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Participator wide definition

Large Company loan to director but non participator - any problems likely?

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Unmarried couple, previously living together for many years (2 offspring), now having gone separate ways for some time - There are/were no cohabitation agreements existing. The man is sole shareholder of a Ltd Co, the Lady is just director/worker - the company has surplus cash and she wishes to buy a house - the proposal is to lend her a big deposit of £200k direct from the Company - interest only at 2.25% to be paid.  Unlikely to be repaid in the near term. We believe this is not caught by s455 but can anyone think if there is anything in the definition of participator -eg  "Any person who is entitled to secure (see CT60120) that income or assets (whether present or future) of the company will be applied directly or indirectly for their benefit"  that could trip us up?

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By Tim Vane
30th Apr 2020 16:01

Surely it's either just a normal beneficial loan to an employee and treated as such, or else a participator loan to the husband.

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Replying to Tim Vane:
By Wilson Philips
30th Apr 2020 16:31

Husband? Did you skip past the first word of the post?

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Replying to Tim Vane:
By Tax Dragon
30th Apr 2020 17:02

Is it "either... or else"? Can't it be both? [Well no, not this time, but only because of the point Wilson makes.... but in your "husband" scenario, can't it be both?]

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