UK Proposes New Reporting Rules for Small Company Transactions

Small companies should make detailed intra-company transaction reports to the UK tax authority, according to a government proposal Thursday.

Certain transactions between so-called close companies and their participators, or shareholders, would be reported to His Majesty’s Revenue and Customs, according to a proposal issued for consultation.

The transactions that would be reported include cash withdrawals, loans, debts, dividends and other distributions, as well as transfers of assets to and from the company.

Close companies are typically small companies with five or fewer participators—persons with a share or interest in the capital or income of a company. The proposal ...