C1C2Part 2Double taxation relief
Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)
C2CHAPTER 2Double taxation relief by way of credit
Tax underlying dividend treated as underlying tax paid by dividend's recipient
64Meaning of “dividend-paying chain” of companies
1
For the purposes of sections 65, 67 and 70 there is a dividend-paying chain if—
a
condition A is met, and
b
one of conditions B to D is met.
2
Condition A is that a company (“the second company”) pays a dividend to another company (“the first company”).
3
Condition B is that there is a third company which is a 10% associate of, and pays a dividend to, the second company.
4
Condition C is that there is a succession of companies consisting of—
a
a third company which is a 10% associate of, and pays a dividend to, the second company, and
b
a fourth company which is a 10% associate of, and pays a dividend to, the third company.
5
Condition D is that there is a succession of companies consisting of—
a
a third company which is a 10% associate of, and pays a dividend to, the second company, and
b
two or more companies (the fourth and fifth companies, and so on) each of which is a 10% associate of, and pays a dividend to, the company above it in the succession.
6
For the purposes of this section, a company (“X”) is a 10% associate of another company (“H”) if H—
a
controls directly or indirectly, or
b
is a subsidiary of a company which controls directly or indirectly,
at least 10% of the voting power in X or at least 10% of the ordinary share capital of X.
7
For the purposes of subsection (6), a company (“S”) is a subsidiary of another company (“P”) if P controls, directly or indirectly, at least 50% of the voting power in S.
Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 34(3) (with Sch. 9 paras. 1-9, 22))