The Double Taxation Relief (Manufactured Overseas Dividends) (Amendment) Regulations 1995

Statutory Instruments

1995 No. 1551

INCOME TAX

The Double Taxation Relief (Manufactured Overseas Dividends) (Amendment) Regulations 1995

Made

16th June 1995

Coming into force

1st July 1995

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by section 791 of the Income and Corporation Taxes Act 1988(1), hereby make the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Double Taxation Relief (Manufactured Overseas Dividends) (Amendment) Regulations 1995 and shall come into force on 1st July 1995.

Interpretation

2.  In these Regulations “the principal Regulations” means the Double Taxation Relief (Taxes on Income) (General) (Manufactured Overseas Dividends) Regulations 1993(2), and “regulation 3” means regulation 3 of those Regulations.

Amendments to the principal Regulations

3.  For paragraphs (2) and (3) of regulation 3 there shall be substituted the following paragraph—

“(2) The condition specified in this paragraph is that a person to whom or for whose benefit the payment is made—

(a) is resident in a territory with the government of which the United Kingdom has made arrangements having effect under section 788 of the Taxes Act, and is not resident in the United Kingdom, and

(b) is entitled in respect of the payment to the benefit of an article of those arrangements providing for exemption from United Kingdom tax in respect of income not expressly mentioned in other articles of those arrangements.”

4.  In paragraph (4) of regulation 3—

(a) for paragraph (i) of sub-paragraph (a) and the word “and” immediately following it there shall be substituted—

“(i) a certificate given, on a form provided or authorised by the Board, by a person referred to in paragraph (2) above who is beneficially entitled to the manufactured overseas dividend, in which that person certifies that he is so beneficially entitled, and”;

(b) in paragraph (ii) of sub-paragraph (a) for “(3)” there shall be substituted “(2)”.

S. C. T. Matheson

G. H. Bush

Two of the Commissioners of Inland Revenue

16th June 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Double Taxation Relief (Taxes on Income) (General) (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/1957) (“the principal Regulations”). The amendments made extend the conditions for enabling a manufac-tured overseas dividend to be paid without deduction of tax so as to include a person in receipt of, but not beneficially entitled to, the payment, provided that he is entitled to relief from double taxation in respect of the payment under the appropriate article of arrangements made between the United Kingdom and the territory concerned for such relief, and satisfies the other conditions set out in the principal Regulations.

(1)

1988 c. 1.

(2)

S.I. 1993/1957.