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HMRC internal manual

Company Taxation Manual

From
HM Revenue & Customs
Updated
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Distributions: purchase of own shares: return of payment

CTA10/S1046

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.