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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F110

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

This paragraph shall have effect in relation to any return period ending after 30th June 1994.