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Section 45: Power to enable dividends of investment trusts to be taxed as interest

Finance Act 2009 · 2009 c. 10View on legislation.gov.uk

Part 2: Income tax, corporation tax and capital gains tax

The Treasury may by regulations make provision for and in connection with—

the designation by a company that is an investment trust or a prospective investment trust of dividends made by the company, and
the treatment of a designated dividend for the purposes of the Tax Acts, in specified circumstances and in the case of specified persons—
as a payment of yearly interest, or
as interest under a loan relationship.

Regulations under this section may, in particular, make provision—

about the circumstances in which a dividend may, or may not, be designated,
about limits on the amounts that may be designated or treated as a payment of yearly interest or as interest under a loan relationship,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
about the preparation of accounts and the keeping of records by investment trusts and prospective investment trusts, and
about the provision by investment trusts and prospective investment trusts of information, whether to recipients of designated dividends or to other persons, including provision imposing a penalty not exceeding £3,000.

Regulations under this section may, in particular—

make provision applying enactments and instruments (with or without modification),
make different provision for different cases or different purposes, and
make incidental, consequential, supplementary or transitional provision.

Regulations under this section are to be made by statutory instrument.

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

In this section—

  • "company" has the same meaning as in Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act) (investment trusts);

  • "investment trust" means an investment trust within the meaning of section 1158 of CTA 2010;

  • "loan relationship" has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);

  • "prospective investment trust" means a company that—

    (a)intends to seek approval under section 1158 of CTA 2010 (meaning of "investment trust"), and

    (b)has a reasonable belief that such approval will be obtained;

  • "specified" means specified in regulations under this section.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.