Hi
If a client borrows money from his company on an arms-length basis - loan agreement, monthly direct debit repayment of principal plus interest etc, does the S455 still apply (loan will be for 2 - 3 years?)
Thanks
Replies (15)
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He is already aware of s455 I was just suggesting that he should actually have read it instead of asking the question!
But if he's read s455 properly then he should already have read s456 as well ;¬)
I agree though that s456 is the more directly relevant provision.
The OP doesn't claim to have read s455, does he ?
No but, fair play, he's heard of it and can bandy the reference about,
Perhaps he needs to read things written down, rather than on screen, and hasn't yet found a suitable supplier of A4 paper. It's been quite a common thing of late.
That is why I used "if" - as he may have since read it following the recommendation to do so. Although he may, as Portia suggests, be awaiting a stationery delivery.
The question refers specifically to a director's loan. I don't see the relevance of S455 for that.
But he also says that the client borrows it from "his company", implying significant share ownership.
It could be, or it could just be a figure of speech, in the same way that I conduct my daily commute on "my train", even though I don't own a train.
In this case though, if he didn't own the company, I'd have expected him to refer to it as his employer.
When you retire and no longer have to go to work every weekday, you lose track of the days
... but this thread tells me that it must be Friday!