Section 263I — Taxation of Chargeable Gains Act 1992: Powers about manufactured overseas dividends

Powers about manufactured overseas dividends 263I 1 The Treasury may by regulations make provision as mentioned in subsection (2) about prescribed cases where a person—

a pays or receives an amount (a “manufactured overseas dividend”) which is representative of an overseas dividend on overseas securities where the payment or receipt is required to be made under an arrangement for the transfer of the securities, or b is treated as doing so for any purposes of the Tax Acts.

2 The regulations may provide for adjusting a relevant amount by reference to a provision which has effect under the law of a territory outside the United Kingdom.

3 A “relevant amount” is an amount which is treated for prescribed capital gains tax purposes as the amount paid or payable to a person in respect of a relevant transaction.

4 A “relevant transaction” is a sale, repurchase or other transfer of the overseas securities to which the manufactured overseas dividend relates.

5 In this section “ prescribed ” means prescribed in regulations under this section.

6 In this section—

a “ overseas securities ” means shares, stock or other securities issued by—

i a government, local authority or other public authority of a territory outside the United Kingdom, or ii another body of persons not resident in the United Kingdom, b “ overseas securities ” includes shares in a company which is not resident in the United Kingdom, c “ overseas dividend ” means any interest, dividend or other annual payment payable in respect of overseas securities, and d “ securities ” includes loan stock or any similar security.