Particular Trades: mutual concerns: distributions
A company which carries on mutual business, that is
- mutual trading,
- mutual insurance, or
- other mutual business
will be treated as making a distribution within CTA10/PART23 only so far as it is a relevant distribution made out of profits brought into the charge to corporation tax, or out of franked investment income.
A relevant distribution means a distribution made to a person who participates in the mutual activities of the business and which derives from those activities. See BIM24555 onwards.
ACT is not payable by a company on distributions made on or after 6 April 1999.
CTIS (Technical) will advise if necessary.