(1)Section 231 of the Taxes Act 1988 (tax credits for certain recipients of qualifying distributions) shall be amended in accordance with subsections (2) to (7) below.
F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Subsection (2) (payment of tax credit to company resident in UK) shall cease to have effect.
(5)In subsection (3) (which includes provision for payment of excess of tax credit over income tax liability to person not being a company resident in the UK)—
F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)the words “and subject to subsections (3A) and (3D) below where the credit exceeds that income tax, to have the excess paid to him” shall cease to have effect.
F3(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)In consequence of subsection (5) above, subsections (3A) to (3D) shall cease to have effect.
(8)Section 231A of the Taxes Act 1988 (which is superseded by the foregoing provisions of this section) shall cease to have effect.
(9)The amendments made by subsections (5) and (6) above [F4and rewritten in section 397(3) of the Income Tax (Trading and Other Income) Act 2005] do not affect the entitlement of a person who is not resident in the United Kingdom to payment in respect of a tax credit by virtue of arrangements having effect under [F5section 2(1) of the Taxation (International and Other Provisions) Act 2010] (relief by agreement with other countries).
(10)Where—
(a)arrangements having effect [F6under section 2(1) of the Taxation (International and Other Provisions) Act 2010] confer on a person not resident in the United Kingdom the right to a tax credit under [F7section 397 of the Income Tax (Trading and Other Income) Act 2005] in respect of a dividend of a company resident in the United Kingdom, and
(b)the arrangements contain provision for permitting—
(i)tax to be charged or deducted, or
(ii)a reduction in the amount of the tax credit that is paid to be made,
by reference to the aggregate of the dividend and the tax credit, and
(c)the amount of that tax or that reduction exceeds the amount of the tax credit,
that provision shall only have the effect of reducing to nil the amount of the payment to which the person is entitled in respect of the tax credit.
(11)This section has effect in relation to distributions made on or after 6th April 1999.
Textual Amendments
F1S. 30(2)(3) repealed (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)
F2S. 30(5)(a) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)
F3S. 30(6) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)
F4Words in s. 30(9) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 496(a) (with Sch. 2)
F5Words in s. 30(9) substituted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 52(2) (with Sch. 9 paras. 1-9, 22)
F6Words in s. 30(10)(a) substituted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 52(3) (with Sch. 9 paras. 1-9, 22)
F7Words in s. 30(10)(a) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 496(b) (with Sch. 2)
Modifications etc. (not altering text)
C1S. 30 modified (31.7.1998 with effect as mentioned in s. 76(1) of the amending Act) by 1998 c. 36, s. 76(1)(2)
C2S. 30(4) excluded (temp. from 6.4.1999 to 6.4.2004) by S.I. 1998/1871, reg. 4(1)
C3S. 30(4) restricted (31.7.1998) by 1998 c. 36, s. 90(1)
C4S. 30(4): Power to modify conferred (31.7.1998) by 1988 c. 1, s. 33B (as inserted (31.7.1998) by 1998 c. 36, s. 77(1))
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Textual Amendments
F8S. 31 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)
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Textual Amendments
F9S. 32 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)
F10(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F10S. 33(1) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)
F11S. 33(2)-(11) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
Schedule 4 to this Act (which contains provisions relating to tax credits and the taxation of distributions) shall have effect.
(1)In any case where—
(a)a qualifying distribution is made on or after 6th April 1999 and before 6th April 2004 by a company resident in the United Kingdom, and
(b)the recipient of the distribution is a section 505 body, and
(c)if the section 505 body falls within neither paragraph (b) nor paragraph (c) of subsection (3) below, entitlement to exemption from tax by virtue of subsection (1)(c)(iii) of section 505 of the Taxes Act 1988 (charities) in respect of the distribution is not prevented by anything in that section,
the section 505 body, on a claim made under this section to the Board, shall be entitled to be paid by the Board out of money provided by Parliament an amount determined in accordance with subsection (2) below.
(2)The amount referred to in subsection (1) above is an amount equal to—
(a)21 per cent of the amount or value of the distribution if the distribution is made on or after 6th April 1999 and before 6th April 2000;
(b)17 per cent of that amount or value if the distribution is made on or after 6th April 2000 and before 6th April 2001;
(c)13 per cent of that amount or value if the distribution is made on or after 6th April 2001 and before 6th April 2002;
(d)8 per cent of that amount or value if the distribution is made on or after 6th April 2002 and before 6th April 2003;
(e)4 per cent of that amount or value if the distribution is made on or after 6th April 2003 and before 6th April 2004.
(3)For the purposes of this section each of the following is a section 505 body—
(a)any [F12charitable company] (as defined in section 506(1) of the Taxes Act 1988);
(b)each of the bodies mentioned in section 507 of that Act (heritage bodies);
(c)any Association of a description specified in section 508 of that Act (scientific research organisations).
(4)Schedule 5 to this Act shall have effect to remove or restrict entitlement to payment under this section in certain circumstances.
(5)For the purposes of Chapter I of Part XVII of the Taxes Act 1988 (cancellation of tax advantages) payment of an amount under this section shall be treated as repayment of tax.
(6)Any entitlement of a section 505 body to a payment under subsection (1) above shall be subject to a power of the Board to determine (whether before or after any payment is made) that, having regard to the operation in relation to the distribution in question of section 703 of the Taxes Act 1988 (cancellation of tax advantages), that body is to be treated as if it had had no entitlement to that payment or to so much of it as they may determine.
(7)No claim may be made under this section later than two years after the end of the chargeable period of the section 505 body in which the distribution is made.
(8)An appeal may be brought against any decision of the Board under this section or under Schedule 5 to this Act by giving written notice to the Board within thirty days of receipt of written notice of the decision.
(9)F13... the provisions of the M1Taxes Management Act 1970 relating to appeals under the Tax Acts shall apply to an appeal under this section as they apply to those appeals.
(10)Any payment of an amount under this section shall be treated for the purposes of section 252 of the Taxes Act 1988 (rectification of excessive set-off etc of ACT or tax credit) as a payment of tax credit.
Textual Amendments
F12Words in s. 35(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 379 (with Sch. 2)
F13Words in s. 35(9) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 246(2)
Marginal Citations
(1)No election shall be made under section 246A of the Taxes Act 1988 (election for dividend to be treated as foreign income dividend) in respect of any distributions made on or after 6th April 1999.
(2)No amount shall be shown as available for distribution as foreign income dividends in the distribution accounts of an authorised unit trust for a distribution period the distribution date for which falls on or after 6th April 1999.
(3)No distribution made on or after 6th April 1999 shall be treated as a foreign income dividend by virtue of paragraph 2(1) of Schedule 7 to the M2Finance Act 1997 (Tax Acts to have effect as if qualifying distributions to which Schedule 7 applies were foreign income dividends).
(4)Schedule 6 to this Act (which makes provision for and in connection with the repeal of provisions relating to foreign income dividends) shall have effect.
(5)In subsection (2) above, “distribution accounts”, “distribution date” and “distribution period” shall be construed in accordance with section 468H of the Taxes Act 1988 (interpretation of sections 468I to 468R of that Act).
Marginal Citations
M21997 c .16.