772. Distributions in kind: treatment of unrealised profits

(1) This section applies where—
(a) a company makes a distribution consisting of or including, or treated as arising in consequence of, the sale, transfer or other disposition by the company of a non-cash asset, and
(b) any part of the amount at which that asset is stated in the relevant accounts represents an unrealised profit.
(2) That profit is treated as a realised profit for the purpose of determining the lawfulness of the distribution in accordance with this Part (whether before or after the distribution takes place).