Payments of interest on a 'quoted Eurobond' are excluded from
the general requirement to deduct income tax.
The term 'Eurobond' reflects the development of the market
for raising cross border finance, in that the first such debt
securities were issued in London but denominated in US dollars.
'Eurobonds' are issued and/or traded internationally. The tax
definition of 'quoted Eurobond' is different to the commercial
understanding of the term 'Eurobond' (see CFM3202c for further
information).
With effect from 1 April 2001, a 'quoted Eurobond' is defined
in ICTA88/S349(4) as any security that
Revenue Press Releases PR76/01 and PR120/01 give additional
background on the interpretation of the expression 'listed on a
recognised stock exchange'.
The definition of a recognised stock exchange is at
ICTA88/S841(1). It includes the London Stock Exchange and any such
stock exchange outside the United Kingdom as is approved by an
Order of the Board of Inland Revenue. The current list of
recognised overseas exchanges is available on the HM Revenue &
Customs website at www.hmrc.gov.uk.
Before 1 April 2001, 'quoted Eurobond' was defined in
ICTA88/S124 as a bearer security, carrying the right to interest
which is issued by a company, listed on a recognised stock exchange
and either held in a recognised clearing system or beneficially
owned by a person not resident in the United Kingdom.
