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HMRC internal manual

Company Taxation Manual

CTSA: Loans to participators: Claims to relief - general


A company can claim relief under Section 458 when:

  • the whole or part of a loan or advance is repaid, or
  • on or after 6 April 1999 it releases or writes off the whole or part of a loan.

The company must claim within four years from the end of the financial year in which the loan was repaid, released or written-off (six years for claims made before 1 April 2010).

Section 458 claims in respect of loans made during a pre-CTSA accounting period will continue to be given effect to, by discharge or repayment, under the company tax assessing system even if the loans are repaid, released or written off during a CTSA accounting period. For a CTSA accounting period the claim can be given effect by either discharge or repayment, or by being included in the SA.

You are likely to see a claim being included in the return in one of the following ways:

  • By completing the relevant sections of the supplementary pages (CT600A). (If the company does this it will also be giving effect to the claim in its SA for that accounting period, see CTM98225.)
  • Written in a blank space of the return (e.g. on a supplementary page or in the margins of the main return).
  • In the body of the covering letter.
  • On a separate sheet of paper sent with the return.
  • In the CT computation.

A company may also send you a claim that is not included in the company tax return. This may be sent in before or after the company tax return has been delivered for the accounting period in which the loan was made. See CTM98220 as to the circumstances in which the claim must be made as part of the return or amended return.

Exceptionally, there may be cases where the company never delivers a return. This may happen when a company is placed in receivership or liquidation.

See the On-line Company Tax Manual (COM) for advice on to how to deal with such cases. If there are any difficulties in dealing with the Section 455 aspects of such cases contact the Business Helpdesk(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .