Finance Act 2009

Section 40

SCHEDULE 19 U.K. Income tax credits for foreign distributions

ITTOIA 2005 U.K.

1 U.K. ITTOIA 2005 is amended as follows.

2 (1) Section 397A (tax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents) is amended as follows. U.K.

F1 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(4) In subsection (7), omit the definition of “minority shareholder”.

Textual Amendments

F1 Sch. 19 para. 2(2)(3) omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F2 3 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 19 para. 3 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F3 4 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 19 para. 4 omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 1 para. 52, Sch. 29 para. 40

F4 5 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 19 para. 5 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

6 (1) Section 397C (meaning of “minority shareholder”) is amended as follows. U.K.

(2) In subsection (1)—

F5 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) omit “non-UK resident”.

F6 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 19 para. 6(2)(a) omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F6 Sch. 19 para. 6(3)(4) omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F7 7 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Sch. 19 para. 7 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

8 U.K. In section 873 (orders and regulations), after subsection (3) insert—

“(4) Further, subsection (2) does not apply if any other Parliamentary procedure is expressly provided to apply in relation to the order or regulations.”

Consequential amendments of other Acts U.K.

F8 9 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 Sch. 19 para. 9 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

10 U.K. In ICTA—

F9 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in section 840ZA(3)(b) (meaning of “tax advantage”), after “397(1)” insert “ or 397A(1) ”.

Textual Amendments

F9 Sch. 19 para. 10(a) omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F10 11 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F10 Sch. 19 para. 11 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

F11 12 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F11 Sch. 19 para. 12 omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

13 U.K. In ITA 2007—

F12 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

for “397A(2)” substitute “ 397A(1) ”.

Textual Amendments

F12 Sch. 19 para. 13(a) omitted (6.4.2014) by virtue of The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 41(d) (with reg. 32)

F13 Sch. 19 para. 13(b) omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 1 para. 52, Sch. 29 para. 40

F14 Sch. 19 para. 13(c) omitted (with effect in accordance with Sch. 1 para. 73 to the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 66(2)

Commencement U.K.

14 (1) The amendments made by this Schedule have effect in relation to— U.K.

(a) qualifying distributions arising on or after 22 April 2009,

(b) cash dividends paid over to a person under paragraph 68(4) of Schedule 2 of ITEPA 2003 on or after 22 April 2009,

(c) dividends treated under section 407 of ITTOIA 2005 as paid to a person on or after 22 April 2009, and

(d) manufactured overseas dividends that are representative of a distribution within paragraph (a), (b) or (c).

(2) In this paragraph—

• “manufactured overseas dividend” has the same meaning as in Chapter 2 of Part 11 of ITA 2007;

• “qualifying distribution” has the meaning given in section 989 of ITA 2007.

[F15 (3) Section 873(4) of ITTOIA 2005 (inserted by paragraph 8), so far as relating to any order or regulations made after the passing of FA 2016 under any provision of ITTOIA 2005 other than section 397BA of that Act, has effect as if sub-paragraph (1) did not apply in relation to it.]

Textual Amendments

F15 Sch. 19 para. 14(3) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 1 para. 66(3)