Section 18L Meaning of “augmented profits”F1
For the purposes of this Part a company's “augmented profits” of an accounting period are—
the company's taxable total profits of that period, plus
any exempt distributions of a qualifying kind received by the company (“R”) that are not excluded.
For the purposes of this section a distribution is an “exempt distribution of a qualifying kind” if—
it is a distribution for the purposes of the Corporation Tax Acts because (and only because) it falls within paragraph A, B, G or H in section 1000(1), and
it is exempt for the purposes of Part 9A of CTA 2009 (company distributions).
For the purposes of this section a distribution which R receives from a company (“C”) is excluded if—
C is a 51% subsidiary of R or of a company of which R is a 51% subsidiary, or
C is a trading company or relevant holding company that is a quasi-subsidiary of R.
Section 18M—
makes further provision for determining whether a company is a 51% subsidiary of another for the purposes of subsection (3), and
defines expressions used in that subsection.
Annotations
Textual amendments
- F1
Pt. 3A inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 3
Notes on Part 3A
Modifications
- C1
Pt. 3A excluded (9.12.2021) by S.I. 2006/964, reg. 14B(3)(c) (as inserted by The Authorised Investment Funds (Tax) (Amendment) Regulations 2021 (S.I. 2021/1270), regs. 1, 4(b))
- C2
Pt. 3A excluded (9.12.2021) by S.I. 2006/964, reg. 14DA(3)(a) (as inserted by The Authorised Investment Funds (Tax) (Amendment) Regulations 2021 (S.I. 2021/1270), regs. 1, 3(2))
- C3
Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by 2001 c. 2, s. 99(4A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 16(3))
- C4
Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by S.I. 1998/3175, reg. 2(2A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 13(2)(c))