More gross investment income -

At the same time the section inserted a definition for 'quoted eurobond' meaning any security that:

(i) is issued by a company;

(ii) is listed on a recognised stock exchange; and

(iii) carries a right to interest; …

The effect of this change is that any interest paid by quoted companies on loan stocks is now paid gross.

Stocks like this will often be held by pensioners and taxpayers with smaller incomes. They may not have had to complete a tax return in the past as their basic rate liability would have been met by the rate applicable to savings income. For other taxpayers under the self-assessment system this may impact on their payments on account especially if a taxpayer has applied to reduce the payments thinking that other income levels had been reduced.