SCHEDULES

SCHEDULE 1 U.K. Abolition of dividend tax credits etc

Further amendments in CTA 2010 U.K.

29 (1) Section 279F (ring fence profits: related 51% group company) is amended as follows. U.K.

(2) In subsection (7)(c) (conditions to be met by a company's dividend income in order for company to be a passive company), in sub-paragraph (ii) (dividends must be franked investment income) for “franked investment income” substitute “ exempt ABGH distributions ”.

(3) After subsection (9) insert—

“(10) In subsection (7)(c) “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).”