Finance Act 1994

Part II U.K. Liability for and collection of advance corporation tax

2 In section 14 of the Taxes Act 1988 (advance corporation tax and qualifying distributions) in subsection (3) for the words “section 241” there shall be substituted “ sections 241 and 246F ”.

3 (1) Schedule 13 to the Taxes Act 1988 (collection of advance corporation tax) shall be amended as follows.

(2) In paragraph 1 (duty to make returns) for sub-paragraph (1) there shall be substituted—

“(1) A company shall for each of its accounting periods make, in accordance with this Schedule, returns to the collector of—

(a) the franked payments made and franked investment income received by it in that period,

(b) the foreign income dividends paid and foreign income dividends received by it in that period, and

(c) the advance corporation tax (if any) payable by it in respect of the franked payments made and foreign income dividends paid by it in that period;

and references in this Schedule to foreign income dividends shall be construed in accordance with Chapter VA of this Part.”

(3) In paragraph 1, for sub-paragraph (4) there shall be substituted—

“(4) Subject to paragraphs 4(2), 4A(2) and 7(3) below, no return need be made under this Schedule by a company for any period in which it has—

(a) made no franked payments, and

(b) paid no foreign income dividends.”

(4) In paragraph 2 (contents of return) for sub-paragraph (1) there shall be substituted—

“(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.”

F1 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) In paragraph 7 (qualifying distributions which are not payments and payments of uncertain nature) in sub-paragraph (3) for the words from “and if” to “that period” there shall be substituted “ and if in that period no franked payment (apart from that distribution or payment) is made and no foreign income dividend is paid ”.

F1 (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13) This paragraph shall have effect in relation to any return period ending after 30th June 1994.

Textual Amendments

F1 Sch. 16 para. 3(5)-(10)(12) repealed (31.7.1997 with effect in accordance with s. 36, Sch. 6 of the repealing Act) by 1997 c. 58, s. 52, Sch. 8 Pt. II(11), Note (with s. 3(3))