Corp Tax - Chapter 21

Question 1

Loans made in the ordinary course of business of the company - include or exclude from s.455

Answer 1

Exclude

Question 2

Loans in supply of goods/services in ordinary course of trade - inc or exc

Answer 2

Exclude - unless credit period exceeds 6m

Question 3

charitable trusts where the loan is applied for the purposes of the charitable trust only

Answer 3

Exclude

Question 4

There is an exclusion for loans of no more than £???? made to a full-time director
or employee who does not have a material interest in the company.

Answer 4

£15,000

Question 5

Benefits to Participators

Answer 5

shareholders are not directors or employees, they would not
pay any tax on benefits they receive. We therefore treat those benefits as
dividends paid to those shareholders.

Question 6

The dividend rule does not include:

Answer 6

1. benefits to employees which are taxed under the earnings rules;
2. living accommodation if it is within the exceptions within the earnings rules;
3. pensions, annuities or lump sums paid to the children, spouse or dependants of
   an employee on the employee’s death or retirement.

Question 7

Dividend rule does apply

Answer 7

provision of living or other accommodation, entertainment, domestic or other services, or other benefits or facilities of whatever nature. This includes cheap loan interest where loans are issued at an interest rate below the official rate