# The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004, Paragraph 37: Manufactured overseas dividends


(1) Schedule 23A is amended as follows.
(2) Paragraph 4 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).”.

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Source: https://www.legislation.gov.uk/uksi/2004/2310/schedule/paragraph/37 (the official version)
Page: https://openlegislation.uk/finance-act-2004-sections-38-to-40-and-45-and-schedule-6-consequential-amendment-of-enactments-order-2004/schedule/paragraph-37
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.