CTM17580 - Distributions: purchase of own shares: return of payment

ICTA88/S226 (1)

If a company makes a purchase of own shares that it believes falls within ICTA88/S219, it must make a return of the transaction to the Inspector (ICTA88/S226 (1)).

This return must:

• be made within 60 days of the payment,
• give particulars of the payment,
• explain why the company believes that ICTA88/S219 applies to the payment so as to exempt it from treatment as a distribution.

The company must make such a return even if the Board has confirmed that ICTA88/S219 will apply to the payment.

If, in a case of the kind mentioned above, involving a distribution by an unquoted company,

• you do not receive a return, or
• you do receive a return, but you have not received notification (see CTM17570) of a decision that ICTA88/S219 applies,

you should immediately make a report to the Clearance and Counteraction Team, Anti- Avoidance Group sending the file with it.