# Finance (No. 2) Act 2023, Section 253: Disqualified and qualified refundable imputation taxes

Extent: E+W+S+N.I.

(1) An amount of tax payable by a member of a multinational group is “disqualified refundable imputation tax” if—
(a) it is—
(i) as a result of a dividend made by the member, refundable to the beneficial owner of the dividend,
(ii) creditable by the beneficial owner of such a dividend against a tax liability other than a tax liability in respect of that dividend, or
(iii) refundable to an entity upon the distribution of a dividend, and
(b) it is not qualified refundable imputation tax.
(2) An amount of tax payable by a member of a multinational group is “qualified refundable imputation tax” to the extent—
(a) it is refundable or creditable to the beneficial owner of a dividend distributed by—
(i) the member, or
(ii) where the member is a permanent establishment, the main entity, and
(b) the refund is payable, or the credit is provided—
(i) under a foreign tax credit regime by a territory other than the territory that imposed the tax on the member,
(ii) to a beneficial owner of the dividend subject to tax in the territory imposing the tax payable by the member, provided the nominal rate of that tax that is at least 15%,
(iii) to a beneficial owner of the dividend who is an individual who is tax resident in that territory and who is subject to tax on the dividends as ordinary income,
(iv) to a governmental entity or an international organisation,
(v) to a resident non-profit organisation or a resident pension fund ...
(va) a resident investment entity that is not a member of the group, or
(vi) to a resident life insurance company to the extent the dividends are received in connection with a pension fund business and subject to tax in a similar manner as a dividend received by a pension fund.
(3) For the purposes of sub-paragraphs (v) and (vi) of subsection (2)(b), an entity is a resident entity if it is resident in the territory that imposed the tax, and for those purposes—
(a) a non-profit organisation or pension fund is resident in a territory if it is created and managed in that territory;
(b) an investment entity is resident in a territory if it is created and regulated in that territory;
(c) a life insurance company is resident in a territory if it is located there (see section 239).

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Source: https://www.legislation.gov.uk/ukpga/2023/30/section/253 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/section-253
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.