COM53170 - Claims / reliefs: other reliefs: S458 CTA 2010 (formerly S419(4) ICTA 1988) - loan repaid before due date
Where the loan which gives rise to a liability under S455 (formerly S419) is repaid, released or written off, in full or in part, before the normal due date (Word 49KB) of the AP in which the loan is made, the company can make a claim and give effect to the relief in the original return. Technically, there is a gross S455 liability for the period reduced (or eliminated) by S458 (formerly S419(4)) relief. See Example 2 (Word 48KB).
The CT600 company tax return allows a single entry of net S455 liability, which is captured onto COTAX. The detail of loans and repayments made are required on the CT600A supplementary pages to the return. For more information see subject ‘S455 CTA 2010 - CT600A Supplementary Pages’ (COM53130) in this section.
The company has to complete the CT600A supplementary pages if it makes loans within S458 during an AP. Those pages ask for the details of
- Loans made during the AP
- The S458 tax chargeable on those loans
- The amounts of those loans which have been repaid, released or written off
- The S458 relief due
And
- The net S455 liability
The company has to show on the CT600 return form that it is required to complete the CT600A supplementary pages.
The information in the CT600A is not captured onto COTAX and the CT600A does not contain details of loans made and reliefs given in earlier periods, or of unrelieved balances carried forward. So the CT600A does not itself allow you to keep track of the S455 position.
For a list of forms relevant to this subject, see COM53011.
For legislation applying to this subject, see COM53013.
