|
| |
|
Loan treated as made to participator |
| |
459 | Loan treated as made to participator |
| |
(1) | This section applies if under arrangements made by a person (P)— |
| |
(a) | a close company makes a loan or advance which, apart from this |
| |
section, does not give rise to a charge to tax under section 455, and |
| 5 |
(b) | a person other than the close company makes a payment or transfers |
| |
property to, or releases or satisfies (in whole or in part) a liability of, a |
| |
relevant person who is a participator in the company or an associate of |
| |
| |
(2) | Sections 455 to 458 apply as if the loan or advance had been made to the |
| 10 |
| |
(3) | But this section does not apply if— |
| |
(a) | the arrangements mentioned in subsection (1) are made by P in the |
| |
ordinary course of a business carried on by P, or |
| |
(b) | the total income of the relevant person includes, in respect of the matter |
| 15 |
mentioned in subsection (1)(b), an amount not less than the loan or |
| |
| |
(4) | If a company (C) controls another company (D), a participator in C is to be |
| |
treated for the purposes of this section as being also a participator in D. |
| |
Loan treated as made by close company |
| 20 |
460 | Loan treated as made by close company |
| |
(1) | This section applies if a company (C) which is controlled by another company |
| |
makes a loan or advance which, apart from this section, does not give rise to a |
| |
charge to tax under section 455. |
| |
(2) | If C is controlled by a close company at the time the loan or advance is made, |
| 25 |
sections 455 to 459 apply as if the loan or advance had been made by the close |
| |
| |
(3) | If C is not controlled by a close company at that time but a close company |
| |
subsequently acquires control of it, sections 455 to 459 apply as if the loan or |
| |
advance had been made by the close company immediately after the time |
| 30 |
when it acquired control. |
| |
(4) | If two or more close companies together control C or together acquire control |
| |
of C, subsection (2) or (as the case may be) subsection (3) is to have effect— |
| |
(a) | as if each of them controlled C, and |
| |
(b) | as if the loan or advance had been made by each of those close |
| 35 |
| |
| But the loan or advance is to be apportioned between those close companies in |
| |
such proportion as may be appropriate having regard to the nature and |
| |
amount of their respective interests in C. |
| |
(5) | For an exception to this section, see section 461. |
| 40 |
(6) | See also section 462 (determination of particular questions as a result of this |
| |
| |
|
| |
|
| |
|
(7) | References in this section and sections 461 and 462 to a company making a loan |
| |
include references to cases in which the company is, or if it were a close |
| |
company would be, regarded as making a loan because of section 455(4). |
| |
461 | Exception to section 460 |
| |
(1) | Section 460 does not apply if it is shown that no person has made any |
| 5 |
arrangements (otherwise than in the ordinary course of a business carried on |
| |
by the person) as a result of which there is a connection— |
| |
| |
(i) | the making of the loan or advance, and |
| |
(ii) | the acquisition of control, or |
| 10 |
| |
(i) | the making of the loan or advance, and |
| |
(ii) | the provision by the close company of funds for C. |
| |
(2) | The close company is to be treated for the purposes of subsection (1) as |
| |
providing funds for C if it directly or indirectly makes a payment or transfers |
| 15 |
property to, or releases or satisfies (in whole or in part) a liability of, C. |
| |
462 | Determination of particular questions as a result of section 460 |
| |
(1) | This section applies if, as a result of section 460, sections 455 to 459 have effect |
| |
as if a loan or advance made by C had been made by another company. |
| |
(2) | Any question under those sections whether— |
| 20 |
(a) | the company making the loan or advance did so in the ordinary course |
| |
of a business carried on by it which includes the lending of money, |
| |
(b) | the loan or advance or part of it has been repaid to the company, or |
| |
(c) | the company has released or written off the whole or part of the debt in |
| |
respect of the loan or advance, |
| 25 |
| is to be determined by reference to C. |
| |
Taxation of debtor on release of loan to trustees of settlement which has ended |
| |
463 | Taxation of debtor on release of loan to trustees of settlement which has |
| |
| |
(1) | This section applies if each of conditions A to D is met. |
| 30 |
(2) | Condition A is that a company (X) is or was chargeable to tax under section 455 |
| |
(charge to tax in the case of loan to participator) in respect of a loan or advance |
| |
made to the trustees of a settlement. |
| |
(3) | Condition B is that X releases or writes off the whole or part of the debt in |
| |
respect of the loan or advance. |
| 35 |
(4) | Condition C is that the person from which the debt was due at the time of the |
| |
release or writing off is a company (Y). |
| |
(5) | Condition D is that the release or writing off takes place after the settlement has |
| |
| |
(6) | When the release or writing off takes place, Y is treated as receiving an amount |
| 40 |
to which the charge to corporation tax on income applies. |
| |
|
| |
|
| |
|
(7) | The amount which Y is treated as receiving is equal to—
|
| |
| |
| N is the amount released or written off, and |
| |
| R is a percentage rate equal to the dividend ordinary rate specified in section |
| |
8(1) of ITA 2007 for the tax year in which the release or writing off takes place. |
| 5 |
464 | Section 463: other person treated as releasing or writing off debt |
| |
(1) | This section applies if sections 455 to 459 have effect under section 460 (loan |
| |
treated as made by close company) as if a loan or advance had been made by a |
| |
company (“A”), rather than the company (“B”) which— |
| |
| 10 |
(b) | is regarded as having made it under section 455(4) (deemed loan where |
| |
debt incurred or assigned to close company), or |
| |
(c) | would be so regarded if it were a close company. |
| |
(2) | If the whole or part of the debt is released or written off by B, A rather than B |
| |
is treated, for the purposes of section 463, as releasing it or writing it off. |
| 15 |
| |
Power to obtain information |
| |
465 | Power to obtain information |
| |
(1) | An officer of Revenue and Customs may, for the purposes of Chapter 3, by |
| |
notice require any person in whose name any shares or loan capital are |
| 20 |
| |
(a) | to state whether or not that person is the beneficial owner of the shares |
| |
| |
(b) | if that person is not the beneficial owner of the shares or loan capital, to |
| |
provide the name and address of the person on whose behalf the shares |
| 25 |
or loan capital are registered in that person’s name. |
| |
(2) | Subsections (3) and (4) apply if a company (“the issuing company”) appears to |
| |
an officer of Revenue and Customs to be a close company. |
| |
(3) | The officer may, for the purposes of Chapter 3, by notice require the issuing |
| |
company to provide the officer with— |
| 30 |
(a) | particulars of any bearer securities issued by the company, |
| |
(b) | the names and addresses of the persons to whom the securities were |
| |
| |
(c) | details of the amounts issued to each person. |
| |
(4) | The officer may, for the purposes of Chapter 3, by notice require— |
| 35 |
(a) | any person to whom bearer securities were issued by the company, or |
| |
|
| |
|
| |
|
(b) | any person to or through whom bearer securities issued by the |
| |
company were subsequently sold or transferred, |
| |
| to provide any further information that the officer reasonably requires with a |
| |
view to enabling the officer to find out the names and addresses of the persons |
| |
beneficially interested in the securities. |
| 5 |
(5) | In this section “securities” includes— |
| |
(a) | shares, stocks, bonds, debentures and debenture stock, and |
| |
(b) | any promissory note or other instrument evidencing indebtedness to a |
| |
loan creditor of the company. |
| |
| 10 |
| |
| |
| |
| |
(1) | This Part makes provision about some gifts and payments made to charitable |
| 15 |
companies, including provision applying the charge to corporation tax on |
| |
income and conferring exemptions (see sections 471 to 474). |
| |
(2) | This Part also provides for some of the income of charitable companies and |
| |
others to be exempt from corporation tax (see sections 475 to 477 and Chapter |
| |
| 20 |
(3) | In the case of a charitable company which has a non-exempt amount for an |
| |
accounting period (see section 493), the exemptions under this Part are subject |
| |
to restrictions (see section 492). |
| |
(4) | The non-exempt amount for an accounting period depends on the charitable |
| |
company’s attributable income and gains for the period and its non-charitable |
| 25 |
expenditure for the period (see sections 493 and 496 to 517). |
| |
(5) | See also Schedule 19 to FA 2008, which contains provision for transitional |
| |
payments to charitable companies and certain other bodies in respect of gifts |
| |
made in the tax years 2008-09 to 2010-11. |
| |
467 | Meaning of “charitable company” |
| 30 |
In this Part “charitable company” means a body of persons established for |
| |
charitable purposes only. |
| |
468 | Meaning of “eligible body” |
| |
Each of the following is an eligible body for the purposes of this Part— |
| |
(a) | the Trustees of the National Heritage Memorial Fund, |
| 35 |
(b) | the Historic Buildings and Monuments Commission for England, |
| |
(c) | the Trustees of the British Museum, |
| |
(d) | the Trustees of the Natural History Museum, and |
| |
(e) | the National Endowment for Science, Technology and the Arts. |
| |
|
| |
|