Corporation Tax Act 2010, Section 551 is up to date with all changes known to be in force on or before 10 May 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.
(1)Subsection (3) applies if—
(a)a distribution is made to or in respect of a holder of excessive rights [F1that is not an excluded holder (both as] defined by section 553), and
(b)the distributor has not taken reasonable steps to prevent a distribution to or in respect of such a person from being made.
(2)“The distributor” means—
(a)in the case of a group UK REIT, the principal company of the group, and
(b)in the case of a company UK REIT, the company.
(3)The distributor is treated as receiving an amount of income calculated in accordance with section 552 (“the section 552 amount”).
(4)The section 552 amount is chargeable to corporation tax under the charge to corporation tax on income.
(5)It is treated—
(a)as arising in the accounting period in which the distribution was made, and
(b)as profits of residual business of the distributor.
[F2(6)Accordingly, it is charged to corporation tax at the main rate of corporation tax.]
F3(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)No loss, deficit, expense or allowance may be set off against the section 552 amount.
Textual Amendments
F1Words in s. 551(1)(a) substituted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 7 para. 10(1)
F2S. 551(6) inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 25
F3S. 551(6) omitted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 14(5)
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