Corporation Tax Act 2010 section 1109

Tax credits for certain recipients of exempt qualifying distributions

Section 1109 sets out the conditions that must be met for a company to be entitled to a tax credit in respect of a qualifying distribution it receives, where that distribution is exempt from corporation tax.

• A company receiving a distribution may be entitled to a tax credit if specific conditions are satisfied.
• The distribution must be a "qualifying distribution" as defined elsewhere in the Act (section 1136).
• The distribution must be one that is exempt from corporation tax in the hands of the recipient company.
• The corresponding income tax rule for individuals and non-corporate recipients is found in section 397 of ITTOIA.