INCOME TAX Citation and commencement 1 These Regulations may be cited as the Income Tax (Manufactured Overseas Dividends) (Amendment) Regulations 1995 and shall come into force on 7th June 1995. Interpretation 2 In these Regulations “the principal Regulations ” means the Income Tax (Manufactured Overseas Dividends) Regulations 1993 and “regulation” means a regulation of those Regulations. Amendments to the principal Regulations 3 In regulation 2 for the definition of “chargeable period” there shall be substituted— “chargeable period” has the meaning given by regulation 2A; . 4 After regulation 2 there shall be inserted the following regulation— Chargeable period 2A 1 In these Regulations “chargeable period”— a as respects a company, means its accounting period for the purposes of corporation tax; b as respects a person other than a company who pays a manufactured overseas dividend in a period for which he draws up accounts (“the accounts period”), means the period in which the payment is made, being one of the periods specified in paragraph (2) below. c as respects a person other than a company who pays a manufactured overseas dividend on a date falling within a time for which he does not draw up accounts (“the non-accounts period”), means the period in which the payment is made, being one of the periods specified in paragraph (3) below; 2 The periods specified in this paragraph are— a the period which begins at the beginning of the accounts period and ends at the expiration of 12 months from that date or, if earlier, at the end of the accounts period; b any subsequent period which— i begins at the end of the immediately preceding period, being a period specified in this paragraph, and ii ends at the expiration of 12 months from that date or, if earlier, at the end of the accounts period. 3 The periods specified in this paragraph are— a the period which begins on the date of the first payment of a manufactured overseas dividend made by that person in the non-accounts period and ends at the expiration of 12 months from the date of that payment or, if earlier, at the end of the non-accounts period; b any subsequent period which— i begins on the date on which a manufactured overseas dividend is first paid by that person after the end of the immediately preceding period, being a period specified in this paragraph, and ii ends at the expiration of 12 months from the date of that payment or, if earlier, at the end of the non-accounts period. 5 In regulation 9— a after sub-paragraph (a) of paragraph (2) there shall be inserted the following sub-paragraph— aa the overseas dividends referred to in paragraph (1)(a) are not treated, by virtue of paragraph 5(2)(b) of Schedule 23A, as the income of a person other than the overseas dividend manufacturer, ; b after paragraph (4) there shall be inserted the following paragraph— 4A Subject to paragraph (5), where— a overseas dividends or manufactured overseas dividends received by the overseas dividend manufacturer in any chargeable period fall to be matched, in accordance with regulation 10(1), against manufactured overseas dividends paid by him in that period, or b tax attributable to overseas dividends or manufactured overseas dividends received by him in any chargeable period is set off, in accordance with this regulation, against tax attributable to manufactured overseas dividends paid by him in that period, relief under Part XVIII of the Taxes Act may not be claimed by the overseas dividend manufacturer in respect of any tax attributable to the overseas dividends or manufactured overseas dividends received. 6 In regulation 10(1)(a)— a in paragraph (i) for the words from “pursuant” to the end there shall be substituted the words “other than manufactured overseas dividends in respect of which tax falls to be accounted for and paid under paragraph 4(3) of Schedule 23A or regulation 4(3)”; b in paragraph (iii) for the words “has been” in the second place where they occur there shall be substituted the words “falls to be”. Timothy Kirkhope Derek Conway Two of the Lords Commissioners of Her Majesty’s Treasury 16th May 1995