Income Tax (Trading and Other Income) Act 2005 section 401B

Power to obtain information

Section 401B gives HMRC officers the power to require information about the ownership of shares, loan capital and bearer securities, particularly where a company appears to be a close company.

• HMRC can require any registered holder of shares or loan capital to confirm whether they are the beneficial owner, and if not, to identify the true owner
• Where a company appears to be a close company, HMRC can require it to provide details of any bearer securities issued, including the names and addresses of recipients and the amounts involved
• HMRC can also require anyone who received, sold or transferred bearer securities issued by a suspected close company to provide further information to help identify the beneficial owners
• "Securities" is broadly defined to include shares, stocks, bonds, debentures, debenture stock, promissory notes and other instruments evidencing indebtedness to a loan creditor