Commentary

D5.102 Distributions—What is meant by a distribution

Corporate tax
Corporate tax | Commentary

D5.102 Distributions—What is meant by a distribution

Corporate tax | Commentary

Part D5     Company distributions

Contents of Part D5

D5.1     Company distributions

[D5.2]     [Rewritten—Overview of current company distributions regime]

[D5.4]     [Rewritten—Tax consequences for the recipient of a distribution]

[D5.5]     [Rewritten—Administration]

Division D5.1     Company distributions

For updates affecting this Division please see Part D0 Updates

Distributions—overview and definitions

D5.102 Distributions—What is meant by a distribution

What is meant by a distribution is set out in CTA 2010, ss 997–1072 and this broadly deals with situations where a company passes anything to its members without receiving full payment in return. Where the distribution is received by an individual it is assessed as income (see E1.412 and E1.416), where the member is a company the distribution is in most cases exempt from tax1 (see D5.150–D5.157).

Signpost summary for distributions

Distributions are categorised in the legislation into eight different paragraphs (paragraphs A–H)2 and these are summarised in the table below:

Description
CTA 2010, s 1000(1) paragraph
Further commentary
Dividends including capital dividends (paragraph A)D5.110
Other distributions out of assets of the company in respect of shares (paragraph

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial