The UK government recently introduced legislation to treat the qualifying distribution on a repurchase of shares in the same way as ‘foreign income dividends’. This paper examines and criticises this reform from two perspectives. First, there is no underlying rationale for such an approach. Second, the legislation moves the tax system further away from simplification. A better approach would have been to remove the advance corporation tax (ACT) charge on a repurchase.
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Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.
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Find related papers by JEL classification: H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
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