Section 181 — Corporation Tax Act 2010: Assumptions to be applied if non-UK resident company involved

Assumptions to be applied if non-UK resident company involved 181 1 The assumptions referred to in section 180 are as follows. Assumption 1 The profit distribution or the distribution on the notional winding up is confined to a distribution of the profits or assets referable to company B's UK trade (see section 182). Assumption 2 Section 165(2) (in the case of a profit distribution) is applied on the basis that the amount of company B's total profits referred to in that subsection does not exceed the amount of those profits referable to its UK trade. Assumption 3 Section 166(3) and (4) (in the case of a distribution on a notional winding up) is applied on the basis that the amount of company B's assets and liabilities referred to in those subsections does not exceed the amount of those assets and liabilities referable to its UK trade. Assumption 4 None of the ordinary equity holders has a beneficial entitlement to the profits or assets referable to company B's UK trade that is greater than the proportion of the distribution in question to which the equity holder would be beneficially entitled—

if Assumptions 1 to 3 were ignored, and if it would otherwise be less, the distribution were £100.

2 In subsection (1) “ ordinary equity holder ” means an equity holder whose beneficial entitlement on the profit distribution or the distribution on the notional winding up does not differ according to whether or not, or the extent to which, the profits or assets distributed are referable to company B's UK trade.