492. Distributions of mutual and non-trading companies.

If a company1 carries on a business ('the mutual business') of mutual trading2, mutual insurance or other mutual business, the provisions3 of the Corporation Tax Acts4 relating to distributions5 apply to relevant distributions6 made by the company only so far as they are made out of: (1) profits7 of the company which are brought into charge to corporation tax; or (2) income of the company consisting of exempt ABGH distributions8. If a company carries on a mutual life assurance business, the provisions of the Corporation Tax Acts relating to distributions do not apply to distributions made by the company