CTM15300 - 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,

and

• 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• CTA10/S1002 and S1021 were repealed for distributions made on or after 17 July 2012.