SCHEDULES

SCHEDULE 1Abolition of dividend tax credits etc

Further amendments in CTA 2010

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1

Section 279G (ring fence profits: meaning of “augmented profits”) is amended as follows.

2

In subsection (1)(b) (franked investment income is part of augmented profits unless excluded)—

a

for “franked investment income” substitute “ exempt ABGH distributions ”, and

b

for “is” substitute “ are ”.

3

In subsection (3) (exclusion of franked investment income received from certain subsidiaries etc), for “franked investment income” substitute “ exempt ABGH distribution ”.

4

After subsection (4) insert—

5

In this section “exempt ABGH distribution” means a distribution which—

a

is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and

b

is exempt for the purposes of Part 9A of CTA 2009 (company distributions).