{
  "url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-23A/paragraph-4",
  "json_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-23A/paragraph-4.json",
  "legislation": "ukpga/1988/1",
  "legislation_title": "Income and Corporation Taxes Act 1988",
  "legislation_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988",
  "path": "schedule/23A/paragraph/4",
  "kind": "paragraph",
  "number": "4",
  "heading": null,
  "text": "(1) This paragraph applies in any case where, under a contract or other arrangements for the transfer of overseas securities, one of the parties (the “overseas dividend manufacturer”) is required to pay to the other (“the recipient”) an amount representative of an overseas dividend on the overseas securities; and in this Schedule the “manufactured overseas dividend” means any payment which the overseas dividend manufacturer makes in discharge of that requirement.\n(1A) Sub-paragraphs (1C) to (1E) apply where the overseas dividend of which the manufactured overseas dividend is representative is taxable.\n(1B) For this purpose an overseas dividend is “taxable” if—\n(a) it is received by the overseas dividend manufacturer and the charge to corporation tax on income applies to it, or\n(b) it is received by a person other than the overseas dividend manufacturer and the charge to corporation tax on income would have applied to it if it had been received by the overseas dividend manufacturer.\n(1C) Where the overseas dividend manufacturer carries on a trade to which the manufactured overseas dividend relates, and neither sub-paragraph (1D) nor (1E) applies, the manufactured overseas dividend is to be treated as an expense of the trade.\n(1D) Where the overseas dividend manufacturer has investment business to which the manufactured overseas dividend relates, the manufactured overseas dividend is to be treated as expenses of management of the business for the purposes of Part 16 of CTA 2009.\n(1E) Where the overseas dividend manufacturer carries on life assurance business to which the manufactured overseas dividend relates, the manufactured overseas dividend is to be treated as if, to the extent that it is referable to basic life assurance and general annuity business, it were an expense payable falling to be brought into account at step 3 of section 76(7).\n(1F) For the purposes of sub-paragraph (1E), the manufactured overseas dividend 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—\n(a) is received by the overseas dividend manufacturer and is so referable by virtue of section 432A, or\n(b) is received by a person other than the dividend manufacturer, and would have been so referable by virtue of section 432A if it had it been received by the dividend manufacturer.\n(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(4) Where a manufactured overseas dividend is paid after deduction of the amount required by section 922(2) of ITA 2007 (amount of income tax to be deducted at source), or where the amount of tax required under section 923 of that Act (income tax to be accounted for and paid) in respect of such a dividend has been accounted for and paid, then for all purposes of the Corporation Tax Acts. . . —\n(a) the manufactured overseas dividend shall be treated in relation to the recipient, and all companies claiming title through or under the recipient, as if it were an overseas dividend of an amount equal to the gross amount of the manufactured overseas dividend, but paid after the withholding therefrom, on account of overseas tax, of the relevant amount in relation to the amount deducted under section 922(2) of ITA 2007 or the whole of the amountaccounted for and paid under section 923 of that Act; and\n(b) the relevant amount in relation to the amount so deducted or the whole of the amountso accounted for and paid shall accordingly be treated in relation to the recipient, and all companies claiming title through or under the recipient, as an amount so withheld instead of as an amount on account of income tax.\nFor the meaning of references in this paragraph to the relevant amount in relation to an amount deducted under section 922(2) of ITA 2007, see paragraph 4A.\n(4A) In its application in relation to a manufactured overseas dividend by virtue of sub-paragraph (4), Part 9A of CTA 2009 (company distributions) has effect—\n(a) as if the manufactured overseas dividend were an overseas dividend on the overseas securities in question, and\n(b) subject to the following modification.\n(4B) The modification is that—\n(a) the definition of “the payer” in section 931T is to be treated as omitted, and\n(b) references in that Part to the payer are to be treated as references to the company that pays the dividend of which the manufactured overseas dividend is representative.\n(5) For the purposes of this paragraph—\n(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(b) the gross amount of a manufactured overseas dividend is an amount equal to the gross amount of that overseas dividend of which the manufactured overseas dividend is representative, as mentioned in sub-paragraph (1) above; and\n(c) the gross amount of an overseas dividend is an amount equal to the aggregate of—\n(i) so much of the overseas dividend as remains after the deduction of the overseas tax (if any) chargeable on it;\n(ii) the amount of the overseas tax (if any) so deducted; and\n(iii) the amount of the overseas tax credit (if any) in respect of the overseas dividend.\n(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(7AA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(9) Without prejudice to Chapter 9 of Part 6 of CTA 2009 (manufactured interest), the references in this paragraph to all the purposes of the Corporation Tax Acts do not include the purposes of Part 5 of that Act (loan relationships).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 23A inserted by Finance Act 1991 (c. 31, SIF 63:1), s. 58, Sch. 13 para.1 (with effect as mentioned in s. 58(3) in relation to payments made on or after such day as may be specified: 26.2.1992 specified for certain purposes by S.I. 1992/173, reg.2; 30.6.1992 specified for certain purposes by S.I. 1992/1346, regs.2, 3, 4; 21.4.1993 specified for certain purposes by S.I. 1993/933, regs.2, 3(b), 4)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 23A para. 4(1A) inserted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 37(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 23A para. 4(1A)-(1F) substituted for para. 4(1A) (with effect in accordance with Sch. 14 para. 31 of the amending Act) by Finance Act 2009 (c. 10), Sch. 14 para. 12(2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Sch. 23A para. 4(2)-(3B) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(a), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Sch. 23A para. 4(2A) inserted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 37(5)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Sch. 23A para 4(3A)(3B) inserted (with effect in accordance with s. 159(9) of the amending Act) by Finance Act 1996 (c. 8), s. 159(5)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in Sch. 23A para. 4(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(i) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in Sch. 23A para. 4(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(ii) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in Sch. 23A para. 4(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(iii) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in Sch. 23A para. 4(4) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(iv), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in Sch. 23A para. 4(4)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(v) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in Sch. 23A para. 4(4)(a) substituted (with effect in accordance with Sch. 29 para. 3(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 29 para. 1(2)(a)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in Sch. 23A para. 4(4)(a) inserted (3.1.2008 with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) (No. 3) Order 2007 (S.I. 2007/3506), arts. 1(1), 2(3)(a)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in Sch. 23A para. 4(4)(b) substituted (with effect in accordance with Sch. 29 para. 3(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 29 para. 1(2)(b)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in Sch. 23A para. 4(4)(b) inserted (3.1.2008 with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) (No. 3) Order 2007 (S.I. 2007/3506), arts. 1(1), 2(3)(b)"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in Sch. 23A para. 4(4)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(b)(vi) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in Sch. 23A para. 4(4) inserted (with effect in accordance with Sch. 29 para. 3(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 29 para. 1(2)(c)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Sch. 23A para. 4(4A)(4B) inserted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by Finance Act 2009 (c. 10), Sch. 14 para. 12(3)"
    },
    {
      "type": "F",
      "label": "F19",
      "text": "Sch. 23A para. 4(5)(a) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(c), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F20",
      "text": "Sch. 23A para. 4(6) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(d), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F21",
      "text": "Sch. 23A para. 4(7)(7AA) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(e), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F22",
      "text": "Sch. 23A para. 4(7AA) inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 159(6)"
    },
    {
      "type": "F",
      "label": "F23",
      "text": "Sch. 23A para. 4(7A) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 124"
    },
    {
      "type": "F",
      "label": "F24",
      "text": "Sch. 23A para. 4(7A) repealed (29.4.1996) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(21), Note 2"
    },
    {
      "type": "F",
      "label": "F25",
      "text": "Sch. 23A para. 4(8) repealed (28.7.2000) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(17)"
    },
    {
      "type": "F",
      "label": "F26",
      "text": "Sch. 23A para. 4(9) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 52(4) (with Sch. 15)"
    },
    {
      "type": "F",
      "label": "F27",
      "text": "Words in Sch. 23A para. 4(9) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 285(2)(b) (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F28",
      "text": "Word in Sch. 23A para. 4(9) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 238(5)(f) (with Sch. 2)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. 23A paras. 3, 4 modified (with effect in accordance with s. 153(4) of the modifying Act) by Finance Act 2003 (c. 14), s. 153(2)(a)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Sch. 23A para. 4(1) applied (1.10.1993) by S.I. 1993/2004, reg.2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1988/1/schedule/23A/paragraph/4",
    "retrieved_at": "2026-10-29T09:49:54.309394+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}