PART VI COMPANY DISTRIBUTIONS, TAX CREDITS ETC

C1CHAPTER I TAXATION OF COMPANY DISTRIBUTIONS

Annotations:
Modifications etc. (not altering text)
C1

Pt. 6 Chs. 1-3: power to amend conferred (1.4.2009 with effect in accordance with s. 1329(1) of the affecting Act) by Corporation Tax Act 2009 (c. 4), s. 533(2)(3)(d)

207AF1 Application of lower rate to company distributions.

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F1

S. 207A inserted (27.7.1993 with application in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 77(1)(2)(5)

F2

S. 207A repealed (with effect in accordance with s. 73 of the repealing Act) by Finance Act 1996, Sch. 41 Pt. 5(1), Note 1

208 U.K. company distributions not generally chargeable to corporation tax.

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9CHAPTER II MATTERS WHICH ARE DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS

Annotations:
Amendments (Textual)
F9

Pt. 6 Ch. 2 (ss. 209-211) repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 14, Sch. 3 Pt. 1 (with Sch. 2)

209 Meaning of “distribution”.

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

209AF10 Section 209(3AA): link to shares of company or associated company

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

209B Section 209(3AA): hedging arrangements

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

210 Bonus issue following repayment of share capital.

F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

211 Matters to be treated or not to be treated as repayments of share capital.

F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F33CHAPTER III MATTERS WHICH ARE NOT DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS

Annotations:
Amendments (Textual)
F33

Pt. 6 Ch. 3 (ss. 212-230A) repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 15, Sch. 3 Pt. 1 (with Sch. 2)

Payments of interest

212 Interest etc. paid in respect of certain securities.

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Demergers

213 Exempt distributions.

F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

213AF19Exempt distributions: division of business

F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

214 Chargeable payments connected with exempt distributions.

F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

215 Advance clearance by Board of distributions and payments.

F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

216 Returns.

F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

217 Information.

F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

218 Interpretation of sections 213 to 217.

F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Purchase of own shares

219 Purchase by unquoted trading company of own shares.

F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

220 Conditions as to residence and period of ownership.

F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

221 Reduction of vendor’s interest as shareholder.

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

222 Conditions applicable where purchasing company is member of group.

F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

223 Other conditions.

F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

224 Relaxation of conditions in certain cases.

F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

225 Advance clearance of payments by Board.

F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

226 Returns and information.

F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

227 Associated persons.

F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

228 Connected persons.

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

229 Other interpretative provisions.

F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stock dividends

230 Stock dividends: distributions.

F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F34Industrial and provident society dividends etc

Annotations:
Amendments (Textual)
F34

S. 230A and preceding cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 100 (with Sch. 2 Pts. 1, 2)

230ADividend or bonus granted by industrial and provident society

F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER IV TAX CREDITS

231 Tax credits for certain recipients of qualifying distributions.

F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231AF48 Restrictions on the use of tax credits by pension funds.

F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231AAF49 No tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement.

F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231ABF50 No tax credit for original owner under repurchase agreement in respect of certain manufactured dividends.

F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231BF51 Consequences of certain arrangements to pass on the value of a tax credit.

F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

232 Tax credits for non-U.K. residents.

F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

233 Taxation of certain recipients of distributions and in respect of non-qualifying distributions.

F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

234 Information relating to distributions.

F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F43234A Information relating to distributions: further provisions.

F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F45235 Distributions of exempt funds etc.

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F46236 Provisions supplementary to section 235.

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F47237 Disallowance of reliefs in respect of bonus issues.

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CHAPTER V ADVANCE CORPORATION TAX AND FRANKED INVESTMENT INCOME

238 Interpretation of terms and collection of ACT.

F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

239 Set-off of ACT against liability to corporation tax.

F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

240 Set-off of company’s surplus ACT against subsidiary’s liability to corporation tax.

F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

241 Calculation of ACT where company receives franked investment income.

F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

242 Set-off of losses etc. against surplus of franked investment income.

F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

243 Set-off of loss brought forward, or terminal loss.

F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

244 Further provisions relating to claims under section 242 or 243.

F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

245 Calculation etc. of ACT on change of ownership of company.

F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

245AF60 Restriction on application of section 240 in certain circumstances.

F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

245B Restriction on set-off where asset transferred after change in ownership of company.

F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246 Charge of ACT at previous rate until new rate fixed, and changes of rate.

F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F104F88Chapter VA Foreign Income Dividends

Annotations:
Amendments (Textual)
F104

Pt. 6 Ch. 5A (ss. 246A-246Y) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 1

F88

Ss. 246A-246Y (Pt. 6 Ch. 5A) repealed (with effect in accordance with Sch. 6 para. 3(2)-(4) of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 6 para. 3(1), Sch. 8 Pt. 2(11), Note

Election by company paying dividend

246A Election by company paying dividend.

F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246B Procedure for making election.

F65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recipient of foreign income dividend

246C No tax credit for recipient.

F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246D Individuals etc.

F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies: payments and receipts

246E Foreign income dividend not franked payment.

F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246F Calculation of ACT where company receives foreign income dividend.

F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246G Information relating to foreign income dividends.

F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246H Power of inspector to require information.

F71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Foreign source profit and distributable foreign profit

246I Foreign source profit and distributable foreign profit.

F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Matching of dividend with distributable foreign profit

246J Matching of dividend with distributable foreign profit.

F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246K Matching: subsidiaries.

F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246L Requirement as to subsidiaries.

F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246M Matching: further provisions.

F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment or set-off of advance corporation tax

246N ACT to be repaid or set off against corporation tax liability.

F77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246P Notional foreign source advance corporation tax.

F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246Q Repayment or set-off: supplementary.

F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246R Supplementary claims.

F80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

International headquarters companies

246S International headquarters companies.

F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246T Liability to pay ACT displaced.

F82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246U Settlement of liability by IHC as to ACT.

F83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246V Settlement of liability by non-IHC as to ACT.

F84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246W Payments and repayments where further matching takes place.

F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments

246X Adjustments where profits or foreign tax altered.

F86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of this Chapter

246Y Application of this Chapter.

F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F102CHAPTER VI MISCELLANEOUS AND SUPPLEMENTAL

Annotations:
Amendments (Textual)
F102

Pt. 6 Ch. 6 (ss. 249-254) repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 22, Sch. 3 Pt. 1 (with Sch. 2)

Group income

247 Dividends etc. paid by one member of a group to another.

F89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

248 Provisions supplementary to section 247.

F90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stock dividends

249 Stock dividends treated as income.

F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

250 Returns.

F92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251 Interpretation of sections 249 and 250.

F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F103Approved share incentive plans

Annotations:
Amendments (Textual)
F103

Ss. 251A-251D and preceding cross-heading inserted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 34 (with Sch. 7)

251AApplication of sections 251B and 251C

F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251BTreatment of cash dividend retained and then later paid out

F95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251CCharge on dividend shares ceasing to be subject to plan

F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251DInterpretation of sections 251A to 251C

F97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental

252 Rectification of excessive set-off etc. of ACT or tax credit.

F98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

253 Power to modify or replace section 234(5) to (9) and Schedule 13.

F99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

254 Interpretation of Part VI.

F100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

255“Gross rate” and “gross amount” of distributions to include ACT.

F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .