Corporation Tax Act 2010 section 788

Statements about manufactured dividends

Section 788 requires the payer of a manufactured dividend to provide the recipient with a statement containing information relevant for tax purposes.

• When a company or other person pays a manufactured dividend, they must provide the recipient with a written statement.
• The statement must set out the amount of the manufactured dividend paid and any other information that may be relevant to the recipient's tax position.
• This obligation ensures that recipients of manufactured dividends have the information they need to correctly account for those payments in their tax returns.
• The requirement applies to manufactured dividends arising in the context of stock lending and similar arrangements where shares are temporarily transferred and a payment is made to replicate the dividend the original holder would have received.