Taxes Consolidation Act 1997 section 150

Tax credit for recipients of certain distributions

Section 150 sets out the application rules for a tax credit available to recipients of distributions which arise solely because certain securities have been reclassified as distributions under specific anti-avoidance categories within section 130(2)(d).

• Applies only where the paying company carries on a specified trade within the meaning of section 133(1).
• Covers distributions arising under section 130(2)(d)(ii), (iii)(I) or (v) only.
• Targets reclassified securities — bonus securities, certain convertible securities, and securities held by non-resident group companies.
• Does not apply where the distribution arises under any other subparagraph of section 130(2)(d).