Form CT61

Companies do not need to deduct tax from donations to charities, interest on quoted Eurobonds or any payments paid to a company resident in the UK or chargeable to UK Corporation Tax, or any payments made to tax-exempt bodies such as local authorities, approved pension funds or government departments.

For any payments listed below but not paid to those listed above, you need to deduct tax and make a return on form CT61:

• alternative finance payments
• yearly interest (other than to a UK bank)
• interest paid by building societies, banks or other deposit-takers
• interest distributions by UK authorised unit trusts and open-ended investment companies
• the income element of purchased life annuities
• certain annuities and other annual payments
• certain royalties - there are special rules for paying royalties to non-residents
• payments under non-charitable deeds of covenant
• certain payments within five years of a demerger
• distributions by unauthorised unit trusts.

Please select 'Yes' from the drop-down menu if the company will need to deduct Income Tax and make a return on form CT61.

You can order a form CT61 by telephoning the HM Revenue & Customs Accounts Office in Shipley.