Finance Act, 1993
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Tax credit for recipients of certain distributions. |
46.—(1) This section applies to a distribution made by a company (hereafter in this section referred to as the “distributing company”) which carries on a specified trade (being a specified trade within the meaning assigned to it by section 84A (6) of the Corporation Tax Act, 1976 ) and which is a distribution by virtue only of subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976 . | |
(2) If a distribution to which this section applies, made on or after the 25th day of May, 1993, or part of such a distribution, is not otherwise a relevant distribution for the purposes of subsection (3) of section 45 (as amended by the Finance Act, 1989 ) of the Finance Act, 1980 , then, notwithstanding any provision to the contrary in the said section 45, the distribution or part of it, as the case may be, shall be deemed, for the purposes of the said subsection (3), to be a relevant distribution. | ||
(3) Where, on or after the 1st day of January, 1992, and before the 25th day of May, 1993, a company makes a distribution to which this section applies, the distributing company and the recipient of the distribution may, by notice in writing, jointly elect that subsection (2) shall apply to that distribution as if the reference therein to the 25th day of May, 1993, were a reference to the 1st day of January, 1992, and where such an election is made, subsection (2) shall apply to the said distribution accordingly. | ||
(4) An election under subsection (3) shall be included with the return which is required, under section 10 of the Finance Act, 1988 , to be made by the distributing company for the accounting period in which the distribution is made: | ||
Provided that, notwithstanding that an election was not included with any return made on or before the 31st day of May, 1993, it shall be deemed to have been so included if the election is delivered to the appropriate inspector (within the meaning of section 9 of the Finance Act, 1988 ) within a period of two months after that date. | ||
(5) Section 45 (7) (as amended by the Finance Act, 1989 ) of the Finance Act, 1980 , is hereby amended by the insertion, after “this section”, of “and section 46 of the Finance Act, 1993”: | ||
Provided that to the extent that an assessment under the said section 45 (7) would, apart from this proviso, have fallen to be made on a distributing company but would not have fallen to be so made if an election under subsection (3) had not been made, an assessment under the said section 45 (7) shall not be made on the company. | ||
(6) This section shall be deemed to have had effect as on and from the 1st day of January, 1992. |