Taxes Management Act 1970 section 26

Nominee shareholders

Section 26 deals with the obligation of nominee shareholders to provide information to HMRC about the beneficial owners on whose behalf they hold shares.

• A person who holds shares as a nominee (i.e. on behalf of someone else) may be required by HMRC to disclose who the true beneficial owner of those shares is.
• The nominee must provide the name and address of the person for whom the shares are held, along with the number and class of shares involved.
• This requirement ensures that HMRC can identify the real owners of shares for tax purposes, even when shares are held through intermediaries.
• The provision was amended by Finance Act 2011 to align it with updated data-gathering powers under Schedule 23 of that Act.