23U.K.ITA 2007 is amended as follows.
24U.K.In section 425(5) (gift aid: deductions when calculating total amount of income tax to which individual charged for a tax year)—
(a)in paragraph (a), omit “and” at the end of sub-paragraph (v), and
(b)insert at the end “, and
(c)the amount of any tax credit under section 397A of ITTOIA 2005 (tax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents).”
25U.K.In section 504(4)(b) (provisions that do not apply to income of unauthorised unit trusts), for “section 397(1)” substitute “ sections 397(1) and 397A(2) ”.
26(1)Section 567 (meaning of “overseas securities” etc) is amended as follows.U.K.
(2)After subsection (1) insert—
“(1A)“Overseas shares” means shares in a non-UK resident company.”
(3)After subsection (2) insert—
“(2A)“Overseas securities” includes overseas shares.”
(4)Accordingly, in the heading, after “of” insert “overseas shares”, ”.
27(1)Section 592 (no tax credits for borrower under stock lending arrangement) is amended as follows.U.K.
(2)In subsection (1)—
(a)in paragraph (a), insert at the end “ or overseas shares, ”,
(b)in paragraph (c), omit “UK”, and
(c)in paragraph (d)—
(i)after “manufactured dividend” insert “ or manufactured overseas dividend ”, and
(ii)after “UK shares” insert “ or overseas shares ”.
(3)In subsection (2), after “397(1)” insert “ or 397A(2) ”.
28(1)Section 593 (no tax credits for interim holder under repo) is amended as follows.U.K.
(2)In subsection (1)—
(a)in paragraph (a), after “UK shares” insert “ or overseas shares ”,
(b)in paragraphs (b) and (d), omit “UK”, and
(c)in paragraph (e)—
(i)after “manufactured dividend” insert “ or manufactured overseas dividend ”, and
(ii)after “UK shares” insert “ or overseas shares ”.
(3)In subsection (2), after “397(1)” insert “ or 397A(2) ”.
29(1)Section 594 (no tax credits for original owner under repo) is amended as follows.U.K.
(2)In subsection (1)—
(a)in paragraph (a), after “UK shares” insert “ or overseas shares ”,
(b)in paragraph (b), omit “UK”,
(c)in paragraph (d)—
(i)after “manufactured dividend” insert “ or manufactured overseas dividend ”, and
(ii)omit “UK”, and
(d)in paragraph (e), after “manufactured dividend” insert “ or manufactured overseas dividend ”.
(3)In subsection (2), after “397(1)” insert “ or 397A(2) ”.
30(1)Section 595 (meaning of “manufactured dividend”) is amended as follows.U.K.
(2)For “has” substitute “ and “manufactured overseas dividend” have ”.
(3)For “section 573(1)(a)” substitute “ sections 573(1)(a) and 581(1)(a) ”.
31U.K.In section 989 (definitions), in the definition of “tax credit”, after “397(1)” insert “ or 397A(2) ”.