Corporation Tax Act 2010 (c. 4)

Part 23 U.K. Company distributions

Chapter 6 U.K. Information and returns: further provisions

Companies and nominees required to provide tax certificates U.K.

1104 Company distributing dividend or interest: duty to provide tax certificates U.K.

(1) This section applies if a distribution consisting of any dividend or interest is made by a company which is—

(a) a company as defined in section 1(1) of the Companies Act 2006, or

(b) a company created by letters patent or by or in pursuance of an Act.

(2) If the company makes a payment of dividend or interest into a bank or building society account held by any person the company must, within a reasonable period, send a tax certificate (see section 1106) to either—

(a) the bank or building society, or

(b) the person holding the account.

(3) If the company makes a payment of dividend or interest to a person without paying it into a bank or building society account, the company must, within a reasonable period, send a tax certificate to that person.

1105 Duties of nominees U.K.

(1) This section applies if—

(a) a tax certificate is received by a person under section 1104(2)(b) or (3), and

(b) the sum concerned (or part of it)—

(i) is paid to that person as nominee for another person, or

(ii) is paid into the account of that person as nominee for another person.

(2) If the nominee pays the sum (or the part concerned) into a bank or building society account held by the other person the nominee must, within a reasonable period, send a tax certificate to either—

(a) the bank or building society, or

(b) the other person.

(3) If the nominee pays the sum (or the part concerned) to the other person without paying it into a bank or building society account held by that person, the nominee must, within a reasonable period, send a tax certificate to that person.

1106 Meaning of “tax certificate” etc U.K.

(1) This section gives the meaning of “bank”, “send” and “tax certificate” in sections 1104 and 1105.

(2) “Bank” has the meaning given by section 1120.

(3) “Send” means send by post.

(4) “Tax certificate”, in relation to a payment of dividend or interest, means a written statement showing—

(a) the amount of the dividend or interest paid,

(b) the date of the payment, and

(c) the amount of the tax credit (under section 1109(2) below or section 397(1) of ITTOIA 2005) to which an eligible person would be entitled in respect of the dividend or interest.

(5) In subsection (4)(c) “eligible person” means a person who is entitled to a tax credit in respect of the dividend or interest.

(6) But for the purposes of subsection (4)(c) it does not matter whether or not any person is in fact entitled to a tax credit in respect of the dividend or interest.

1107 Penalties U.K.

(1) A person who fails to comply with section 1104(2) or (3) or section 1105(2) or (3) is liable to a penalty of £60 for each offence.

(2) But, in respect of offences connected with any one distribution of dividends or interest, the total amount of any penalties imposed on a person under subsection (1) must not exceed £600.

1108 Alternative means of compliance with sections 1104 and 1105 U.K.

(1) The Commissioners for Her Majesty's Revenue and Customs may by regulations provide that a person may comply with section 1104(2) or (3) or section 1105(2) or (3) either—

(a) by acting in accordance with the subsection concerned, or

(b) by acting in accordance with rules contained in the regulations.

(2) Regulations under subsection (1) may make different provision for different circumstances.