Amendment of regulation 49 (calculation of unfranked part of dividend distribution)6

1

Amend regulation 49 (calculation of unfranked part of dividend distribution)7 as follows.

2

In paragraph (2), for the definition of “C” substitute—

  • C = such amount of the gross income as derives from income in respect of which the legal owner is charged to corporation tax, as reduced by—

    1. a

      any amount carried forward from an earlier accounting period and allowed as a deduction in computing the legal owner’s liability to corporation tax for the accounting period in which the last day of the distribution period falls, and

    2. b

      an amount equal to the legal owner’s net liability to corporation tax in respect of the gross income.

3

Omit paragraph (2A)8.