SCHEDULES
SCHEDULE 3Tax
Distributions
6
1
This paragraph applies where the Corporation makes a distribution during the exempt period.
2
The following provisions shall not apply in relation to the distribution—
a
section 208 of the Income and Corporation Taxes Act 1988 (exemption from corporation tax);
b
section 231 of that Act (tax credits).
3
The distribution shall be treated for the purposes of corporation tax and income tax as income falling within Case V of Schedule D as set out in section 18(3) of that Act.
4
The distribution shall be treated as equivalent foreign income for the purposes of section 1A of that Act (rate of tax for income from savings and distributions).
5
In this paragraph “distribution” has the same meaning as it has in the Corporation Taxes Acts by virtue of Chapter II of Part VI of the [1988 c. 1.] Income and Corporation Taxes Act 1988 (company distributions).