Company Tax Return form - Supplementary Pages
Loans to participators by close companies
CT600A (2006) Version 2
for accounting periods ending on or after 1 July 1999
Tax reference as shown on the CT603
Period covered by these Supplementary Pages (cannot exceed 12 months)
You need to complete these Supplementary Pages if
the company is close and has made a loan (or loans) to an individual participator, or associate of a participator, in this period
which has not been repaid within the period. Tax is due under S419 ICTA 1988.
A ‘close company’ is one which is under the control of five or fewer participators, or of any number of participators who are
directors (S414 ICTA 1988).
A ‘loan’ within S419 ICTA 1988 includes the situation where a participator incurs a debt to the close company (S419(2)(a)
ICTA 1988), for example by overdrawing a current or loan account. There are two exceptions where S419 ICTA 1988 does
- 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 (S420(1)
ICTA 1988), and
- certain loans made to full-time working directors or employees who do not have a material interest in the close company
(S420(2) ICTA 1988).
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 (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 (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.