The Manufactured Dividends (Tax) Regulations 1997

Interpretation

2.—(1) In these Regulations unless the context otherwise requires—

“the Board” means the Commissioners of Inland Revenue;

“chargeable period” has the meaning given by regulation 3;

“dividend” means a dividend on United Kingdom equities, not being a foreign income dividend within Chapter VA of Part VI of the Taxes Act(1);

“the Management Act” means the Taxes Management Act 1970(2);

“manufactured dividend” shall be construed in accordance with paragraph 2(1) of Schedule 23A;

“relevant period” means—

(a)

each complete quarter falling within a chargeable period, that is to say, each of the periods of three months ending with 31st March, 30th June, 30th September or 31st December which falls within that period;

(b)

each part of the chargeable period which is not a complete quarter and ends on the first (or only), or begins immediately after the last (or only), of those dates which falls within the chargeable period;

(c)

if none of those dates falls within a chargeable period which is an accounting period, the whole chargeable period;

“the Taxes Act” means the Income and Corporation Taxes Act 1988.

(2) References in these Regulations to a “creditable amount” in respect of a dividend or manufactured dividend received in any period—

(a) are references to the tax credit in respect of that dividend or manufactured dividend, not being an amount of tax credit to which paragraph (3) applies, or

(b) where the recipient of the dividend or manufactured dividend is a company that is not resident in the United Kingdom and the dividend or manufactured dividend is attributable to a branch or agency through which the company trades in the United Kingdom, are references to an amount of tax equal to the amount of advance corporation tax payable in respect of that dividend or manufactured dividend, or (as the case may be) the amount of advance corporation tax that would have been payable in respect of that dividend or manufactured dividend if—

(i) the person by whom the dividend or manufactured dividend was paid were a company resident in the United Kingdom, and

(ii) the manufactured dividend were a distribution by that company.

(3) This paragraph applies to the amount of tax credit in respect of a distribution which—

(a) is comprised in the UK distribution income (within the meaning given by paragraph 5B(4) of Schedule 19AC(3)) of an overseas life insurance company falling within that Schedule, and

(b) is a distribution in respect of which that company has claimed or may claim the payment of a tax credit under section 438(4) or 441A(7)(4).

(4) References in these Regulations to a section or Schedule, without more, are references to that section of, or that Schedule to, the Taxes Act.

(1)

Chapter VA of Part VI was inserted by paragraph 1 of Schedule 16 to the Finance Act 1994 (c. 9).

(2)

1970 c. 9.

(3)

Schedule 19AC was inserted by paragraph 1 of Schedule 9 to the Finance Act 1993 (c. 34), and paragraph 5B of that Schedule was inserted by paragraph 35(1) of Schedule 8 to the Finance Act 1995 (c. 4).

(4)

Section 441A was inserted by paragraph 3 of Schedule 7 to the Finance Act 1990 (c. 29).