Part 10Miscellaneous income

Chapter 6Sale of foreign dividend coupons

974Charge to tax under this Chapter

1

The charge to corporation tax on income applies to income treated under subsection (2) as arising from foreign holdings.

2

Income is treated as arising from such holdings in the following cases.

3

The first case is where a bank’s office in the United Kingdom—

a

pays over the proceeds of a sale or other realisation of dividend coupons in respect of the holdings which has been effected by the bank, or

b

carries such proceeds into an account.

4

The second case is where proceeds of sale arise from a sale of dividend coupons in respect of the holdings by a person who is not a bank or a dealer to a person dealing in coupons in the United Kingdom.

5

The amount of the income that is treated as arising is equal to the proceeds of the sale or realisation.

6

In this section “bank” has the meaning given by section 840A of ICTA.