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HMRC internal manual

International Manual

International movements of capital: Other provisions

FA09/SCH 17/Para 10 establishes that failure to comply with the reporting requirement will result in a penalty being chargeable under TMA70/S98. Such penalties will not exceed £300 for the initial failure with a further additional penalty not exceeding £60 for each day on which the failure continues after the initial penalty was imposed.

SCH 17/Para 11 states that regulations and orders made under Part 2 of the Schedule are to be made by statutory instrument, subject to negative resolution.

SCH 17/Para 12 contains interpretative provisions. In particular it sets out that for the purposes of the Schedule ‘control’ in relation to a body corporate means the power of a person to secure that the affairs of the body corporate are conducted in accordance with that person’s wishes, whether this is achieved by;

  • the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or
  • any powers conferred by the articles of association or other document regulating that or any other body corporate.

Where two or more persons taken together have this power then they shall be taken to control the body corporate.

‘Control’ in relation to a partnership control means the right to a share of more than 50% of the assets, or of more than 50% of the income, of the partnership.

Definitions are also included for ‘foreign’, ‘partnership’, ‘subsidiary’, ‘transaction’ and ‘series of transactions’.