Finance Act 2004

Amendments of sections 231AA, 231AB and 233 of the Taxes Act 1988 U.K.

1 (1) In section 231AA of the Taxes Act 1988 (no tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement) after subsection (1) insert— U.K.

“(1A) Where subsection (1) above applies to a relevant person in respect of a qualifying distribution, section 233 (1) (certain persons to be treated as having paid income tax at Schedule F ordinary rate on certain distributions etc) shall not apply in relation to that person in respect of that distribution.

In this subsection “relevant person” means a person resident in the United Kingdom, not being a company.”.

(2) In section 231AB of that Act (no tax credit for original owner under repurchase agreement in respect of certain manufactured dividends) after subsection (1) insert—

“(1A) Where subsection (1) above applies to a relevant person in respect of a qualifying distribution, section 233 (1) (certain persons to be treated as having paid income tax at Schedule F ordinary rate on certain distributions etc) shall not apply in relation to that person in respect of that distribution.

In this subsection “relevant person” means a person resident in the United Kingdom, not being a company.”.

F1 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The amendment made by sub-paragraph (1) [F2 has] effect in relation to any qualifying distribution received by a relevant person on or after the commencement date where a manufactured dividend representative of that distribution is or was paid, or treated as paid, by him on or after that date.

(5) In sub-paragraph (4) “the commencement date” means—

(a) if the relevant person is an individual, 6th November 2003;

(b) if the relevant person is not an individual, 17th March 2004.

(6) The amendment made by sub-paragraph (2) [F3 has] effect in relation to any qualifying distribution received by a relevant person on or after the day on which this Act is passed.

Textual Amendments

F1 Sch. 24 para. 1(3) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F2 Word in Sch. 24 para. 1(4) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 654 (with Sch. 2)

F3 Word in Sch. 24 para. 1(6) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 654 (with Sch. 2)