Section 553 | Meaning of “appropriate percentage” for purposes of section 552

(1)For the purposes of section 552 “the appropriate percentage” is—

(2)Unless subsection (3) applies, P is the aggregate of the relevant payment and any other payments received by B or associates of B’s from the trustees of the trust during the period of 12 months ending with the payment date.

(3)If—

(a)any distributions were made to the trustees of the trust by the company in respect of its ordinary share capital during the period of 3 years ending with the payment date, and

(b)the aggregate of those distributions is less than the aggregate mentioned in subsection (2),

P is the aggregate of those distributions.

(4)Unless subsection (5) applies, D is the amount determined as follows—Step 1Calculate the aggregate of—

(a)any distributions made by the company in respect of its ordinary share capital during the period of 12 months ending with the payment date,

(b)any distributions so made during the period of 12 months immediately preceding that mentioned in paragraph (a), and

(c)any distributions so made during the period of 12 months immediately preceding that mentioned in paragraph (b).Step 2Divide the aggregate so calculated by the number of the periods mentioned in paragraphs (a) to (c) in which distributions were so made.

(5)If no distributions were so made during any of those periods, D is 1.

(6)In this section “the payment date” and “the relevant payment” have the meaning indicated in section 552(1).