NISA/CO-OP PAYOUT

How to account for £20k payout on CT return

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In 2018 Nisa announced they were paying out £20k to all shareholders holding more than 250 shares when bought out by Co-op. 

My client (company) received the money but no paperwork stating exactly what it was. It wasn’t a dividend and in some news releases has been referred to as a deferred payment. I contacted HMRC to ask how this should be dealt with on the CT return, despite being referred to a technical adviser they had no idea. 

Anyone else come across this and how was it dealt with?

Replies (2)

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By Accountant A
06th Sep 2019 15:48

Christine Marsh wrote:

My client (company) received the money but no paperwork stating exactly what it was.

It sounds unlikely in the extreme that your client hasn't received information regarding the transaction. Presumably, he just binned it!

I suspect this is worth a read - Part 4 refers to UK tax:

https://members.nisaretail.com/webdata/pdf/Scheme%20Document.pdf

Did he attend the meeting referred to here:

https://www.theguardian.com/business/2017/nov/13/co-op-buys-nisa-for-143... ?

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Replying to Accountant A:
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By Christine Marsh
11th Sep 2019 10:42

Thank you for your help, very useful and answered a lot of questions. You’re right, probably binned and they didn’t have many shares so wasn’t bothered in attending the meeting.

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