CTM15300 | Distributions: general: disapplication of the distribution provisions
From HM Revenue & Customs · Company Taxation Manual
and S1021
For distributions made before 17 July 2012, and S1021 disapply the distributions provisions, but in different circumstances.
CTA10/S1021 (1) says that does not apply where:
the company and the member receiving the benefit of the transaction are both UK resident companies which are bodies corporate and either
the company giving the benefit is a subsidiary of the recipient, or
both companies are subsidiaries of a third UK resident company.
Any amount that would be a distribution but for CTA10/S1021 (1) cannot be a distribution under B.
CTA10/S1002 (1) and S1021 (4) prevent certain transactions being distributions under either B or G. It applies to transfers of assets (other than cash), or of liabilities, between companies where
both are UK residents, neither of which is a 51 per cent subsidiary ( to (4)) of a non-UK resident company,
and
the two companies are not under common control (), either at the time of the transfer or as a result of it.
and S1021 were repealed for distributions made on or after 17 July 2012.