Contents of returnU.K.
2[F1(1)Subject to paragraphs 7(2), 3A(2) and 9A(2) below, the return made by a company for any return period shall show—
(a)the amount of the franked payments, if any, made by it in that period,
(b)the amount of franked investment income, if any, received by it in that period,
(c)if any advance corporation tax is payable in respect of the franked payments, the amount thereof,
(d)the amount of the foreign income dividends, if any, paid by it in that period,
(e)the amount of the foreign income dividends, if any, received by it in that period, and
(f)if any advance corporation tax is payable in respect of the foreign income dividends paid, the amount thereof.]
(2)The return shall specify whether any amount of franked payments is included under paragraph (a) of sub-paragraph (1) above in consequence of the giving of a notice under section 247(3) and, if so, the amount so included.
(3)For the purposes of paragraph (b) of sub-paragraph (1) above the amount of franked investment income received by a company in a return period shall be treated as including the excess, if any, of—
(a)any surplus of franked investment income carried forward to the accounting period for which the return is made; and
(b)any amount of franked investment income received by the company in that accounting period but before the beginning of the return period,
over the amount of any franked payments made by the company in that accounting period but before the beginning of the return period.
(4)For the purposes of paragraph (c) of sub-paragraph (1) above advance corporation tax shall be payable in respect of franked payments made in a return period if—
(a)the amount shown under paragraph (a) of that sub-paragraph exceeds the amount shown under paragraph (b) of that sub-paragraph, or
(b)no amount is shown under paragraph (b) of that sub-paragraph;
and the amount of that tax shall be calculated at the rate of advance corporation tax in force for the financial year in which the return period ends on an amount which, when that tax is added to it, is equal to that excess or, if no amount is shown under sub-paragraph (1)(b) above, to the amount shown under sub-paragraph (1)(a) above.
[F2(5)For the purposes of paragraph (e) of sub-paragraph (1) above the amount of foreign income dividends received by a company in a return period shall be treated as including the excess, if any, of—
(a)any amount carried forward under section 246F(3) to the accounting period for which the return is made, and
(b)any amount of foreign income dividends received by the company in that accounting period but before the beginning of the return period,
over the amount of any foreign income dividends paid by the company in that accounting period but before the beginning of the return period.
(6)For the purposes of paragraph (f) of sub-paragraph (1) above advance corporation tax shall be payable in respect of foreign income dividends paid in a return period if—
(a)the amount shown under paragraph (d) of that sub-paragraph exceeds the amount shown under paragraph (e) of that sub-paragraph, or
(b)no amount is shown under paragraph (e) of that sub-paragraph;
and the amount of that tax shall be calculated at the rate of advance corporation tax in force for the financial year in which the return period ends on an amount equal to that excess or, if no amount is shown under sub-paragraph (1)(e) above, to the amount shown under sub-paragraph (1)(d) above.]
Textual Amendments
F1Sch. 13 para. 2(1) substituted (with effect in accordance with Sch. 16 para. 3(13) of the amending Act) by Finance Act 1994 (c. 9), Sch. 16 para. 3(4)
F2Sch. 13 para. 2(5)(6) inserted (with effect in accordance with Sch. 16 para. 3(13) of the amending Act) by Finance Act 1994 (c. 9), Sch. 16 para. 3(5)
Modifications etc. (not altering text)
C1 For rates of corporation tax see Tables Kand Lin Vol.1.