PART VI COMPANY DISTRIBUTIONS, TAX CREDITS ETC
C1Chapter VA Foreign Income Dividends
F1 Companies: payments and receipts
Pt. 6 Ch. 5A (ss. 246A-246Y) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 1
246F Calculation of ACT where company receives foreign income dividend.
1
Where in any accounting period a company receives foreign income dividends, the company shall not be liable to pay advance corporation tax in respect of foreign income dividends paid by it in that period unless the amount of the foreign income dividends paid by it in that period exceeds the amount of the foreign income dividends received by it in that period.
2
If in an accounting period there is such an excess, advance corporation tax shall be payable on an amount equal to the excess.
3
If the amount of foreign income dividends received by a company in an accounting period exceeds the amount of the foreign income dividends paid by it in that period the excess shall be carried forward to the next accounting period and treated for the purposes of this section (including any further application of this subsection) as foreign income dividends received by the company in that period.
4
This section shall have effect subject to section 246T and paragraph 2(6) of Schedule 23A.
5
Without prejudice to section 238(5), Schedule 13 shall apply for the purpose of regulating the manner in which effect is to be given to this section.
Pt. 6 Ch. 5A modified (retrospective to 8.10.1996) by Finance Act 1997 (c. 16), Sch. 7 para. 2(1)(3)