Valid from 22/07/2004
[F113ABThe non-corporate distribution rateU.K.
(1)This section applies where in any accounting period—
(a)a company makes (or is treated as making) one or more non-corporate distributions, and
(b)the company’s underlying rate of corporation tax is less than the non-corporate distribution rate.
(2)The rate of tax to be applied in calculating the corporation tax chargeable on the company’s basic profits for the accounting period is—
(a)in relation to so much of the company’s basic profits as is matched with a non-corporate distribution, the non-corporate distribution rate, and
(b)in relation to the remainder of the company’s basic profits, the company’s underlying rate of corporation tax.
(3)The “non-corporate distribution rate” is such rate as Parliament may from time to time determine.
(4)Schedule A2 to this Act makes provision supplementing this section, in particular—
(a)defining “non-corporate distribution” and a company’s “underlying rate of corporation tax”,
(b)as to the matching of a company’s profits and non-corporate distributions, and
(c)providing for non-corporate distributions to be allocated to other companies in certain circumstances.]
Textual Amendments
F1S. 13AB inserted (with effect in accordance with s. 28(4)(5) of the amending Act) by Finance Act 2004 (c. 12), s. 28(1)(6)
Modifications etc. (not altering text)
C1S. 13AB applied (with modifications) (22.7.2004) by Finance Act 2004 (c. 12), s. 28(4)(5)