The Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 2009
These Regulations amend the Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 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.