Companies Act 2014 section 118

Prohibition on pre-acquisition profits or losses being treated in holding company's financial statements as profits available for distribution

Section 118 prohibits a holding company from treating accumulated profits or losses of a subsidiary that arose before the acquisition date as distributable profits in the holding company's financial statements.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.