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HMRC internal manual

International Manual

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HM Revenue & Customs
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International movements of capital: Nomination arrangements

FA09/SCH 17/Para 6

FA09/SCH 17/Para 6 contains the rules governing the nomination process mentioned in INTM700400. A nomination can only be made where two or more UK corporate parents are controlled by the same foreign parent, although the arrangement does not have to cover all such corporate parents. Under the arrangement the nominated reporting body will be responsible for all the requirements of the Schedule on behalf of the other parties.

SCH 17/Para 6(3) empowers a party to a nominating arrangement to withdraw from it unilaterally.

SCH 17/Paras 6(4) and (5) enable the Commissioners of HM Revenue & Customs to make regulations governing the nominating arrangements and specify that such regulations may include provision regarding entry and withdrawal from an arrangement and the related information that must be supplied to HMRC. They may also specify the circumstances in which a body corporate is treated as withdrawing from an arrangement. The regulation making power in SCH 17/Para 6 has been exercised.

Nomination arrangements - provisions of S.I. 2009 / No. 2192

The regulations specify that the parties to such an arrangement must give notice of the arrangement to an officer of Revenue and Customs within 28 days of entering into it.

Regulation 6(3) requires the notice to be in writing and signed by all the parties to the arrangement.

Regulation 6(4) requires the notice to state the name and tax reference of each party and to state which of them is the nominated reporting body.

Regulation 6(5) provides that the parties to an arrangement are treated as having withdrawn from it if they do not give notice to an officer of Revenue and Customs in accordance with paragraphs (2) to (4).

Regulation 6(6) provides that if a party to an arrangement ceases to be controlled by the foreign parent, that party is treated as having withdrawn from the arrangement.

Regulation 6(7) requires that a party which withdraws from or is treated as withdrawing from an arrangement must give notice to an officer of Revenue and Customs and to any other party to the arrangement of that fact within 28 days of the date of withdrawal or the date on which it ceases to be controlled by the foreign parent, as the case may be.

As can be seen from these regulations such arrangements are intended to be entered into voluntarily by companies where doing so will simplify the administration of the reporting requirement within the group. HMRC has no power to ‘deem’ a particular company as a nominated reporting body.