[SAIM5130] Dividends and other company distributions: no tax credits on non-qualifying distributions – tax years up to 2015-16: relief: distribution repaying shares or security issued in earlier distribution
Non-qualifying distributions did not carry tax credit: tax years up to 2015-16
ITTOIA05/S400, which was repealed by FA16/S5 and SCH1 for tax years after 2015-16, applied when a person received a non-qualifying distribution, see SAIM5050. A non-qualifying distribution did not carry a tax credit.
The recipient of the non-qualifying distribution was treated as having paid income tax at the dividend ordinary rate (SAIM1080) on the actual amount of the non-qualifying distribution (so there was no grossing up).