Reform of close company loans to participators rules – consultation response
- Do you agree these are the right primary objectives for rules governing the taxation of loans from close companies to their participators? Please explain your answer.
We do not consider that the majority of loans provided to participators to be a form of deliberate tax avoidance. Acting for predominantly Owner Managed Businesses (OMBs) you quite rightly state that many of these situations arise because such businesses used to be run as sole traders or partnerships, where the proprietor took drawings.
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