Section 18L | Meaning of “augmented profits”

(1)For the purposes of this Part a company's “augmented profits” of an accounting period are—

(a)the company's taxable total profits of that period, plus

(b)any exempt distributions of a qualifying kind received by the company (“R”) that are not excluded.

(2)For the purposes of this section a distribution is an “exempt distribution of a qualifying kind” if—

(a)it is a distribution for the purposes of the Corporation Tax Acts because (and only because) it falls within paragraph A, B, G or H in section 1000(1), and

(b)it is exempt for the purposes of Part 9A of CTA 2009 (company distributions).

(3)For the purposes of this section a distribution which R receives from a company (“C”) is excluded if—

(a)C is a 51% subsidiary of R or of a company of which R is a 51% subsidiary, or

(b)C is a trading company or relevant holding company that is a quasi-subsidiary of R.

(4)Section 18M—

(a)makes further provision for determining whether a company is a 51% subsidiary of another for the purposes of subsection (3), and

(b)defines expressions used in that subsection.