Corporation Tax Act 2010 section 1126

"Franked investment income"

Section 1126 defines the term "franked investment income" and explains how references to an amount of franked investment income should be interpreted.

• Franked investment income is income received by a company in the form of distributions from other UK-resident companies, together with any associated tax credit.
• The concept combines the actual distribution received with the related tax credit to arrive at a gross amount of franked investment income.
• References elsewhere in the legislation to a specific amount of franked investment income are to be read as references to the combined total of the distribution and its tax credit.
• This definition is relevant in various parts of corporation tax law where the treatment of dividend-type income received by companies needs to be distinguished from other forms of income.