Paragraph 37 Manufactured overseas dividends

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. para. 34 revoked by Taxation (International and Other Provisions) Act 2010 Sch. 10 Pt. 1
Sch. para. 32 revoked by Taxation (International and Other Provisions) Act 2010 Sch. 10 Pt. 9
Sch. para. 4 revoked by Taxation (International and Other Provisions) Act 2010 Sch. 10 Pt. 12
Sch. para. 36 revoked by Overseas Life Insurance Companies 2006 reg. 43(2) Sch. Pt. 2
Sch. para. 20 revoked by Corporation Tax Act 2010 Sch. 3 Pt. 1
Sch. para. 39 revoked by Corporation Tax Act 2010 Sch. 3 Pt. 1
Sch. para. 32 33 revoked by Corporation Tax Act 2010 Sch. 3 Pt. 2
Sch. para. 33 revoked by Taxation (International and Other Provisions) Act 2010 Sch. 10 Pt. 9

(1)

Schedule 23A^f1 is amended as follows.

(2)

Paragraph 4^f2 is amended as follows.

(3)

After sub-paragraph (1) insert—

“(1A)

Where a manufactured overseas dividend is paid as set out in sub-paragraph (1) above it shall be treated—

(a)

as an expense of the trade where a company carries on a trade to which that payment relates;

(b)

where a company has investment business to which the payment relates, for the purposes of section 75 as expenses of management;

(c)

in the case of a company carrying on life assurance business—

(i)

so far as the payment is referable to basic life assurance and general annuity business, for the purposes of section 76 as if it were an expense payable falling to be brought into account at Step 3 of subsection (7) of that section, and

(ii)

the payment is to be treated as referable to basic life assurance and general annuity business to the extent that the overseas dividend of which it is representative is or would, if it were received by the company, be so referable by virtue of section 432A.”.

(4)

In sub-paragraph (2)—

(a)

after “treated”, insert “, except in determining whether it is deductible,”;

(b)

in paragraph (b)—

(i)

for “sections 338B(4) and 350(4)” substitute “section 350(4)”; and

(ii)

for “references” substitute “reference”.

(5)

After sub-paragraph (2) insert—

“(2A)

Sub-paragraph (10) of paragraph 3 applies for the construction of the reference in sub-paragraph (2) above to an amount being deductible as it applies to references in that paragraph.”.

(6)

Paragraph 7 is amended as follows.

(7)

In sub-paragraph (1) for “notwithstanding anything in paragraphs 2 to 4 above.” substitute—

“notwithstanding anything in paragraphs 2 or 3 above or anything in paragraph 4 other than in sub-paragraph (1A).”.

Annotations

Footnotes

f1: Schedule 23A was inserted by paragraph 1 of Schedule 13 to the Finance Act 1991.
f2: Paragraph 4 has been amended: the relevant amendment is that made by paragraph 1(5) of Schedule 30 to the Finance Act 2002.