Part 23Company distributions
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.
1097Information about person for whom a payment is received
1
An officer of Revenue and Customs may require any recipient of a chargeable payment to state—
a
whether it is received by the recipient on behalf of another person, and
b
if so, that person's name and address.
2
An officer of Revenue and Customs may require a person (“A”) on whose behalf a chargeable payment is received to state—
a
whether there is another person (in addition to A) on whose behalf the payment is received, and
b
if so, that person's name and address.