1999 No. 1927

INCOME TAX

The Double Taxation Relief (Taxes on Income) (General) (Dividend) (Revocation) Regulations 1999

Made

Coming into force

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by section 791 of the Income and Corporation Taxes Act 19881, hereby make the following Regulations:

1

These Regulations may be cited as the Double Taxation Relief (Taxes on Income) (General) (Dividend) (Revocation) Regulations 1999 and shall come into force on 21st July 1999.

2

The Double Taxation Relief (Taxes on Income) (General) (Dividend) Regulations 19732 are hereby revoked.

Nick MontaguTim FlesherTwo of the Commissioners of Inland Revenue

(This note is not part of the Regulations)

These Regulations revoke the Double Taxation Relief (Taxes on Income) (General) (Dividend) Regulations 1973 (S.I. 1973/317) (“the 1973 Regulations”).

The 1973 Regulations enabled the Board of Inland Revenue to make arrangements with a company resident in the United Kingdom whereby, when paying a dividend to a shareholder not resident in the United Kingdom who was entitled to a tax creditor under a double taxation agreement, the company also paid an additional amount to that shareholder in respect of the shareholder’s entitlement under the double taxation agreement to payment of the excess of the amount of that tax credit over his liability to income tax. The 1973 Regulations also provided that the additional amount should be set against the advance corporation tax which the company was liable to pay for the return period in which the dividend was paid.

Following the abolition of advance corporation tax in respect of dividends paid on or after 6th April 1999 by virtue of section 31 of the Finance Act 1998 (c. 36), and the reduction of the tax credit relating to dividends paid on or after that date to one-ninth of the amount of the dividend by virtue of section 30 of the Finance (No. 2) Act 1997 (c. 58), the 1973 Regulations are no longer needed and are accordingly revoked by these Regulations.