1 Citation, commencement and effect

These Regulations may be cited as the Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2009, shall come into force at 1.15 pm on 21st October 2009, and shall have effect in relation to manufactured overseas dividends made or treated as made on or after 1.15 pm on that day.

NOTES
Initial Commencement
Specified date

Specified date: 21 October 2009 at 1315 hours: see above.

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2 Amendment of the Income Tax (Manufactured Overseas Dividends) Regulations 1993

2Amendment of the Income Tax (Manufactured Overseas Dividends) Regulations 1993

(1)    The Income Tax (Manufactured Overseas Dividends) Regulations 1993 are amended as follows.

(2)    In regulation 7 (disapplication of paragraph 4(3) of Schedule 23A) omit paragraphs (3A) to (3E).

NOTES
Initial Commencement
Specified date

Specified date: 21 October 2009 at 1315 hours: see reg 1.

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Signature

Dave Watts

Tony Cunningham

Two of the Lords Commissioners of Her Majesty's Treasury

21st October 2009

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EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Regulations)

These Regulations amend the Income Tax (Manufactured Overseas Dividends) Regulations 1993 (SI 1993/2004) (“the principal Regulations”). Regulation 7 of the principal Regulations provides that in certain circumstances a recipient resident in the United Kingdom of manufactured overseas dividends paid by a person not resident in the United Kingdom need not account for tax in respect of the overseas dividends (as required by section 923 of the Income Tax Act 2007). Regulation 7 also treats the recipient as having suffered the foreign tax deducted from the overseas dividend in respect of which the manufactured overseas dividend was paid. Paragraphs (3A) to (3E) of Regulation 7 of the principal Regulations govern the amount of foreign tax which may be claimed as double taxation relief by the recipient. These Regulations amend the principal Regulations by omitting paragraphs (3A) to (3E) of Regulation 7. The effect of this amendment is that the recipient will be taxable on the manufactured overseas dividend received without relief being available for any foreign tax suffered on the overseas dividend.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

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