PART IV ADMINISTRATIVE ARRANGEMENTS RELATING TO

SECTION 737

Interpretation of Part IV

10.  In this part of these Regulations–

• “dividend manufacturer” means any person who–

  (a)

  is a dividend manufacturer in relation to whom subsection (1) of section 737 applies, and

  (b)

  makes a payment of a manufactured dividend in respect of United Kingdom securities;

• “manufactured dividend” means any payment which is a manufactured dividend in respect of United Kingdom securities in relation to which subsection (1) of section 737 applies, other than one which is such a payment by virtue of the provisions of subsection (6) of that section for treating references to a periodical payment of interest as including references to a qualifying distribution or a dividend which is not a qualifying distribution;

• “qualifying dividend manufacturer” means a dividend manufacturer who–

  (a)

  carries on a business which from time to time involves a manufactured dividend being paid by that person to another, and

  (b)

  is capable, whether by reason of being a market maker in relation to United Kingdom securities or otherwise, of making a payment of a manufactured dividend which is an approved manufactured payment.

Provision of information relating to payments of manufactured dividends by dividend manufacturers

11.  Where a dividend manufacturer makes a payment of a manufactured dividend in respect of United Kingdom securities, he shall furnish the recipient with a voucher showing the gross amount of the payment, the amount of tax deducted, and the actual amount paid.

Modifications of section 21 of the Management Act in relation to qualifying dividend manufacturers

12.—(1) Paragraph (2) prescribes the provision of the Management Act which shall apply in relation to qualifying dividend manufacturers and paragraph (3) specifies the modifications with which that provision shall apply.

(2) The provision prescribed by this paragraph is section 21.

(3) The modifications specified by this paragraph are that section 21 shall have effect as if–

(a) references to “market maker” in subsections (1) to (5) included references to a qualifying dividend manufacturer, and

(b) in subsection (1) the words from “whose” onwards were omitted.