No the original question is correct. I just wanted to make sure I was covering all bases.
Although the legislation refers to partnerships the shareholders/directors are in control of both companies and wanted to be sure same legislation couldn't be applied to company.
Would it not be treated as a loan to participators?
"Where a close company makes a loan or advance to a partnership (including an LLP) in which all of the partners/members are relevant persons and at least one of the partners/members is a participator in the company, then the other partners/members are likely to be associates of a participator (see CTM60150). The loan is therefore to relevant persons and the loan or advance is within CTA10/S455"
My answers
Yes I am separating them, I am unsure what are allowable deductions when calculating the residuary income?
No the original question is correct. I just wanted to make sure I was covering all bases.
Although the legislation refers to partnerships the shareholders/directors are in control of both companies and wanted to be sure same legislation couldn't be applied to company.
Would it not be treated as a loan to participators?
"Where a close company makes a loan or advance to a partnership (including an LLP) in which all of the partners/members are relevant persons and at least one of the partners/members is a participator in the company, then the other partners/members are likely to be associates of a participator (see CTM60150). The loan is therefore to relevant persons and the loan or advance is within CTA10/S455"
Yes having talked it through I agree, different shares so B& B doesn't apply.
It's good to talk!
Thanks
He had 1000 shares, and after return of capital he had 937 new shares and none of the original shares.
He then bought 63 shares to have 1000 shares in the plc again.
So because they are different class of shares B & B rules don't apply?
Land Securities Plc. They refer to it as "return of capital"
https://landsec.com/sites/default/files/2017-09/Return_of_Capital_exampl...