234A Information relating to distributions: further provisions.

1

This section applies where dividend or interest is distributed by a company which is—

a

a company within the meaning of the Companies Act 1985 or the Companies (Northern Ireland) Order 1986, 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.

4

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.

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.