SCHEDULES
SCHEDULE 1Abolition of dividend tax credits etc
Other amendments
65
1
CTA 2009 is amended as follows.
2
In section 1222 (company with investment business: amount deductible for management expenses to be reduced by income from sources not charged to tax)—
a
in subsection (1) (UK resident company), for paragraph (c) (franked investment income does not reduce deductibles) substitute—
c
the income does not consist of exempt ABGH distributions.
b
in subsection (2) (non-UK resident company), for paragraph (d) (franked investment income does not reduce deductibles) substitute—
d
the income does not consist of exempt ABGH distributions.
c
after subsection (3) insert—
4
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) of CTA 2010, and
b
is exempt for the purposes of Part 9A (company distributions).
3
Omit section 1266(3) (partnerships with foreign element: entitlement to tax credit).
4
In Schedule 4 (index of defined expressions) omit the entry for “qualifying distribution”.