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Legislation
Corporation Tax Act 2010

Crossheading Company's entitlement to profits or assets available for distribution: supplementary

  • Section 169 Application and interpretation of sections 170 to 182
  • Section 170 Shares or securities with limited rights
  • Section 171 Shares or securities with temporary rights
  • Section 172 Company A's proportion if shares etc have temporary rights
  • Section 173 Cases in which option arrangements are in place
  • Section 174 Company A's proportion if option arrangements in place
  • Section 174A Certain option arrangements not within section 173
  • Section 174B Certain mortgage arrangements not within section 173
  • Section 175 Cases in which both sections 170 and 172 apply
  • Section 176 Cases in which both sections 170 and 174 apply
  • Section 177 Cases in which both sections 172 and 174 apply
  • Section 178 Cases in which sections 170, 172 and 174 all apply
  • Section 179 Cases in which surrendering or claimant company is non-UK resident
  • Section 180 Company A's proportion if non-UK resident involved
  • Section 181 Assumptions to be applied if non-UK resident company involved
  • Section 182 Assets etc referable to UK trade
  1. Company's entitlement to profits or assets available for distribution: supplementary
  2. Shares or securities with limited rights

Section 170 | Shares or securities with limited rights

From legislation.gov.uk

(1)This section applies if, at the relevant time, one or more of the participating equity holders holds, as such, shares or securities with distribution rights that are limited (wholly or partly) by reference to a specified amount or amounts.

(2)Determine what company A's proportion would be if all those distribution rights were waived so far as they are so limited.The result is referred to as “the alternative proportion”.

(3)If the alternative proportion is less than what company A's proportion would be ignoring this section, then company A's proportion is taken to be the alternative proportion.

(4)Subsection (3) is subject to sections 175, 176, 178 and 180.

(5)For the purposes of subsection (1) a limitation on a right may operate—

(a)by specifying the capital or amount of profits by reference to which a distribution is calculated, or

(b)in any other way.

(6)But in a case to which section 180 applies (see section 179), limitations that are covered by Case 1 in section 179 are ignored for the purposes of subsection (1).

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