745Rates of tax applicable to income charged under sections 720 and 727 etcU.K.
(1)Income tax at the basic rate, the savings rate or the dividend ordinary rate is not charged under section 720 or 727 in respect of any income so far as it has borne tax at that rate by deduction or otherwise.
(2)Subsection (1) does not affect the tax charged if section 724(2) applies (benefit provided out of income of person abroad charged in year of receipt).
(3)Subsection (4) applies to any income that—
(a)is treated as arising to an individual under section 721 or 728, and
(b)apart from this Chapter is dividend income,
so far as subsection (1) does not apply to the income.
(4)The charge to income tax under section 720 or, as the case may be, section 727 operates by treating the income as if it were income within section 19(2) (meaning of “dividend income”).