SCHEDULES
SCHEDULE 16 Foreign income dividends
Part I The new Chapter
F11
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Liability for and collection of advance corporation tax
F22
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F48
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F49
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F410
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F311
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F412
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F313
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III Insurance companies etc.
F54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
1
Section 434 of the Taxes Act 1988 (franked investment income etc.) shall be amended as follows.
F62
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F74
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F75
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F86
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F97
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F119
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV Other provisions
Penalties
10
In the first column of the Table in section 98 of the M1Taxes Management Act 1970 (penalties for failure to furnish particulars etc.) the following entry shall be inserted after the entry relating to section 234 of the principal Act— “
section 246H;
”
.
Small companies’ relief
F1211
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses of management
F1312
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group income
F1413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mutual business etc.
F1514
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discretionary trusts
F1615
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal representatives
F1716
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase and sale of securities
17
1
Section 731 of the Taxes Act 1988 (application and interpretation of provisions relating to purchase and sale of securities) shall be amended as follows.
2
In subsection (9), in the definition of “interest” the words from “and in applying” to the end of paragraph (b) shall be omitted.
3
The following subsections shall be inserted after subsection (9)—
9A
In applying references in the relevant provisions to interest in relation to a qualifying distribution other than a foreign income dividend—
a
“gross interest” means the qualifying distribution together with the tax credit to which the recipient of the distribution is entitled in respect of it, and
b
“net interest” means the qualifying distribution exclusive of any such tax credit.
9B
In applying references in the relevant provisions to interest in relation to a foreign income dividend paid in circumstances where section 246D(1), (3) or (4) applies—
a
“gross interest” means the amount of the income arrived at under section 246D(1) by reference to the dividend, and
b
“net interest” means the dividend.
9C
Where a foreign income dividend is paid in circumstances other than those where section 246D(1), (3) or (4) applies—
a
in applying section 735(2) in relation to the dividend the words “the gross amount corresponding with” shall be disregarded, and
b
in applying references in the relevant provisions (including section 735(2)) to interest in relation to the dividend “net interest” means the dividend.
9D
In this section “foreign income dividend” shall be construed in accordance with Chapter VA of Part VI.
Manufactured dividends
F1818
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1919
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest on tax overpaid
20
1
Section 826 of the Taxes Act 1988 shall be amended as follows.
2
In subsection (1) the following paragraph shall be inserted after paragraph (a)—
aa
a repayment falls to be made under sections 246N and 246Q of advance corporation tax paid by a company in respect of distributions made by it in such an accounting period; or
F203
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .