C1Part 10Close companies

Annotations:
Modifications etc. (not altering text)
C1

Pt. 10 applied (with modifications) (6.4.2014) by National Insurance Contributions Act 2014 (c. 7), s. 8, Sch. 1 Pt. 1

C2Chapter 3Charge to tax in case of loan to participator

Annotations:
Modifications etc. (not altering text)

Loan treated as made by close company

461Exception to section 460

1

Section 460 does not apply if it is shown that no person has made any arrangements (otherwise than in the ordinary course of a business carried on by the person) as a result of which there is a connection—

a

between—

i

the making of the loan or advance, and

ii

the acquisition of control, or

b

between—

i

the making of the loan or advance, and

ii

the provision by the close company of funds for C.

2

The close company is to be treated for the purposes of subsection (1) as providing funds for C if it directly or indirectly makes a payment or transfers property to, or releases or satisfies (in whole or in part) a liability of, C.