Income Tax Act 2007

577 Statements about manufactured dividends U.K.

(1) Subsections (3) to (7) apply to a person who—

(a) pays a manufactured dividend as mentioned in section 573(1), and

(b) is not within the charge to corporation tax.

(2) But those subsections do not apply so far as the manufactured dividend is representative of a dividend which is—

[F1 (a) paid by a company UK REIT in respect of profits or gains (or both) of the company’s property rental business, or

(b) paid by the principal company of a group UK REIT in respect of profits or gains (or both) of members of the group as shown in the financial statement under section 532(2)(b) of CTA 2010 (statement of group’s property rental business in UK).]

[F2 (2A) In subsection (2) “gains” includes chargeable gains.]

(3) The person must, at the same time as paying the manufactured dividend, give the recipient a statement.

(4) The statement must set out—

(a) the amount of the manufactured dividend,

(b) the date of its payment, and

(c) the amount of associated tax credit.

(5) The statement must be in writing.

(6) The amount of associated tax credit is the amount of tax credit to which the recipient, or a person claiming title through or under the recipient—

(a) is entitled in respect of the manufactured dividend as a result of section 573(2) of this Act or [F3 section 784(1) of CTA 2010] (manufactured dividend treated as dividend), or

(b) would be so entitled if all the conditions for a tax credit had been met in the case of the deemed dividend and the recipient or that person.

(7) The duty under subsection (3) to give a statement is enforceable by the recipient.

(8) For provisions corresponding to subsections (3) to (7) which apply if the payer of a manufactured dividend is within the charge to corporation tax see—

(a) section 234A of ICTA (by virtue of paragraph 2(2)(b) of Schedule 23A to ICTA), if the payer is a UK resident company, and

(b) [F4 section 788 of CTA 2010], if the payer is a non-UK resident company within the charge to corporation tax.

(9) For a power for regulations to make provision corresponding to subsections (3) to (7) for a case within subsection (2), see section 973 as applied by section 918(3) (and in particular section 974(1)(k)).

Textual Amendments

F1 S. 577(2)(a)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 538(2) (with Sch. 2)

F2 S. 577(2A) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 538(3) (with Sch. 2)

F3 Words in s. 577(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 538(4) (with Sch. 2)

F4 Words in s. 577(8)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 538(5) (with Sch. 2)