The Manufactured Dividends (Tax) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision for accounting for tax in relation to manufactured dividends on United Kingdom equities other than manufactured dividends paid by companies resident in the United Kingdom.

Regulation 1 provides for citation and commencement and regulations 2 and 3 for interpretation.

Regulation 4 specifies the criteria for determining whether the payer or the recipient of a manufactured dividend is liable to account for tax in respect of the manufactured dividend.

Regulation 5 provides for liability for tax where the dividend manufacturer receives the dividend of which the manufactured dividend is representative.

Regulation 6 makes provision for accounting for tax by recipients of manufactured dividends that are companies resident in the United Kingdom.

Regulation 7 makes provision for accounting for tax by payers or recipients of manufactured dividends other than companies resident in the United Kingdom, including provision for interest on unpaid tax and assessments.

Regulation 8 provides for returns to be made by persons to whom regulation 7 applies, and for assessments and penalties in connection with such returns.

Regulation 9 enables companies not resident in the United Kingdom who are liable to account for tax under regulation 7 in respect of manufactured dividends paid by them to set off that tax against corporation tax on their profits.