Income and Corporation Taxes Act 1988

234 Information relating to distributions. U.K.

(1) M1 Without prejudice to subsections (3) and (4) below but subject to section 95(1)(c), a company which makes a qualifying distribution shall, if the recipient so requests in writing, furnish to him a statement in writing showing the amount or value of the distribution and (whether or not the recipient is a person entitled to a tax credit in respect of the distribution) the amount of the tax credit to which a recipient who is such a person is entitled in respect of that distribution.

(2) The duty imposed by subsection (1) above shall be enforceable at the suit or instance of the person requesting the information.

(3) M2 Every warrant or cheque or other order drawn or made, or purporting to be drawn or made, in payment of any dividend or interest distributed by any company, being a company within the meaning of the M3 Companies Act 1985 or the M4 Companies (Northern Ireland) Order 1986, or a company created by letters patent or by or in pursuance of an Act, shall have annexed to itself or be accompanied by a statement in writing showing—

(a) in the case of interest which is not a qualifying distribution—

(i) the gross amount which, after deduction of the income tax appropriate thereto, corresponds to the net amount actually paid;

(ii) the rate and the amount of income tax appropriate to such gross amount, and

(iii) the net amount actually paid;

(b) in the case of a dividend or interest which is a qualifying distribution, each of the following amounts—

(i) the amount of the dividend or interest paid, and

(ii) (whether or not the recipient is a person entitled to a tax credit in respect of that distribution) the amount of the tax credit to which a recipient who is such a person is entitled in respect of that distribution.

(4) If a company fails to comply with the provisions of subsection (3) above, the company shall in respect of each offence incur a penalty of [F1 £60] except that the aggregate amount of any penalties imposed under this subsection on any company in respect of offences connected with any one distribution of dividends or interest shall not exceed [F1 £600].

(5) M5 Where a company makes a distribution which is not a qualifying distribution it shall make a return to the inspector—

(a) within 14 days from the end of the accounting period in which the distribution is made; or

(b) if the distribution is made on a date not falling in an accounting period, within 14 days from that date.

(6) A return under subsection (5) above shall contain—

(a) particulars of the transaction giving rise to the distribution; and

(b) the name and address of the person, or each of the persons, receiving the distribution, and the amount or value of the distribution received by him or by each of them.

(7) Where it is not in the circumstances apparent whether a transaction gives rise to a distribution in respect of which a return is required to be made under subsection (5) above, the company shall—

(a) within the time within which such a return would be required to be made if the transaction did give rise to such a distribution, make a return to the inspector containing particulars of the transaction in question; and

(b) if required by a notice served on the company by the inspector, furnish him within the time specified in the notice with such further information in relation to the transaction as he may reasonably require.

(8) If it appears to the inspector that particulars of any transaction ought to have been and have not been included in a return under subsection (5) or (7) above, he may by a notice served on the company require the company to furnish him within the time specified in the notice with such information relating thereto as he may reasonably require.

(9) Any power which the inspector may exercise under [F2 paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 for the purposes of the relevant provisions (as defined in paragraph 1 of that Schedule)] may be exercised by him for the purposes of subsections (5) to (8) above.

Textual Amendments

F1 1989 s.170(2)in relation to things done or omitted on or after 27July 1989.Previously

“£10”

and

“£100”

respectively.

F2 1989 s.107and Sch.12 para.11.Previously

“paragraph 17 of Schedule 19 for the purposes of that Schedule”.

Modifications etc. (not altering text)

C1 S. 234(3) excluded (22.3.1992) by S.I. 1992/569, reg.16.

Marginal Citations

M1 Source—1970 s.232(4); 1972 Sch.24 18

M2 Source—1970 s.242; 1972 Sch.24 19

M3 1985 c. 6.

M4 S.I. 1986/1032 (N.I. 6).

M5 Source—1972 Sch.21