National Grid 2008 Annual Report Download - page 404

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 61547
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 61
Description: EXH 2(B).7.1
0/5815.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/815/5*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 61547
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 61 Description: EXH 2(B).7.1
0/5815.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/815/5*
UNITED KINGDOM TAXATION
The following is a summary of the United Kingdom withholding taxation treatment at the date hereof in relation to
payments of principal and interest in respect of the Instruments. The comments do not deal with other United
Kingdom tax aspects of acquiring, holding or disposing of Instruments. The comments relate only to the position of
persons who are absolute beneficial owners of the Instruments. Prospective Instrumentholders should be aware that
the particular terms of issue of any series of Instruments as specified in the relevant Final Terms may affect the tax
treatment of that and other series of Instruments. The following is a general guide and should be treated with
appropriate caution. Instrumentholders who are in any doubt as to their tax position should consult their professional
advisers. Instrumentholders who may be liable to taxation in jurisdictions other than the United Kingdom in respect of
their acquisition, holding or disposal of the Instruments are particularly advised to consult their professional advisers
as to whether they are so liable (and if so under the laws of which jurisdictions), since the following comments relate
only to certain United Kingdom taxation aspects of payments in respect of the Instruments. In particular,
Instrumentholders should be aware that they may be liable to taxation under the laws of other jurisdictions in relation
to payments in respect of the Instruments even if such payments may be made without withholding or deduction for
or on account of taxation under the laws of the United Kingdom.
Instrumentholders should note that where any interest on Instruments is paid to them (or to any person actin
g
on their behalf)
by the relevant Issuer or any person in the United Kingdom acting on behalf of such Issuer (a “paying agent”), or is received by
any person in the United Kin
g
dom actin
g
on behalf of the relevant Instrumentholder (other than solely by clearin
g
or arran
g
in
g
the clearing of a cheque) (a “collecting agent”), then the relevant Issuer, the payin
g
a
g
ent or the collectin
g
a
g
ent (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 lnstrumentholder (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 lnstrumentholder is resident in
61
(A) UK Withholding Tax on UK Source Interest
1. The Instruments issued by an Issuer which carry a right to interest will constitute “quoted Eurobonds” provided they are
and continue to be listed on a reco
g
nised stock exchan
g
e within the meanin
g
of section 1005 of the Income Tax Act 2007.
The London Stock Exchan
g
e is a reco
g
nised stock exchan
g
e for these purposes. Instruments will be treated as listed on
the London Stock Exchan
g
e if they are included in the Official List by the United Kin
g
dom Listin
g
Authority and are
admitted to tradin
g
on the London Stock Exchan
g
e. Instruments to be traded on a reco
g
nised stock exchan
g
e outside the
United Kingdom will be treated as “listed” on a reco
g
nised stock exchan
g
e if (and only if) they are admitted to tradin
g
on
that exchan
g
e and they are officially listed, in accordance with provisions correspondin
g
to those
g
enerally applicable in
European Economic Area Member States, in a country outside the United Kin
g
dom in which there is a reco
g
nised stock
exchan
g
e. Whilst the Instruments are and continue to be quoted Eurobonds, payments of interest by the Issuer on the
Instruments ma
y
be made without withholdin
g
or deduction for or on account of United Kin
g
dom income tax.
2. In all cases fallin
g
outside the exemption described above, interest on the Instruments may fall to be paid under deduction
of United Kin
g
dom income tax at the savin
g
s rate (currently 20%) subject to such relief as may be available under the
provisions of any applicable double taxation treaty or to any other exemption which may apply. However, this withholdin
g
will not apply if the relevant interest is paid on Instruments with a maturity date of less than one year from the date of issue
and which are not issued under arran
g
ements the effect of which is to render such Instruments part of a borrowin
g
with a
total term of a year or more.
(
B
)
Provision of Information