CTM61515 | Close companies: loans to participators and arrangements conferring benefit on participator: meaning of ‘relevant person’
From HM Revenue & Customs · Company Taxation Manual
The meaning of ‘relevant person’ is defined in as:
an individual, or
a company which is acting in a fiduciary or representative capacity
The singular term ‘individual’ also encompasses ‘individuals’, (Section 6 Interpretation Act 1978). Equally ‘relevant person’ will also encompass ‘relevant persons’. See for how this applies to partnerships and for how it applies to trustees (who are individuals).
Because a company acting in a fiduciary or representative capacity (e.g. a corporate trustee) is a relevant person, a loan to such a company which is a participator or an associate of a participator in the close company will be within the charge to tax under Section 455. See for further information on the application of the legislation to loans to trusts.