Finance Act 2003

Yn ddilys o 10/07/2003

Deemed manufactured payment where transferor or connected person makes payment representative of dividend U.K.

2 (1) Section 737A of the Taxes Act 1988 (deemed manufactured payments) is amended as follows. U.K.

(2) In subsection (1), for “the conditions set out in subsection (2) below” substitute “ either the conditions set out in subsection (2) below or the conditions set out in subsection (2A) below ”.

(3) In subsection (2), for “conditions” substitute “ first set of conditions referred to in subsection (1) above ”.

(4) After that subsection insert—

“(2A) The second set of conditions referred to in subsection (1) above are that—

(a) a dividend which becomes payable in respect of the securities is receivable otherwise than by the transferor,

(b) the transferor or a person connected with him is required under any agreement mentioned in subsection (1) above to make a payment representative of the dividend,

(c) there is no requirement under any such agreement for a person to pay to the transferor on or before the relevant date an amount representative of the dividend, and

(d) it is reasonable to assume that, in arriving at the repurchase price of the securities, account is taken of the circumstances referred to in paragraphs (a) to (c).”.

(5) In subsection (3), for “subsection (2)” substitute “ subsections (2) and (2A) ”.

(6) In subsection (5)(a), after “(2)(a)” insert “ or (2A)(a) ”.

3 U.K. In section 737C of the Taxes Act 1988 (deemed manufactured payments: further provisions), after “737A(2)(a)” (in each place) insert “ or (2A)(a) ”.