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CT600A – Loans to participators by close companies
You need to complete these supplementary pages if the company is close, and in this period
• has made a loan (or loans) which has not been repaid within the period to
– an individual participator, or associate of a participator, or
– any partnership in which at least one of the partners is an individual who is such a
participator or associate; or
– trustee of a settlement, one or more of the trustees or beneficiaries of which is a
participator or their associate.
• tax is due under S455 CTA 2010 (previously S419 ICTA 1988), or
• has been party to tax avoidance arrangements under which a benefit is conferred on an
individual who is a participator, or an associate of a participator, in this period and no
return payment has been made to the company within the period.
• tax is due under S464A CTA 2010.
What to do when you have completed these supplementary pages
• Copy the figure from box A13 in part 5 to box 79 of the form CT600.
• Put an 'X' in box 80 of the form CT600 if you have completed box A11 in part 3
of these pages.
Notes
Finance Act 2013 introduced changes to the loans to participators rules. The changes
apply in relation to relevant loans, arrangements and repayments made on or after
20 March 2013.
A 'close company' is one which is under the control of five or fewer participators, or of any
number of participators who are directors (S439 CTA 2010, previously S414 ICTA 1988).
A 'loan' within S455 CTA 2010 includes the situation where a participator incurs a debt to
the close company (S455(4)(a) CTA 2010, previously S419(2)(a) ICTA 1988), for example,
by overdrawing a current or loan account.
There are two exceptions where S455 CTA 2010 does not apply.
• A debt incurred for the supply by the close company of goods or services in the ordinary
course of its trade or business, unless the credit given exceeds six months, or is longer
than that normally given to the company's customers (S456(2), previously S420(1)
ICTA 1988).
• Certain loans made to full-time working directors or employees who do not have a material
interest in the close company (S456(3) CTA 2010, previously S420(2) ICTA 1988).
A loan is not ‘repaid’ where S464C CTA 2010 applies. If that section applies to any
payment/repayment/return repayment, then the amount of loan or benefit conferred which
is deemed to be outstanding should be included in this return.
A 'participator' is a person having a share or interest in the capital or income of the
company and includes any loan creditor of the company (S454 CTA 2010, previously
S417(1) ICTA 1988).
An 'associate' of a participator includes any relative or partner of the participator and the
trustees of any settlement of which the participator or their relative is, or was, a settlor
(S448 CTA 2010, previously S417(3)(a) and (b) ICTA 1988).
Methods by which a loan can be 'repaid' include depositing money into the company's bank
account, crediting the participator's current or loan account with a dividend, director's
remuneration or bonus, or book entry.
The term 'release' refers to a formal procedure that normally takes place under seal for
a consideration, whereas 'write off' is a wider term that does not necessarily require formal
arrangements and could include acceptance by the company that the loan will not be
recovered and has given up attempts to recover it.
1 Loans or arrangements made during the return period
You must complete part 1 if the company is close and, in this period,
• has made a loan (or loans) to:
– an individual participator, associate of a paticipator, or
– any partnership in which at least one of the partners is such a participator or
associate, or
CT600 Guide