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Loans to participators are a common issue for small companies – and there is still time for advisers to give the taxman their opinions
KEY POINTS
- Consultation on the loans to participators tax charge closes on 2 October 2013.
- A review of the reason for the original legislation.
- The consultation document proposes four options for a tax charge on loans.
- Should the tax charge be on the recipient rather than on the company?
- Is it possible to have a charge that does not catch commercial transactions?
HMRC’s consultation on the future of the loans to participators legislation was published on 9 July – Reform of Close Company Loans to Participators Rules – with representations to be submitted to the department by 2 October 2013.
In this article I shall review a little of the background to this legislation and HMRC’s proposed options as well as considering some other approaches to the perceived...
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