Corporation Tax Act 2010

793Section 792: amount treated as withheldU.K.

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(1)Except where subsection (3) applies, the amount mentioned in section 792(3)(b) is the amount deducted under section 922(2) of ITA 2007.

(2)Subsection (3) applies if the deduction under section 922(2) of ITA 2007 is made in respect of a manufactured overseas dividend that is treated as paid under section 925A of ITA 2007 (creditor repos).

(3)The amount mentioned in section 792(3)(b) is—

(a)if subsection (4) applies, the amount deducted under section 922(2) of ITA 2007,

(b)if subsection (5) applies—

(i)the amount deducted under section 922(2) of ITA 2007, less

(ii)the excess mentioned in subsection (5)(b), and

(c)in any other case, nil.

(4)This subsection applies if—

(a)an amount is actually paid by way of manufactured overseas dividend,

(b)the amount so paid equals the relevant net amount, and

(c)it is reasonable to assume that, in deciding the repurchase price of the securities, no account was taken of the fact that the amount would be so paid.

(5)This subsection applies if—

(a)an amount is actually paid by way of manufactured overseas dividend,

(b)the amount so paid exceeds the relevant net amount, and

(c)it is reasonable to assume that, in deciding the repurchase price of the securities, no account was taken of the fact that the amount would be so paid.

(6)In subsections (4)(b) and (5)(b) “the relevant net amount” means—

(a)the gross amount of the overseas dividend of which the manufactured overseas dividend is representative, less

(b)the amount deducted under section 922(2) of ITA 2007.

(7)In subsections (4)(c) and (5)(c)—

(a)the securities” refers to the securities in respect of which the overseas dividend of which the manufactured overseas dividend is representative is paid, and

(b)the references to the repurchase price of those securities are to the price at which the payer of the manufactured overseas dividend is entitled or obliged to sell the securities, or similar securities, to the recipient of the manufactured overseas dividend.

[F1(8)If, in accordance with this section, the amount mentioned in section 792(3)(b) is not the amount deducted under section 922(2) of ITA 2007, nothing in the Tax Acts is to be read as having the effect that, in relation to the persons mentioned in section 792(2) for the purposes mentioned there, the difference between those amounts is to be regarded as an amount on account of income tax.]

Textual Amendments

F1S. 793(8) inserted (with effect in accordance with s. 22(4) of the amending Act) by Finance Act 2012 (c. 14), s. 22(2)