The Income Tax (Manufactured Overseas Dividends) Regulations 1993

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Changes and effects yet to be applied to Regulation 9:

reg. 2(1) words inserted by S.I. 2010/925 reg. 3
reg. 2(1) words inserted by S.I. 2011/1787 reg. 3(2)
reg. 2(1) words substituted by S.I. 2011/1787 reg. 3(3)
reg. 2(3) added by S.I. 2003/2582 reg. 3(3)
reg. 3(5)(6) added by S.I. 2007/2487 reg. 3(3)
reg. 4(2)(c) and word inserted by S.I. 2011/1787 reg. 4(b)
reg. 4(4)-(6) substituted for reg. 4(4) by S.I. 2003/2582 reg. 5(3)
reg. 5(1A)(1B) inserted by S.I. 2003/2582 reg. 6(3)
reg. 5(1A) words inserted by S.I. 2004/2310 Sch. para. 73(3)
reg. 5(2)(b)(iv) and word inserted by S.I. 2011/1787 reg. 5(b)
reg. 5A inserted by S.I. 2007/2487 reg. 4
reg. 5A(1)(b) word substituted by S.I. 2011/1787 reg. 6(2)
reg. 5A(5) words inserted by S.I. 2011/2503 reg. 4(2)
reg. 5A(5A) inserted by S.I. 2011/1787 reg. 6(3)
reg. 5A(6) words inserted by S.I. 2011/2503 reg. 4(3)
reg. 5B inserted by S.I. 2011/2503 reg. 5
reg. 5B(6) words inserted by S.I. 2013/504 reg. 31(2)(a)
reg. 5B(6) words inserted by S.I. 2013/504 reg. 31(2)(c)
reg. 5B(6) words omitted by S.I. 2019/662 reg. 23(a)
reg. 5B(6) words omitted by S.I. 2019/662 reg. 23(b)
reg. 5B(6) words substituted by S.I. 2013/504 reg. 31(2)(b)
reg. 5B(6) words substituted by S.I. 2017/701 Sch. 5 para. 1
reg. 6(4A) inserted by S.I. 2003/3143 reg. 5(2)
reg. 6A(6) words omitted by S.I. 2010/925 reg. 4
reg. 7(2)(ca) inserted by S.I. 2011/1787 reg. 7(b)
reg. 7(3A)-(3E) omitted by S.I. 2009/2811 reg. 2
reg. 7(3A)-(3E) substituted for reg. 7(3A) by S.I. 2007/2487 reg. 5
reg. 7(4A) inserted by S.I. 2003/3143 reg. 5(3)
reg. 9(1) words inserted by S.I. 2010/925 reg. 5(2)
reg. 9(1A)(a) words inserted by S.I. 2011/1787 reg. 8(a)
reg. 9(1A)(b) words inserted by S.I. 2011/1787 reg. 8(b)
reg. 9(2A) words substituted by S.I. 2007/2487 reg. 7
reg. 9(4B) substituted by S.I. 2010/925 reg. 5(3)
reg. 9(4B) words substituted by S.I. 2007/2487 reg. 6
reg. 9A(1) words inserted by S.I. 2011/1787 reg. 9
reg. 9A(2A)(2B) inserted by S.I. 2003/2582 reg. 10(2)
reg. 9A(2C) inserted by S.I. 2010/925 reg. 7
reg. 9ZA inserted by S.I. 2010/925 reg. 6
reg. 10(1A) inserted by S.I. 2011/1787 reg. 10
reg. 14(1)(b)(ba) substituted for reg. 14(1)(b) by S.I. 2003/2582 reg. 12(2)
reg. 14(3A) inserted by S.I. 2003/3143 reg. 5(4)

Changes and effects yet to be applied to the whole Instrument associated Parts and Chapters:

Whole provisions yet to be inserted into this Instrument (including any effects on those provisions):

reg. 2(1) words inserted by S.I. 2010/925 reg. 3
reg. 2(1) words inserted by S.I. 2011/1787 reg. 3(2)
reg. 2(1) words substituted by S.I. 2011/1787 reg. 3(3)
reg. 2(3) added by S.I. 2003/2582 reg. 3(3)
reg. 3(5)(6) added by S.I. 2007/2487 reg. 3(3)
reg. 4(2)(c) and word inserted by S.I. 2011/1787 reg. 4(b)
reg. 4(4)-(6) substituted for reg. 4(4) by S.I. 2003/2582 reg. 5(3)
reg. 5(1A)(1B) inserted by S.I. 2003/2582 reg. 6(3)
reg. 5(1A) words inserted by S.I. 2004/2310 Sch. para. 73(3)
reg. 5(2)(b)(iv) and word inserted by S.I. 2011/1787 reg. 5(b)
reg. 5A inserted by S.I. 2007/2487 reg. 4
reg. 5A(1)(b) word substituted by S.I. 2011/1787 reg. 6(2)
reg. 5A(5) words inserted by S.I. 2011/2503 reg. 4(2)
reg. 5A(5A) inserted by S.I. 2011/1787 reg. 6(3)
reg. 5A(6) words inserted by S.I. 2011/2503 reg. 4(3)
reg. 5B inserted by S.I. 2011/2503 reg. 5
reg. 5B(6) words inserted by S.I. 2013/504 reg. 31(2)(a)
reg. 5B(6) words inserted by S.I. 2013/504 reg. 31(2)(c)
reg. 5B(6) words omitted by S.I. 2019/662 reg. 23(a)
reg. 5B(6) words omitted by S.I. 2019/662 reg. 23(b)
reg. 5B(6) words substituted by S.I. 2013/504 reg. 31(2)(b)
reg. 5B(6) words substituted by S.I. 2017/701 Sch. 5 para. 1
reg. 6(4A) inserted by S.I. 2003/3143 reg. 5(2)
reg. 6A(6) words omitted by S.I. 2010/925 reg. 4
reg. 7(2)(ca) inserted by S.I. 2011/1787 reg. 7(b)
reg. 7(3A)-(3E) omitted by S.I. 2009/2811 reg. 2
reg. 7(3A)-(3E) substituted for reg. 7(3A) by S.I. 2007/2487 reg. 5
reg. 7(4A) inserted by S.I. 2003/3143 reg. 5(3)
reg. 9(1A)(a) words inserted by S.I. 2011/1787 reg. 8(a)
reg. 9(1A)(b) words inserted by S.I. 2011/1787 reg. 8(b)
reg. 9(2A) words substituted by S.I. 2007/2487 reg. 7
reg. 9(4B) substituted by S.I. 2010/925 reg. 5(3)
reg. 9(4B) words substituted by S.I. 2007/2487 reg. 6
reg. 9A(1) words inserted by S.I. 2011/1787 reg. 9
reg. 9A(2A)(2B) inserted by S.I. 2003/2582 reg. 10(2)
reg. 9A(2C) inserted by S.I. 2010/925 reg. 7
reg. 9ZA inserted by S.I. 2010/925 reg. 6
reg. 10(1A) inserted by S.I. 2011/1787 reg. 10
reg. 14(1)(b)(ba) substituted for reg. 14(1)(b) by S.I. 2003/2582 reg. 12(2)
reg. 14(3A) inserted by S.I. 2003/3143 reg. 5(4)

Offsetting of tax by overseas dividend manufacturersU.K.

9.—[F1(1) In the circumstances prescribed by paragraph (2) and subject to paragraph (4), a person who is an overseas dividend manufacturer in any chargeable period shall be entitled to set off the amounts specified in paragraph (1A) against the sums specified in paragraph (1B).

(1A) The amounts specified in this paragraph are—

(a)amounts of overseas tax in respect of overseas dividends received by the overseas dividend manufacturer in the chargeable period;

(b)amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him;

(c)amounts deducted under paragraph 4(2) of Schedule 23A from manufactured overseas dividends so received by him;

(d)amounts accounted for and paid under paragraph 4(3) of Schedule 23A in respect of manufactured overseas dividends so received by him;

(e)amounts accounted for and paid under regulation 4(3) in respect of manufactured overseas dividends so received by him.

(1B) The sums specified in this paragraph are sums due from the overseas dividend manufacturer on account of the amounts deducted by him under paragraph 4(2) of Schedule 23A from the manufactured overseas dividends paid by him in the chargeable period.]

(2) The circumstances prescribed by this paragraph are where–

(a)the overseas dividend manufacturer is an approved United Kingdom intermediary,

F2(aa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the overseas dividends and manufactured overseas dividends referred to in [F3paragraph (1A)], if received by an overseas dividend manufacturer within sub– paragraph (a) of this paragraph who carries on a business in the ordinary course of which he receives overseas dividends and manufactured overseas dividends and pays manufactured overseas dividends, are such that a profit on the sale of the overseas securities to which those overseas dividends and manufactured overseas dividends relate would form part of the trading profits of that business,

F4(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)except in a case to which paragraph (3) applies, the overseas dividends or, as the case may be, the manufactured overseas dividends received by him, do not fall to be matched, in accordance with regulation 10(1), against manufactured overseas dividends paid by him in that period.

(3) This paragraph applies to a case where, under regulation 10(1), overseas dividends in respect of which overseas tax is payable received by the overseas dividend manufacturer in any chargeable period, and manufactured overseas dividends so received [F5on or in respect of the making of which overseas tax has been charged or] from which tax has been deducted or in respect of which tax falls to be accounted for and paid as mentioned in [F6paragraph (1A)] above, are matched against manufactured overseas dividends paid by him under deduction of tax in that period.

(4) Where paragraph (3) applies in respect of any chargeable period, the overseas dividend manufacturer shall be entitled to set off against each other–

(a)the tax [F7referred to in that paragraph that is] attributable to the matched overseas dividends and manufactured overseas dividends received, and

(b)the tax [F8referred to in that paragraph that is] attributable to the matched manufactured overseas dividends paid.

[F9(4A) Subject to paragraphs (4B) and (5), where overseas dividends or manufactured overseas dividends received by the overseas dividend manufacturer in any chargeable period fall to be matched, in accordance with regulation 10(1), against manufactured overseas dividends paid by him in that period, relief under Part XVIII of the Taxes Act may not be claimed by the overseas dividend manufacturer in respect of any tax referred to in paragraph (1A) that is attributable to those overseas dividends or manufactured overseas dividends received.

(4B) Where overseas dividends or manufactured overseas dividends received by the overseas dividend manufacturer in any chargeable period fall to be matched, in accordance with regulation 10(1), against manufactured overseas dividends to which regulation 5 applies that are paid by him in that period, relief under section 811 of the Taxes Act shall be given to the overseas dividend manufacturer in respect of any tax referred to in paragraph (1A) that is attributable to those overseas dividends or manufactured overseas dividends received.

(4C) Subject to paragraph (5), where tax referred to in paragraph (1A) that is attributable to overseas dividends or manufactured overseas dividends received by the overseas dividend manufacturer in any chargeable period is set off, in accordance with this regulation, against tax referred to in paragraph (1B) that is attributable to manufactured overseas dividends paid by him in that period, relief under Part XVIII of the Taxes Act may not be claimed by the overseas dividend manufacturer in respect of any tax referred to in paragraph (1A) that is attributable to those overseas dividends or manufactured overseas dividends received.]

(5) Except in a case to which paragraph (3) applies, where in accordance with this regulation tax is set off by an overseas dividend manufacturer in any chargeable period and in relation to that period the sum of the overseas tax and amounts referred to in [F10paragraph (1A)] exceeds the total amount of the sums due as mentioned in [F11paragraph (1B)], relief under Part XVIII of the Taxes Act may be claimed by the overseas dividend manufacturer in respect of the amount of the excess.

(6) Where in accordance with this regulation tax is set off by an overseas dividend manufacturer in any chargeable period and in relation to that period the total amount of the sums due from the overseas dividend manufacturer as mentioned in [F12paragraph (1B)] exceeds the sum of the overseas tax and amounts referred to in [F13paragraph (1A)], the amount of the excess shall be payable to the Board.

(7) References to overseas tax in this regulation are references to the amount of such tax which is eligible for relief under Part XVIII of the Taxes Act either–

(a)pursuant to arrangements made with the government of the overseas territory specified in paragraph (8) which have effect by virtue of section 788 of the Taxes Act and relate to the overseas dividend [F14or manufactured overseas dividend] concerned, or

(b)by virtue of other provisions of Part XVIII of the Taxes Act other than section 790(5)(c)(ii) of that Act.

(8) The overseas territory specified [F15in this paragraph—

(i)so far as overseas dividends are concerned, is the territory of the government or public or local authority which issued the securities in question or, where the securities were issued by any other body of persons not resident in the United Kingdom, the territory under whose law that tax would have been payable;

(ii)so far as manufactured overseas dividends are concerned, is the territory of the government by which tax is charged on, or in respect of, the making of the manufactured overseas dividend concerned.]

Textual Amendments

F1Reg. 9(1)-(1B) substituted for reg. 9(1) (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(a)

F2Reg. 9(2)(aa) omitted (6.11.1996) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(b)(i)

F3Words in reg. 9(2)(b) substituted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(b)(ii)

F4Reg. 9(2)(c) and word omitted (28.5.1996) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 1996 (S.I. 1996/1229), regs. 1, 5

F5Words in reg. 9(3) inserted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(c)(i)

F6Words in reg. 9(3) substituted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(c)(ii)

F7Words in reg. 9(4)(a) inserted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(d)

F8Words in reg. 9(4)(b) inserted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(d)

F9Reg. 9(4A)-(4C) substituted for reg. 9(4A) (1.7.1997) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 1997 (S.I. 1997/988), regs. 1, 6

F10Words in reg. 9(5) substituted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(f)(i)

F11Words in reg. 9(5) substituted (6.11.1996) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 1996 (S.I. 1996/2643), regs. 1, 10(f)(ii)