SCHEDULES

SCHEDULE 6 Foreign income dividends

Schedule 13 to the Taxes Act 1988

16

1

Schedule 13 to the Taxes Act 1988 shall be amended as follows.

2

In paragraph 1 (duty to make returns), in sub-paragraph (1)—

a

paragraph (b) (duty to make returns of foreign income dividends paid and received) shall cease to have effect;

b

in paragraph (c), the words “and foreign income dividends paid” shall cease to have effect; and

c

the words following paragraph (c) (construction of references to foreign income dividends) shall cease to have effect.

3

In sub-paragraph (4) of that paragraph—

a

the word “4A(2),”, and

b

paragraph (b) and the word “and” immediately preceding it,

shall cease to have effect.

4

In paragraph 2 (content of returns)—

a

in sub-paragraph (1)—

i

for “paragraphs 7(2), 3A(2) and 9A(2)” there shall be substituted “ paragraph 7(2) ”; and

ii

paragraphs (d) to (f) (which require the return to include information in relation to foreign income dividends) shall cease to have effect; and

b

sub-paragraphs (5) and (6) (which supplement paragraphs (e) and (f) of sub-paragraph (1)) shall cease to have effect.

5

In paragraph 3 (payment of tax)—

a

in sub-paragraph (1), the words “and foreign income dividends”, and

b

in sub-paragraph (3), the words “or foreign income dividend”,

shall cease to have effect.

6

Paragraphs 3A and 3B (which make provision in relation to international headquarters companies paying foreign income dividends) shall cease to have effect.

7

In paragraph 4 (receipt of franked investment income after payment of advance corporation tax) in sub-paragraph (2) the words “or paid any foreign income dividends” shall cease to have effect.

8

Paragraph 4A (receipt of foreign income dividends after payment of advance corporation tax) shall cease to have effect.

9

Paragraph 6A (claims for set-off in respect of foreign income dividends received by a company) shall cease to have effect.

10

In paragraph 7 (qualifying distributions which are not payments and payments of uncertain nature) in sub-paragraph (3) the words “and no foreign income dividend is paid” shall cease to have effect.

11

Paragraph 9A (manufactured foreign income dividends) shall cease to have effect.

12

Sub-paragraph (2) above has effect for accounting periods beginning on or after 6th April 1999.

13

Sub-paragraphs (3) to (10) above have effect for return periods beginning on or after 6th April 1999.

14

Sub-paragraph (11) above has effect in relation to manufactured dividends which are representative of dividends paid on or after 6th April 1999.