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Finance Act 1998

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Changes over time for: Paragraph 33

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Version Superseded: 21/07/2009

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Point in time view as at 24/07/2002.

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 1998, Paragraph 33. Help about Changes to Legislation

33U.K.After paragraph 12 of Schedule 25 to the Taxes Act 1988 there shall be inserted—

12A(1)In paragraphs 6, 8(3) and 12(5) above and this paragraph, “superior holding company” means—

(a)a company whose business consists wholly or mainly in the holding of shares or securities of companies which—

(i)are holding companies or local holding companies; or

(ii)are themselves superior holding companies; or

(b)a company which would fall within paragraph (a) above if there were disregarded so much of its business as consists in the holding of property or rights of any description for use wholly or mainly by companies which it controls and which are resident in the territory in which it is resident.

(2)For the purposes of sub-paragraphs (4A) and (4B) of paragraph 6 above, the income of a company during any period which “represents qualifying exempt activity income of its subsidiaries” is any income of the company during that period which is directly or indirectly derived from companies—

(a)which it controls, and

(b)which, throughout that period, fall within sub-paragraph (4B)(a) of that paragraph, but

(c)which are not holding companies other than local holding companies.

(3)In determining for the purposes of sub-paragraph (4A) or (4B) of paragraph 6 above the companies from which, and the proportions in which, different descriptions of income of a company are derived (whether directly or indirectly), any dividend shall be taken to be paid out of the appropriate profits.

(4)Subsections (3) and (4) of section 799 (which provide rules for determining the profits out of which a dividend is to be regarded as paid for the purpose of subsection (1) of that section) shall apply for determining the appropriate profits for the purposes of subsection (3) above as they apply for determining the relevant profits for the purposes of subsection (1) of that section.

(5)Sub-paragraphs (4) to (6) of paragraph 12 above shall apply in relation to sub-paragraph (4A) or (4B) of paragraph 6 above and a superior holding company as they apply in relation to sub-paragraph (3) or (4) of paragraph 6 above and a holding company, but taking the reference in sub-paragraph (4) of paragraph 12 above to paragraph (a) or (b) of sub-paragraph (1) of that paragraph as a reference to paragraph (a) or (b) of sub-paragraph (1) above.

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