Textual Amendments
F1 See—s.240(13)—application of Sch.18for purposes of s.240—set-off of surplus ACT.s.247(9A)—application of Sch.18for purposes of.s.247(8A), (9)(c)—dividends etc. paid by one member of a group to another.s.769(6C)—application of Sch.18for purposes of.s.769(6B)—rules for ascertaining change in ownership of company.1990 s.32(12)—application of Sch.18for relief for disposal of shares to employee share ownership trusts.
Modifications etc. (not altering text)
C1Sch. 18 applied (E.W.S) (16.1.1992) by S.I. 1992/58, art. 35(5)
Sch. 18 applied (with modifications) (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 170(8), 289 (with ss. 60, 101(1), 171, 201(3))
Sch. 18 applied (with modifications) (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 228(10), 289 (with ss. 60, 101(1), 171, 201(3))
C2Sch. 18 applied by Finance Act 1930 (c. 28), s. 42(5) (as added (with effect in accordance with s. 123(7) of the 2000 amending Act) by Finance Act 2000 (c. 17), s. 123(6))
C3Sch. 18 applied (with effect in accordance with s. 98(2) of the affecting Act) by Finance Act 2000 (c. 17), Sch. 28 para. 5(4)
C4Sch. 18 applied (with modifications) by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 7AC para. 8(2) (as inserted (with application in accordance with s. 44(3) of the 2002 amending Act) by Finance Act 2002 (c. 23), Sch. 8 para. 1)
C5Sch. 18 applied (with modifications) (with effect in accordance with Sch. 29 Pt. 14 of the affecting Act) by Finance Act 2002 (c. 23), Sch. 29 para. 53
C6Sch. 18 applied (with effect in accordance with s. 31 of the affecting Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 3 para. 10(5)
C7Sch. 18 applied (with effect in accordance with Sch. 10 para. 2 of the affecting Act) by Finance Act 2006 (c. 25), Sch. 10 para. 15(5)(6)
C8Sch. 18 modified (1.4.2009 with effect in accordance with s. 1329(1) of the modifying Act) by Corporation Tax Act 2009 (c. 4), s. 519(3) (with Sch. 2 Pts. 1, 2, paras. 73-75)
C9Sch. 18 applied (with modifications) (1.4.2009 with effect in accordance with s. 1329(1) of the affecting Act) by Corporation Tax Act 2009 (c. 4), s. 772 (with Sch. 2 Pts. 1, 2)
C10Sch. 18 applied (with effect in accordance with Sch. 15 paras. 97, 98 of the affecting Act) by Finance Act 2009 (c. 10), Sch. 15 para. 86(7) (with Sch. 15 para. 99)
Marginal Citations
M1Source—1973 Sch. 12 Pt. I; 1973 s. 32(6); 1987 Sch. 15 5
2(1)Subject to the following provisions of this Schedule, for the purposes of [F2sections 403C and 413(7)] the percentage to which one company is beneficially entitled of any profits available for distribution to the equity holders of another company means the percentage to which the first company would be so entitled in the relevant accounting period on a distribution in money to those equity holders of—
(a)an amount of profits equal to the total profits of the other company which arise in that accounting period (whether or not any of those profits are in fact distributed); or
(b)if there are no profits of the other company in that accounting period, profits of £100;
and in the following provisions of this Schedule that distribution is referred to as “the profit distribution”.
[F3(1A)The total profits of a non-resident company arising in an accounting period shall be determined for the purposes of sub-paragraph (1)(a) above as if it were resident in the United Kingdom in that accounting period.]
(2)For the purposes of the profit distribution, it shall be assumed that no payment is made by way of repayment of share capital or of the principal secured by any loan unless that payment is a distribution.
(3)Subject to sub-paragraph (2) above, where an equity holder is entitled as such to a payment of any description which, apart from this sub-paragraph, would not be treated as a distribution, it shall nevertheless be treated as an amount to which he is entitled on the profit distribution.
Textual Amendments
F2Words in Sch. 18 paras. 1(1), 2(1), 3(1), 4(3)(4), 5A(3)(4), 5C(3)(4), 5D(3)(4), 5E(3)(4), 6 substituted (retrospectively) by Finance Act 2000 (c. 17), s. 100(4)(a)(5)
F3Sch. 18 para. 2(1A) inserted (with effect in accordance with Sch. 27 para. 6(3)(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 27 para. 5(3) (with Sch. 27 para. 6(1))
Modifications etc. (not altering text)
C11 See 1990 s.32(12)(b).Reference to
“section 413(7) to 9”
to be construed as a reference to 1990 s.31(4)where Sch.18applies to disposals of shares to employee share ownership trusts.