The Manufactured Overseas Dividends (French Indemnity Payments) Regulations 1996
These Regulations make provision for the tax treatment in the United Kingdom of certain manufactured overseas dividends (“French Indemnity payments”). Such payments are required, under the rules of the Society of French Stock Exchanges, to be made in certain circumstances by one of the parties to a transaction for the sale of French equities to the other party by way of compensation for the dividend which the other party did not receive in respect of the equities sold.