SCHEDULES
C3C4C5C6C7C8C9C10C11SCHEDULE 18M1 GROUP RELIEF: EQUITY HOLDERS AND PROFITS OR ASSETS AVAILABLE FOR DISTRIBUTION F3
Sch. 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))
Sch. 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))
Sch. 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)
Sch. 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)
Sch. 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
Sch. 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)
Sch. 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)
Sch. 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)
Sch. 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)
Source—1973 Sch. 12 Pt. I; 1973 s. 32(6); 1987 Sch. 15 5
4
1
This paragraph applies if any of the equity holders—
a
to whom the profit distribution is made, or
b
who is entitled to participate in the notional winding-up,
holds, as such an equity holder, any shares or securities which carry rights in respect of dividend or interest or assets on a winding-up which are wholly or partly limited by reference to a specified amount or amounts (whether the limitation takes the form of the capital by reference to which a distribution is calculated or operates by reference to an amount of profits or otherwise).
2
Where this paragraph applies there shall be determined—
a
the percentage of profits to which, on the profit distribution, the first company referred to in paragraph 2(1) above would be entitled, and
b
the percentage of assets to which, on the notional winding-up, the first company referred to in paragraph 3(1) above would be entitled,
if, to the extent that they are limited as mentioned in sub-paragraph (1) above, the rights of every equity holder falling within that sub-paragraph (including the first company concerned if it is such an equity holder) had been waived.
3
If, on the profit distribution, the percentage of profits determined as mentioned in sub-paragraph (2)(a) above is less than the percentage of profits determined under paragraph 2(1) above without regard to that sub-paragraph, the lesser percentage shall be taken for the purposes of C1F1sections 403C and 413(7) to be the percentage of profits to which, on the profit distribution, the first company referred to in paragraph 2(1) above would be entitled as mentioned in that paragraph.
4
If, on the notional winding-up, the percentage of assets determined as mentioned in sub-paragraph (2)(b) above is less than the percentage of assets determined under paragraph 3(1) above without regard to that sub-paragraph, the lesser percentage shall be taken for the purposes of C2F1sections 403C and 413(7) to be the percentage to which, on the notional winding-up, the first company mentioned in paragraph 3(1) above would be entitled of any assets of the other company available for distribution to its equity holders on a winding-up.
F25
In determining in a case in which paragraph 5F below applies whether any rights in respect of dividend or interest or assets on a winding-up are limited as mentioned in sub-paragraph (1) above, the limitations so mentioned shall be treated as not including so much of any limitation as has effect as mentioned in sub-paragraph (2) of that paragraph.
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.