[F1 Part 9A U.K.Company distributions

Textual Amendments

F1 Pt. 9A inserted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by Finance Act 2009 (c. 10), Sch. 14 para. 1 (with Sch. 14 para. 32)

Modifications etc. (not altering text)

C1 Pt. 9A modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 787, 795, 1184(1) (with Sch. 2)

Chapter 3 U.K.Exemption of distributions received by companies that are not small

Exempt classes U.K.

931H [F2 Distributions] derived from transactions not designed to reduce tax U.K.

(1) A dividend [F3 or other distribution] falls into an exempt class if it is [F4 made ] in respect of relevant profits.

(2) In this section “relevant profits” means any profits available for distribution at the time that the [F5 distribution is made], other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where—

(a) the transaction or series of transactions achieve a reduction (other than a negligible reduction) in United Kingdom tax, and

(b) the purpose or one of the main purposes of that transaction or series of transactions is to achieve that reduction.

(3) A [F6 distribution] that falls into an exempt class otherwise than by virtue of this section is for the purposes of this section treated, so far as possible, as [F7 made] in respect of relevant profits.

(4) Any other [F8 distribution] is for the purposes of this section treated, so far as possible, as [F9 made] in respect of profits other than relevant profits.

(5) Where by virtue of subsection (4) part of a [F10 distribution] is treated as [F11 made] in respect of relevant profits and part is treated as [F11 made] in respect of profits other than relevant profits, the two parts are treated for the purposes of this Part and [F12 Part 2 of TIOPA 2010] (double taxation relief) as separate [F13 distributions].]

Textual Amendments

F2 Word in s. 931H heading substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(a)

F3 Words in s. 931H(1) inserted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(b)(i)

F4 Word in s. 931H(1) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(b)(ii)

F5 Words in s. 931H(2) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(c)

F6 Word in s. 931H(3) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(i)

F7 Word in s. 931H(3) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(ii)

F8 Word in s. 931H(4) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(i)

F9 Word in s. 931H(4) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(ii)

F10 Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(i)

F11 Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(ii)

F12 Words in s. 931H(5) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 99 (with Sch. 9 paras. 1-9, 22)

F13 Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(iii)