Explanatory Notes

Corporation Tax Act 2010

2010 CHAPTER 4

3 March 2010

Introduction

Part 23: Company distributions

Chapter 7: Tax credits
Section 1109: Tax credits for certain recipients of exempt qualifying distributions

3192.This section sets out the conditions to be met for a company to be entitled to a tax credit in relation to a distribution that it receives. It is based on section 231 of ICTA and paragraphs 3 and 4 of Schedule 12 to FA 1989. The corresponding provision for income tax is section 397 of ITTOIA.

3193.One of the conditions is that the distribution is a qualifying distribution. This term is defined in section 1136.