C1Part 23Company distributions
Chapter 4Special rules for distributions made by certain companies
Companies not carrying on a business
1071Companies not carrying on a business
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
F2b
income of the company consisting of exempt ABGH distributions.
F15A
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.
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)