Section 1096 — Corporation Tax Act 2010: Chargeable payments etc: returns

Chargeable payments etc: returns 1096 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.