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?
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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... ?