Are undrawn profits a "loan" for s455 purposes?

Posted by blok PM | on Fri, 22/02/2013 - 09:56 1056 45 comments | report

following on from a recent post along the same lines.

Corporate partner is allocated a share of revenue profits but doesn't receive them in cash terms. This current account with the partnership is shown in the company accounts as a debtor. The cash is annual drawn down by the individual partner, who controls the company.

The partnership is not a genuine scottish partnership therefore this http://www.hmrc.gov.uk/manuals/ctmanual/CTM61515.htm wont apply..

Q, would s455 apply?

Comments

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I don't think so

George Attazder | Fri, 22/02/2013 - 10:13

I'd say no

BKD | Fri, 22/02/2013 - 10:15

Blimey!

George Attazder | Fri, 22/02/2013 - 10:21

Now, now, George

BKD | Fri, 22/02/2013 - 10:36

.

blok | Fri, 22/02/2013 - 10:43

Rationale

BKD | Fri, 22/02/2013 - 11:00

Careful...

George Attazder | Fri, 22/02/2013 - 11:00

No, no, no

George Attazder | Fri, 22/02/2013 - 11:04

Agreed

BKD | Fri, 22/02/2013 - 11:20

going out on a limb....

zeofiles | Fri, 22/02/2013 - 11:45

Well, as I (and BKD) have said above

George Attazder | Fri, 22/02/2013 - 11:52

Another way of looking at it

BKD | Fri, 22/02/2013 - 12:05

I don't think that you

Triggle | Fri, 22/02/2013 - 13:18

s455 may be due if

johnt27 | Fri, 22/02/2013 - 13:23

Contradictory

BKD | Fri, 22/02/2013 - 13:41

Eh?

George Attazder | Fri, 22/02/2013 - 13:51

Aha!

George Attazder | Fri, 22/02/2013 - 13:54

confused.com #1

zeofiles | Fri, 22/02/2013 - 14:02

.

blok | Fri, 22/02/2013 - 14:08

.

blok | Fri, 22/02/2013 - 14:09

@blok

George Attazder | Fri, 22/02/2013 - 14:14

As an example

zeofiles | Fri, 22/02/2013 - 14:14

Section numbers were so last year....

johnt27 | Fri, 22/02/2013 - 14:20

Assets

BKD | Fri, 22/02/2013 - 14:27

To reply to zeofiles' example

BKD | Fri, 22/02/2013 - 14:36

But if a drawing was made by

Triggle | Fri, 22/02/2013 - 15:06

Yes, Triggle

BKD | Fri, 22/02/2013 - 15:16

@triggle

zeofiles | Fri, 22/02/2013 - 15:24

Taxable income

BKD | Fri, 22/02/2013 - 15:33

As an aside ...

BKD | Fri, 22/02/2013 - 15:34

*

Triggle | Fri, 22/02/2013 - 16:05

@ BKD, sorry think i have

zeofiles | Fri, 22/02/2013 - 16:08

.

blok | Fri, 22/02/2013 - 16:10

.

blok | Fri, 22/02/2013 - 16:16

PA 1890

George Attazder | Fri, 22/02/2013 - 16:31

Scottish or not

BKD | Fri, 22/02/2013 - 17:09

.

blok | Mon, 25/02/2013 - 19:33

Care to elaborate?

BKD | Mon, 25/02/2013 - 20:10

.

blok | Tue, 26/02/2013 - 10:35

.

blok | Tue, 26/02/2013 - 10:42

Apologies for labouring the point

BKD | Tue, 26/02/2013 - 11:04

.

blok | Tue, 26/02/2013 - 11:29

I think it is a red herring, because ...

BKD | Tue, 26/02/2013 - 11:57

Yes but...

George Attazder | Tue, 26/02/2013 - 12:17

.

blok | Tue, 26/02/2013 - 12:17