Section 18L — Corporation Tax Act 2010: Meaning of “augmented profits”

Meaning of “augmented profits” 18L 1 For the purposes of this Part a company's “augmented profits” of an accounting period are—

a the company's taxable total profits of that period, plus b any exempt distributions of a qualifying kind received by the company (“R”) that are not excluded.

2 For the purposes of this section a distribution is an “exempt distribution of a qualifying kind” if—

a it is a distribution for the purposes of the Corporation Tax Acts because (and only because) it falls within paragraph A, B, G or H in section 1000(1),

and b it is exempt for the purposes of Part 9A of CTA 2009 (company distributions).

3 For the purposes of this section a distribution which R receives from a company (“C”) is excluded if—

a C is a 51% subsidiary of R or of a company of which R is a 51% subsidiary, or b C is a trading company or relevant holding company that is a quasi-subsidiary of R.

4 Section 18M—

a makes further provision for determining whether a company is a 51% subsidiary of another for the purposes of subsection (3),

and b defines expressions used in that subsection.