4(1)Section 806A of the Taxes Act 1988 (eligible unrelieved foreign tax) is amended as follows.
(2)At the end of subsection (5) (cases where an amount of eligible unrelieved foreign tax arises: Case B: restriction by the mixer cap) add—
“But if that is so in any case by reason only of the mixer cap restricting the amount of underlying tax that is treated as mentioned in subsection (2) or (3) of section 801 in the case of a dividend paid by a company resident in the United Kingdom, the case does not fall within Case B.”.
(3)The amendment made by this paragraph has effect in relation to—
(a)dividends arising on or after 31st March 2001 to companies resident in the United Kingdom from companies resident outside the United Kingdom, and
(b)foreign tax in respect of such dividends,
(whenever the dividend mentioned in the amendment was paid).