Corporation Tax Act 2010

Manufactured overseas dividends: overseas dividends paid before 22 April 2009

92 (1) In relation to overseas dividends paid before 22 April 2009, Chapter 3 of Part 17 has effect with the following modifications (in addition to any modifications that may apply under paragraph 90).

(2) The following is substituted for section 792—

“792 Treatment of recipient of manufactured overseas dividend

(1) This section applies if—

(a) a person pays a manufactured overseas dividend, and

(b) the condition in subsection (2) is met.

(2) The condition is that—

(a) in a case within section 922(1) of ITA 2007 (manufactured overseas dividends: payments by UK residents etc), the amount required to be deducted as a result of that section has been deducted, or

(b) in a case within section 923(1) of that Act (foreign payers of manufactured overseas dividends: the reverse charge), the amount of income tax required to be accounted for and paid as a result of that section has been accounted for and paid.

(3) Subsections (4) and (5) apply in relation to the recipient, and companies claiming title through or under the recipient, for all purposes of the Corporation Tax Acts except Part 5 of CTA 2009 (loan relationships).

(4) The manufactured overseas dividend is treated as if it were—

(a) an overseas dividend of an amount equal to the gross amount of the manufactured overseas dividend, but

(b) paid after the withholding from it, on account of overseas tax, of the amount deducted as a result of section 922 of ITA 2007 or, as the case may be, accounted for and paid as a result of section 923 of that Act.

(5) The amount so deducted or so accounted for and paid is accordingly to be treated as an amount withheld on account of overseas tax instead of as an amount on account of income tax.

(6) Subsections (3) and (4) are subject to—

(a) section 797 (manufactured overseas dividends: amounts exceeding underlying payments), and

(b) section 798 (manufactured overseas dividends less than underlying payments).”

(3) Sections 793 and 794 are omitted.

(4) In this paragraph “overseas dividend” has the same meaning as in Part 17.