When to complete

Complete these supplementary pages if the company is close, and in this period:

• has made one or more loans that have not been repaid within the period to an individual or company acting in a fiduciary or representative capacity who or which is a participator, or associate of a participator
• tax is due under section 455 of the Corporation Tax Act 2010
• has been party to tax avoidance arrangements under which a benefit is conferred on an individual who is a participator, or an associate of a participator, in this period and no return payment has been made to the company within the period
• tax is due under section 464A of the Corporation Tax Act 2010

Company information

A1 Company name

Enter the company name.

A2 Tax reference

Enter the company’s 10-digit Unique Taxpayer Reference.

Period covered by this supplementary page (cannot exceed 12 months)

A3

Enter the start date using the format DD MM YYYY.

A4

Enter the end date of the accounting period using the format DD MM YYYY.

Part 1: loans or arrangements made

Complete part 1 if the company is close and, in this period has made one or more loans to:

• an individual or company acting in a fiduciary or representative capacity who or which is a participator, or associate of a participator
• any partnership in which at least one of the partners is such a participator associate
• trustees of a settlement, one or more of the trustees or beneficiaries of which is a participator or their associate

The loan (or loans) must also have either:

• not been repaid within the period
• been party to tax avoidance arrangements under which a benefit is conferred on an individual who is a participator, or an associate of a participator, in this period and no return payment has been made to the company within the period

A5 Loans repaid, released or written off or return payments

Put an X in this box if any or all loans made during the period have been repaid, released or written off before the end of the period. In the case of arrangements, include return payments made both before the end of the period and before 30 October 2024.

A10 Outstanding loans and arrangements made

Use the table to enter details of any outstanding loans made to, or details of any benefit conferred, under arrangements within section 464A of the Corporation Tax Act 2010 on a participator or associate of a participator during the return period. If the participator or associate has a current or loan account with the company, enter details of each participator’s or associate’s account.

The figure you enter in column 2 of the table is the total of all debit entries on the account, less any credit entries and less any credit balance brought forward from the previous return period. In arriving at this figure, you must exclude any credit entries that represent repayment, release or write-off of loans made in earlier return periods.

A15 Total

Enter the total of:

• all loans within section 455 of the Corporation Tax Act 2010 made during the accounting period which have not been repaid, released or written off before the end of the period
• any benefit conferred under arrangements chargeable by section 464A of the Corporation Tax Act 2010 during the accounting period for which no return payment has been made before the end of the accounting period
• loans or benefits conferred which are deemed to be outstanding by the operation of section 464C of the Corporation Tax Act 2010

A20 Tax chargeable

Enter the total amount of tax chargeable on loans made or benefits conferred from box A15.

For loans made or benefits conferred before 6 April 2016, tax is charged at 25%.

For loans made or benefits conferred on or after 6 April 2016, tax is charged at the dividend upper rate specified in section 8(2) of the Income Tax Act 2007 for the tax year in which the loan or advance is made.

Up to 5 April 2022, that rate was 32.5% and from 6 April 2022 the dividend upper rate is 33.75%.

Part 2: relief for return payments and/or amounts repaid, released or written off within 9 months or for return payments made within 9 months and before 30 October 2024

Complete part 2 to obtain relief for amounts included in box A15 that were repaid, released or written off if either:

• the return is for the period in which the loans were made or the benefit conferred
• the loan was repaid, released or written off after the end of the period but earlier than 9 months and one day after the end of the accounting period in which the loan was made
• a return payment is made for the value of the benefit conferred, after the end of the period but earlier than 9 months and one day after the end of the accounting period in which the loan was made and is made before the 30 October 2024

A25 Relief for returned payments or amounts repaid, released or written off within 9 months

Use the table to enter details for each participator or associate. If there have been a number of repayments or return payments on an account, enter only the total repayments and return payments for that account and give the date of the last repayment. A separate entry must be made for each loan or part loan that has been released or written off.

Example

A company makes a loan during the accounting period ended 31 December 2020. The loan is fully repaid on 30 June 2021. The company’s tax return for the accounting period ended 31 December 2020 is sent to HMRC on 1 November 2021. Part 2 should be completed because the loan was repaid after the end of the accounting period but earlier than 9 months and one day after it.

A30 Total amount repaid or return payments made

Enter the total amount of repayments and return payments made after the end of the accounting period, but earlier than 9 months and one day after the end of the accounting period.

A35 Total amount released or written off

Enter the total amount released or written off after the end of the accounting period but earlier than 9 months and one day after the end of the accounting period.

A40 Total

Enter the sum of boxes A30 and A35.

A45 Relief due

Enter the total amount of relief due on amounts released or written off in box A40.

For loans made or benefits conferred before 6 April 2016, relief is due at 25%.

For loans made or benefits conferred on or after 6 April 2016, relief is due at the dividend upper rate specified in section 8(2) of the Income Tax Act 2007 for the tax year in which the loan or advance was made.

Up to 5 April 2022, that rate was 32.5% and from 6 April 2022 the dividend upper rate is 33.75%.

Part 3: reliefRelief due now for return payments and/or amounts repaid, released or written off later and return payments made later and before 30 October 2024

Relief for loans made or benefits conferred under arrangements during the return period repaid, released or written off (or return payments made of benefit conferred) more than 9 months after the end of the period and where relief is due now. Most companies will not need to complete part 3.

Only complete part 3 if all of the following conditions apply:

• where the loan was made or benefit conferred under arrangements during the return period
• where repayment, release or write off, or return payment was more than 9 months after the end of the period in which the loan was made
• the return is submitted after the date on which relief is due (if the return is sent in very late, at least 21 months after the end of the return period)
• the return payment was made before 30 October 2024

Only complete part 3 if loans made or benefits conferred under arrangements during the return period, that have not been included in part 2, have been repaid, released or written off (or a return payment made against benefit conferred) and where relief is due now.

Example 1

A company makes a loan during the accounting period ended 31 December 2014. It is fully repaid on 30 November 2015. The company’s return for the accounting period ended 31 December 2014 is sent to HMRC on 1 December 2015.

Part 3 of this form should not be completed because, although the loan was repaid more than 9 months after the end of the return period, the return was sent earlier than 9 months after the end of the return period in which the loan was repaid. Relief for the repayment cannot be given until the due date of the accounting period in which the repayment was made, in this case 1 October 2016 (read section 458(4),(5) and (6) of the Corporation Tax Act 2010). The company must make a separate claim for relief.

Example 2

A company makes a loan during the accounting period ended 31 December 2014. It is fully repaid on 30 November 2015. The company’s return for the accounting period ended 31 December 2014 is sent to HMRC on 3 December 2016. Relief for the repayment is due on or after 1 October 2016.

In this case part 3 can be completed because the repayment was made more than 9 months after the end of the accounting period in which the loan was made, and the relief is due at the time the return is sent in.

A50 Relief due now for return payments and/or amounts repaid, released or written off later

Enter appropriate details in the table.

A55 Total amount repaid/return payments made

Enter the total amount of repaid or return payments made more than 9 months after the end of the accounting period where relief is due now.

A60 Total amount released or written off

Enter the total amount released or written off more than 9 months after the end of the accounting period where relief is due now.

A65 Total

Enter the sum of boxes A55 and A60.

A70 Relief due

Enter the total amount of relief due on amounts released or written off at A65.

For loans made or benefits conferred before 6 April 2016, relief is due at 25%.

For loans made or benefits conferred on or after 6 April 2016, relief is due at the dividend upper rate specified in section 8(2) of the Income Tax Act 2007 for the tax year in which the loan or advance was made.

Up to 5 April 2022, that rate was 32.5% and from 6 April 2022 the dividend upper rate is 33.75%.

Summary information

A75 Total of all loans and arrangements, for all periods, outstanding at the end of the return period

Enter the total of all loans outstanding and value of benefit conferred under arrangements (for the purposes of section 464A of the Corporation Tax Act 2010) for which no return payment has been made at the end of the accounting period. This should include those which were made in this period and earlier periods and those deemed to be outstanding by section 464C of the Corporation Tax Act 2010.

A80 Tax payable

Enter the figure from box A20 less the sum of boxes A45 and A70.

Glossary

Associate

An associate of a participator includes any relative or partner of the participator and the trustees of any settlement of which the participator or their relative is, or was, a settlor (read section 448 of the Corporation Tax Act 2010).

Close company

A close company is one which is under the control of 5 or fewer participators, or of any number of participators who are directors (read section 439 of the Corporation Tax Act 2010).

Loans

A loan within section 455 of the Corporation Tax Act 2010 includes the situation where a participator incurs a debt to the close company (read section 455(4)(a)). For example, by overdrawing a current or loan account.

There are exceptions where section 455 does not apply. These are given in section 456 of the Corporation Tax Act 2010:

• debt incurred for the supply, by the close company, of goods or services in the ordinary course of its trade or business, unless the credit given exceeds 6 months, or is longer than that normally given to the company’s customers (section 456(2))
• certain loans made to full-time working directors or employees who do not have a material interest in the close company (section 456(3))
• loans or advances made to a trustee of a charitable trust on or after 25 November 2015, providing that the loan or advance is applied to the purposes of the charitable trust only (section 456(2A))

A loan is not repaid where section 464C of the Corporation Tax Act 2010 applies. If that section applies to any payment, repayment or return repayment, then the amount of loan or benefit conferred, which is deemed to be outstanding, should be included in this return.

Methods by which a loan can be repaid include depositing money into the company’s bank account, crediting the participator’s current or loan account with a dividend, director’s remuneration or bonus.

Participator

This is a person having a share or interest in the capital or income of the company and includes any loan creditor of the company (read section 454 of the Corporation Tax Act 2010).

Release

The term release refers to a formal procedure that normally takes place under seal for consideration.

Write off

This is a wider term that does not necessarily require formal arrangements. It could include acceptance, by the company, that the loan will not be recovered and that it has given up attempts to recover it.

More information

Read Director’s loans for more information about loans to participators.