C2Part 15Deduction of income tax at source
C1Chapter 9Manufactured payments
Pt. 15 Ch. 9 modified (with effect in accordance with art. 2 of the commencing S.I.) by Finance Act 2007 (c. 11), s. 47(4), Sch. 13 para. 13; S.I. 2007/2483, art. 2
Manufactured dividends
918Manufactured dividends on UK shares: Real Estate Investment Trusts
1
This section applies if—
a
a person pays a manufactured dividend as mentioned in section 573(1), and
b
the manufactured dividend is representative of a dividend which is—
F2i
paid by a company UK REIT in respect of profits or gains (or both) of the company's property rental business, or
ii
paid by the principal company of a group UK REIT in respect of profits or gains (or both) of property rental business of members of the group.
2
This section applies only so far as the manufactured dividend is representative of such a dividend.
3
If the payer—
a
is UK resident, or
b
pays the manufactured dividend in the course of a trade carried on through a branch or agency in the United Kingdom,
regulations under section 973 apply to the payer as they apply to a F3company UK REIT, with any necessary modifications.
4
The Treasury may by regulations provide, in a case where the payer—
a
is non-UK resident, and
b
pays the manufactured dividend otherwise than in the course of a trade carried on through a branch or agency in the United Kingdom,
for a United Kingdom recipient of the manufactured dividend to be liable to account for and pay income tax in respect of it.
5
A United Kingdom recipient is a recipient who—
a
is UK resident, or
b
is non-UK resident but receives the manufactured dividend for the purposes of a trade carried on by the recipient through a branch or agency in the United Kingdom.
6
The amount of income tax which the recipient may be liable to account for and pay under regulations under subsection (4) is equal to the amount of the sum representing income tax which the payer would have been required to deduct in accordance with regulations under section 973.
7
For the purposes of—
a
regulations under section 973 as applied by subsection (3), and
b
regulations under subsection (4),
the “gross amount” of a manufactured dividend to which this section applies is equal to the gross amount of the dividend of which it is representative.
F18
In subsection (1) “gains” includes chargeable gains.
Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)