SCHEDULES

SCHEDULE 1Abolition of dividend tax credits etc

Further amendments in ITTOIA 2005

11

1

Section 399 (qualifying distribution received by person not entitled to tax credits) is amended as follows.

2

For subsection (1) substitute—

1

This section applies if—

a

a person's income for a tax year includes a distribution of a company, and

b

the person is non-UK resident.

3

In subsection (2) omit “(but see subsection (7))”.

4

Omit subsections (3) to (5) (amount of dividend received by non-UK resident to be treated as its grossed-up amount).

5

Omit subsection (5A) (amounts treated as qualifying distributions for purposes of the section).

6

Omit subsection (7) (which provides for subsection (2) to be subject to repealed provisions).

7

For the heading substitute “ Tax treated as paid on distributions received by non-UK resident persons ”.