph 2(ii) of Article 17 of the Savings Directive;

“country” includes a territory; ” ;

(b) for the definition of “economic operator” substitute—

“ “economic operator” is a paying agent established in another member State or in a territory (construed in accordance with the Savings Directive or the arrangements with the territory, as appropriate) with which arrangements have been made; ” ;

“ “paying agent”, unless the context otherwise requires, has the meaning given in regulation 3; ” ; and

(d) for the definition of “a prescribed territory” substitute—

“ “a prescribed territory” means another member State, Aruba, the British Virgin Islands, Gibraltar, Guernsey, the Isle of Man, Jersey, Montserrat or the Netherlands Antilles; ” ; and

(e) after the definition of “residual entity” insert the following definition—

“ “Revenue and Customs”, except in the expression “an officer of Revenue and Customs”, means Her Majesty’s Revenue and Customs (see section 4 of the Commissioners for Revenue and Customs Act 2005 ( 5 ) ); ” .

4. —(1) Amend regulation 4 (meaning of residual entity) as follows.

(2) In paragraph (1)—

(i) after “member State” insert “or in a territory with respect to which arrangements have been made”; and

(ii) at the end of sub-paragraph (c) insert “or an equivalent undertaking for collective investment established in a territory with which arrangements have been made”; and

(3) For the second paragraph of paragraph (3) substitute—

“ An entity which presents to the paying agent or economic operator a certificate—
(a)
issued by the member State in which that entity is established in accordance with Article 4(3), or
(b)
issued by the territory with which arrangements have been made in which that entity is established in accordance with provisions which are equivalent to Article 4(3),
shall, for the purposes of this regulation, be treated as if it were a UCITS authorised in accordance with the UCITS Directive or an equivalent undertaking for collective investment established in the territory with which arrangements have been made (as the case may be). ” .

5. —(1) Amend regulation 5 (election by an entity to be treated as a UCITS) as follows.

(2) In paragraph (2) for “the Inland Revenue” substitute “Revenue and Customs”.

(3) In paragraph (4) for “the Inland Revenue” substitute “Revenue and Customs”.

6. In regulation 6(c) (meaning of receiving agent) after “member State” insert “or in a territory with which arrangements have been made”.

7. —(1) Amend regulation 7 (meaning of relevant payee) as follows.

(2) In paragraph (2)(a) for “paying agent” substitute “a paying agent”; and

(3) In paragraph (2)(c)—

(a) in paragraph (iii) for “Directive; or” substitute—

“ Directive, or an equivalent undertaking for collective investment established in a territory with which arrangements have been made; ” ;

(b) in paragraph (iv)—

(i) after “a UCITS” insert “authorised”; and

(ii) at the end omit “or”;

“ (v) which is treated as being an equivalent undertaking for collective investment established in a territory with which arrangements have been made for the purposes of those arrangements by virtue of provisions which are equivalent to Article 4(3); or ” .

8. In regulation 8 (meaning of savings income) —

(a) in paragraph (2)(a)(iii) omit “and”;

(b) at the end of paragraph (2)(a) insert —

“ ; and

(v) any share interest paid by a credit union registered under the Credit Unions (Northern Ireland) Order 1985 ( 6 ) ; and ” ;

“ (c) where a collective investment fund—

(i) is established in a territory with which arrangements have been made which has made provisions equivalent to the derogation in the first sentence of Article 6(6); and

(ii) the collective investment fund has invested 15% or less of its assets in money debts in accordance with the law of that territory in the application of those provisions,

there is no savings income ” ;

(d) in paragraph (8)(b)(i) for “paragraphs (1)(c) and (d) of Article 6” substitute “paragraph 4 of Article 6”;

(e) after paragraph (8)(b) insert—

“ (c) where a residual entity—

(i) is established in a territory with which arrangements have been made which has made provisions equivalent to the derogation in the second sentence of Article 6(6); and

(ii) the residual entity has invested 15% or less of its assets in money debts in accordance with the law of that territory in the application of those provisions,

there is no savings income ” ; and

(f) in paragraph (11)—

(i) at the end of sub paragraph (a) insert “or an equivalent undertaking for collective investment established in a territory with which arrangements have been made”; and

(ii) after (b) insert—

“ (ba) an entity which is treated as being an equivalent undertaking for collective investment established in a territory with which arrangements have been made for the purposes of those arrangements by virtue of provisions which are equivalent to Article 4(3); or ”

(iii) for paragraph (c) substitute —

“ (c) an undertaking for collective investment which is not established in the Community or in a territory with which arrangements have been made. ” .

9. In regulation 9 (identity and residence of relevant payees) —

(a) for paragraph (4)(a) substitute —

“ (a) the name and address of the individual, and

(i) where the individual is resident for tax purposes in a member State, the tax identification number (if any) allocated by that member State but if it is not available the individual’s date and place of birth,

(ii) where the individual is resident for tax purposes other than in a member State, the individual’s date and place of birth,

in accordance with paragraphs (5) and (7); ” ;

(b) in paragraph (7) after “tax identification number” insert “is not required or if it is and it”

(i) for the words preceding sub-paragraph(a) substitute —

“ (9) Where an individual presents a passport or official identity card issued by a member State and declares himself to be resident in a third country — ” ; and

(ii) in sub-paragraph (a) omit from “if he presents a passport” to “a member State,”.

10. —(1) Amend regulation 10 (information to be reported by paying agents making payments to relevant payees) as follows.