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HMRC internal manual

Capital Gains Manual

Non-resident companies: need to have paid tax under Section 13(2)

It is a condition of section 13(5A) relief that the tax arising on the gain attributed under section 13 must have been paid. In some cases the liability on the section 13 gain and on the distribution will arise in the same year of assessment or accounting period, and in other cases the tax on the section 13 gain will not have been paid.

In practice relief may be given by set off providing that the only reason preventing relief being given is that tax on the section 13 gain is unpaid.