HMRC internal manual

Company Taxation Manual

Distributions: general: notification of likely higher rate liability

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

Where it appears that a distribution (other than a dividend) may give rise to a substantial higher rate liability on a member, notify PT Operations of the amount of income that is comprised in the distribution together with any tax credit.

In some cases, a large number of members of a company may receive distributions likely to give rise to liability at the Chapter 3 Part 4 ITTOIA05 dividend upper rate. The company should be requested to advise those members of the need to include the distribution in their personal tax returns.