http://www.legislation.gov.uk/id/ukpga/1988/1

SCHEDULES

SCHEDULE A2Corporation tax: the non-corporate distribution rate: supplementary provisions

Part 1General provisions

Matching: distributions exceeding basic profits

5

Where in an accounting period the total amount of the distributions made (or treated as made) by a company exceeds its basic profits, the amount of the company’s basic profits for that period matched with non-corporate distributions is—

(\frac{NCD}{D}) \times BP

where—

NCD is the total amount of the non-corporate distributions made (or treated as made) by the company in that period;

D is the total amount of all the distributions made (or treated as made) by the company in that period; and

BP is the amount of the company’s basic profits for that period.