Distributions: general: disapplication of the distribution provisions
CTA10/S1002 and S1021
For distributions made before 17 July 2012, CTA10/S1002 and S1021 disapply the distributions provisions, but in different circumstances.
CTA10/S1021 (1) says that CTA10/S1020 does not apply where:
- the company and the member receiving the benefit of the transaction are both UK resident companies which are bodies corporate and either
- the company giving the benefit is a subsidiary of the recipient, or
- both companies are subsidiaries of a third UK resident company.
Any amount that would be a distribution but for CTA10/S1021 (1) cannot be a distribution under CTA10/S1000 (1) B.
CTA10/S1002 (1) and S1021 (4) prevent certain transactions being distributions under either CTA10/S1000 (1) B or G. It applies to transfers of assets (other than cash), or of liabilities, between companies where
- both are UK residents, neither of which is a 51 per cent subsidiary (CTA10/S1154 (1) to (4)) of a non-UK resident company,
- the two companies are not under common control (CTA10/S450), either at the time of the transfer or as a result of it.
- CTA10/S1002 and S1021 were repealed for distributions made on or after 17 July 2012.