Commentary

D7.427 Dividends and other distributions

Corporate tax
Corporate tax | Commentary

D7.427 Dividends and other distributions

Corporate tax | Commentary

D7.427 Dividends and other distributions

The rules in this division apply for accounting periods beginning on or after 1 January 2013. For accounting periods beginning before 1 January 2013 see Division D7.5.

Normally dividends and other distributions received by a company are exempt from tax by virtue of CTA 2009, Pt 9A and this is also true for insurance companies when calculating their I-E profit (see D7.436). In calculating their trade profit however, whether from BLAGAB or non-BLAGAB business, life insurers are required to include distributions as taxable receipts1.

This rule applies regardless of whether the distributions would be exempt under CTA

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