The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996

Amendments to the principal Regulations

10.  In regulation 9—

(a) for paragraph (1) there shall be substituted the following paragraphs—

“(1) In the circumstances prescribed by paragraph (2) and subject to paragraph (4), a person who is an overseas dividend manufacturer in any chargeable period shall be entitled to set off the amounts specified in paragraph (1A) against the sums specified in paragraph (1B).

(1A) The amounts specified in this paragraph are—

(a) amounts of overseas tax in respect of overseas dividends received by the overseas dividend manufacturer in the chargeable period;

(b) amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him;

(c) amounts deducted under paragraph 4(2) of Schedule 23A from manufactured overseas dividends so received by him;

(d) amounts accounted for and paid under paragraph 4(3) of Schedule 23A in respect of manufactured overseas dividends so received by him;

(e) amounts accounted for and paid under regulation 4(3) in respect of manufactured overseas dividends so received by him.

(1B) The sums specified in this paragraph are sums due from the overseas dividend manufacturer on account of the amounts deducted by him under paragraph 4(2) of Schedule 23A from the manufactured overseas dividends paid by him in the chargeable period.;”

(b) in paragraph (2)—

(i) sub-paragraph (aa)(1) shall be omitted;

(ii) in sub-paragraph (b) for the words “paragraph (1)(a)” there shall be substituted the words “paragraph (1A)”;

(c) in paragraph (3)—

(i) after the words “so received” there shall be inserted the words “on or in respect of the making of which overseas tax has been charged or”;

(ii) for the words “paragraph (1)(a)” there shall be substituted the words “paragraph (1A)”;

(d) in paragraph (4) in sub-paragraphs (a) and (b) after the words “the tax” there shall be inserted the words “referred to in that paragraph that is”;

(e) in paragraph (4A)(a)—

(i) in sub-paragraph (b) after the word “tax”, where it first occurs, there shall be inserted the words “referred to in paragraph (3) that is”, and after the word “tax”, where it secondly occurs, there shall be inserted the words “referred to in that paragraph that is”;

(ii) after the words “in respect of any tax” there shall be inserted the words “referred to in paragraph (3) that is”;

(f) in paragraphs (5) and (6)—

(i) for the words “paragraph (1)(a)”, wherever occurring, there shall be substituted the words “paragraph (1A)”;

(ii) for the words “paragraph (1)(b)”, wherever occurring, there shall be substituted the words “paragraph (1B)”;

(g) in paragraph 7(a) after the words “overseas dividend” there shall be inserted the words “or manufactured overseas dividend”;

(h) in paragraph (8) for the words from “in this paragraph” to the end there shall be substituted the words

“in this paragraph—

(i) so far as overseas dividends are concerned, is the territory of the government or public or local authority which issued the securities in question or, where the securities were issued by any other body of persons not resident in the United Kingdom, the territory under whose law that tax would have been payable;

(ii) so far as manufactured overseas dividends are concerned, is the territory of the government by which tax is charged on, or in respect of, the making of the manufactured overseas dividend concerned.”

(1)

Inserted by S.I. 1995/1324.