SolvedCOM53170 | Claims/reliefs: other reliefs: S458 CTA 2010 - loan repaid before due date
From HM Revenue & Customs · COTAX Manual
You may receive a completed form L2P, which is a form provided on the Government website for companies to claim relief. You must look at the information contained in the form to decide whether it should be treated as an amendment to the return, or a Schedule 1A claim.
Where the loan which gives rise to a liability under Section 455 (S455) is repaid, released or written off in full or in part before the normal due date (see Glossary for more Information) of the Accounting Period (AP) in which the loan is made, the company can make a claim and give effect to the relief in the original return. Technically, there is a gross S455 liability for the period reduced or eliminated by Section 458 (S458) relief. See GOV.UK pages on Directors Loans for examples .
The CT600 company tax return allows a single entry of net S455 liability, which is captured onto COTAX. The detail of loans and repayments made are required on the CT600A supplementary page to the return. See COM53130 for more information.
The company has to complete the CT600A supplementary page if it makes loans within S458 during an AP. This asks for the details of:
loans made during the AP
the S458 tax chargeable on those loans
the amounts of those loans which have been repaid, released or written off
the S458 relief due
the net S455 liability
The company has to show on the CT600 return form that it is required to complete the CT600A supplementary page.
The information in the CT600A is not captured onto COTAX and the CT600A does not contain details of loans made and reliefs given in earlier periods, or of unrelieved balances carried forward. So the CT600A does not itself allow you to keep track of the S455 position.
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