Corporation Tax Act 2010

793 Section 792: amount treated as withheld

(1) Except where subsection (3) applies, the amount mentioned in section 792(3)(b) is the amount deducted under section 922(2) of ITA 2007.

(2) Subsection (3) applies if the deduction under section 922(2) of ITA 2007 is made in respect of a manufactured overseas dividend that is treated as paid under section 925A of ITA 2007 (creditor repos).

(3) The amount mentioned in section 792(3)(b) is—

(a) if subsection (4) applies, the amount deducted under section 922(2) of ITA 2007,

(b) if subsection (5) applies—

(i) the amount deducted under section 922(2) of ITA 2007, less

(ii) the excess mentioned in subsection (5)(b), and

(c) in any other case, nil.

(4) This subsection applies if—

(a) an amount is actually paid by way of manufactured overseas dividend,

(b) the amount so paid equals the relevant net amount, and

(c) it is reasonable to assume that, in deciding the repurchase price of the securities, no account was taken of the fact that the amount would be so paid.

(5) This subsection applies if—

(a) an amount is actually paid by way of manufactured overseas dividend,

(b) the amount so paid exceeds the relevant net amount, and

(c) it is reasonable to assume that, in deciding the repurchase price of the securities, no account was taken of the fact that the amount would be so paid.

(6) In subsections (4)(b) and (5)(b) “the relevant net amount” means—

(a) the gross amount of the overseas dividend of which the manufactured overseas dividend is representative, less

(b) the amount deducted under section 922(2) of ITA 2007.

(7) In subsections (4)(c) and (5)(c)—

(a) “the securities” refers to the securities in respect of which the overseas dividend of which the manufactured overseas dividend is representative is paid, and

(b) the references to the repurchase price of those securities are to the price at which the payer of the manufactured overseas dividend is entitled or obliged to sell the securities, or similar securities, to the recipient of the manufactured overseas dividend.