Corporation Tax Act 2010 section 1029

Overview of Chapter

Section 1029 provides an overview of the chapter dealing with matters that are not treated as distributions for corporation tax purposes, listing the specific sections that exempt certain transactions from being classified as distributions.

• The chapter identifies specific categories of payment or transaction that are excluded from the tax definition of a "distribution," such as returns of share capital on winding up, payments prior to dissolution, cross-border merger distributions, and interest on certain securities.
• Further exclusions cover purchases by unquoted trading companies of their own shares, stock dividends, building society payments, and payments by registered societies and agricultural or fishing co-operatives.
• Similar provisions excluding certain matters from being distributions also exist outside this chapter, notably the rules on exempt distributions in demergers and the rules on transfers of building society business to a company.
• The practical effect is that where a transaction falls within one of these listed categories, it will not be taxed as a distribution, and different tax treatment (such as capital gains treatment or a deduction for the paying company) may apply instead.