SCHEDULES
F1C3Schedule 23A MANUFACTURED DIVIDENDS AND INTEREST
Sch. 23A modified (19.3.1997) by Finance Act 1997 (c. 16), Sch. 7 para. 7(3)
F2Manufactured overseas dividends
Sch. 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)
F3C24
C11
This paragraph applies in any case where, under a contract or other arrangements for the transfer of overseas securities, one of the parties (the “overseas dividend manufacturer”) is required to pay to the other (“the recipient”) an amount representative of an overseas dividend on the overseas securities; and in this Schedule the “manufactured overseas dividend” means any payment which the overseas dividend manufacturer makes in discharge of that requirement.
F101A
Where a manufactured overseas dividend is paid as set out in sub-paragraph (1) above it shall be treated—
a
as an expense of the trade where a company carries on a trade to which that payment relates;
b
where a company has investment business to which the payment relates, for the purposes of F25Part 16 of CTA 2009 as expenses of management;
c
in the case of a company carrying on life assurance business—
i
so far as the payment is referable to basic life assurance and general annuity business, for the purposes of section 76 as if it were an expense payable falling to be brought into account at Step 3 of subsection (7) of that section, and
ii
the payment is to be treated as referable to basic life assurance and general annuity business to the extent that the overseas dividend of which it is representative is or would, if it were received by the company, be so referable by virtue of section 432A.
2
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F112A
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F53A
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3B
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Where a manufactured overseas dividend is paid after deduction of the amount required by F13section 922(2) of ITA 2007 (amount of income tax to be deducted at source), or where the amount of tax required under F14section 923 of that Act (income tax to be accounted for and paid) in respect of such a dividend has been accounted for and paid, then for all purposes of the F15Corporation Tax ActsF16. . . —
a
the manufactured overseas dividend shall be treated in relation to the recipient, and all F17companies claiming title through or under F17the recipient, as if it were an overseas dividend of an amount equal to the gross amount of the manufactured overseas dividend, but paid after the withholding therefrom, on account of overseas tax, of the amount deducted F17under section 922(2) of ITA 2007F23or (as the case may be) accounted for and paid under section 923 of that Act; and
5
For the purposes of this paragraph—
a
F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
the gross amount of a manufactured overseas dividend is an amount equal to the gross amount of that overseas dividend of which the manufactured overseas dividend is representative, as mentioned in sub-paragraph (1) above; and
c
the gross amount of an overseas dividend is an amount equal to the aggregate of—
i
so much of the overseas dividend as remains after the deduction of the overseas tax (if any) chargeable on it;
ii
the amount of the overseas tax (if any) so deducted; and
iii
the amount of the overseas tax credit (if any) in respect of the overseas dividend.
6
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F67AA
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47A
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 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)