INTM164340 - UK residents with foreign income or gains: dividends: Dividends received by UK companies on or after 31 March 2001 - eligible unrelieved foreign tax - group surrender - dual-resident company
»Ê¹ÚÌåÓýapp legislation relating to onshore pooling was repealed for distributions paid on or after 1 July 2009.
A change was made to the Regulations in December 2001. »Ê¹ÚÌåÓýappse have been amended to allow such surrenders to be made by a dual resident company.
»Ê¹ÚÌåÓýapp amending Regulations (SI2001/3873) were laid before the House of Commons on 4th December 2001.
A UK company must pay tax on a dividend from a foreign subsidiary. If this has borne foreign tax, the company may credit it (up to 30%) against the UK tax that it has to pay on the dividend. Excess foreign tax up to 45% may be used in a number of ways. For example, the UK company may surrender it to another company in the same group for the other company to use. Originally there was a rule that prevents a dual resident company from being able to surrender foreign tax. This restriction was lifted with effect from 5th December 2001.
»Ê¹ÚÌåÓýapp change was made because there were circumstances in which the restriction would operate inappropriately.