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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.
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.