PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
C1CHAPTER V COMPUTATIONAL PROVISIONS
Treatment of regional development and other grants and debts released etc.
95F1Taxation of dealers in respect of distributions etc.
F2F31
Where a dealer—
a
receives a relevant distribution, that is to say—
i
any distribution which is made by a company resident in the United Kingdom (“a UK distribution”), or
ii
any payment which is representative of a UK distribution, or
b
makes any payment which is representative of a UK distribution,
the distribution or, as the case may be, the payment shall be taken into account in computing the profits of the dealer which are chargeable to tax in accordance with the provisions of this Act applicable to Case I or II of Schedule D.
1A
Accordingly, where a dealer receives a F4relevant distribution—
a
tax shall not be charged under Schedule F in respect of that distribution;
b
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
F6section 208 shall not apply to that distribution; and
d
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8e
section 11(2)(a) shall have effect in relation to that distribution with the omission of the words “(but so that this paragraph shall not include distributions received from companies resident in the United Kingdom)”.
1B
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
For the purposes of this section a person is a dealer in relation to any F10. . . distribution if—
a
were there a sale by that person of the shares F11or stock in respect of which the distribution is made, and
b
the circumstances of that sale were such that the price would not fall to be treated as a F10. . . distribution,
the price would be taken into account in computing the profits of that person which are chargeable to tax in accordance with the provisions of this Act applicable to Case I or II of Schedule D.
F122A
The reference in subsection (2) above to the profits of a person does not include the profits of that person in respect of insurance business or any category of insurance business.
4
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
See—1979(C) s.122—election to take capital gain or loss into account when asset appropriated to stock in trade.1989 ss.67-74—employee share ownership trusts.Banking Act 1987 (c.22) s.66—contributions to the Deposit Protection Fund.