SAIM5220 - Dividends and other company distributions: sale of foreign dividend coupons
Sale of foreign dividend coupons
ITTOIA05/PART4/CHAPTER13 charges the proceeds of the sale of coupons and warrants attached to foreign securities and shares, where the sale is made through a UK bank or a UK dealer in coupons.
The charge to tax is in ITTOIA05/S570. Section 571 contains the relevant definitions. 鈥楩oreign holdings鈥� includes both securities of non-UK Government and local and public authorities as well as shares in a non-UK 鈥榖ody of persons鈥�. Tax is charged on the full amount of the proceeds paid or carried to an account - ITTOIA05/S572. The person liable is the person receiving or entitled to receive the proceeds - ITTOIA05/S573.
Chapter 13 was repealed by FA09/S49, Sch 25 para 9(2)(b) with effect in relation to transfers on or after 22 April 2009.
FA09 and subsequently CTA10 replaces these provisions with the 鈥榯ransfer of income stream鈥� rules. See CFM77000 and SAIM11000 for further details.