# Finance Act 2016, Paragraph 29


(1) Section 279F (ring fence profits: related 51% group company) is amended as follows.
(2) In subsection (7)(c) (conditions to be met by a company's dividend income in order for company to be a passive company), in sub-paragraph (ii) (dividends must be franked investment income) for “franked investment income” substitute “ exempt ABGH distributions ”.
(3) After subsection (9) insert—
“(10) In subsection (7)(c) “exempt ABGH distribution” means a distribution which—
(a) is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and
(b) is exempt for the purposes of Part 9A of CTA 2009 (company distributions).”

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Source: https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/29 (the official version)
Page: https://openlegislation.uk/finance-act-2016/schedule-1/paragraph-29
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.