SCHEDULES

SCHEDULE 1Abolition of dividend tax credits etc

Further amendments in CTA 2010

37

1

Section 1070 (distributions by company carrying on mutual business) is amended as follows.

2

In subsection (2) (provisions about distributions apply to company's distributions only where made out of taxed profits or franked investment income), for paragraph (b) (franked investment income) substitute—

b

income of the company consisting of exempt ABGH distributions.

3

After subsection (5) insert—

5A

In subsection (2) “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).