Statutory Instrument 1996 No. 1226

The Income Tax (Unapproved Manufactured Payments) Regulations 1996

---

© Crown Copyright 1996

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Income Tax (Unapproved Manufactured Payments) Regulations 1996, ISBN 0110546830. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1996 No. 1226

INCOME TAX

The Income Tax (Unapproved Manufactured Payments) Regulations 1996

The Treasury, in exercise of the powers conferred on them by paragraph 1(1) and (2)(b) of Schedule 23A to the Income and Corporation Taxes Act 1988^[1], hereby make the following Regulations:

    1.    These Regulations may be cited as the Income Tax (Unapproved Manufactured Payments) Regulations 1996 and shall come into force on 28th May 1996.

    2.    For the definition of "unapproved manufactured payment" in paragraph 1(1) of Schedule 23A to the Income and Corporation Taxes Act 1988^[2] there shall be substituted the following definition—
""unapproved manufactured payment", subject to any regulations under sub- paragraph (2) below, means—
(a) any manufactured dividend paid in connection with an unapproved stock lending arrangement, and

(b) any manufactured dividend not falling within paragraph (a) above which is paid in respect of United Kingdom equities by a person other than one who is—
(i) a market maker in relation to United Kingdom equities of the kind in question, or

(ii) in such circumstances as may be prescribed, a member, of a prescribed class or description, of a prescribed recognised investment exchange, or

(iii) in such circumstances as may be prescribed, a prescribed recognised clearing house,

and which is so paid otherwise than in connection with an approved stock lending arrangement;" .

Simon Burns

Michael Bates

Two of the Lords Commissioners of Her Majesty’s Treasury

7th May 1996

These Regulations substitute a new definition of "unapproved manufactured payment" in paragraph 1(1) of Schedule 23A to the Income and Corporation Taxes Act 1988 ("Schedule 23A") so that the definition relates only to manufactured dividends paid in respect of United Kingdom equities.
The substitution is made in consequence of the repeal by paragraph 52(6) of Schedule 14 to the Finance Act 1996 (c. 8) of those provisions in paragraph 6 of Schedule 23A that relate to unapproved manufactured payments in respect of securities other than United Kingdom equities. The repeals coincide with the enactment of provisions contained in Chapter II of Part IV of the Finance Act 1996 relating to corporate loan relationships.

[1] 1988 c. 1. Schedule 23A was inserted by paragraph 1 of Schedule 13 to the Finance Act 1991 (c. 31). See the definition of "dividend manufacturing regulations" in paragraph 1(1) of Schedule 23A. back

[2] The definition was previously amended by S.I. 1992/2074, regulation 2A (inserted by S.I. 1995/3221, regulation 4). back