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Where Taxpayers and Advisers Meet

Even the big boys get it wrong, sometimes.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex
Even the big boys get it wrong, sometimes.

Postby pawncob » Sat Feb 11, 2017 12:25 pm

I've read many discussions on here about the legitimacy (or otherwise) of paying interim dividends. Take note, this is what happens when you get it wrong.



http://www.hl.co.uk/__data/assets/pdf_f ... eeting.pdf
With a pinch of salt take what I say, but don't exceed your RDA

Incredulum
Posts:2795
Joined:Thu Dec 03, 2009 5:35 pm

Re: Even the big boys get it wrong, sometimes.

Postby Incredulum » Tue Feb 28, 2017 5:13 pm

Wow, that's quite seriously wrong.
The purpose of this document is to convene a General Meeting to propose the Resolution, which will, if passed, give the Board authority to enter
the deeds of release described in Part II of this document and put all potentially affected parties so far as possible in the position in which they
were always intended to be had the Relevant Distributions been made in accordance with the procedural requirements of the Acts.
So, by signing a bit of magical paper, which will have earned a lawyer quite a lot of money, it's all OK again and an unlawful distribution now becomes a gift given by deed.

This is interesting, for one is often told that an unlawful distribution is not and never was a distribution, so it was never taxable in the first place. Some sensible advice here from HMRC I think.
The tax position of UK shareholders
The Company has drawn the attention of HM Revenue & Customs (“HMRC”) to the circumstances surrounding the payment of the
Relevant Distributions and to the steps that are now proposed to address the position. HMRC has confirmed that the tax position
of UK shareholders is not affected by any procedural irregularity in the Relevant Distributions. Therefore, based on HMRC’s current
understanding, the passing of the Resolution should have no effect on the UK tax position of such persons.


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