Corporation Tax Act 2010
Sections and provisions with full text and the judgments that cite each one.
Section 997 — Overview of Part
Overview of Part 997 1 Chapters 2 to 5 contain provision about what is, and what is not, a distribution. 2 Chapter 5 (demergers) includes provision that charges income tax, or applies the charge to…
Section 998 — Overview of Chapter
Overview of Chapter 998 1 Sections 1000 to 1023 are about the meaning of “distribution” in the Corporation Tax Acts. 2 In particular, section 1000(1) lists the matters which are distributions. 3…
Section 999 — Priority of negative rules
Priority of negative rules 999 1 The provisions of this Chapter are subject to any express exceptions. 2 See, in particular— a Chapter 3 (matters which are not distributions), b section 1075 (exempt…
Section 1000 — Meaning of “distribution”
Meaning of “distribution” 1000 1 In the Corporation Tax Acts “ distribution ”, in relation to any company, means anything falling within any of the following paragraphs. A. Any dividend paid by the…
Section 1001 — Provisions related to paragraphs A to H in section 1000(1)
Provisions related to paragraphs A to H in section 1000(1) 1001 The following table mentions, for each paragraph in section 1000(1)— a some of the main provisions that explain or supplement it, and b…
Section 1002 — Exceptions for certain transfers of assets or liabilities between a company and its members
Exceptions for certain transfers of assets or liabilities between a company and its members 1002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 1003 — Redeemable share capital
Redeemable share capital 1003 1 Subsection (2) applies if— a a company issues redeemable share capital, and b the issue is partly (but not wholly) for new consideration. 2 The part (if any) of the…
Section 1004 — Securities issued otherwise than for new consideration
Securities issued otherwise than for new consideration 1004 1 Subsection (2) applies if— a a company issues a security, and b the issue is partly (but not wholly) for new consideration. 2 The part…
Section 1005 — Meaning of “non-commercial securities”
Meaning of “non-commercial securities” 1005 For the purposes of paragraph E in section 1000(1) securities of a company are non-commercial securities if the consideration given by the company under…
Section 1006 — Distributions exceeding consideration received for issue of security
Distributions exceeding consideration received for issue of security 1006 No amount is to be regarded for the purposes of paragraph E in section 1000(1) as representing the principal secured by a…
Section 1007 — Securities issued at premium representing new consideration
Securities issued at premium representing new consideration 1007 1 This section applies if any security of a company is issued at a premium representing new consideration (but see also section 1008).…
Section 1008 — Consideration for issue of security exceeding amount of principal
Consideration for issue of security exceeding amount of principal 1008 1 This section applies if— a a company issues a security, and b the amount of new consideration received by the company for the…
Section 1009 — Securities reflecting dividends on certain shares etc: exclusion of section 1008
Securities reflecting dividends on certain shares etc: exclusion of section 1008 1009 1 Section 1008 does not apply in relation to a security issued by a company (“the issuing company”) if— a the…
Section 1010 — Meaning of “qualifying index” in section 1009
Meaning of “qualifying index” in section 1009 1010 1 In section 1009 “ qualifying index ” means an index which meets the conditions in subsections (2) and (3). 2 The underlying subject matter of the…
Section 1011 — Meaning of “associated company” in section 1009
Meaning of “associated company” in section 1009 1011 1 For the purposes of section 1009 a company is an “associated company” of another at any time when— a one has control of the other, or b both are…
Section 1012 — Hedging arrangements
Hedging arrangements 1012 1 Section 1008 does not at a given time apply in relation to a security issued by a company (“the issuing company”) if— a at that time, or b at any earlier time after 16…
Section 1013 — Exception to section 1012
Exception to section 1012 1013 1 Section 1012 does not prevent section 1008 from applying in relation to a security at a given time if— a each of conditions A to D is met in relation to any hedging…
Section 1014 — Meaning of “hedging arrangements”
Meaning of “hedging arrangements” 1014 1 This section explains what “ hedging arrangements ” means, in relation to a security, in sections 1012 and 1013. 2 “ Hedging arrangements ” means any scheme…
Section 1015 — Meaning of “special securities”
Meaning of “special securities” 1015 1 Securities of a company are special securities for the purposes of paragraph F in section 1000(1) if they meet any of conditions A to E. 1A But hybrid capital…
Section 1016 — Meaning of “equity note” in section 1015
Meaning of “equity note” in section 1015 1016 1 For the purposes of section 1015(6) a security is an equity note if any of the tests in subsection (2) is satisfied either— a as regards the whole of…
Section 1017 — Section 1015: other interpretation
Section 1015: other interpretation 1017 1 For the purposes of section 1015(4) the consideration given by the company for the use of the principal secured is not treated as depending on the results of…
Section 1018 — The principal secured: special securities
The principal secured: special securities 1018 1 No amount is to be regarded for the purposes of paragraph F in section 1000(1) as representing the principal secured by a security so far as it…
Section 1019 — Relevant alternative finance return
Relevant alternative finance return 1019 1 Relevant alternative finance return is not treated by virtue of section 1015(4) as being a distribution for the purposes of the Corporation Tax Acts. 2 For…
Section 1020 — Transfers of assets or liabilities treated as distributions
Transfers of assets or liabilities treated as distributions 1020 1 This section applies if on a transfer of assets or liabilities— a by a company to its members, or b to a company by its members, the…
Section 1021 — Section 1020: exceptions
Section 1020: exceptions 1021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 1022 — Bonus issue following repayment of share capital treated as distribution
Bonus issue following repayment of share capital treated as distribution 1022 1 Subsection (3) applies if a company— a repays or has repaid any share capital, and b at or after the time of the…
Section 1023 — Exceptions to section 1022(3)
Exceptions to section 1022(3) 1023 1 Section 1022(3) does not apply if the issue of share capital mentioned in section 1022(1)(b)— a takes place more than 10 years after the repayment of share…
Section 1024 — Premiums paid on redemption of share capital
Premiums paid on redemption of share capital 1024 Premiums paid on redemption of share capital are not treated as repayments of share capital for the purposes of this Chapter.
Section 1025 — Share capital issued at a premium representing new consideration
Share capital issued at a premium representing new consideration 1025 1 This section applies if— a share capital is issued at a premium representing new consideration, and b a distribution is made in…
Section 1026 — Distributions following a bonus issue
Distributions following a bonus issue 1026 1 This section applies if— a a company issues, or has issued, any share capital (“the bonus share capital”) as paid up otherwise than by the receipt of new…
Section 1027 — Cap on amount of distributions affected by section 1026
Cap on amount of distributions affected by section 1026 1027 1 Section 1026(2) does not apply to the distributions in question so far as they, together with any affected distributions made previously…
Section 1027A — Distributions following reduction of share capital
Distributions following reduction of share capital 1027A 1 This section applies for the purpose of determining whether a distribution is treated as a repayment of share capital for the purposes of…
Section 1028 — Certain payments connected with exempt distributions
Certain payments connected with exempt distributions 1028 1 A chargeable payment made within 5 years after an exempt distribution is not to be (if it otherwise would be) treated as a repayment of…
Section 1029 — Overview of Chapter
Overview of Chapter 1029 1 In this Chapter the following sections provide that a particular matter is not a distribution— a section 1030 (distributions in respect of share capital on a winding up),…
Section 1030 — Distribution in respect of share capital in a winding up
Distribution in respect of share capital in a winding up 1030 A distribution made in respect of share capital in a winding up is not a distribution of a company for the purposes of the Corporation…
Section 1030A — 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…
Section 1030B — Section 1030A: effect of company not being dissolved, etc
Section 1030A: effect of company not being dissolved, etc 1030B 1 Where this section applies, a distribution made by a company is to be treated for the purposes of the Corporation Tax Acts as if…
Section 1031 — Distribution as part of a cross-border merger
Distribution as part of a cross-border merger 1031 If— a a company making a distribution as part of a merger ceases to exist (without being wound up), and b section 140E or 140F of TCGA 1992…
Section 1032 — Interest etc paid in respect of certain securities
Interest etc paid in respect of certain securities 1032 1 Any interest or other distribution which— a is paid out of the assets of a company (“ the borrower ”) to another company which is within the…
Section 1032A — Payment in respect of tier two capital
Payment in respect of tier two capital 1032A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 1033 — Purchase by unquoted trading company of own shares
Purchase by unquoted trading company of own shares 1033 1 A payment made by a company on the redemption, repayment or purchase of its own shares is not a distribution for the purposes of the…
Section 1034 — Requirements as to residence
Requirements as to residence 1034 1 The seller must be resident ... in the United Kingdom in the tax year in which the purchase is made. 2 If the shares are held through a nominee, the nominee must…
Section 1035 — Requirement as to period of ownership
Requirement as to period of ownership 1035 1 The shares must have been owned by the seller throughout the 5 years ending with the date of the purchase. 2 In determining whether the requirement in…
Section 1036 — Determining the period of ownership
Determining the period of ownership 1036 1 If at any time during the period mentioned in section 1035(1) the shares were transferred to the seller by a person (“ the transferor ”) who— a was then the…
Section 1037 — Requirement as to reduction of seller's interest as shareholder
Requirement as to reduction of seller's interest as shareholder 1037 1 If, immediately after the purchase, the seller owns shares in the company, the seller's interest as a shareholder must be…
Section 1038 — Section 1037: effect of entitlement to profits
Section 1037: effect of entitlement to profits 1038 1 The seller's interest as a shareholder is not taken to be substantially reduced for the purposes of section 1037(1) if— a the seller would, if…
Section 1039 — Requirements where purchasing company is a member of a group
Requirements where purchasing company is a member of a group 1039 1 This section applies if the company making the purchase is immediately before the purchase a member of a group. 2 In this section…
Section 1040 — Determining whether interests as shareholders in a group are substantially reduced
Determining whether interests as shareholders in a group are substantially reduced 1040 1 The seller's interest as a shareholder in the purchaser's group is taken to be substantially reduced if (and…
Section 1041 — Section 1040: effect of entitlement to profits
Section 1040: effect of entitlement to profits 1041 1 The seller's interest as a shareholder in the purchaser's group is not taken to be substantially reduced if— a the seller would, if every member…
Section 1042 — Other requirements
Other requirements 1042 1 The seller must not, immediately after the purchase, be connected with— a the company making the purchase, or b any other company which is a member of the same group as that…