Corporation Tax Act 2010 section 1090

Meaning of "company concerned in an exempt distribution"

Section 1090 defines which companies are treated as being "concerned in an exempt distribution" for the purposes of the demerger rules in Chapter 5.

• A company concerned in an exempt distribution includes any "relevant company" (as defined elsewhere in the demerger rules) and any other company connected with a relevant company during the affected period.
• The "affected period" runs from the date of the exempt distribution to the date on which the payment in question is made.
• Connections between companies are extended: if Company A is connected with Company B during the affected period, then Company A is also treated as connected with any company that Company B is connected with during that period.
• This definition is used in the conditions that must be met for a distribution to qualify as an exempt demerger distribution and in the rules that extend those conditions.