Income Tax Act 2007 section 840

Government securities held by non-UK resident central banks

Section 840 provides an income tax exemption for income from UK government securities received by certain overseas central banks designated by Order in Council.

• Income from UK government securities received by designated non-UK resident central banks is exempt from income tax.
• The exemption does not prevent the income from being included when calculating profits, gains or losses of any business the bank carries on in the UK.
• The exemption applies only to banks designated by Order in Council that are non-UK resident and entrusted with custody of a foreign territory's principal foreign exchange reserves.
• Any Order in Council under this section must first be approved by a resolution of the House of Commons.