EM8553 - Close companies: CTA10/Sections 455 and 464A (loans to and benefits conferred on participators): delivering a return

FA98/SCH18/PARA 1
FA98/SCH18/PARA 8

S455 and S464A liabilities have to be included in a CTSA return. There is no requirement to show a loan made and wholly repaid (or a benefit conferred and return payment made) during the AP but the loan must be included if released or written off. But if a loan is still outstanding at the accounting date, but is repaid within 9 months (or a benefit conferred is outstanding but a return payment is made within 9 months), a CT600A return is still required even if there is no actual liability. The unpaid tax for tax-related late filing penalties includes unpaid S455 and S464A liability.

Relief is given under CTA10/S458 where a loan is repaid, released or written off, see EM8560 and CTM98215. Relief is given under CTA10/S464B where a return payment is made in respect of a benefit conferred.

For loans made or benefits conferred, Section 455 and 464A liability forms part of the tax either self-assessed in the CTSA return or determined where a return has not been delivered.