17U.K.ITTOIA 2005 is amended as follows.
18U.K.In section 403(1) (dividends from non-UK resident companies: income charged), omit “full”.
19U.K.In section 406 (dividends of non-UK resident companies: later charge where cash dividends retained in SIPs are paid over), after subsection (4) insert—
“(4A)For the purposes of determining—
(a)whether the participant is entitled to a tax credit under section 397A in respect of a cash dividend so charged, and
(b)the amount of that tax credit,
that section applies as it has effect for the tax year in which the cash dividend is paid over.”
20U.K.In section 407 (dividends of non-UK resident companies: dividend payment when dividend shares cease to be subject to SIP), after subsection (4) insert—
“(4A)For the purposes of determining—
(a)whether the participant is entitled to a tax credit under section 397A in respect of a dividend so charged, and
(b)the amount of that tax credit,
that section applies as it has effect for the tax year in which the shares cease to be subject to the plan.”
21U.K.In section 408 (reduction in tax due in cases within section 407), after subsection (2) insert—
“(2A)In subsection (2) “the tax due” means the amount of tax due as a result of section 407 after deduction of the tax credit determined in accordance with section 407(4A).”
22U.K.In section 688(1) (income not otherwise charged), omit “full”.