Taxation (International and Other Provisions) Act 2010

14Rule 6: credit for underlying tax on dividend paid to 10% associate of payerU.K.
This section has no associated Explanatory Notes

(1)This section applies for the purposes of section 12(1).

(2)Credit under section 9 for overseas tax on a dividend paid by a company (“P”) resident in the territory is allowed if conditions A and B are met.

(3)Condition A is that—

(a)the recipient of the dividend is a company resident in the United Kingdom, or

(b)the recipient is a company resident outside the United Kingdom but the dividend forms part of the profits of a permanent establishment of the recipient in the United Kingdom.

(4)Condition B is that the recipient—

(a)directly or indirectly controls, or

(b)is a subsidiary of a company which directly or indirectly controls,

at least 10% of the voting power in P.

(5)For the purposes of subsection (4), the recipient is a subsidiary of another company if the other company controls, directly or indirectly, at least 50% of the voting power in the recipient.