PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
CHAPTER VIII MISCELLANEOUS AND SUPPLEMENTAL
125F1Annual payments for dividends or non-taxable consideration
M1C11
2
Subject to the following provisions of this section, subsection (1) above applies to any payment which—
F3a
is not interest but is—
i
an annuity or other annual payment charged with income tax under Part 5 of ITTOIA 2005 otherwise than as relevant foreign income; or
ii
an annuity or other annual payment charged with corporation tax under Case III of Schedule D; and
F2b
is made under a liability incurred for consideration in money or money's worth all or any of which—
i
consists of, or of the right to receive, a dividend, or
ii
is not required to be brought into account in computing for the purposes of F8. . . corporation tax the income of the person making the payment.
3
Subsection (1) above does not apply to—
a
any payment which in the hands of the recipient is income falling within F4section 627(1) or (2)(a) of ITTOIA 2005;
b
any payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest;F9 or
c
any annuity granted in the ordinary course of a business of granting annuities;F10. . .
d
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
In the application of this section to Scotland the references in subsection (3) above to settled property shall be construed as references to property held in trust.
5
Subsection (1) above applies to a payment made after 5th April 1988 irrespective of when the liability to make it was incurred.