Income and Corporation Taxes Act 1988

Part V U.K. Amounts in issue for purposes of section 768C

13 (1) The amounts in issue referred to in section 768C(3)(c) are—

(a) the amount which would in accordance with the relevant provisions of the 1992 Act (and apart from section 768C) be included in respect of chargeable gains in the total profits for the accounting period being divided;

(b) the amount of any sums (including commissions) actually disbursed as expenses of management for the accounting period being divided except any such expenses as would (apart from section 768C) be deductible in computing total profits otherwise than under section 75;

(c) the amount of any charges which are paid in that accounting period wholly and exclusively for the purposes of the company’s business;

(d) the amount of any excess carried forward under section 75(3) to the accounting period being divided;

(e) the amount of any allowances falling to be made for that accounting period by virtue of section 28 of the 1990 Act which would (apart from section 768C) be added to the expenses of management for that accounting period by virtue of section 75(4);

[F1 (ea) the amount (if any) of the adjusted Case III profits and gains or non-trading deficit of the company for that accounting period [F2 (other than one within paragraph (ec) below)];

(eb) the amount of any non-trading debit (other than one within paragraph F3 . . . (ed) below) that falls to be brought into account for that accounting period for the purposes of Chapter II of Part IV of the Finance Act 1996 (loan relationships) in respect of any debtor relationship of the company;

(ec) the amount of any non-trading [F4 deficit carried forward to that accounting period under] section 83(3) of the Finance Act 1996 (carried forward deficit not set off against profits);

(ed) the amount of any non-trading debit given for that accounting period by paragraph 13 of Schedule 15 to the Finance Act 1996 (transitional adjustment for past interest) in respect of any debtor relationship of the company;] and

(f) any other amounts by reference to which the profits or losses of the accounting period being divided would (apart from section 768C) be calculated.

(2) In sub-paragraph (1)(a) above “the relevant provisions of the 1992 Act” means section 8(1) of and Schedule 7A to that Act.

Textual Amendments

F1 Sch. 28A para. 13(1)(ea)-(ed) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 54(5) (with Sch. 15)

F2 Words in Sch. 28A para. 13(1)(ea) inserted (retrospectively) by Finance Act 1998 (c. 36), s. 82(3)(f)(4)

F3 Words in Sch. 28A para. 13(1)(eb) repealed (retrospectively) by Finance Act 1998 (c. 36), s. 82(3)(g)(4), Sch. 27 Pt. 3(17), Note

F4 Words in Sch. 28A para. 13(1)(ec) substituted (retrospectively) by Finance Act 1998 (c. 36), s. 82(3)(h)(4)

13A Paragraph 6A above shall apply for the purposes of paragraph 13(1)(ea) above as it applies for the purposes of paragraph 6(da) above.