HC Deb 07 July 1997 vol 297 cc738-9



(1) Where a qualifying distribution—

  1. (a) is made on or after 2nd July 1997 but before 6th April 1999 by a company resident in the United Kingdom, and
  2. (b) falls to be regarded by virtue of subsection (2) of section 469 of the Income and Corporation Taxes Act 1988 as income of the trustees of a unit trust scheme to which that section applies, and
  3. (c) is not a foreign income dividend and does not (apart from this Resolution) fall to be regarded by virtue of any provision of the Tax Acts as a foreign income dividend arising to the trustees,

the trustees shall be treated for all purposes of the Tax Acts (but not this Resolution) as if the qualifying distribution were a foreign income dividend.

(2) Paragraph (1) above shall not apply—

  1. (a) if the unit trust scheme is a common investment fund established under section 42 of the Administration of Justice Act 1982; or
  2. (b) if, apart from section 469(2) of the Income and Corporation Taxes Act 1988, the whole of the qualifying distribution would fall to be regarded as income of section 505 bodies.

(3) In this Resolution—

  1. (a) a charity, as defined in section 506(1) of the Income and Corporation Taxes Act 1988;
  2. (b) a body mentioned in section 507 of that Act; or
  3. 739
  4. (c) an Association of a description specified in section 508 of that Act.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.