Corporation Tax Act 2010 section 1096

Chargeable payments etc: returns

Section 1096 requires persons who make certain chargeable payments or potentially chargeable payments within five years of an exempt distribution (a demerger) to file a return with HMRC within 30 days.

• A return must be filed with HMRC when a chargeable payment consisting of a transfer of money's worth is made within five years of an exempt distribution
• A return is also required where a payment or transfer would be chargeable but is made for genuine commercial reasons and is not part of a tax avoidance scheme
• Returns must include details of the transaction, recipient names and addresses, values transferred or amounts paid, and — where relevant — an explanation of why the payment is not chargeable
• All returns must be made within 30 days of the payment or transfer

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