INTM700400 | International movements of capital: Who should make reports?

FA09/SCH 17/Paras 5 to 7

FA09/SCH 17/Para 5 and 6 define the situations in which a body corporate will be a ‘reporting body’. A group of companies will generally only have one reporting body, which will be the top UK resident holding company. For a foreign owned group this will not necessarily be the group’s ultimate parent company. However some groups may have more than one reporting body and SCH 17/Para 6 provides a mechanism whereby certain reporting bodies may collectively nominate one of their number to be responsible for all aspects of the reporting requirement.

SCH 17/Para 5 sets out a general condition that a body corporate, referred to as ‘Body A’, can only be a reporting body when it is a ‘UK corporate parent’ which is defined in SCH 17/Para 7 as the top UK resident holding company of a group which is not itself controlled by a UK resident body corporate.

Sub-paragraphs 2 to 5 set out four additional conditions, any one of which must also be met before Body A can be considered to be a reporting body.

These rules establish a reporting body to be the parent company of a UK owned group or a UK resident company which heads part of a foreign owned group. If a group is structured as, for example, two or more parallel sub-groups controlled by a foreign parent then the UK resident parents of each sub-group will be reporting bodies in respect of their subsidiaries unless between them they nominate a single reporting body (see INTM700410).

SCH17/Para 7 defines ‘UK corporate parent’ as a UK resident body corporate which controls one or more bodies corporate that are not resident in the UK and is not itself controlled by a UK body corporate.

The purpose of these provisions is to establish the reporting requirement at a group level; it is not intended to be the responsibility of individual companies within the group to report particular transactions as was the case with the Treasury Consents rules.