Corporation Tax Act 2010

794 Company receiving manufactured overseas dividend from foreign payer

(1) This section applies if—

(a) a person pays a manufactured overseas dividend,

(b) section 923(1) of ITA 2007 (foreign payers of manufactured overseas dividends: the reverse charge) applies, and

(c) the amount of income tax required to be accounted for and paid under that section has been accounted for and paid.

(2) Subsections (3) and (4) 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).

(3) 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 accounted for and paid as a result of section 923 of ITA 2007.

(4) The amount mentioned in subsection (3)(b) is accordingly to be treated as an amount withheld on account of overseas tax instead of as an amount on account of income tax.

(5) 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).