The Income Tax (Manufactured Overseas Dividends) Regulations 1993

[^key-24d273a8c4241f8cdb7492bf7027839f]: Reg. 7(2)(a) substituted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 8(a)

[^key-454e30f262b437892defaee971ad5e9c]: Reg. 7(2)(b) omitted (1.11.2003) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 8(b)

[^key-bcef905e09f27573a3261adde1f6d918]: Words in reg. 8 substituted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 9

[^key-8153599215a6272b0ef65f7eb3a46db6]: Reg. 9A(2A)(2B) inserted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 10(2)

[^key-2450a0659709369f86061c4822e77a23]: Words in reg. 10(1)(b) substituted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 11(2)

[^key-5b2fe4d84053a5ed2ba799fa4e642725]: Reg. 14(1)(b)(ba) substituted for reg. 14(1)(b) (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 12(2)

[^key-524d1110dc9ca5145b509dd254de313c]: Reg. 14(2)(3) substituted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 12(3)

[^key-859e3e09323ea0f6a2c70b81a8a04a8f]: Word in reg. 14(4) substituted (1.11.2003) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2003 (S.I. 2003/2582), regs. 1, 12(4)

[^key-d1a45286196e2edf11da004780692f1e]: Reg. 6(4A) inserted (1.1.2004) by The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) Regulations 2003 (S.I. 2003/3143), regs. 1(1), 5(2)

[^key-213cf76f3d0e9e6689d803790f1886a5]: Reg. 7(4A) inserted (1.1.2004) by The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) Regulations 2003 (S.I. 2003/3143), regs. 1(1), 5(3)

[^key-159bca282d3162cf8496cd1265806ccc]: Reg. 14(3A) inserted (1.1.2004) by The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) Regulations 2003 (S.I. 2003/3143), regs. 1(1), 5(4)

[^key-35f6f61bf94b7e4ec8542d03bca9c6af]: Reg. 4(1)(c) revoked (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. 1(2), Sch. para. 73(2)

[^key-a20871b070cc909527108b977a51371d]: Words in reg. 5(1A) inserted (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. 1(2), Sch. para. 73(3)

[^key-d73806596da265002452bc2182eac939]: Reg. 5A inserted (1.10.2007) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2007 (S.I. 2007/2487), regs. 1, 4

[^key-f857fbff719c7a2b6287f7dab6eb77bf]: Reg. 3(5)(6) added (1.10.2007) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2007 (S.I. 2007/2487), regs. 1, 3(3)

[^key-20207195e7421d8e49ac53a90e358a73]: Words in reg. 3(1) substituted (1.10.2007) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2007 (S.I. 2007/2487), regs. 1, 3(2)

[^M_F_c6785484-49d2-46d5-c070-5d8dac2a6276]: Words in reg. 9A(2A) substituted (1.10.2007) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2007 (S.I. 2007/2487), regs. 1, 7

[^key-a24485faf72b7618ca100744faf953b6]: Words in reg. 10(1)(b) substituted (1.10.2007) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2007 (S.I. 2007/2487), regs. 1, 8

[^key-4761da82374655a36875f3de928c9e12]: Reg. 7(3A)-(3E) omitted (21.10.2009 at 1.15 p.m.) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2009 (S.I. 2009/2811), regs. 1, 2

[^key-7a46aa08d2f7cf1f33e560c1475f925e]: Words in reg. 2(1) inserted (14.4.2010) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 3 (with reg. 1(2))

[^key-9dac33b6373446d61ca228418a7c31a8]: Words in reg. 6A(6) omitted (14.4.2010) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 4 (with reg. 1(2))

[^key-f7da2dd0c881b63d085c93f15a7b8ccb]: Words in reg. 9(1) inserted (14.4.2010) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 5(2) (with reg. 1(2))

[^key-3113aecf0b4fa5c1415c69fa334ef26a]: Reg. 9(4B) substituted (14.4.2010) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 5(3) (with reg. 1(2))

[^key-a31ff0b03c72e556bd7abf80f05329ce]: Reg. 9A(2C) inserted (14.4.2010) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 7 (with reg. 1(2))

[^key-22433b761a5bc4707b569a1205b2a1f5]: Reg. 9ZA inserted (14.4.2010) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2010 (S.I. 2010/925), regs. 1(1), 6 (with reg. 1(2))

[^key-bd933feb4f03c5c5855a627b96f43ff7]: Words in reg. 2(1) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 3(2) (with reg. 1(2))

[^key-5e6d075fced5ff108fb811b13c7238ef]: Words in reg. 2(1) substituted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 3(3) (with reg. 1(2))

[^key-00ad01b75c616caf23c561c0b8ab3a6c]: Word in reg. 4(2)(a) omitted (11.8.2011) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 4(a) (with reg. 1(2))

[^key-2dd464a5d40ffc6c585715c4a86f0ffc]: Reg. 4(2)(c) and word inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 4(b) (with reg. 1(2))

[^key-467560c845922214d3197970cb7fcbae]: Word in reg. 5(2)(b)(ii) omitted (11.8.2011) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 5(a) (with reg. 1(2))

[^key-80cc47032ec7385151a2c44ad334cab4]: Reg. 5(2)(b)(iv) and word inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 5(b) (with reg. 1(2))

[^key-19a37259f2fcdd426f32ba44d259ca47]: Reg. 5A(5A) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 6(3) (with reg. 1(2))

[^key-943ce57a7b27c6743402d84fa5a38523]: Word in reg. 5A(1)(b) substituted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 6(2) (with reg. 1(2))

[^key-963fd44beb485fd2890c3d44b6d97204]: Words in reg. 7(2)(c) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 7(a) (with reg. 1(2))

[^key-bbb0af46be123fb0b29be88c421edae5]: Reg. 7(2)(ca) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 7(b) (with reg. 1(2))

[^key-cf86e9c313c018ea65598373fceddc26]: Words in reg. 9(1A)(a) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 8(a) (with reg. 1(2))

[^key-defbd6138b100333b48c2b22d2d330d8]: Words in reg. 9(1A)(b) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 8(b) (with reg. 1(2))

[^key-b3c94877639c02591a4d3bdb29bc70a8]: Words in reg. 9A(1) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 9 (with reg. 1(2))

[^key-9f02a543cdcdd3c8b437d3df18b8beee]: Reg. 10(1A) inserted (11.8.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2011 (S.I. 2011/1787), regs. 1(1), 10 (with reg. 1(2))

[^key-f40b73e66a1f559692204cb1a70eff8e]: Words in reg. 5(2)(b)(iii) inserted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 3 (with reg. 1(2))

[^key-46f26baea48fbb660c301fc8be200dcf]: Words in reg. 5A(5) inserted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 4(2) (with reg. 1(2))

[^key-a0e6c3fc2a567cabccbf0ad050277b92]: Words in reg. 5A(6) inserted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 4(3) (with reg. 1(2))

[^key-0b151d3bea97fa356920f5059dfd787a]: Words in reg. 6 heading substituted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 6(2) (with reg. 1(2))

[^key-f6b45f418adcf36e6f10e50bfe70d61c]: Words in reg. 6(1) substituted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 6(3) (with reg. 1(2))

[^key-9107128a2dd127e631bd2454d96b17dd]: Reg. 10(2)-(4) omitted (10.11.2011) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 7 (with reg. 1(2))

[^key-d1a9f2a232eaabc0b7669dc7601ef4c7]: Words in reg. 15(1) substituted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 8(2) (with reg. 1(2))

[^key-b64a3d6772897cac65b96e242b236413]: Reg. 15(2) omitted (10.11.2011) by virtue of The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 8(3) (with reg. 1(2))

[^key-658b92f23eb8c84095f19911e448b3b6]: Reg. 5B inserted (10.11.2011) by The Income Tax (Manufactured Overseas Dividends) (Amendment No. 2) Regulations 2011 (S.I. 2011/2503), regs. 1(1), 5 (with reg. 1(2))

[^key-080ad5a90587463681bdac59fac343a2]: Words in reg. 5B(6) inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 31(2)(a) (with regs. 52-58)

[^key-08eb52b4ee5d4c46fb928e3253796cb7]: Words in reg. 5B(6) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 31(2)(b) (with regs. 52-58)

[^key-998832de01592b994f6bd3c8ce4732ff]: Words in reg. 5B(6) inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 31(2)(c) (with regs. 52-58)

[^key-97a9c16d3c6c52193f7ba17767ffbb86]: Words in reg. 5B(6) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 5 para. 1 (with reg. 7)

[^key-98c0716fcb778e58be44b6d9ddbf9c83]: Words in reg. 5B(6) omitted (31.12.2020) by virtue of The Investment Exchanges, Clearing Houses and Central Securities Depositories (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/662), regs. 1(3), 23(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

[^key-39814a8e24b1ac623778f03947a9eaf8]: Words in reg. 5B(6) omitted (31.12.2020) by virtue of The Investment Exchanges, Clearing Houses and Central Securities Depositories (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/662), regs. 1(3), 23(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Chargeable period

2A

• (1) In these Regulations “chargeable period”—

• (a) as respects a company, means its accounting period for the purposes of corporation tax;

• (b) as respects a person other than a company who draws up accounts for any period (“the accounts period”), means one of the periods specified in paragraph (2) below.

• (c) as respects a person other than a company who does not draw up accounts, means a year of assessment;

• (2) The periods specified in this paragraph are—

• (a) the period which begins at the beginning of the accounts period and ends at the expiration of 12 months from that date or, if earlier, at the end of the accounts period;

• (b) any subsequent period which—

• (i) begins at the end of the immediately preceding period, being a period specified in this paragraph, and

• (ii) ends at the expiration of 12 months from that date or, if earlier, at the end of the accounts period.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prescribed rates of relevant withholding tax

Tax treatment of approved manufactured overseas dividends paid to approved United Kingdom intermediaries or approved United Kingdom collecting agents

Retention and record of notices given under regulations 4 and 5

Disapplication of paragraph 4(3) of Schedule 23A

Tax treatment of manufactured overseas dividends to which regulations 4, 5 and 7 apply – further provision

Offsetting of tax by overseas dividend manufacturers

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends to which regulations 4, 5 and 7 apply – further provision

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers

Tax treatment of manufactured overseas dividends paid in connection with loan relationships

2B

• (1) For the purposes of the provisions of the Tax Acts relating to the charge to tax under Schedule D, paragraph 4(2) and (3) ..., of Schedule 23A shall not apply to a manufactured overseas dividend paid in the circumstances prescribed in paragraph (2).

• (2) The circumstances prescribed are where the manufactured overseas dividend is representative of an overseas dividend on an overseas security that represents a loan relationship.

• (3) Where the payer of a manufactured overseas dividend to which paragraph (2) applies is neither a company nor carrying on a trade in circumstances where the manufactured overseas dividend is taken into account in computing the profits of that trade, the manufactured overseas dividend shall be treated, for the purposes of the provisions of the Tax Acts relating to the charge to tax under Schedule D and so far as the payer is concerned, as if the amount paid was an annual payment, within section 349(1) of the Taxes Act, but so that no amount is required to be deducted on account of income tax from the amount of the payment, or accounted for under section 350 of that Act.

• (4) Where the recipient of a manufactured overseas dividend to which paragraph (2) applies is neither a company nor carrying on a trade in circumstances where the manufactured overseas dividend is taken into account in computing the profits of that trade, the manufactured overseas dividend shall be treated, for the purposes of the provisions of the Tax Acts relating to the charge to tax under Schedule D and so far as the recipient is concerned, as an overseas dividend of an amount equal to the amount of the manufactured overseas dividend received by him, but not so as to entitle the recipient to claim relief under Part XVIII of the Taxes Act in respect of any tax attributable to the manufactured overseas dividend received.

• (5) For the purposes of paragraph (2), an overseas security shall be taken to represent a loan relationship if a company holding that security would have a loan relationship within the meaning of section 81 of the Finance Act 1996.

• (6) References in paragraph (4) to the recipient of a manufactured overseas dividend include references to any person claiming title to the manufactured overseas dividend through or under the recipient.

Prescribed rates of relevant withholding tax

Tax treatment of approved manufactured overseas dividends paid to persons resident outside the United Kingdom

Retention and record of notices given under regulations 4 and 5

Reduction of tax payable under paragraph 4(3) of Schedule 23A

6A

• (1) Where, in a case to which paragraph 4(3) of Schedule 23A applies, overseas tax was charged on, or in respect of, the making of the manufactured overseas dividend received by the United Kingdom recipient, the amount of tax to be accounted for and paid under that provision shall, for the purposes of the provisions of the Tax Acts relating to the charge to tax under Schedule D, be taken as reduced in accordance with paragraph (2) or, as the case may be, paragraph (3).

• (2) Where the amount specified in paragraph (4) exceeds the amount specified in paragraph (5), the amount of tax shall be reduced so as to equal the amount of the excess.

• (3) Where the amount specified in paragraph (4) is equal to or less than the amount specified in paragraph (5), the amount of tax shall be reduced to nil.

• (4) The amount specified in this paragraph is the amount of the manufactured overseas dividend received by the United Kingdom recipient.

• (5) The amount specified in this paragraph is the amount which the United Kingdom recipient would have received by way of the overseas dividend of which the manufactured overseas dividend is representative, had the overseas dividend been paid to him.

• (6) Relief claimed by the United Kingdom recipient under Part XVIII of the Taxes Act in a case to which paragraph (2) applies ... shall not exceed the aggregate of the amount of tax accounted for and paid by the United Kingdom recipient under paragraph 4(3) of Schedule 23A and the amount of overseas tax charged on, or in respect of, the making of the manufactured overseas dividend received by him.

Disapplication of paragraph 4(3) of Schedule 23A

Disapplication of paragraph 5 of Schedule 23A

7A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offsetting of tax by overseas dividend manufacturers

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends representative of foreign dividends

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers

Offsetting of tax by overseas dividend manufacturers

9A

• (1) An overseas dividend manufacturer who is not an approved United Kingdom intermediary shall be entitled to set off in any chargeable period amounts of overseas tax in respect of overseas dividends received by him in that chargeable period otherwise than as a foreign permanent establishment receipt against sums due from him on account of the amounts deducted by him under paragraph 4(2) of Schedule 23A from manufactured overseas dividends paid by him in that chargeable period that are representative of those overseas dividends.

• (2) Where overseas tax referred to in paragraph (1) is set off against sums referred to in that paragraph, relief under Part XVIII of the Taxes Act may not be claimed by the overseas dividend manufacturer in respect of that overseas tax.

• (2A) This paragraph applies where an overseas dividend manufacturer who is not an approved United Kingdom intermediary receives in any chargeable period overseas dividends or manufactured overseas dividends and pays in that period manufactured overseas dividends to which regulation 3(6), 5 or 5A applies that are representative of those overseas dividends or manufactured overseas dividends received.

• (2B) Where paragraph (2A) applies—

• (a) relief under section 811 of the Taxes Act shall be given to the overseas dividend manufacturer in respect of any tax referred to in regulation 9(1A) that is attributable to the overseas dividends or manufactured overseas dividends received by him; and

• (b) no other relief under Part 18 of the Taxes Act may be claimed by him in respect of any such tax.

• (2C) But paragraph (2B) only applies to a case where the gross amount of the overseas dividends or, as the case may be, the manufactured overseas dividends received by the overseas dividend manufacturer in any chargeable period is brought into account as income for the purposes of income tax or corporation tax for that period.

• (3) References in this regulation to overseas tax shall be construed in accordance with regulation 9(7).

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends representative of foreign dividends

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers

Chains of payments where last payment made to, or for benefit of, registered pension scheme or is linked solely to pension business

5A

• (1) This regulation applies where—

• (a) a person (the “original payer”) pays a manufactured overseas dividend, and

• (b) the payment is made to an approved United Kingdom intermediary or to an approved United Kingdom collecting agent as part of a chain of payments where conditions A to E are met.

• (2) Condition A is that each payment in the chain, apart from the first, is a payment by an approved United Kingdom intermediary or an approved United Kingdom collecting agent of a manufactured overseas dividend representative of the same overseas dividend.

• (3) Condition B is that the last payment in the chain—

• (a) is made to, or for the benefit of, a registered pension scheme (within the meaning given in Part 4 of the Finance Act 2004), or

• (b) is linked solely to pension business for the purposes of section 438 of the Taxes Act at the time that the payment is made.

• (4) Condition C is that the last payment in the chain is made by a person who—

• (a) is resident in the United Kingdom, or

• (b) is not resident in the United Kingdom, but makes the payment in the course of a trade carried on through a permanent establishment.

• (5) Condition D is that each recipient of payment in the chain , apart from the last, has issued a notice to the original payer to make the payment at the applicable rate of relevant withholding tax.

• (5A) Condition E is that none of the payments are foreign permanent establishment payments.

• (6) The applicable rate of relevant withholding tax for each payment in the chain to an approved United Kingdom intermediary or to an approved United Kingdom collecting agent shall be determined in accordance with paragraphs (7) and (8).

• (7) If the last payment in the chain is made to, or for the benefit of, a registered pension scheme, the applicable rate shall be determined as if the person to whom the payment is made were the registered pension scheme to which the last payment in the chain is made.

• (8) If the last payment in the chain is linked solely to pension business at the time that the payment is made, the applicable rate shall be determined as if the person to whom the payment is made were the person to whom the last payment in the chain is made.

• (9) For the purposes of condition A (see paragraph (2)) it does not matter whether or not the first payment in the chain was made by an approved United Kingdom intermediary or an approved United Kingdom collecting agent.

Retention and record of notices given under regulations 4 and 5

Reduction of tax payable under paragraph 4(3) of Schedule 23A

Disapplication of paragraph 4(3) of Schedule 23A

Disapplication of paragraph 5 of Schedule 23A

Offsetting of tax by overseas dividend manufacturers

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends representative of foreign dividends

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers

Entitlement to offsetting

9ZA

• (1) There shall be no entitlement to set off under regulation 9(1) in relation to overseas dividends or manufactured overseas dividends received by an overseas dividend manufacturer in any chargeable period if—

• (a) the overseas dividends or the manufactured overseas dividends do not fall to be matched, in accordance with regulation 10(1), against manufactured overseas dividends paid by the overseas dividend manufacturer in that period, and

• (b) the gross amount of the overseas dividends or manufactured overseas dividends is not brought into account in accordance with generally accepted accounting practice by the overseas dividend manufacturer as income for the purposes of income tax or corporation tax for that period.

This is subject to paragraph (2).

• (2) Paragraph (1) does not apply if the overseas dividend manufacturer elects to bring into account the gross amount of the overseas dividends or manufactured overseas dividends received in any chargeable period as income for the purpose of calculating his liability to income tax or corporation tax for that period.

• (3) An election under paragraph (2)—

• (a) must be made in writing to Her Majesty’s Revenue and Customs,

• (b) applies in relation to overseas dividends and manufactured overseas dividends received in the chargeable period in which the election is made and in subsequent periods, and

• (c) may be revoked by notice in writing to Her Majesty’s Revenue and Customs with effect from the chargeable period in which the notice is given.

Offsetting of tax by overseas dividend manufacturers who are not United Kingdom intermediaries

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends representative of foreign dividends

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers

Chains of payments involving central counterparties

5B

• (1) This regulation applies where—

• (a) a person pays a manufactured overseas dividend, and

• (b) the payment is made as part of a chain of payments (“a CCP chain”), which may form part of a chain of payments to which regulation 5(2) or 5A applies, where conditions A to C are met.

• (2) Condition A is that each payment in the CCP chain is a payment of a manufactured overseas dividend representative of the same overseas dividend.

• (3) Condition B is that each payment in the CCP chain is made—

• (a) by or to a central counterparty,

• (b) to a clearing member acting in the capacity as clearing member for another person where a corresponding payment is made by the clearing member to a central counterparty, or

• (c) by a clearing member acting in the capacity as clearing member for another person where a corresponding payment is made to the clearing member by a central counterparty.

• (4) Condition C is that a notice has been issued by or on behalf of the central counterparty to the first CCP payer and the final CCP recipient—

• (a) confirming that conditions A and B are met, and

• (b) either—

• (i) stating names and registered addresses of the first CCP payer and the final CCP recipient, or

• (ii) containing sufficient information to enable the parties to the CCP chain to meet their tax obligations in the United Kingdom with respect to the manufactured overseas dividend.

• (5) For the purposes of Chapter 9 of Part 15 of the Income Tax Act 2007 and these Regulations—

• (a) the first CCP payer is treated as required to pay to the final CCP recipient a manufactured overseas dividend representative of an overseas dividend on overseas securities paid under an arrangement for the transfer of securities,

• (b) the payments in the CCP chain are disregarded, and

• (c) a manufactured overseas dividend representative of the same overseas dividend is treated as paid by the first CCP payer to the final CCP recipient.

• (6) In this regulation—

• “central counterparty” means a recognised clearing house ..., third country central counterparty or recognised investment exchange which carries on a business of providing a central counterparty clearing service in relation to arrangements for the transfer of overseas securities;

• “central counterparty clearing service” means the service provided to parties to an arrangement for the transfer of overseas securities, or to a clearing member acting on behalf of either of those parties, where there are contracts between each of those parties, or a clearing member, and the central counterparty in place of, or as an alternative to, a contract directly between those parties;

• “clearing member” means a party who provides clearing arrangements between a party to an arrangement for the transfer of overseas securities and a central counterparty;

• ...

• “final CCP recipient” means the party to whom the last payment in the CCP chain is made;

• “first CCP payer” means the maker of the first payment in the CCP chain;

• “recognised clearing house” has the meaning given by section 285(1)(b) of the Financial Services and Markets Act 2000;

• “recognised investment exchange” means—a recognised investment exchange within the meaning of the Financial Services and Markets Act 2000 (see section 285),a regulated market within the meaning of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, ora multilateral trading facility within the meaning of that Directive;

• “third country central counterparty” has the meaning given by section 285(1)(d) of the Financial Services and Markets Act 2000.

Retention and record of notices given under regulations 4 to 5B

Reduction of tax payable under paragraph 4(3) of Schedule 23A

Disapplication of paragraph 4(3) of Schedule 23A

Disapplication of paragraph 5 of Schedule 23A

Tax treatment of manufactured overseas dividends to which regulations 4, 5 and 7 apply – further provision

Entitlement to offsetting

Offsetting of tax by overseas dividend manufacturers who are not United Kingdom intermediaries

Matching of dividends and manufactured overseas dividends

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

Tax treatment of manufactured overseas dividends representative of foreign dividends

Further provision relating to manufactured overseas dividends representative of foreign dividends

Records to be kept in respect of certain manufactured overseas dividends paid without deduction of tax

Issue of vouchers in respect of manufactured overseas dividends paid under deduction of tax

Modifications of section 21 of the Management Act in relation to overseas dividend manufacturers