Taxes Consolidation Act 1997 section 149

Dividends and other distributions at gross rate or of gross amount

Section 149 required a company making certain reduced-rate distributions falling within the section 147 anti-avoidance regime to pay a supplementary distribution making up the shortfall in the associated tax credit; the section has since been repealed.

• Applied where a company made a relevant distribution under section 147 in respect of a right or obligation governed by section 139 (dividends or distributions paid at a gross rate or of a gross amount).
• The supplementary distribution had to equal the excess of the tax credit that would have applied but for section 147(5) over the reduced tax credit actually applying under that subsection.
• The recipient of the supplementary distribution was not entitled to any tax credit on it, and the company had to itemise the supplementary distribution separately on the dividend voucher.
• Repealed by section 69(2) of, and Part 2 of Schedule 2 to, the Finance Act 2000 with effect from 6 April 1999 (income tax) and for accounting periods beginning on or after that date (corporation tax).