Section 1030A — Corporation Tax Act 2010: Distributions in respect of share capital prior to dissolution of company

Distributions in respect of share capital prior to dissolution of company 1030A 1 This section applies where—

a the procedure in section 1000 of the Companies Act 2006 (power to strike off company not carrying on business or in operation) has been commenced in relation to a company, and b the company makes a distribution in respect of share capital in anticipation of its dissolution under that section.

2 This section also applies where—

a a company intends to make, or has made, an application under section 1003 of that Act (striking off on application by company),

and b the company makes a distribution in respect of share capital in anticipation of its dissolution under that section.

3 The distribution is not a distribution of a company for the purposes of the Corporation Tax Acts if conditions A and B are met (but see section 1030B).

4 Condition A is that, at the time of the distribution, the company—

a intends to secure, or has secured, the payment of any sums due to the company, and b intends to satisfy, or has satisfied, any debts or liabilities of the company.

5 Condition B is that—

a the amount of the distribution, or b in a case where the company makes more than one distribution falling within subsection (1)(b) or (2)(b), the total amount of the distributions, does not exceed £25,000.

6 In the case of a company incorporated in a territory outside the United Kingdom, any reference in subsection (1) or (2) to a section of the Companies Act 2006 is to be read as a reference to any provision of the law of that territory corresponding to that section.