Following a case involving First Nationwide, HMRC has recently issued guidelines relating to how companies should treat share-related income (i.e. dividends and capital distributions) they receive from shares in overseas companies.
The exemption, which is applied to shares from UK companies, also applies to overseas company shares.
There has been some confusion over this as the way dividends are worked out is different in overseas companies, so this statement simply clarifies the situation.
If you have any questions or doubts please call Vincent & Co and we will help.