Taxes Consolidation Act 1997 section 784E

Returns, and payment of tax, by qualifying fund managers

Section 784E deals with the return by a qualifying fund manager (QFM) of distributions out of the residue of an approved retirement fund (ARF), and the payment and collection of the associated tax. It does not apply where the assets were first accepted into the fund by the QFM on or after 6 April 2000.

• A QFM must file a return to the Collector-General within 14 days of the end of the month in which a distribution is made from the residue of an ARF, giving the name, address and tax reference number of the fund holder, the recipient's details, the amount distributed and the appropriate tax due.
• The appropriate tax is self-assessed and paid by the QFM with the return; inspectors may raise assessments where tax is unpaid or a return is unsatisfactory, and interest accrues at 0.0322% per day on late payments.
• The income tax assessment, collection and recovery provisions apply to appropriate tax, and a QFM may appeal an assessment to the Appeal Commissioners within 30 days, provided the return has been filed and the tax shown due on it has been paid.
• A QFM must also file an annual return for each ARF, on or before the self-assessment return date for the chargeable period, giving details of income, gains, distributions and the identity of the beneficial owner.