3A

Paragraphs (3B) to (3D) apply where, by virtue of paragraph (1), tax is not required to be accounted for and paid in the circumstances prescribed by paragraph (2)(e).

3B

For the purposes of the Corporation Tax Acts, paragraph 4(4) of Schedule 23A shall apply as if the amount of tax required under section 923 of the Income Tax Act 2007 to be accounted for and paid were amount A or amount B (whichever should be the lower) and as if that amount of tax had been accounted for and paid.

3C

For the purposes of the Income Tax Acts, section 923 of the Income Tax Act 2007 shall apply as if the amount of tax which the recipient must account for and pay were amount A or amount B (whichever should be the lower).

3D

For the purposes of paragraphs (3B) and (3C)—

a

amount A is an amount equal to the excess of the gross amount of the overseas dividend over the amount of that overseas dividend received by the overseas dividend manufacturer, and

b

amount B is an amount equal to the excess of the gross amount of the overseas dividend over the amount of the manufactured overseas dividend paid by the overseas dividend manufacturer which represents that dividend.

3E

In paragraph (3D)(b) the reference to the manufactured overseas dividend paid by the overseas dividend manufacturer does not include any payment treated as made under—

a

section 736B of the Income and Corporation Taxes Act 19888 (deemed manufactured payments in the case of stock lending arrangements), or

b

section 737A of the Income and Corporation Taxes Act 19889 (sale and repurchase of securities: deemed manufactured payments).