Mr Shafter owns A Ltd, a close company. It holds 100% of the shares in B Ltd and 90% of the shares in C Ltd.
The other 10% of shares are owned by Mr Sucker. He is not an associate of Mr Shafter per the legislation. Mr Sucker is not a director of any of the companies.
B Ltd loaned Mr Sucker £150,000.
Is there s455 tax to pay on this?
Mr Sucker is not a participator in B Ltd.
He is also not a participator in A Ltd, so the provisions of s460 are not triggered.
C Ltd has not loaned either A Ltd or B Ltd any money to fund this, and so the provisions of s459 are not triggered.
What does AWeb say? Is there any provision that captures this for s455 purposes?
I don’t think it is caught but it seems too good to be true.