Section 846 Distributions in kind: treatment of unrealised profitsI1

a company makes a distribution consisting of or including, or treated as arising in consequence of, the sale, transfer or other disposition by the company of a non-cash asset, and

any part of the amount at which that asset is stated in the relevant accounts represents an unrealised profit.

for the purpose of determining the lawfulness of the distribution in accordance with this Part (whether before or after the distribution takes place), and

for the purpose of the application, in relation to anything done with a view to or in connection with the making of the distribution, of any provision of regulations under section 396 under which only realised profits are to be included in or transferred to the profit and loss account.