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?
Replies (8)
Please login or register to join the discussion.
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.
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.
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 :)
Read more carefully
You obviously miissed "onwards" in CTM61505 - the definition is at CTM60150.