Section 1083 — Corporation Tax Act 2010: Conditions for distributions within section 1077(1)

Conditions for distributions within section 1077(1) 1083 1 Condition G is that if a trade is transferred, the distributing company must either—

a not retain any interest in that trade, or b retain only a minor interest in it.

2 Condition H is that if shares in a subsidiary are transferred those shares—

a must constitute the whole or substantially the whole of the distributing company's holding of the ordinary share capital of the subsidiary, and b must confer the whole or substantially the whole of the distributing company's voting rights in the subsidiary.

3 Condition I is that the only or main activity of the transferee company, or each transferee company, after the distribution must be—

a the carrying on of the trade, or b the holding of the shares transferred to it.

4 Condition J is that the shares issued by the transferee company or each transferee company—

a must not be redeemable, b must constitute the whole or substantially the whole of its issued ordinary share capital, and c must confer the whole or substantially the whole of the voting rights in that company.

5 Condition K is that the distributing company must after the distribution be either a trading company or the holding company of a trading group.