(1)Part 23 of CTA 2010 (company distributions) is amended as follows.
(2)Section 1002 (exceptions for certain transfers of assets or liabilities between a company and its members) is repealed.
(3)In section 1020 (transfers of assets or liabilities treated as distributions)—
(a)in subsection (2), omit from “But” to the end, and
(b)after that subsection insert—
“(2A)But the company is not treated as making a distribution under subsection (2) if the transfer of assets or liabilities—
(a)is a distribution by virtue of paragraph B in section 1000(1), or
(b)would be such a distribution in the absence of sub-paragraph (a) of that paragraph (distribution representing repayment of capital on the shares).”
(4)Section 1021 (transfers of assets or liabilities treated as distributions: exceptions) is repealed.
(5)In consequence of the repeal made by subsection (2)—
(a)omit section 194(2) of CTA 2010,
(b)in section 998(3) of that Act, for “1002” substitute “ 1003 ”,
(c)in section 1001 of that Act, in the third column of the table, omit “Section 1002 (exception for certain transfers of assets and liabilities)”, and
(d)omit paragraph 1(2) of Schedule 3 to F(No.3)A 2010.
(6)The amendments made by this section have effect in relation to distributions made on or after the day on which this Act is passed.