PSI17.1.43 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Tax Treatment of Approved Schemes – Methods of Obtaining tax relief - Government or Local Authority Securities Registered at the Bank of England

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Where a fully exempt approved self-administered scheme holds securities of the Government, local authorities or certain nationalised undertakings which are registered at the Bank of England, the interest may be paid gross. Section 51A ICTA 1988 and ensuing regulations provide for ‘eligible persons’ (exempt approved pension schemes) to obtain gilt interest gross by arranging for their gilts to be placed in a form of account known as “STAR accounts”. This is not a matter for this Office to become involved in. TS 191/1995 explains the procedure to be followed by the Inspector.

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