Income and Corporation Taxes Act 1988 (c. 1)

PART XII U.K. SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER III U.K. UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.

Distributions to corporate unit holder U.K.

468R Foreign income distribution to corporate unit holder. U.K.

(1) Subsection (2) below applies where—

(a) a foreign income distribution for a distribution period is made to a unit holder by the trustees of an authorised unit trust; and

(b) on the distribution date for that distribution period the unit holder is within the charge to corporation tax.

(2) The provisions of subsections (2) to (6) of section 468Q shall have effect, with the necessary modifications, in relation to the foreign income distribution as they have effect in relation to a dividend distribution, and in particular as if for the provisions of subsection (3) of that section there were substituted the provisions of subsection (3) below.

(3) This is how to calculate the unfranked part of the foreign income distribution—

Where—

• U = the unfranked part of the foreign income distribution to the unit holder in question;

• A = the amount of any dividend distribution for the distribution period for which that foreign income distribution is made to the unit holder;

• B = the amount of that foreign income distribution;

• E = such amount of the gross income as does not derive from foreign income dividends;

• D = the amount of the gross income.

[F1 (4) No repayment shall be made of any tax which is deemed to have been deducted by virtue of the application of paragraph (b) of section 468Q(2) in relation to a foreign income distribution.]

Textual Amendments

F1 S. 468R(4) inserted (with effect in accordance with Sch. 27 para. 6(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 27 para. 6(1)