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Under ITA 2007, s 874, tax must be deducted from payments of 'yearly interest' arising in the UK if they are made:

1. Ìý

   •ÌýÌýÌýÌý by a company

2. Ìý

   •ÌýÌýÌýÌý by a local authority

3. Ìý

   •ÌýÌýÌýÌý by or on behalf of a partnership of which a company is a member, or

4. Ìý

   •ÌýÌýÌýÌý by any person to a person whose usual place of abode is outside the UK

There are, however, many exceptions to this requirement and these are described in this article. See A4.424 for details of the requirement to deduct tax and A4.421 for the meaning of 'yearly interest'.

In addition to the exceptions which are specific to the duty to deduct tax from yearly interest under ITA 2007, s 874, the duty to deduct may be removed under a wider exception which applies both to interest and other types of payment. These exceptions are for:

1. Ìý

   •ÌýÌýÌýÌý payments before 1 June 2021 by a UK company to an associated company in an EU member state (ee A4.450)

2. Ìý

   •