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CTA10/S1101

A company making a non-qualifying distribution (CTM15450) in any accounting period should also make a return to HMRC under CTA10/S1101 (3) within 14 days of the end of that accounting period.  This guidance will continue to use the description 'non-qualifying distribution' as it is well-known, although when tax credits were abolished by FA16 the term was replaced by 'CD distribution' reflecting the paragraphs of CTA10/S1000 (1) which deal with bonus issues of redeemable shares and of securities.  See FA16/SCH1/PARA12 amending ITTOIA05/S401.

The return will give:

• particulars of the transaction giving rise to the distribution,
• the names and addresses of the persons receiving the distribution,
• the amount or value of the distribution received by each of them.

Where non-qualifying distributions are made on a date which does not fall within any accounting period the return is due within 14 days of the date on which the distribution is made.

Where there is doubt whether the transaction gives rise to a non-qualifying distribution the company must provide details of the transaction within the time limits given above.  HMRC may require further information reasonably required concerning the transaction - CTA10/S1101 (6) and (7).