C5C6C7PART VI COMPANY DISTRIBUTIONS, TAX CREDITS ETC
Pt. 6 modified by Gas Act 1986 (c. 44), s. 60(3) (as substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 4 (with Sch. 15))
Pt. 6 modified by British Steel Act 1988 (c. 35), s. 11(7) (as substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 55 (with Sch. 15))
CHAPTER IV TAX CREDITS
C1C2234AF1 Information relating to distributions: further provisions.
1
This section applies where dividend or interest is distributed by a company which is—
a
a company F3as defined in section 1(1) of the Companies Act 2006 (c. 46), 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 to any person, and subsection (3) below does not apply, within a reasonable period the company shall send an appropriate statement to that person.
3
If the company makes a payment of dividend or interest into a bank or building society account held by any person, within a reasonable period the company shall send an appropriate statement to either—
a
the bank or building society concerned, or
b
the person holding the account.
C3C44
In a case where—
a
a statement is received by a person under subsection (2) or (3)(b) above,
b
the whole or part of the sum concerned is paid to or on behalf of the person as nominee for another person, and
c
the nominee makes a payment of the sum or part to the other person and subsection (5) below does not apply,
within a reasonable period the nominee shall send an appropriate statement to that person.
5
In a case where—
a
a statement is received by a person under subsection (2) or (3)(b) above,
b
the whole or part of the sum concerned is paid to or on behalf of the person as nominee for another person, and
c
the nominee makes a payment of the sum or part into a bank or building society account held by the other person,
within a reasonable period the nominee shall send an appropriate statement to either the bank or building society concerned or the other person.
6
In the case of a payment of interest which is not a qualifying distribution or part of a qualifying distribution, references in this section to an appropriate statement are to a written statement showing—
a
the gross amount which, after deduction of the income tax appropriate to the interest, corresponds to the net amount actually paid,
b
the rate and the amount of income tax appropriate to such gross amount,
c
the net amount actually paid, and
d
the date of the payment.
7
In the case of a payment of dividend or interest which is a qualifying distribution or part of a qualifying distribution, references in this section to an appropriate statement are to 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 to which a person is entitled in respect of the dividend or interest, or to which a person would be so entitled if he had a right to a tax credit in respect of the dividend or interest.
8
In this section “send” means send by post.
F28A
In this section “bank” has the meaning given by section 840A.
9
If a person fails to comply with subsection (2), (3), (4) or (5) above, the person shall incur a penalty of £60 in respect of each offence, except that the aggregate amount of any penalties imposed under this subsection on a person in respect of offences connected with any one distribution of dividends or interest shall not exceed £600.
10
The Board may by regulations provide that where a person is under a duty to comply with subsection (2), (3), (4) or (5) above, the person shall be taken to comply with the subsection if the person either—
a
acts in accordance with the subsection concerned, or
b
acts in accordance with rules contained in the regulations;
and subsection (9) above shall be construed accordingly.
11
Regulations under subsection (10) above may make different provision for different circumstances.
Pt. 6 modified by Airports Act 1986 (c. 31), s. 77(3) (as substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 3 (with Sch. 15))