Commentary

D5.115 Other distributions out of assets of the company in respect of shares (paragraph B)

Corporate tax
Corporate tax | Commentary

D5.115 Other distributions out of assets of the company in respect of shares (paragraph B)

Corporate tax | Commentary

D5.115 Other distributions out of assets of the company in respect of shares (paragraph B)

There are several types of distributions as detailed in D5.102 and the second category of distributions after dividends is any other distribution out of the assets of the company in respect of shares in the company except however much (if any) of the distribution1:

  1.  

    •     represents a repayment of capital on the shares, or

  2.  

    •     is (when it is made) equal in amount or value to any new consideration received by the company for the distribution

It does not matter if the distribution is cash or not.

Exceptions to this general rule are set out in 'Excluded from being a distribution' in D5.102.

The meaning of 'repayment of capital' and 'new consideration' are detailed in D5.103. What is meant by 'out of

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