Unless an exemption or a relief applies, a payment of UK source yearly interest is subject to a requirement to deduct (and account to HMRC for) an amount in respect of UK income tax at the basic rate (currently, 20%) if made:

1. •

   by a company (unless it is made by that company in a fiduciary or representative capacity)

2. •

   by a local authority (unless it is made by that local authority in a fiduciary or representative capacity)

3. •

   by or on behalf of a partnership of which at least one partner is a company, or

4. •

   by any person to another person whose usual place of abode is outside the UK (broadly, this applies where the recipient is an individual who usually lives outside the UK or a company whose main place of business is outside the UK and which does not have a permanent establishment in the UK in respect of which the interest is within the charge to UK corporation tax)

The requirement to deduct (and account to HMRC for) an amount in