183 Information

Summary

Persons connected with the company who have knowledge of schemes designed to restore the shareholding of vendors who have only temporarily reduced their shareholding in a company in order to take advantage of the capital gains tax treatment are obliged to notify the inspector within 60 days of their becoming aware of such a scheme. The inspector may also seek information about such schemes from the company or from persons connected with the company. The inspector may also seek disclosure of the beneficial recipient of payments made by a company acquiring its own or its holding company’s shares. There is provision for penalties for failure to provide information.

Details

(1) Where a company treats a payment for the buy back of its shares as being relieved from the distribution treatment, any person connected with the company who is or may become aware of any scheme of the kind described in section 180(3) is required to notify the inspector within 60 days of their becoming aware of the existence of such a scheme.

(2) Where a company treats a payment for the buy back of its shares as being relieved from the distribution treatment, and the inspector has reason to believe that the payment forms part of a scheme of a kind described in section 180(3), the inspector may serve notice on the company or on any person connected with the company requiring that there be supplied to him/her within such time not being less than 60 days —

• a declaration in writing stating whether or not such a scheme or arrangement exists, and
• any other information which the inspector may reasonably require to establish whether such a scheme or arrangement exists.

The declaration and information must be based on matters which the person concerned has knowledge or which the person can reasonably be required to obtain.

(3) Where a company treats a payment for the buy back of its own shares as being relieved from the distribution treatment, the inspector may require the recipient of the payment, or any person on whose behalf the payment was received, to state whether he/she was the beneficial owner of the shares and, if not, to supply the name and address of the beneficial owner.

Relevant Date: Finance Act 2019