Income and Corporation Taxes Act 1988

428 Increase of apportioned sum etc. by reference to ACT

(1) For the purposes of sections 426 and 427—

(a) the sum apportioned to any person;

(b) the amount mentioned in section 427(1)(b); and

(c) the amount to be excluded from a person’s income in accordance with section 427(4),

shall respectively be taken to consist of the aggregate of that sum or amount and such proportion of it as corresponds to the appropriate rate of advance corporation tax; but paragraphs (a) and (b) above shall not apply in the case of any apportionment so far as made by virtue of section 423(1)(b) or (c).

(2) For the purposes of paragraphs (a) and (b) of subsection (1) above, the appropriate rate of advance corporation tax is the rate applicable to a distribution made at the end of the accounting period to which the apportionment relates, and for the purposes of paragraph (c) of that subsection the appropriate rate of advance corporation tax is the rate applicable to the distribution mentioned in section 427(4)(a).