Amendment of regulation 49 (calculation of unfranked part of dividend distribution)6
1
Amend regulation 49 (calculation of unfranked part of dividend distribution)7 as follows.
2
In paragraph (2), for the definition of “C” substitute—
C = such amount of the gross income as derives from income in respect of which the legal owner is charged to corporation tax, as reduced by—
- a
any amount carried forward from an earlier accounting period and allowed as a deduction in computing the legal owner’s liability to corporation tax for the accounting period in which the last day of the distribution period falls, and
- b
an amount equal to the legal owner’s net liability to corporation tax in respect of the gross income.
3
Omit paragraph (2A)8.