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HMRC internal manual

Company Taxation Manual

ACT: FID: general: election: individuals

ICTA88/S246D (1) & (2)

An individual who was beneficially entitled to an FID was treated as having received income, which, if reduced by lower rate tax, equalled the amount of the dividend. The income was treated as received on the date of the payment.

Where an individual was so entitled:

  • no assessment was made in respect of lower rate tax on that income, but tax at the lower rate was treated as paid,
  • no repayment was made of IT treated as having been paid,
  • ICTA88/S207A applied to the income, so that the extended lower rate band for dividends applied,
  • the income was treated for the purposes of ICTA88/S348 and ICTA88/S349 (1) as not brought into charge to IT.