Section 1030A | Distributions in respect of share capital prior to dissolution of company ^F1

(1)This section applies where—^F1

(a)the procedure in section 1000 of the Companies Act 2006 (power to strike off company not carrying on business or in operation) has been commenced in relation to a company, and^F1

(b)the company makes a distribution in respect of share capital in anticipation of its dissolution under that section.^F1

(2)This section also applies where—^F1

(a)a company intends to make, or has made, an application under section 1003 of that Act (striking off on application by company), and^F1

(b)the company makes a distribution in respect of share capital in anticipation of its dissolution under that section.^F1

(3)The distribution is not a distribution of a company for the purposes of the Corporation Tax Acts if conditions A and B are met (but see section 1030B).^F1

(4)Condition A is that, at the time of the distribution, the company—^F1

(a)intends to secure, or has secured, the payment of any sums due to the company, and^F1

(b)intends to satisfy, or has satisfied, any debts or liabilities of the company.^F1

(5)Condition B is that—^F1

(a)the amount of the distribution, or^F1

(b)in a case where the company makes more than one distribution falling within subsection (1)(b) or (2)(b), the total amount of the distributions,^F1

does not exceed £25,000.

(6)In the case of a company incorporated in a territory outside the United Kingdom, any reference in subsection (1) or (2) to a section of the Companies Act 2006 is to be read as a reference to any provision of the law of that territory corresponding to that section.^F1