Commentary on Sections Overview Overview Section 692: Abnormal dividends: general
2066.This section is the first of three interpretative sections about abnormal dividends. It is based on section 709(4) of ICTA.
2067.Subsection (1) provides that a dividend is abnormal if “the appropriate authority” is satisfied either that “the excessive return condition” is met or that “the excessive accrual condition” is met. Signposts are provided to sections 693 and 694, where these conditions are defined.
2068.Subsection (2) defines “the appropriate authority”. It replaces the reference to “the Board” with a reference to “an officer of Revenue and Customs” (namely, the officer dealing with the case). See Change 5 in Annex 1.
2069.HMRC’s internal procedures restrict the exercise of the Commissioners for Revenue and Customs’ functions under Chapter 1 of Part 17 of ICTA to a small group of specialist officers. Change 5 will have no effect on this practice.