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Finance (No. 3) Act 2010

Finance (No. 3) Act 2010 Sch 3 para 3

Sch 3 para 3

(1) Part 9A of CTA 2009 (company distributions) is amended as follows. (2) In section 931A (charge to tax), omit subsection (2) and for subsection (3) substitute— (3) A distribution is exempt for the purposes of this Part if it is exempt under— (a) Chapter 2 (distributions received by small companies), or (b) Chapter 3 (distributions received by companies that are not small). (3) In section 931H (dividends derived from transactions not designed to reduce tax)— (a) in the heading, for “ Dividends ” substitute “ Distributions ” , (b) in subsection (1)— (i) after “dividend” insert “ or other distribution ” , and (ii) for “paid” substitute “ made ” , (c) in subsection (2), for “dividend is paid” substitute “ distribution is made ” , (d) in subsections (3) and (4)— (i) for “dividend” substitute “ distribution ” , and (ii) for “paid” substitute “ made ” , and (e) in subsection (5)— (i) for “dividend” substitute “ distribution ” , (ii) for “paid” (in both places) substitute “ made ” , and (iii) for “dividends” substitute “ distributions ” . (4) After section 931R insert— Chargeable gains Chargeable gains (931RA) The fact that a dividend or other distribution is exempt does not prevent it from being taken into account in the calculation of chargeable gains.

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