Regulation 48 General

(1)

Paragraph (2) applies if—

(a)

a dividend distribution for a distribution period is made to a participant by the legal owner of an authorised investment fund, and

(b)

on the distribution date for that distribution period the participant is within the charge to corporation tax.

(2)

For the purpose of computing the corporation tax chargeable upon the participant, the unfranked part of the dividend distribution is treated—

(a)

as an annual payment and not as a dividend distribution or an interest distribution; and

(b)

as having been received by the participant after deduction of income tax at the lower rate for the year of assessment in which the distribution date falls, from a corresponding gross amount.

(3)

Regulation 49 explains how to calculate the unfranked part of the dividend distribution.