57Tax underlying dividends
(1)In section 799(1A) of ICTA (computation of foreign tax on dividends), for “in force when the dividend was paid” substitute “applicable to profits of the company by which the dividend is received for the accounting period in which it is received or, where there is more than one such rate, the average rate over the whole of that accounting period”.
(2)Section 801 of ICTA (dividends paid between related companies) is amended as follows.
(3)In subsection (2), after “had been paid” insert “(at the time when the dividend mentioned in subsection (1) above is received)”.
(4)In the version of section 799(1A) set out in subsection (2B), for “in force when the dividend was paid” substitute “applicable to profits of the company by which the dividend is received for the accounting period in which it is received or, where there is more than one such rate, the average rate over the whole of that accounting period”.
(5)The amendment made by subsection (3) has effect in relation to dividends paid to a company falling within section 801(1A) of ICTA if they are paid on or after 22 April 2009.
(6)The other amendments made by this section have effect in relation to dividends paid on or after 1 April 2008.