CTM02050 | Corporation Tax: computation of income: dividends and other distributions made

CTA09/S1305 (1)

Dividends and other distributions are not deductible in computing income.

Most company distributions would not be allowable on basic principles, as distributions of profit rather than expenses of earning it. But some CTA10/PART23 distributions, such as interest treated as a distribution by CTA10/S1000 (1) paragraph E (interest at uncommercial rate) or paragraph F ( on 'special securities' for example interest is results-dependent) might be allowable if this general prohibition did not exist.