SCHEDULES
SCHEDULE 16 Foreign income dividends
Part II Liability for and collection of advance corporation tax
2
In section 14 of the Taxes Act 1988 (advance corporation tax and qualifying distributions) in subsection (3) for the words “section 241” there shall be substituted “
sections 241 and 246F
”
.
3
1
Schedule 13 to the Taxes Act 1988 (collection of advance corporation tax) shall be amended as follows.
2
In paragraph 1 (duty to make returns) for sub-paragraph (1) there shall be substituted—
1
A company shall for each of its accounting periods make, in accordance with this Schedule, returns to the collector of—
a
the franked payments made and franked investment income received by it in that period,
b
the foreign income dividends paid and foreign income dividends received by it in that period, and
c
the advance corporation tax (if any) payable by it in respect of the franked payments made and foreign income dividends paid by it in that period;
and references in this Schedule to foreign income dividends shall be construed in accordance with Chapter VA of this Part.
3
In paragraph 1, for sub-paragraph (4) there shall be substituted—
4
Subject to paragraphs 4(2), 4A(2) and 7(3) below, no return need be made under this Schedule by a company for any period in which it has—
a
made no franked payments, and
b
paid no foreign income dividends.
4
In paragraph 2 (contents of return) for sub-paragraph (1) there shall be substituted—
1
Subject to paragraphs 7(2), 3A(2) and 9A(2) below, the return made by a company for any return period shall show—
a
the amount of the franked payments, if any, made by it in that period,
b
the amount of franked investment income, if any, received by it in that period,
c
if any advance corporation tax is payable in respect of the franked payments, the amount thereof,
d
the amount of the foreign income dividends, if any, paid by it in that period,
e
the amount of the foreign income dividends, if any, received by it in that period, and
f
if any advance corporation tax is payable in respect of the foreign income dividends paid, the amount thereof.
F15
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F16
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F17
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F18
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F19
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F110
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11
In paragraph 7 (qualifying distributions which are not payments and payments of uncertain nature) in sub-paragraph (3) for the words from “and if” to “that period” there shall be substituted “
and if in that period no franked payment (apart from that distribution or payment) is made and no foreign income dividend is paid
”
.
F112
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13
This paragraph shall have effect in relation to any return period ending after 30th June 1994.