CTM61600 - Close companies: loans to participators: examination of accounts
Accounting periods ending before 1 July 1999
TMA70/S109 applies the general CT enactments to the assessment etc, of liabilities under ICTA88/S419. However, no formal procedure for the making of returns of loans or advances to participators etc, is laid down.
In practice, you should consider whether there are any outstanding loans or advances when you examine the accounts of the company and give instructions for any necessary assessments to be made (see AC4450, AC4500 onwards and AC4815).
TMA70/S109 can also result in the application of interest and penalty provisions to Section 419 liabilities. When appropriate you should review the guidance at EM8630, EM4830, and EM8565.
Accounting periods ending on or after 1 July 1999
The company must include any Section 419 liability in its CTSA return, see CTM98200 onwards.
