C1Part 23Company distributions

Annotations:
Modifications etc. (not altering text)
C1

Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)

Chapter 5Demergers

Information and returns

1095Exempt distributions: returns

1

A company which makes an exempt distribution must make a return to an officer of Revenue and Customs.

2

The return must give details of—

a

the distribution, and

b

the circumstances by reason of which it is exempt.

3

The return must be made within 30 days after the distribution.

1096Chargeable payments etc: returns

1

A person must make a return to an officer of Revenue and Customs if—

a

the person makes a chargeable payment within 5 years after the making of an exempt distribution, and

b

the chargeable payment consists of a transfer of money's worth.

2

The return under subsection (1) must give details of—

a

the transaction effecting the transfer,

b

the name and address of each recipient,

c

the value of what is transferred to each recipient, and

d

any payment of money which accompanies the transfer and is itself a chargeable payment.

3

A person must make a return to an officer of Revenue and Customs if, within 5 years after the making of an exempt distribution, the person makes a payment or transfer of money's worth which—

a

is made for genuine commercial reasons and does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, but

b

would be a chargeable payment if that were not so.

4

In subsection (3)(a) “tax” includes stamp duty and stamp duty land tax.

5

Subsection (3) does not apply if a notification under section 1092(5) (payment not to be treated as a chargeable payment merely because of a connection between two companies) has effect in relation to the payment or transfer.

6

In the case of a transfer, the return under subsection (3) must give the following information—

a

details of the transaction which effects the transfer,

b

the name and address of each recipient,

c

the value of what is transferred to each recipient, and

d

a statement of the circumstances by reason of which the transfer is not a chargeable payment.

7

In the case of a payment, the return under subsection (3) must give the following information—

a

the name and address of each recipient,

b

the amount of the payment made to each recipient, and

c

a statement of the circumstances by reason of which the payment is not a chargeable payment.

8

The return under subsection (1) or (3) must be made within 30 days after the transfer or payment.

F11097Information about person for whom a payment is received

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