What does section 1108 of the Corporation Tax Act 2010 do?

Section 1108 empowers HMRC to make regulations providing alternative ways for companies and nominees to meet their tax certificate and information obligations under sections 1104 and 1105. This allows compliance methods to be updated administratively without amending primary legislation, giving HMRC flexibility to adapt reporting requirements to evolving practices.

Can a company still comply with sections 1104 and 1105 directly if HMRC issues alternative regulations under section 1108?

Yes. If HMRC introduces alternative compliance regulations under section 1108, a person retains the option to comply either by following sections 1104 or 1105 directly as written, or by following the alternative rules set out in HMRC's regulations. Both routes constitute valid compliance under United Kingdom corporation tax law.

Can HMRC set different alternative compliance rules for different circumstances under section 1108?

Yes. The regulations made under section 1108 may provide different rules for different circumstances. HMRC can tailor alternative compliance requirements depending on factors such as the type of distribution, the nature of the recipient, or the volume of payments, creating proportionate and practical alternatives reflecting real-world business practices.

How might HMRC use section 1108 to allow electronic compliance with tax certificate obligations?

HMRC could issue regulations under section 1108 allowing companies to provide required tax certificate information electronically through a secure online portal instead of issuing individual paper certificates. Companies meeting specified conditions could use this electronic method as a fully valid alternative to the traditional certificate requirements under section 1104.

Corporation Tax Act 2010 section 1108

Alternative means of compliance with sections 1104 and 1105

Section 1108 enables HMRC to make regulations providing alternative ways for companies and nominees to meet their obligations to supply tax certificates and related information when distributions or interest are paid.

HMRC may issue regulations offering an alternative route to complying with the tax certificate and information obligations under sections 1104 and 1105
A person can comply either by following the requirements of sections 1104 or 1105 directly, or by following the alternative rules set out in HMRC's regulations
The regulations may set out different rules for different circumstances, giving HMRC flexibility in how alternative compliance is structured
This provides a practical mechanism for HMRC to adapt reporting and certification requirements to suit evolving administrative practices

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member