Taxes Consolidation Act 1997 section 145

Distributions out of profits from export of certain goods

Section 145 set out how the tax credit attaching to a company distribution was reduced where the underlying profits had benefited from export sales relief under Part IV of the Corporation Tax Act 1976.

• Applied where a company paid a distribution wholly or partly out of profits whose corporation tax had been reduced under the old export sales relief, or out of franked investment income that itself carried a reduced credit.
• The tax credit was scaled down by applying the formula (A + B) / C to the distribution, where A reflected the relieved income, B the credits on incoming franked investment income, and C the company's total distributable income for the period.
• Distributions in excess of the distributable income of the period were treated as made for the immediately preceding period, and so on back to the company's first accounting period, with a special pre-1976 rule for any further excess.
• Repealed by the Finance Act 2000 with effect from 6 April 1999 for income tax, and for accounting periods commencing on or after that date for corporation tax.