Distribution exemption: Exemption for all other companies: outline
The conditions for exemption
Chapter 3 of CTA09/Part 9A sets out the conditions for a distribution to be exempt from corporation tax if it is received by a company other than a small company.
There are three conditions for exemption set out in CTA09/S931D.
- The distribution falls into an exempt class.
- The distribution must not be an amount, typically of interest, that is deemed by CTA10/S1000E or S1000F to be a distribution (see INTM655070).
- A deduction is not allowed to any foreign resident in accordance with any foreign tax law in respect of the distribution (see INTM652030).
A distribution falls into an exempt class if
- it falls within one or more of the classes described in CTA09/S931E to S931I
- it is not prevented from falling within the exempt classes in CTA09/S931E to S931I by reason of any of the anti-avoidance rules in S931J to S931Q.