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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. Assumptions to be applied if non-UK resident company involved

Section 181 | Assumptions to be applied if non-UK resident company involved

From legislation.gov.uk

(1)The assumptions referred to in section 180 are as follows.

Assumption 1The profit distribution or the distribution on the notional winding up is confined to a distribution of the profits or assets referable to company B's UK trade (see section 182).

Assumption 2Section 165(2) (in the case of a profit distribution) is applied on the basis that the amount of company B's total profits referred to in that subsection does not exceed the amount of those profits referable to its UK trade.

Assumption 3Section 166(3) and (4) (in the case of a distribution on a notional winding up) is applied on the basis that the amount of company B's assets and liabilities referred to in those subsections does not exceed the amount of those assets and liabilities referable to its UK trade.

Assumption 4None of the ordinary equity holders has a beneficial entitlement to the profits or assets referable to company B's UK trade that is greater than the proportion of the distribution in question to which the equity holder would be beneficially entitled—

(a)if Assumptions 1 to 3 were ignored, and

(b)if it would otherwise be less, the distribution were £100.

(2)In subsection (1) “ordinary equity holder” means an equity holder whose beneficial entitlement on the profit distribution or the distribution on the notional winding up does not differ according to whether or not, or the extent to which, the profits or assets distributed are referable to company B's UK trade.

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