CTM61561 - Close companies: loans to participators: company insolvent and loan irrecoverable
Where a company has become insolvent and is unable to pay its creditors, it is sometimes argued that the payment of tax due under CTA10/S455 (or also now under CTA10/S464A) on a loan to a participator should be waived because it will damage the interests of the company바카라 사이트™s creditors (other than HMRC).
If a liquidator argues as above, the loan is irrecoverable, or no return payment is forthcoming, in spite of the company바카라 사이트™s or the liquidator바카라 사이트™s efforts and the Section 455 or Section 464A charge cannot be otherwise discharged (e.g. by write off), a report should be sent to BAI (CT Structure) with the files for the company and for the participator to whom the loan was made.