NCDs or No Clue what we're Doing?

26 January 2006 / Mark Morton

Issue: 4042 / Categories: Comment & Analysis , Companies

MARK MORTON writes an epitaph for the non-corporate distribution régime.

THE NON-CORPORATE DISTRIBUTION régime was introduced by HMRC in April 2004. Since then the legislation and in particular HMRC's guidance in respect of the legislation has spawned many articles including Keith Gordon's excellent article 'Bolting gift horses' Taxation 27 October 2005 page 94.
The initial guidance issued on HMRC's website on 17 September 2004 seemed relatively straightforward other than in relation to the treatment of excess non-corporate distributions. On 26 April 2005 HMRC tried to clarify their position which only caused more confusion.
On 30 September 2005 I e-mailed HMRC directly the contents of the e-mail follow.

'I read with interest HMRC's new guidance on the treatment of NCDs carried forward released some time ago (www.hmrc.gov.uk/news/ncdr.htm).
'Subsequently two different views seem to be prevalent within the profession. These are best illustrated with...

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