CTM15570 - Distributions: general: notification of likely higher rate liability

Where you consider it likely that a distribution (other than a dividend) may give rise to a substantial higher rate liability on a member, you should notify the office dealing with member's tax returns. You should notify the amount of income that is comprised in the distribution together with any tax credit.

In some cases, a large number of members of a company may receive distributions likely to give rise to liability at the Schedule F upper rate / Chapter 3 Part 4 ITTOIA05 dividend upper rate. To notify each Inspector would be impracticable. You should ask the company to advise those members of the need to include the distribution in their personal tax returns.