IFM14292 - Tax vouchers: basic position

The basic provisions for providing tax vouchers are set out in Chapter 6 of Part 23 of CTA 2010 (Information and Returns: Further Provisions), see in particular Section 1104. As of 1 April 2017 tax is no longer required to be deducted from interest distributions made by investment trusts, so tax vouchers issued from that date will only be required to show gross distributions (of dividend or interest income), the percentage of the gross distribution attributable to the amount treated as an interest distribution and the percentage attributable to dividend (where appropriate) and the date of the payment.

In addition, SI2003/3143 provides for statutory dividend vouchers to be sent by electronic means. The regulations do not prescribe the methods of electronic communication that must be used, but possibilities include sending PDF files by e-mail or making the voucher or certificate available on a secure website for the recipient to download. SI2009/2050 provides that where a company pays distributions of dividends or interest directly into a recipient’s bank or building society account, they may send the appropriate statement to either the bank or building society concerned or the person holding the account by electronic means, as described above.

Sending such information electronically is subject to three conditions, which are:

• the company has indicated to the recipient that it intends to use electronic communications for the purposes of delivering 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 a paper copy of the information contained in the statement to be printed and is designed to prevent alteration of contents.