Modifications etc. (not altering text)
C1 See 1989 s.107and Sch.12—close companies: administrative provisions.
(1)M1Section 419(2)(a) shall not apply to 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.
(2)M2Section 419(1) shall not apply to a loan made to a director or employee of a close company, or of an associated company of the close company, if—
(a)neither the amount of the loan, nor that amount when taken together with any other outstanding loans which—
(i)were made by the close company or any of its associated companies to the borroweror the wife or husband of the borrowerF1 ; and
(ii)if made before 31st March 1971, were made for the purpose of purchasing a dwelling which was or was to be the borrower’s only or main residence;
exceeds £15,000 and the outstanding loans falling within sub-paragraph (ii) above do not together exceed £10,000; and
(b)the borrower works full-time for the close company or any of its associated companies; and
(c)the borrower does not have a material interest in the close company or in any associated company of the close company;
but if the borrower acquires such a material interest at a time when the whole or part of any such loan made after 30th March 1971 remains outstanding the close company shall be regarded as making to him at that time a loan of an amount equal to the sum outstanding.
Section 168(11) shall apply for the purpose of determining whether a person has, for the purpose of this subsection, a material interest in a company, but with the omission of the words following “417(3)”.