Taxation of Chargeable Gains Act 1992 section 263I

Powers about manufactured overseas dividends

Section 263I gives the Treasury the power to make regulations dealing with the capital gains tax treatment of manufactured overseas dividends — that is, payments made as a substitute for genuine overseas dividends when securities are transferred.

• The Treasury may make regulations covering situations where a person pays or receives a manufactured overseas dividend, or is treated as doing so under the Tax Acts
• Regulations may adjust amounts recognised for capital gains tax purposes by reference to foreign tax laws or other provisions in force outside the United Kingdom
• The adjustments apply to amounts treated as paid or payable in connection with a sale, repurchase or other transfer of the overseas securities to which the manufactured dividend relates
• Overseas securities are broadly defined to include shares, stock, loan stock and similar securities issued by non-UK governments, public authorities, companies or other non-UK-resident bodies