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. ‘Foreign holdings’ includes both securities of non-UK Government and local and public authorities as well as shares in a non-UK ‘body of persons’. 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Chapter 13 was repealed by FA09/S49, Sch 25 para 9(2)(b) with effect in relation to transfers on or after 22 April 2009.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 ‘transfer of income stream’ rules. See CFM77000 and SAIM11000 for further details.