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Section 931H Distributions derived from transactions not designed to reduce taxF1F13

United Kingdom

(1)

A dividend F2or other distribution falls into an exempt class if it is F3made in respect of relevant profits.

(2)

In this section “relevant profits” means any profits available for distribution at the time that the F4distribution is made, other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where—

(a)

the transaction or series of transactions achieve a reduction (other than a negligible reduction) in United Kingdom tax, and

(b)

the purpose or one of the main purposes of that transaction or series of transactions is to achieve that reduction.

(3)

A F5distribution that falls into an exempt class otherwise than by virtue of this section is for the purposes of this section treated, so far as possible, as F6made in respect of relevant profits.

(4)

Any other F7distribution is for the purposes of this section treated, so far as possible, as F8made in respect of profits other than relevant profits.

(5)

Where by virtue of subsection (4) part of a F9distribution is treated as F10made in respect of relevant profits and part is treated as made in respect of profits other than relevant profits, the two parts are treated for the purposes of this Part and F11Part 2 of TIOPA 2010 (double taxation relief) as separate F12distributions.

Annotations

Textual amendments

F1

Pt. 9A inserted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by Finance Act 2009 (c. 10), Sch. 14 para. 1 (with Sch. 14 para. 32)

F2

Words in s. 931H(1) inserted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(b)(i)

F3

Word in s. 931H(1) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(b)(ii)

F4

Words in s. 931H(2) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(c)

F5

Word in s. 931H(3) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(i)

F6

Word in s. 931H(3) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(ii)

F7

Word in s. 931H(4) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(i)

F8

Word in s. 931H(4) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(d)(ii)

F9

Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(i)

F10

Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(ii)

F11

Words in s. 931H(5) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 99 (with Sch. 9 paras. 1-9, 22)

F12

Word in s. 931H(5) substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(e)(iii)

F13

Word in s. 931H heading substituted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 3(3)(a)

Notes on Part 9A

Modifications

C1

Pt. 9A modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 787, 795, 1184(1) (with Sch. 2)

C2

Pt. 9A modified by 2010 c. 4, s. 814D(6) (as inserted (with effect in accordance with Sch. 29 para. 51 of the amending Act) by Finance Act 2013 (c. 29), Sch. 29 para. 2)