Is spouse an 'associated participator' for s455 CTA 2010 tax charge

Is spouse an 'associated participator' for s455...

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H+W are husband and wife. H is sole director and sole shareholder of Ltd. W is company secretary. Company loans £3000 to H and £3000 to W. H's loan falls within s455 but what about W? She doesn't own any shares so is not a direct participator. http://www.hmrc.gov.uk/manuals/ctmanual/CTM61505.htm mentions associated participator which is supposed to be defined at http://www.hmrc.gov.uk/manuals/ctmanual/CTM60107.htm but there isn't a definition. Is Ltd's £3000 loan to W caught by s455?

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By johngroganjga
18th Jan 2015 16:24

I am not going to look up the definition on a Sunday afternoon, but common sense says that if anyone is associated for this purpose a spouse is.

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Euan's picture
By Euan MacLennan
18th Jan 2015 16:46

Yes - the loan to W is caught by s.455

A wife is an associate of a participator as defined in s.448(1)(a) & (2)(a) CTA 2010.

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By User deleted
18th Jan 2015 16:49

Don't be so lazy, Kevin

I'm not going to look up the definition on a Sunday afternoon, either - or any other day of the week for that matter..

EDIT - Euan is too kind :)

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Morph
By kevinringer
18th Jan 2015 17:00

I've looked up HMRC manuals ...

... and s455 CTA 2010 but can't find the definition of 'associated' - that is why I am asking. HMRC say in CTM61505 that the definition is in CTM60107 - but it isn't. The legislation makes reference to 'associated' but I couldn't find it thus the post. Anyway, I have now found it in s448 and W is associated. I wasn't being lazy - I just couldn't find it.

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Morph
By kevinringer
18th Jan 2015 17:07

@Euan

My post crossed with yours so I'd found the answer but thanks for the information anyway. I'd made the mistake at looking through the sections after s455 for the definition whereas I should have looked a the preceding sections.

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By User deleted
18th Jan 2015 18:40

Read more carefully

You obviously miissed "onwards" in CTM61505 - the definition is at CTM60150.

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By carnmores
18th Jan 2015 23:41

surely
Or is it Shirley it's a given....

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Morph
By kevinringer
19th Jan 2015 09:27

It was a Sunday ...

... in January so we have to make allowances. Less than 2 weeks to go.

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