Introduction Details of the Section
3.Subsection (2) repeals section 1002 of the Corporation Tax Act (CTA) 2010. Section 1002 CTA excludes from the definition of distribution in section 1000(1) of CTA 2010, paragraph B  (“paragraph B distribution”), transfers of assets or liabilities between:
	UK resident companies neither of which is a 51 per cent subsidiary of a non-resident company and which are not under common control; or
	UK resident companies where one is a 51 per cent subsidiary of the other, or both are 51 per cent subsidiaries of another UK resident company.
Such transfers will now be paragraph B distributions if all other conditions are satisfied.
4.Subsection (3) inserts new subsection (2A) into section 1020 of CTA 2010. New subsection (2A) prevents a transfer of assets or liabilities being treated as a distribution under section 1000(1) of CTA 2010, paragraph G (“paragraph G distribution”), where the transfer is also a distribution under paragraph B, or would be if the exclusion of repayment of capital on the shares within paragraph B did not apply.
5.Subsection (4) repeals section 1021 of CTA 2010. Section 1021 of CTA 2010 provides for exception from treatment as a distribution under paragraph G transfers of assets or liabilities between:
	UK resident companies neither of which is a 51 per cent subsidiary of a non-resident company and which are not under common control; or
	UK resident companies where one is a 51 per cent subsidiary of the other, or both are 51 per cent subsidiaries of another UK resident company.
Such transfers will now be paragraph G distributions if all other conditions of are satisfied.
6.Subsection (5) makes consequential amendments.
7.Subsection (6) provides that the amendments apply to distributions made on or after the day on which the Finance Bill receives the Royal Assent.