CTM98205 - CTSA: Loans to participators: General

CTSA accounting periods

Under CTSA, a company has to include CTA10/S455 liability in its company tax return and SA.

If you need to query any Section 455 aspect, you must do so by opening an enquiry. Depending on the case this enquiry may be either into the return, or into a claim for relief under CTA10/S458, see CTM98220. For guidance on making enquiries involving Section 455, see EM8630.

Section 455 liability is subject to the same interest rules as other company tax liabilities (TMA70/S87A and TMA70/S109 (3)). Under CTSA the penalty provisions for late filing of Section 455 liabilities are the same as for CT liabilities. But, all other penalties under CTSA in respect of Section 455 are only chargeable when the loan has not been repaid, released or written off within 9 months of the end of the accounting period in which the loan was made.

See CTM98225 when you consider penalties for delivering an incorrect or late return.

A close company that makes a loan during an accounting period:

• that attracts Section 455 liability, and
• that has not been repaid within the period,

must complete the return supplementary pages “CT600A”.

Part 1 of the supplementary pages is used to show details of loans made during the return period. Parts 2 and 3 deal with Section 458 claims see CTM98225.