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Note re loan to participators

A shareholder who is not a director but is a participator under HMRC rules has received a loan from the company which was outstanding at the year end and therefore has to be included on CT600A. Does the note in the full accounts, under Related Party Transactions need to refer to to him as a Participator, or just "Mr X, a shareholder who is a related party. . ." or some such?


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03rd May 2011 10:13


"Participator" is a somewhat technical accounting term in this context and is not properly understood by most readers of accounts.  I would just call him a shareholder, which also satisfies the requirement to disclose the nature of the relationship.

I would suggest that your note should read something like "During the year, a loan was advanced to Mr. X, a shareholder in the compay; the balance outstanding at (e.g.) 31st December 2010 was £Y (2009, nil)."

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03rd May 2011 10:25

Thanks, Euan

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