Section HA 18 — Income Tax Act 2007: Treatment of dividends when qualifying company status ends

HA 18 Treatment of dividends when qualifying company status ends When this section applies (1) This section applies when a company’s status as a qualifying company ends under section HA 11(1) . Dividends distributed in tax year (2) Section HA 15 applies to a dividend distributed in the period of a tax year from the first day to the day before the date on which the status ends. References in that section to a tax year should be read as references to that period of the year. Group companies: imputation credit accounts (3) On the day before the date on which the status ends, the company’s imputation credit account is debited under section OB 41 (ICA debit for loss of shareholder continuity) by the lesser of— (a) the balance of the credit account on that day after any credits are attached under section HA 15 ; and (b) the largest debit to the credit account that would have arisen before that day if section OB 41 had applied. Group companies: FDP account (4) On the day before the date on which the status ends, the company’s FDP account is debited under section OC 24 (FDPA debit for loss of shareholder continuity) by the lesser of— (a) the balance of the credit account on that day after any credits are attached under section HA 15 ; and (b) the largest debit to the credit account that would have arisen before that day if section OC 24 had applied. Defined in this Act: company , dividend , FDP account , imputation credit account , qualifying company , tax year , Compare: 2004 No 35 s HG 13(6)