Natasha Kaye and Reshma David (Cooley) examine the scope of the close company indirect loan to participator rule in CTA 2010 s 459.
Close companies account for a large number of UK private companies and consequently the close company loan to participator rules are potentially relevant in a wide variety of scenarios. In particular the scope of the indirect loan to participator rule in CTA 2010 s 459 has long been a source of consternation. There is unhelpfully no case law to assist in its interpretation and the provision is on first glance drawn extremely widely and seems to apply where there is no obvious ‘mischief’. On closer inspection there may be appropriate ways to interpret s 459 such that its scope is more limited than may initially appear to be the case. This article explores a few of these interpretations. ...
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Natasha Kaye and Reshma David (Cooley) examine the scope of the close company indirect loan to participator rule in CTA 2010 s 459.
Close companies account for a large number of UK private companies and consequently the close company loan to participator rules are potentially relevant in a wide variety of scenarios. In particular the scope of the indirect loan to participator rule in CTA 2010 s 459 has long been a source of consternation. There is unhelpfully no case law to assist in its interpretation and the provision is on first glance drawn extremely widely and seems to apply where there is no obvious ‘mischief’. On closer inspection there may be appropriate ways to interpret s 459 such that its scope is more limited than may initially appear to be the case. This article explores a few of these interpretations. ...
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