PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER III UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.

Interest distributions

468N Deduction of tax (mixed funds).
(1) Subsection (2) below applies where—
(a) an interest distribution is made for a distribution period to a unit holder; and
(b) the gross income entered in the distribution accounts for the purposes of computing the total amount available for distribution to unit holders does not derive from eligible income entirely.
(2) Where this subsection applies, the obligation to deduct under section 349(2) shall not apply to the relevant amount of the interest distribution to the unit holder if the residence condition is on the distribution date fulfilled with respect to him.
(3) Section 468O makes provision with respect to the circumstances in which the residence condition is fulfilled with respect to a unit holder.
(4) This is how to calculate the relevant amount of the interest distribution—
R=AxBC
Where—
R = the relevant amount;
A = the amount of the interest distribution before deduction of tax to the unit holder in question;
B = such amount of the gross income as derives from eligible income;
C = the amount of the gross income.
(5) In subsection (4) above the references to the gross income are references to the gross income entered as mentioned in subsection (1)(b) above.