Regulation 14 Amendment of regulation 49

After paragraph (2) of regulation 49 (calculation of unfranked part of a dividend distribution) insert—

“(2A)

For the purpose of calculating the value of C in paragraph (1) in relation to a distribution made by an authorised investment fund (“AIF1”) to a participant, the amount of any distribution from another authorised investment fund (“AIF2”) which is treated by AIF1 as an annual payment by virtue of regulation 48(2)(a), shall be treated as not deriving from franked investment income arising to AIF2.”.