Taxes Consolidation Act 1997 section 140

Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands

Section 140 deals with distributions made by companies out of exempt profits arising from stallion fees, stud greyhound service fees, or the occupation of certain woodlands, and sets out how such distributions are treated for income tax and corporation tax purposes.

• Where a distribution is made partly from exempt profits and partly from other profits, it is split into two separate distributions — one from exempt profits and one from other profits — each treated according to its own rules.
• Distributions made from exempt profits are disregarded for income tax purposes in the hands of individuals and treated as exempt profits of the recipient company for corporation tax purposes.
• The dividend warrant must state that a distribution (or part of a distribution) has been made out of exempt profits.
• A distribution is treated as coming first from the distributable income of the accounting period for which it is made, with any excess drawn from the most recently accumulated income of preceding periods.