This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

s455 loan to beneficiary under a will

arthurphillips
Posts:1
Joined:Wed May 30, 2018 8:44 am
s455 loan to beneficiary under a will

Postby arthurphillips » Wed May 30, 2018 8:51 am

Several years ago the 100% shareholder of a company died.

Under the terms of his will he left the shares to his son.

for a number of reasons the estate has taken many years to be wound up. The company has lent £100,000 to the son.

The shares are still owned by the executors.

I know that if it was a trust situation this would be caught be s455 but are executors treated the same a trustees?

Who would pay the suffer the tax if the loan was written off? would it be the PR's or the son?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: s455 loan to beneficiary under a will

Postby maths » Wed May 30, 2018 6:19 pm

Not my scene but for s455 to be in point a close company needs to make a loan to a "relevant person" who is a "participator". Relevant person is an individual and Executors are thus not caught by s455 but, of course, the son is an individual.

On the basis that the deceased's estate has not been administered (i.e. residue has not been ascertained) and no formal assent of the shares has been made to the son then at the time of granting the loan the son would not appear to be a participator in the company. However, would the son not fall to be treated as a participator at that time under s454(2)?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: s455 loan to beneficiary under a will

Postby bd6759 » Wed May 30, 2018 11:22 pm

The son has an interest in the shares that have been bequesathed to him, thereofre he is a participaor.

https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm60150


Return to “Company Taxation”