IFM06420 - Tax elected funds (TEFs): provisions for providing tax information to investors: basic rules

Tax information sent by companies to their shareholders

Under s1104 of the Corporation tax Act 2010, where dividends or interest are distributed by a company to its shareholders, a written statement must be sent (by post or electronically) to the shareholder. These rules apply to TEFs by virtue of regulation 70 of SI 2006/964. The information that must be contained in the written statement are the amount of the dividend or interest paid and the date of the payment.

Delivering information electronically

Statements may be sent electronically subject to three conditions:

• the company has told the recipient that it intends to use electronic communications to deliver a statement;
• the recipient consents to this form of communication; and
• the statement is delivered in an electronic format that can be stored, which permits paper copy of the information contained in the statement to be printed and is designed to prevent alteration of contents.