SCHEDULES
SCHEDULE 1Consequential amendments
Part 1Income and Corporation Taxes Act 1988
277
1
Amend section 686 (accumulation and discretionary trusts: special rates of tax) as follows.
2
In subsection (1) for “Schedule F” substitute “
dividend
”
.
3
In subsection (1AA)(a)—
a
for “Schedule F”, in the first place where it occurs, substitute “
distribution
”
, and
b
for “Schedule F”, in the second place where it occurs, substitute “
dividend
”
.
4
In subsection (1A) for “Schedule F” substitute “
dividend
”
.
5
In subsection (2AA) for “Schedule F” substitute “
dividend
”
.
6
In subsection (5A) for ““Schedule F type” substitute “
“distribution type
”
and for paragraphs (a) to (g) substitute—
a
income chargeable under Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies etc.);
b
income chargeable under Chapter 4 of that Part (dividends from non-UK resident companies);
c
income treated as arising to the trustees under Chapter 5 of that Part (stock dividends from UK resident companies);
d
income chargeable under Chapter 6 of that Part (release of loan to participator in close company);
e
a relevant foreign distribution chargeable under Chapter 8 of Part 5 of that Act (income not otherwise charged); or
f
any amount which, by virtue of section 686A of this Act, is treated for the purposes of the Tax Acts as if it were income to which this section applies.
7
After that subsection insert—
5B
In subsection (5A) “relevant foreign distribution” means any distribution of a company not resident in the United Kingdom which—
a
is not chargeable under Chapter 4 of Part 4 of ITTOIA 2005, but
b
would be chargeable under Chapter 3 of that Part if the company were resident in the United Kingdom.
8
In subsection (6) for “Part XVI” substitute “
Chapter 6 of Part 5 of ITTOIA 2005
”
.