CH 27 - Dividends and other distributions

Question 1

What payments set out in CTA 2010, s.1000 are distributions for tax purposes?

3:4

Answer 1

The payments set out in CTA 2010, s.1000 are distributions for tax purposes and include the following:
* * Dividends
* * Payments/transfers of the assets to shareholders
* * Interest above a commercial return

A company that makes a distribution is not entitled to a deduction for the payment in computing its profits.

Question 2

What payments are not considered to be distrubtion payments?

Answer 2

Non-Distrubtion is;
* a repayment of share capital
* a distribution in a liquidation,
* a payment for repurchase of shares or
* distributions made as part of a statutory demerger.