Taxes Consolidation Act 1997 section 41

Securities of designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995

Section 41 provides that securities issued by a body designated under the Securitisation (Proceeds of Certain Mortgages) Act 1995 are treated as if they were Government securities, allowing interest on them to be paid without deduction of tax at source.

• Any stock or other security issued by a body designated under section 4(1) of the Securitisation (Proceeds of Certain Mortgages) Act 1995 is deemed to be a security issued under the authority of the Minister for Finance.
• This means the favourable treatment under section 36 applies — interest on these securities may be paid gross, that is, without deduction of income tax at source.
• Although the interest is paid gross, it remains chargeable to income tax under Case III of Schedule D, so the recipient must account for the tax due.
• In certain cases the Case III charge may be removed — the circumstances in which this relief applies are set out in section 49 of the Act.