National Grid 2008 Annual Report Download - page 178

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 21826
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 82
Description: EXH 2(B).5.1
0/3561.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/561/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 21826
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 82 Description: EXH 2(B).5.1
0/3561.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/561/3*
82
collecting agent (as the case may be) may, in certain cases, be required to supply to HM Revenue and Customs details of the
payment and certain details relating to the Instrumentholder (including the Instrumentholder’s name and address). These
provisions will apply whether or not the interest has been paid subject to withholdin
g
or deduction for or on account of United
Kin
g
dom income tax and whether or not the Instrumentholder is resident in the United Kin
g
dom for United Kin
g
dom taxation
purposes. Where the Instrumentholder is not so resident, the details provided to HM Revenue and Customs may, in certain
cases, be passed by HM Revenue and Customs to the tax authorities of the jurisdiction in which the Instrumentholder is
resident for taxation purposes. However, in relation to amounts payable on the redemption of such Instruments HM Revenue &
Customs published practice
*
indicates that HM Revenue & Customs will not exercise its power to obtain information where such
amounts are paid or received on or before 5 April 2008.
3 Other Rules Relatin
g
to United Kin
g
dom Withholdin
g
Tax
• Instruments may be issued at an issue price of less than 100 per cent. of their principal amount. Any discount element on
any such Instruments will not
g
enerally be subject to any United Kin
g
dom withholdin
g
tax pursuant to the provisions
mentioned above, but may be subject to reporting requirements as outlined above.
• Where Instruments are to be, or may fall to be, redeemed at a premium, as opposed to bein
g
issued at a discount, then
any such element of premium may constitute a payment of interest. Payments of interest are subject to United Kin
g
dom
withholdin
g
tax and re
p
ortin
g
re
q
uirements as outlined above.
• Where interest has been paid under deduction of United Kin
g
dom income tax, Instrumentholders who are not resident in
the United Kin
g
dom may be able to recover all or part of the tax deducted if there is an appropriate provision in any
applicable double taxation treaty and an appropriate claim is submitted to HM Revenue & Customs by the recipient of the
interest.
• The references to “interest” above mean “interest” as understood in United Kin
g
dom tax law. The statements above do not
take any account of any different definitions of “interest” or “principal” which may prevail under any other law or which may
be created by the terms and conditions of the Instruments or any related documentation.
• The above description of the United Kin
g
dom withholdin
g
tax position assumes that there will be no substitution of an
Issuer and does not consider the tax consequences of any such substitution.
4 EU Savings Directive
Under EU Council Directive 2003/48/EC on the taxation of savin
g
s income, each Member State is required to provide to the tax
authorities of another Member State details of payments of interest or other similar income paid by a person within its
j
urisdiction to, or collected by such a person for, an individual or to certain other persons resident in that other Member State;
however, for a transitional period, Austria, Bel
g
ium and Luxembour
g
may instead apply a withholdin
g
system in relation to such
payments, deductin
g
tax at rates risin
g
over time to 35 per cent. The transitional period is to terminate at the end of the first full
fiscal year following agreement by certain non-EU countries to the exchange of information relating to such payments.
*
See
p
ara
g
ra
p
h 4.5 of HM Revenue & Custom’s Section 18 Guidance Notes.
(http://www.hmrc.gov.uk/esd-guidance/s18-guidance-note-07.pdf).