SCHEDULES

SCHEDULE 14Corporation tax treatment of company distributions

Part 2Other amendments

FA 1989

15

FA 1989 is amended as follows.

16

1

Section 85A (life assurance: excess adjusted Case I profits) is amended as follows.

2

In paragraph (a) of subsection (6), for “distributions received by the company in the accounting period from companies resident in the United Kingdom” substitute “ non-taxable distributions received by the company in the accounting period ”.

3

After that subsection insert—

6A

In this section “non-taxable distribution” means—

a

a distribution that is exempt for the purposes of Part 9A of the Corporation Tax Act 2009 (company distributions), and

b

does not include any amount withheld from the distribution on account of tax payable under the laws of a territory outside the United Kingdom.

17

1

Section 89 (life assurance: policy holders' share of profits) is amended as follows.

2

In subsection (2)(b), for “distributions received from companies resident in the United Kingdom” substitute “ non-taxable distributions received ”.

3

In subsection (7), after the definition of “Case I profits” insert—

“non-taxable distribution” has the same meaning as in section 85A.