Section FA 3 — Income Tax Act 2007: Recharacterisation of certain dividends: recovery of cost of shares held on revenue account

FA 3 Recharacterisation of certain dividends: recovery of cost of shares held on revenue account When this section applies (1) This section applies to the amount of a dividend derived from shares that are revenue account property of a person when— (a) the payment of the dividend realises or recovers the price the person paid for the shares; and (b) the payment is made at the person’s control or direction, or is part of a scheme that includes the acquisition of the shares and the payment of the dividend. Treatment of amount derived (2) The dividend is treated as an amount derived on a sale of the shares to the extent to which the actual amount realised by the person on the disposal of the shares is less than the cost to the person of acquiring the shares. Dividend (3) Despite subsection (2), a dividend taken into account under this section remains a dividend derived by the person in the income year. Defined in this Act: amount , dividend , income year , pay , revenue account property , share , Compare: 2004 No 35 s FC 3 Section FA 3 list of defined terms control : repealed, on 1 April 2010, by section 594 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).