Section 931E — Corporation Tax Act 2009: Distributions from controlled companies

Distributions from controlled companies 931E 1 A dividend or other distribution falls into an exempt class if condition A or B is met.

2 Condition A is that the recipient controls the payer.

3 Condition B is that—

a the recipient is one of two persons who, taken together, control the payer, b the recipient has interests, rights and powers representing at least 40% of the holdings, rights and powers in respect of which the recipient and the second person fall to be taken as controlling the payer, and c the second person has interests, rights and powers representing—

i at least 40%, but ii no more than 55%, of the holdings, rights and powers in respect of which the recipient and the second person fall to be taken as controlling the payer.

4 Section 371RB of TIOPA 2010 (read with section 371RD of that Act) applies for the purposes of this section.

5 Section 371RD of TIOPA 2010 applies for the purpose of determining if the requirements of subsection (3)(b) and (c) are met in any case.

6 In subsections (4) and (5) references to section 371RD of TIOPA 2010 are to that section omitting subsection (3)(c) and (d).