A new tax on dividends - revisited. By Nichola Ross Martin
Top QC Andrew Thornhill does not think that s.447 ITEPA gives HMRC the power to tax dividends. Nichola Ross Martin reviews the arguments.
The anti-avoidance clause that was added to s.447 ITEPA 2003 (effective 2/12/2004) has added fuel to the debate as to whether this section will be successfully used as a means of taxing dividends.
The Revenue has not yet published any further guidance on the subject other than that found in their instructions for completing Form 42.