COM53150 - Claims / reliefs: other reliefs: S458 CTA 2010 (formerly S419(4) ICTA 1988) - interaction with penalties

The inclusion of S455 (formerly S419) (on loans to participators) within the self assessment (Word 28KB) tax charge may affect the tax base for the calculation of any tax-related (Word 30KB) late filing penalty.

Where a close company is liable to tax under Section 455 CTA 2010 on loans or advances to a participator in the company, and claims relief under S458 (formerly Section 419(4)) because a loan has been wholly or partly repaid, released or written-off, the relief may be deferred under S458(5) until the normal due date (Word 49KB) for the AP in which the repayment, release or write-off takes place.

The deferred relief is ignored in determining the amount of unpaid tax for the purposes of any tax-related penalty (Paragraph 18(4) Schedule 18 FA 1998). For more information see the ‘Penalties’ business area.

For legislation applying to this subject, see COM53013.