Corporation Tax Act 2009 section 130

Traders receiving distributions etc.

Section 130 deals with how exempt distributions are treated when calculating the trading profits of insurance companies carrying on non-life assurance business.

• This section applies specifically to insurance business other than life assurance business, or any category of such business
• Receipts that are exempt under Part 9A (the company distributions exemption regime) must not be brought into account when calculating trading profits
• This prevents exempt distributions from inflating the taxable trading profits of non-life insurance businesses
• The rule focuses on the nature of the receipt itself rather than on the characteristics of the recipient company