On 31 October 2020, a close company which prepares accounts to 31 March each year provides one

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On 31 October 2020, a close company which prepares accounts to 31 March each year provides one of its full-time working directors with:

(a) an interest-free loan of £12,000 (the company does not provide loans in the ordinary course of its business)

(b) a season ticket for the opera, costing the company £4,800.

Explain the tax treatment of these two items, assuming that the director in question owns 10% of the company's ordinary share capital.

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Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

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Question Posted: Feb 11, 2024 02:00 AM

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On 31 October 2020, a close company which prepares accounts to 31 March each year provides one

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a The director owns more than 5 of the companys share capital so the loan is taxable The company mus...View the full answer

Taxation Finance Act 2020

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