1020Transfers of assets or liabilities treated as distributions
This section has no associated Explanatory Notes
(1)This section applies if on a transfer of assets or liabilities—
(a)by a company to its members, or
(b)to a company by its members,
the amount or value of the benefit received by a member exceeds the amount or value of any new consideration given by the member.
(2)The company is treated for the purposes of the Corporation Tax Acts as making a distribution to the member of an amount equal to the excess.
But this is subject to section 1021.
(3)For the purposes of subsection (1) the amount or value of a benefit, or of any consideration, is determined in accordance with the market value.