Corporation Tax Act 2010 section 1091

Advance clearance of distributions

Section 1091 allows a company to apply to HMRC in advance of making a distribution to obtain confirmation that it will be treated as an exempt distribution.

• A company planning to make a distribution may apply to HMRC for advance clearance before the distribution takes place.
• The application must be made before the distribution is actually carried out.
• If HMRC confirm they are satisfied the distribution will qualify as exempt, it is then treated as an exempt distribution.
• This clearance procedure provides certainty to the distributing company about the tax treatment before it commits to the distribution.