RO instructions: Foreign Income Dividends
Foreign Income dividends (to be distinguished from income assessable under Case V, Schedule D) are similar to Stock Dividends. They first appeared in 1993/94.
For tax purposes, shareholders are treated as having received income which has suffered tax at the lower rate. The amount to be included in a Net Statutory Income computation is the amount of the dividend x 100/80.
As with Stock Dividends, income tax treated as paid is not repayable, and cannot be used to cover charges (RE124).