.png)
.png)
The Income Tax (Manufactured Overseas Dividends)(Amendment No.2) Regulations SI 2011 No 2503 come into force on 10 November 2011.
The main effect of the regulations is the recipient of the last payment in a chain of manufactured overseas dividends made to a person resident outside the UK is no longer required to issue a notice authorising payment without the deduction of tax.
Where the last payment is to or for the benefit of a registered pension scheme or is linked solely to pension business, the recipient of the last payment in a chain no longer has to issue a notice to the original payer to make payment at the appropriate rate of withholding tax.
Finally, in a chain of payments involving central counterparties, the payments involving those central counterparties are ignored and the maker of the first payment in the chain is treated as making a payment of a manufactured dividend to the person receiving the last payment.
