Section 465 — Corporation Tax Act 2009: Exclusion of distributions except in tax avoidance cases

Exclusion of distributions except in tax avoidance cases 465 1 Credits or debits relating to any amount falling, when paid, to be treated as a distribution must not be brought into account for the purposes of this Part, except, in the case of credits, so far as they are avoidance arrangement amounts (see subsection (4)).

2 Nothing in section 464(1) prevents amounts that are not brought into account because of subsection (1) from being brought into account for corporation tax purposes otherwise than under this Part.

3 But see the following provisions (under which some amounts are prevented from being distributions for corporation tax purposes and accordingly are within this Part)— zza section 420A(2) (hybrid capital instruments),

za section 490(2) (holdings in OEICs, unit trusts and offshore funds treated as rights under creditor relationships), a section 523(2)(b) (shares subject to outstanding third party obligations and non-qualifying shares),

b section 1019 of CTA 2010 (relevant alternative finance return under alternative finance arrangements),

c section 1054 of CTA 2010 (building society dividends etc), ... d sections 1055 and 1057 of CTA 2010 (dividends, bonuses and other sums payable to shareholders in registered societies and UK agricultural or fishing co-operatives) , and e paragraph 44 of Schedule 2 to FA 2022 (distributions under certain securities issued by qualifying asset holding companies).

4 For the purposes of this section an amount is an avoidance arrangement amount if it arises in consequence of, or otherwise in connection with, arrangements of which the purpose, or one of the main purposes, is securing a tax advantage for any person.

5 In this section “ arrangements ” includes any scheme, agreement or understanding, transaction or series of transactions.