Income Tax Act 2007 section 884

Relevant foreign income

Section 884 provides an exemption from the duty to deduct income tax at source from yearly interest payments where the interest is chargeable to income tax as relevant foreign income.

• The general duty to deduct income tax from yearly interest payments under section 874 does not apply to interest that qualifies as relevant foreign income.
• Relevant foreign income broadly means income arising from a source outside the United Kingdom.
• This exemption recognises that foreign-source interest is taxed through different mechanisms, such as self-assessment, rather than through deduction at source.
• The definition of "relevant foreign income" is found in section 989 of the Income Tax Act 2007.