A Limited Liability Partnership (LLP) may be formed of individual members and corporate members, or it may work in close contact with a service company.

When a close company makes a loan to an LLP (or partnership) and where a member or partner is also a participator in the close company, it had been argued that the LLP, as a body corporate, could not be a participator of the close company.

From 20 March 2013, an s.455 CTA 2010 tax charge will apply if a close company makes a loan or advance to an LLP or other partnership, whereby one or more of the members/partners is:

  • A participator in the company.
  • An associate of an individual who is such a participator and the loan is still outstanding nine months from the year-end of the relevant accounting period of the company.


Close Company Loan Toolkit

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