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Statutory Instruments

1996 No. 1226

INCOME TAX

The Income Tax (Unapproved Manufactured Payments) Regulations 1996

Made

7th May 1996

Laid before the House of Commons

7th May 1996

Coming into force

28th May 1996

The Treasury, in exercise of the powers conferred on them by paragraph 1(1) and (2)(b) of Schedule 23A to the Income and Corporation Taxes Act 1988(1), hereby make the following Regulations:

1.  These Regulations may be cited as the Income Tax (Unapproved Manufactured Payments) Regulations 1996 and shall come into force on 28th May 1996.

2.  For the definition of “unapproved manufactured payment” in paragraph 1(1) of Schedule 23A to the Income and Corporation Taxes Act 1988(2) there shall be substituted the following definition—

Simon Burns

Michael Bates

Two of the Lords Commissioners of Her Majesty’s Treasury

7th May 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations substitute a new definition of “unapproved manufactured payment” in paragraph 1(1) of Schedule 23A to the Income and Corporation Taxes Act 1988 (“Schedule 23A”) so that the definition relates only to manufactured dividends paid in respect of United Kingdom equities.

The substitution is made in consequence of the repeal by paragraph 52(6) of Schedule 14 to the Finance Act 1996 (c. 8) of those provisions in paragraph 6 of Schedule 23A that relate to unapproved manufactured payments in respect of securities other than United Kingdom equities. The repeals coincide with the enactment of provisions contained in Chapter II of Part IV of the Finance Act 1996 relating to corporate loan relationships.

(1)

1988 c. 1. Schedule 23A was inserted by paragraph 1 of Schedule 13 to the Finance Act 1991 (c. 31). See the definition of “dividend manufacturing regulations” in paragraph 1(1) of Schedule 23A.

(2)

The definition was previously amended by S.I. 1992/2074, regulation 2A (inserted by S.I. 1995/3221, regulation 4).