Consultation outcome

Reform of close company loans to participators rules

This consultation has concluded

Download the full outcome

Reform of close company loans to participators: responses and outcome

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Detail of outcome

Following consultation, the government has decided not to proceed with broad reform of the rules. However, HMRC will continue to engage with interested parties with a view to making more targeted adjustments to the regime.

This document summarises the responses received to the consultation and sets out the government’s response.

Original consultation

Summary

A consultation on whether to reform the rules governing the taxation of close company loans to their participators (and other related arrangements) and on options for such reform.

This consultation ran from
to

Consultation description

At Budget 2013 the Government announced that it would consult on options for reforming the rules which govern loans made by close companies to individuals who have a share or interest in those companies (participators).

This consultation document sets out an assessment of the current regime, invites views on options identified by the Government and alternative options, and seeks comments on any impacts. The Government is interested in the views of businesses affected by these proposals, as well as representations by professional bodies and tax advisers and other interested parties.

Documents

Reform of close company loans to participators rules

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 9 July 2013
Last updated 10 June 2014 + show all updates
  1. Added a further entry to Annex A on the outcome document, namely the Association of Accounting Technicians.
  2. Updated to include a summary of responses received to the consultation and the government’s response.
  3. First published.