Part 3Trading income
Chapter 9Trade profits: other specific trades
Dealers in securities etc
130Traders receiving distributions etc
1
A receipt of a trade which is—
a
a UK distribution, or
b
a payment representative of a UK distribution,
is brought into account in calculating the profits of the trade.
2
Subsection (1) is an exception to section 1285(2) (under which UK company distributions are not generally taken into account in calculating income).
3
Subsection (4) applies if—
a
a payment made by a company carrying on a trade is representative of a UK distribution, and
b
but for section 1305(1) (company’s profits to be computed without any deduction for distributions), a deduction would be allowed for the payment in calculating the profits of the trade.
4
A deduction is allowed for the payment in calculating the profits of the trade (despite section 1305(1)).
5
Subsections (1) to (4) do not apply to receipts, or payments, in the course of insurance business or any category of insurance business.
6
In this section “UK distribution” means a distribution made by a UK resident company.