CTM60510 | Close companies: extended meaning of distribution: introduction
From HM Revenue & Customs · Company Taxation Manual
(formerly ICTA88/S418)
Where a company is a close company, the meaning of distribution is extended to certain benefits provided for participators.
The extended meaning of distributions covers any expense incurred by the company in or in connection with the provision for any participator (or an associate of a participator) of living or other accommodation, of entertainment, of domestic or other services, or of other benefits or facilities of whatever nature, to the extent that the expense is not made good to the company by the participator or the associate (see, however, to ).
As regards:
the amount to be regarded as a distribution where benefits in kind or cheap loans are provided see .
the notification to be sent to the office dealing with the affairs of participator etc, see .
companies acting in concert, etc, see .
the definition of ‘participator’, etc, see .
(prior to 6 April 1999) the assessment of ACT in respect of distributions which are not payments, see .