CTM60520 | Close companies: extended meaning of distribution: profits chargeable to CT
From HM Revenue & Customs · Company Taxation Manual
No deduction is allowable (either in computing income from any source or as a charge against total profits) for expenses incurred in providing benefits for participators or their associates, which come within the extended meaning of distributions for close companies (see (formerly ICTA88/S337 (2)) and (formerly ICTA88/S337A (1) (a)).