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How to enter a repayment of a loan to participator in CT600A (CT Solution)?

How to enter a repayment of a loan to participator in CT600A (CT Solution)?

Please see the following instructions on how to complete CT600A – Close Company Loans and arrangements to confer benefits on participators.

To access CT600A forms, expand Supplementary Schedules from the bottom left menu and check the box for CT600A.

After checking this box, the supplementary schedule can be accessed from the Table of Contents.

CT600A i

CT600A i contains company information data such as company name, tax reference, the period start and end date.

CT600A ii

Please use CT600A ii to complete the following:

• Put an X in box A5 if any/all loans made during the period have been repaid, released, or written off, or, in the case of arrangements, return payments have been made before the end of the period.

Part 1: Loans and arrangement s made during the return period

• Enter details of any outstanding loan made to a participator during the return period in the table

• Enter the date the loan was made or Y under the column Made before 6/4/2016. This is important because for loans made before 6/4/2016 tax charged is at 25% and for loans made after this date, tax is charged at the dividend upper rate specified in section 8(2) of ITA 2007 for the tax year in which the loan or advance is made.

• The dividend upper rate is currently 32.5%.

Part 2: Relief for return payments and/or amounts repaid, released or written off within 9 months

• Complete part 2 to obtain relief for amounts repaid, released or written off during the period or after the end of the period but earlier than nine months and one day after the end of the accounting period in which the loan was made.

CT600A iii

Part 3: Relief due now for return payments and/or amounts repaid, released or written off later

Most companies will not need to complete part 3. Only complete part 3 if all of the following conditions apply:

• Where the loan was made or benefit conferred under arrangements during the return period.

• Where repayment, release or write off, or return payment was more than nine months after the end of the period in which the loan was made.

• The return is submitted after the date on which relief is due (if the return is sent in very late, at least 21 months after the end of the return period).

Complete part 3 only if loans made/benefit conferred under arrangements during the return period, that have not been included in part 2, have been repaid, released or written off (or a return payment made against benefit conferred) and where relief is due now. For further information, read the HMRC guidance on director’s loans.

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