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HMRC internal manual

Enquiry Manual

Close Companies: Settlement: Extractions Treated as Loans - Completing Form 94 and Creating Charges on SAFE

The gross CTA10/S455 liability should be included as unpaid duties on form 94.

Relief under CTA10/S458 actually due, including relief deferred under S458(5), is deducted to arrive at the net amount payable to be entered on SAFE.

Possible future relief incorporated in the offer as an instalment does not reduce the net amount payable. See EM6406 for the SAFE process in such cases.

If an instalment offer is repaid early, when re-computing the forward interest EM6250 the forward interest on S455 liability that is extinguished by relief deferred under S458 must still be calculated to the date the relief under Section 458 fell or will fall due.

Section 455 liability included in a contract settlement charge that has been paid remains available for repayment as a result of relief subsequently falling due under S458. Where a claim for relief is agreed the offer amount should be recomputed and an ex gratia repayment made.