Close Companies

Below is a selection of our most recent updates on this subject.

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Taxation On Winding-Up

The exemptions given under ESC C16 may be restricted in the not to distant future.
Thursday, May 12, 2011

Loan By Company To Shareholder Was Taxable Under S419 ICTA 1988

A loan by a close company to a participator or an associate was not deemed to be in the ordinary course of the business of lending money: In such a situation the company is liable to tax on the deemed distribution (S419 ICTA 1988) and the individual is liable to tax on benefit from the beneficial loan under the benefit in kind rules (S160 ICTA 1988) .
Monday, October 15, 2001

Small Companies Relief And Participators

Newfields decision has significant implications for the application of small companies relief which still applies. Attribution of rights and powers of associates is to be made only where the result is control by five or fewer participators. The Inland Revenue have applied to the House of Lords for leave to appeal the decision.
Monday, October 30, 2000

Audit Threshold Changes

Audit exemption threshold to be increased from £350,000 to £1 million for accounting periods ending on or after 31 July 2000: Limit to be raised to £4.8m. Introduction of independent professional review (IPR) to replace existing audit:
Saturday, September 16, 2000

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