UK: Consultation on reporting of “close” company transactions
Consultation closes June 10, 2026.
HMRC has initiated a consultation on proposed new reporting requirements for many transactions between “close” companies and their “participators.”
A close company is defined as a company controlled by five or fewer participators or any number of directors (who are also participators), and a participator is broadly defined as a shareholder or loan creditor (excluding entities such as banks lending in the course of their business) of the company. Thus, many privately held companies, including those that are private equity backed, would be considered close companies.
The transactions covered would include cash withdrawals, loans, debts, dividends, other distributions and transfers of assets to and from the company.
The consultation closes June 10, 2026.
Read an April 2026 report prepared by the KPMG member firm in the UK