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Companies Act 2006

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Changes over time for: Section 845

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Point in time view as at 04/01/2024.

Changes to legislation:

Companies Act 2006, Section 845 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

845Distributions in kind: determination of amountU.K.
This section has no associated Explanatory Notes

(1)This section applies for determining the amount of a distribution consisting of or including, or treated as arising in consequence of, the sale, transfer or other disposition by a company of a non-cash asset where—

(a)at the time of the distribution the company has profits available for distribution, and

(b)if the amount of the distribution were to be determined in accordance with this section, the company could make the distribution without contravening this Part.

(2)The amount of the distribution (or the relevant part of it) is taken to be—

(a)in a case where the amount or value of the consideration for the disposition is not less than the book value of the asset, zero;

(b)in any other case, the amount by which the book value of the asset exceeds the amount or value of any consideration for the disposition.

(3)For the purposes of subsection (1)(a) the company's profits available for distribution are treated as increased by the amount (if any) by which the amount or value of any consideration for the disposition exceeds the book value of the asset.

(4)In this section “book value”, in relation to an asset, means—

(a)the amount at which the asset is stated in the relevant accounts, or

(b)where the asset is not stated in those accounts at any amount, zero.

(5)The provisions of Chapter 2 (justification of distribution by reference to accounts) have effect subject to this section.

Commencement Information

I1S. 845 wholly in force at 6.4.2008; s. 845 not in force at Royal Assent see s. 1300; s. 845 in force at 6.4.2008 by S.I. 2007/3495, art. 3(1)(k) (with savings in arts. 7, 12 and subject to transitional adaptations in Sch. 1 paras. 14-20 and with savings in Sch. 4 paras. 33-35)

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