Corporation Tax Act 2010 (c. 4)

Part 23 U.K. Company distributions

Modifications etc. (not altering text)

C1 Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)

Chapter 4 U.K. Special rules for distributions made by certain companies

Companies not carrying on a business U.K.

1071 Companies not carrying on a business U.K.

(1) This section applies if a company meets conditions A, B and C.

(2) Condition A is that the company does not carry on, and has never carried on—

(a) a trade, or

(b) a business of holding investments.

(3) Condition B is that the company does not hold, and has never held, an office.

(4) Condition C is that the company is not established for purposes which include—

(a) carrying on a trade,

(b) carrying on a business of holding investments, or

(c) holding an office.

(5) The provisions of the Corporation Tax Acts relating to distributions apply to distributions made by the company only so far as the distributions are made out of—

(a) profits of the company which are brought into charge to corporation tax, or

[F1 (b) income of the company consisting of exempt ABGH distributions.]

[F2 (5A) In subsection (5) “exempt ABGH distribution” means a distribution which—

(a) is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and

(b) is exempt for the purposes of Part 9A of CTA 2009 (company distributions).]

(6) In subsection (5) “profits” means income and chargeable gains.

Textual Amendments

F1 S. 1071(5)(b) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 38(2)

F2 S. 1071(5A) inserted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 38(3)