Finance Act 2016 (c. 24)

SCHEDULES

SCHEDULE 1 U.K. Abolition of dividend tax credits etc

Further amendments in CTA 2010 U.K.

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

(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).”