Corporation Tax Act 2010 section 167

Profits or assets available for distribution and entitlement: supplementary

Section 167 provides supplementary rules clarifying how profits or assets available for distribution are to be interpreted and how beneficial entitlement is determined for the purposes of the equity holder tests in the group relief provisions.

• Only distributions received in the capacity of equity holder count — amounts received in any other capacity are excluded from the calculation.
• Beneficial entitlement to profits or assets can arise directly, indirectly through one or more intermediate companies, or through a combination of both routes.
• Where a person qualifies as an equity holder because company assets are used for their benefit under section 159, only that person is treated as beneficially entitled to any related distribution of profits or assets.
• These rules support the equity holder percentage tests used to determine whether companies qualify for group relief.