Distributions: purchase of own shares: return of payment
If a company undertakes a purchase of its own shares that it believes falls within CTA10/S1033, it must make a return of the transaction to HMRC (CTA10/S1046 (1)).
This return must:
- be made within 60 days of the payment,
- give particulars of the payment,
- explain why the company believes that CTA10/S1033 applies to the payment so as to exempt it from treatment as a distribution.
The company must make such a return even if the Commissioners have confirmed that CTA10/S1033 will apply to the payment.
If, in a case involving a distribution by an unquoted company an officer
- fails to receive a return, or
- receives a return, but without notification (see CTM17570) of a decision that CTA10/S1033 applies,
a report should be made to Clearance and Counteraction Team, Anti-Avoidance Group.