SCHEDULES

SCHEDULE 19Income tax credits for foreign distributions

ITTOIA 2005

4

(1)

Section 397B (tax credits under section 397A: manufactured overseas dividends) is amended as follows.

(2)

In subsection (2), omit “that is not an offshore fund”.

(3)

In subsection (3), after “representative” insert “ ;the original dividend ”).

(4)

After subsection (3) insert—

“(3A)

Section 397AA has effect as if—

(a)

the references in subsections (2)(a), (3) and (4)(a) to the relevant distribution were to the original dividend, and

(b)

the reference in subsection (2)(b) to the company that makes the relevant distribution were to the company that makes the original dividend.”

(5)

In subsection (4), in the definition of “gross amount”, for “a manufactured” substitute “ an ”.