# Corporation Tax Act 2010, Section 1020: Transfers of assets or liabilities treated as distributions

Extent: E+W+S+N.I.

(1) This section applies if on a transfer of assets or liabilities—
(a) by a company to its members, or
(b) to a company by its members,
the amount or value of the benefit received by a member exceeds the amount or value of any new consideration given by the member.
(2) The company is treated for the purposes of the Corporation Tax Acts as making a distribution to the member of an amount equal to the excess.
...
(2A) But the company is not treated as making a distribution under subsection (2) if the transfer of assets or liabilities—
(a) is a distribution by virtue of paragraph B in section 1000(1), or
(b) would be such a distribution in the absence of sub-paragraph (a) of that paragraph (distribution representing repayment of capital on the shares).
(3) For the purposes of subsection (1) the amount or value of a benefit, or of any consideration, is determined in accordance with the market value.

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/1020 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-1020
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.