LLM5100 - Names: income from ancillary trust funds (바카라 사이트˜ATFs바카라 사이트™): dividends and scrip dividends: 6 April 1999 onwards
With effect from 6 April 1999, tax credits on dividends cannot be repaid. The tax credits are also ring-fenced, and can only be set against Lloyd바카라 사이트™s trade income. The ring-fencing arises from ITTOIA05/S397 (3).
Notional tax on scrip dividends that is included in Lloyd바카라 사이트™s trade profits can only be offset against income tax due on those profits. If the tax due on Lloyd바카라 사이트™s profits is less than the notional tax, any excess of notional tax cannot be offset against income tax due on other income for the year and neither is it repayable to the Name (ITTOIA05/S414 (2)). This also applied to notional tax on foreign income dividends, before their abolition in 1999.
If in the example in LLM5090, the Name바카라 사이트™s trading profits included £1000 FID (including £200 notional tax) and the Name had Lloyd바카라 사이트™s trading losses of £10,500 to bring forward from 2002-03, the 2003-04 Lloyd바카라 사이트™s trading profits would be £500 and the computation would be:
| - | £ | £ |
|---|---|---|
| Lloyd바카라 사이트™s profits | 500 | - |
| Farming profits | 8000 | - |
| Total profits | 8500 | - |
| Less PA | 4615 | - |
| Net taxable income | 3885 | - |
| Tax due | 1960 @ 10% | 196.00 |
| - | 1925 @ 22% | 423.50 |
| - | - | 619.50 |
| Less notional tax | restricted to 500 @ 22% | (110.00) |
| Net tax due 2003-04 | - | 509.50 |
| Class 4 NIC | 3885 @ 8% | 310.80 |