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

Amendments to the principal Regulations

12.  In regulation 12(1)—

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

“(1) This regulation applies to a case where a manufactured overseas dividend is paid to a collecting agent in circumstances where, had it been the overseas dividend of which it is representative, it would have been—

(a) a foreign dividend (as defined in section 18(3D) of the Taxes Act(2), or

(b) interest on a quoted Eurobond (as defined by section 124 of that Act(3)) held in a recognised clearing system.;”

(b) in paragraph (2)(a)—

(i) the words “subject to paragraph (3)” shall be inserted at the beginning;

(ii) the words “approved United Kingdom” shall be omitted;

(c) after paragraph (2) there shall be added the following paragraph—

“(3) Where a manufactured overseas dividend paid to the collecting agent on behalf of an overseas dividend manufacturer—

(a) is representative of an overseas dividend on overseas securities that are of the same kind as the overseas securities to which a manufactured overseas dividend paid by the collecting agent on behalf of that overseas dividend manufacturer relates, and

(b) is in an equivalent amount and in respect of the same dividend date as the manufactured overseas dividend paid by him on behalf of that overseas dividend manufacturer,

deduction of an amount on account of income tax shall not be made by the collecting agent under paragraph (2)(a) in respect of the manufactured overseas dividend paid to him.”

(1)

Amended by S.I. 1996/1229.

(2)

Section 18 was amended by paragraph 4(3) of Schedule 7 to the Finance Act 1996.

(3)

Section 124 was amended by paragraph 14 of Schedule 7, paragraph 4 of Schedule 29, paragraph 6(2)(a) of Schedule 38, and Part V(2) of Schedule 41, to the Finance Act 1996.