Corporation Tax Act 2010 section 464B

Relief in case of return payment to company

Section 464B provides relief from a section 464A tax charge when the value of a benefit conferred on a participator is returned to the close company as a payment.

• Where a close company has incurred a tax charge under section 464A because a benefit was conferred on a participator, relief is available if the value of that benefit is returned to the company as a payment, provided no consideration is given for that return payment.
• The relief must be claimed within four years from the end of the financial year in which the return payment is made.
• If the return payment is made on or after the date the section 464A tax is due, the relief cannot be given before the end of nine months from the end of the accounting period in which the return payment is made.
• Schedule 1A to the Taxes Management Act 1970 applies to the claim for relief, unless the claim is included in the company's return for the period in which the benefit was conferred and the relief can be granted at the time the claim is made.