Part 2Double taxation relief
CHAPTER 1Double taxation arrangements and unilateral relief arrangements
Unilateral relief arrangements
14Rule 6: credit for underlying tax on dividend paid to 10% associate of payer
(1)
This section applies for the purposes of section 12(1).
(2)
Credit under section 9 for overseas tax on a dividend paid by a company (“P”) resident in the territory is allowed if conditions A and B are met.
(3)
Condition A is that—
(a)
the recipient of the dividend is a company resident in the United Kingdom, or
(b)
the recipient is a company resident outside the United Kingdom but the dividend forms part of the profits of a permanent establishment of the recipient in the United Kingdom.
(4)
Condition B is that the recipient—
(a)
directly or indirectly controls, or
(b)
is a subsidiary of a company which directly or indirectly controls,
at least 10% of the voting power in P.
(5)
For the purposes of subsection (4), the recipient is a subsidiary of another company if the other company controls, directly or indirectly, at least 50% of the voting power in the recipient.