Taxes Consolidation Act 1997 Schedule 2, paragraph 1

Dividends

Schedule 2, paragraph 1 defines the key terms used in Parts 2 to 4 of the Schedule, which deal with the taxation of public revenue dividends and foreign income through paying and collecting agents.

• The definitions in section 32 (including "banker", "coupons", "dividends", "public revenue" and related terms) apply throughout Parts 2 to 4 of the Schedule.
• For Part 4 purposes, "dividends" is given a wider meaning that includes interest, dividends and other annual payments from stocks, shares or securities of non-resident bodies (i.e. foreign dividends).
• Foreign dividends do not include payments made out of income that has already been taxed at source under section 237 or 238.
• Schedule C tax (encashment tax) is charged on paying and collecting agents who handle public revenue dividends or interest and dividends of certain non-resident entities, and recipients must include such income on their tax returns.