Part 11

Manufactured payments and repos
Chapter 2

Manufactured payments

Manufactured dividends on UK shares

Statements about manufactured dividends
577
1
Subsections (3) to (7) apply to a person who—
a
pays a manufactured dividend as mentioned in section 573(1), and
b
is not within the charge to corporation tax.
2
But those subsections do not apply so far as the manufactured dividend is representative of a dividend which is—
a
paid by a company to which Part 4 of FA 2006 applies (Real Estate Investment Trusts) in respect of profits of C (tax-exempt), or
b
paid by the principal company of a group to which that Part applies in respect of profits of G (property rental business).
3
The person must, at the same time as paying the manufactured dividend, give the recipient a statement.
4
The statement must set out—
a
the amount of the manufactured dividend,
b
the date of its payment, and
c
the amount of associated tax credit.
5
The statement must be in writing.
6
The amount of associated tax credit is the amount of tax credit to which the recipient, or a person claiming title through or under the recipient—
a
is entitled in respect of the manufactured dividend as a result of section 573(2) of this Act or paragraph 2(3)(b) of Schedule 23A to ICTA (manufactured dividend treated as dividend), or
b
would be so entitled if all the conditions for a tax credit had been met in the case of the deemed dividend and the recipient or that person.
7
The duty under subsection (3) to give a statement is enforceable by the recipient.
8
For provisions corresponding to subsections (3) to (7) which apply if the payer of a manufactured dividend is within the charge to corporation tax see—
a
section 234A of ICTA (by virtue of paragraph 2(2)(b) of Schedule 23A to ICTA), if the payer is a UK resident company, and
b
paragraph 2(6) to (8) of Schedule 23A to ICTA, if the payer is a non-UK resident company within the charge to corporation tax.
9
For a power for regulations to make provision corresponding to subsections (3) to (7) for a case within subsection (2), see section 973 as applied by section 918(3) (and in particular section 974(1)(k)).