Commentary on Sections Part 10: Miscellaneous income Chapter 2: Dividends from non-UK resident companies Section 933: Charge to tax on dividends of non-UK resident companies
2349.This section sets out the charge to corporation tax on dividends from a company that is not resident in the UK. It is based on sections 9, 18 and 70 of ICTA. The corresponding income tax provision is section 402 of ITTOIA.
2350.The approach adopted in ICTA is to compute income for corporation tax from each type of source in the same way as for income tax, and then apply any specific corporation tax rules. Following the enactment of ITTOIA, which set up a different scheme for income tax, sources of income for corporation tax have continued to be computed under the rules of the separate Schedules and Cases. Dividends paid by a non-UK resident company were charged under Schedule D Case V.
2351.The section mirrors section 402 of ITTOIA by explicitly excluding capital dividends – the Schedule D Case V charge was a charge on income and the wording of the section reflects this.