SCHEDULES

[F1Schedule 23AU.K. MANUFACTURED DIVIDENDS AND INTEREST]

Textual Amendments

F1Sch. 23A inserted by Finance Act 1991 (c. 31, SIF 63:1), s. 58, Sch. 13 para. 1 (with effect as mentioned in s. 58(3) in relation to payments made on or after such day as may be specified: 26.2.1992 specified for certain purposes by S.I. 1992/173, reg.2; 30.6.1992 specified for certain purposes by S.I. 1992/1346, regs.2, 3, 4; 21.4.1993 specified for certain purposes by S.I. 1993/933, regs.2, 3(b), 4)

Modifications etc. (not altering text)

[F2 Manufactured dividends on UK equities: general]U.K.

Textual Amendments

F2Sch. 23A paras. 2-2B and cross-headings substituted for Sch. 23A para. 2 and cross-heading (with effect in accordance with Sch. 10 para. 16 of the amending Act) by Finance Act 1997 c. 16, Sch. 10 para. 10(1)

[F3F42(1)This paragraph applies in any case where, under a contract or other arrangements for the transfer of United Kingdom equities, one of the parties (a “dividend manufacturer”) is required to pay to the other (“the recipient”) an amount (a “manufactured dividend”) which is representative of a dividend on the equities.

[F5(2)Where a manufactured dividend is paid by a dividend manufacturer who is a company resident in the United Kingdom, the [F6Corporation] Tax Acts shall have effect—

(a)in relation to the recipient, and persons claiming title through or under him, as if the manufactured dividend were a dividend on the UK equities in question; and

(b)in relation to the dividend manufacturer, as if the amount paid were a dividend of his.]

(3)Where a manufactured dividend to which sub-paragraph (2) above does not apply is paid by any person—

(a)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the [F8Corporation] Tax Acts shall have effect in relation to the recipient, and persons claiming title through or under him, as if the manufactured dividend were a dividend on the United Kingdom equities in question; F9. . .

(c)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(6)F11. . . Where—

(a)a dividend manufacturer pays a manufactured dividend F12. . . , F13. . . [F14, and

(aa)the dividend manufacturer is a non-UK resident company within the charge to corporation tax,]

F13(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the dividend manufacturer shall, on paying the manufactured dividend, provide the recipient with a statement in writing setting out the matters specified in sub-paragraph (7) below.

(7)Those matters are—

(a)the amount of the manufactured dividend;

(b)the date of the payment of the manufactured dividend; and

(c)the amount of the tax credit to which, by virtue of sub-paragraph (3)(b) above [F15or section 573(2) of ITA 2007], the recipient or a person claiming title through or under him either—

(i)is entitled in respect of the manufactured dividend, or

(ii)would be so entitled were all the conditions of a right to a tax credit satisfied, in the case of the recipient or that person, as respects the dividend which the recipient is deemed to receive.

(8)The duty imposed by sub-paragraph (6) above shall be enforceable at the suit or instance of the recipient.]

Textual Amendments

F3Sch. 23A paras 2-2B and cross-headings substituted for Sch. 23A para. 2 and cross-heading (with effect in accordance with Sch. 10 para. 16 of the amending Act) by Finance Act 1997 c. 16, Sch. 10 para. 10(1)

F4Sch. 23A inserted by Finance Act 1991 (c. 31, SIF 63:1), s. 58, Sch. 13 para. 1 (with effect as mentioned in s. 58(3) in relation to payments made on or after such day as may be specified: 26.2.1992 specified for certain purposes by S.I. 1992/173, reg. 2; 30.6.1992 specified for certain purposes by S.I. 1992/1346, regs. 2, 3, 4; 21.4.1993 specified for certain purposes by S.I. 1993/933, regs. 2, 3(b), 4)

F5Sch. 23A para. 2(2) substituted (with effect in accordance with s. 102(10) of the amending Act) by Finance Act 1998 (c. 36), s. 102(5)

F6Word in Sch. 23A para. 2(2) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(a) (with Sch. 2)

F7Sch. 23A para. 2(3)(a) repealed (with effect in accordance with s. 102(10) of the repealing Act) by Finance Act 1998 (c. 36), s. 102(6), Sch. 27 Pt. 3(24), Note

F8Word in Sch. 23A para. 2(3)(b) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(b) (with Sch. 2)

F9Sch. 23A para. 2(3)(c) and preceding word repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(c), Sch. 3 Pt. 1 (with Sch. 2)

F10Sch. 23A para. 2(4)(5) repealed (with effect in accordance with s. 102(10) of the repealing Act) by Finance Act 1998 (c. 36), s. 102(8)(a), Sch. 27 Pt. 3(24), Note

F11Words in Sch. 23A para. 2(6) repealed (with effect in accordance with Sch. 6 para. 17(5) of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 6 para. 17(3), Sch. 8 Pt. 2(11), Note

F12Words in Sch. 23A para. 2(6)(a) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(d), Sch. 3 Pt. 1 (with Sch. 2)

F13Sch. 23A para. 2(6)(b) and preceding word repealed (with effect in accordance with s. 102(10) of the repealing Act) by Finance Act 1998 (c. 36), s. 102(8)(a), Sch. 27 Pt. 3(24), Note

F14Sch. 23A para. 2(6)(aa) and preceding word inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(e) (with Sch. 2)

F15Words in Sch. 23A para. 2(7)(c) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(3)(f) (with Sch. 2)

Modifications etc. (not altering text)