Section 931R — Corporation Tax Act 2009: Election that distribution should not be exempt

Election that distribution should not be exempt 931R 1 This section applies where, apart from this section, a distribution (“the distribution”) would be exempt.

2 If the recipient so elects, the distribution is not exempt.

3 An election under this section must be made on or before the second anniversary of the end of the accounting period in which the distribution is received.

4 Subsection (5) applies where the distribution is a dividend that is treated for certain purposes of Part 18 of ICTA (double taxation relief) as two separate dividends by virtue of section 801C of that Act (separate streaming of dividend so far as representing an ADP dividend of a CFC).

5 If the recipient so elects—

a the distribution is to be treated for the purposes of this Part as if it were an ADP dividend and a separate residual dividend as provided for in that section of that Act, and b the ADP dividend is not exempt.

6 The reference in subsection (4) to section 801C of ICTA is to that section as it continues to have effect in accordance with paragraph 8(1) of Schedule 16 to FA 2009 in relation to dividends paid on or after 1 July 2009 for accounting periods beginning before that day.