EM8551 - Close companies: CTA10/Sections 455 and 464A (loans to and benefits conferred on participators): notifying chargeability

TMA70/S109/(1) - CTA and CTPF

FA98/SCH 18/PARA 1 - CTSA

The charges under Sections 455 and 464A of Corporation Tax Act 2010 only apply to close companies. For accounting periods ending before 1 April 2010, the charge was under Section 419 Income and Corporation Taxes Act 1988.

Note that if the loan is repaid or released, or a return payment is made in respect of a benefit conferred during an accounting period ending

• on or before 31 March 2010, then the relief is due under ICT88/S419(4)
• on or after 1 April 2010, then the relief is due under CTA10/S458 or CTA10/S464B.

Accounting Periods ending on or after 1 July 1999 (CTSA)

Liability under CTA10/S455 (previously ICTA88/S419(1) ) or 464A is assessable and chargeable as if it were CT so this forms part of the Company Tax Return and there is no separate obligation to notify chargeability.

Specific guidance on seeking penalties for failing to notify liability under S455 and S464A and whether an offence of submitting incorrect accounts has been committed is covered at EM8630.