Loans | Croner-i Tax and Accounting

Anti-avoidance provisions

Commentary – Tax Reporter ¶215-250

Arm's length loans to unconnected third parties

Commentary – Gaines on Pension Tax 8.5.4

As an investment

Commentary – Gaines on Pension Tax 8.5.5

Bank payroll tax

Legislation/Regulatory – FA2010 Sch. 1, para. 13

Banks overseas lending

– see Double taxation relief (companies)

Beneficial

– see Employment-related loans

Borrowing in foreign currency by local authorities and statutory corporations

Legislation/Regulatory – ITTOIA2005 s. 755, 756

Borrowing rules

Commentary – Gaines on Pension Tax 8.6 Gaines on Pension Tax 8.10.1

Bridging loans

Legislation/Regulatory – ITEPA2003 s. 284, 288, 289

Chargeable consideration

Assumption of debts

Commentary – Stamp Taxes Reporter ¶40-700–Stamp Taxes Reporter ¶40-725

Chargeable gains

Generally

Commentary – Tax Reporter ¶511-150

Guarantees

Commentary – Tax Reporter ¶511-250

Loss relief

Commentary – Tax Reporter ¶511-150

Qualifying corporate bonds

Commentary – Tax Reporter ¶511-300

Qualifying loans

Commentary – Tax Reporter ¶511-200

HMRC Guidance – CG65932 ; CG65956

Recoveries on loans and guarantees

Commentary – Tax Reporter ¶511-350

Charitable companies

Legislation/Regulatory – CTA2010 s. 514

Charitable trusts

Legislation/Regulatory – ITA2007 s. 561

Charities

Commentary – Tax Reporter ¶815-690 ; Tax Reporter ¶815-740

Close companies

– see Close companies

Close company loans to participators

Default interest

Case Law – Joint (HM Inspector of Taxes) v. Bracken Developments Ltd. [1994] BTC 107

Money lending company

Case Law – Brennan (HM Inspector of Taxes) v Deanby Investment Co Ltd. [2001] BTC 205 ; Deanby Investment Co Ltd v HM Inspector of Taxes (2000) Sp C 234

Notification to Revenue

Case Law – Earlspring Properties Ltd v. Guest (HM Inspector of Taxes). [1995] BTC 274

Release

Case Law – Collins v. Addies (HM Inspector of Taxes) and related appeal. [1991] BTC 244 ; Collins v. Addies (HM Inspector of Taxes) and related appeal. [1992] BTC 532

Revenue's entitlement to make assessment

Case Law – Earlspring Properties Ltd v. Guest (HM Inspector of Taxes). [1993] BTC 253

Close company participators

– see Close companies

Community investment scheme

– see Community investment scheme relief (corporation tax); Community investment scheme relief (income tax)

Community investment tax relief

– see Community investment tax relief

Connected persons

Commentary – Gaines on Pension Tax 8.5.3

Corporate and government debt

– see Loan relationships

Costs of obtaining

Legislation/Regulatory – ITTOIA2005 s. 58, 59

Development of land, interest relief

Case Law – Lawson (HM Inspector of Taxes) v. Brooks. [1992] BTC 53

Directors and employees

– see Employment-related loans

Disclosure of tax avoidance schemes

– see Disclosure of tax avoidance schemes

Employee remuneration packages, soft currency loans

Legislation/Regulatory – IRInt. 242

Employer-financed retirement benefit schemes

Commentary – Gaines on Pension Tax 12.8.4

Employment-related

– see also Employment-related loans

Foreign currency loans

Commentary – Key Data ¶3-530

Official rate of interest

Commentary – Key Data ¶3-520 Key Data ¶3-525

Threshold

Commentary – Key Data ¶3-515

Employment-related loans

– see Employment-related loans

Excluded loans

Commentary – Gaines on Pension Tax 8.5.1

Exemption for gifting of

Commentary – 2.13

Finance leases

– see Finance leases; Finance leases and loans

Gifts with reservation of benefit

Commentary – 19.2.7

Guarantees

Capital gains tax relief

Commentary – Tax Reporter ¶511-250

Transfer pricing

Commentary – Tax Reporter ¶773-820

HMRC Guidance – INTM255650

Hire-purchase

– see Hire-purchase agreements

Home improvement

– see Home improvement loans

House purchase, employer-providing

Case Law – Harvey (HMIT) v Williams (1998) Sp C 168

Incidental costs of obtaining

Generally

Legislation/Regulatory – ITTOIA2005 s. 58, 59

Trading expenditure

Commentary – Tax Reporter ¶215-100

HMRC Guidance – BIM45525 ; BIM45801

Inheritance tax

Free loans

– see Free loans

Generally

Commentary – Tax Reporter ¶609-250

HMRC Guidance – IHTM14317 ; IHTM19010 ; IHTM19100

Personal representatives

Commentary – Tax Reporter ¶115-550

Interest

– see Interest; Interest payable; Interest relief

Interest free

Sole beneficial shareholder to company

Case Law – Inland Revenue Commissioners v. Levy. [1982] BTC 235

Tax avoidance scheme

Case Law – Bird & Ors v. Inland Revenue Commissioners. Breams Nominees Ltd. & Anor v. Inland Revenue Commissioners. [1987] BTC 134

Interest, cap on relief

Commentary – Key Data ¶2-610

Leasing arrangements

– see Finance leases and loans

Life annuity purchase, exception from duty to deduct tax

Legislation/Regulatory – ITA2007 s. 883

Life insurance policy holders, deemed surrender

Legislation/Regulatory – ICTA88 s. 271

Loan relationships

– see Loan relationships

Making of, as relevant step

Commentary – 3.3.3

Mortgage interest relief

– see MIRAS; Mortgage interest relief

Nil-rate band discretionary trusts

Commentary – Stamp Taxes Reporter ¶40-725

Non-market

Legislation/Regulatory – CTA2009 s. 446A

Non-resident banks, attribution to permanent establishment

Legislation/Regulatory – CTA2009 s. 27

HMRC Guidance – CTM03750 ; INTM267622 ; INTM267624

Non-resident trusts

Legislation/Regulatory – SP 5/92

Non-taxable insurance contracts

Legislation/Regulatory – FA94 Sch. 7A, para. 15

Offshore funds

Legislation/Regulatory – SI 2009/3001 reg. 28

Participators in close company, to

– see Close companies

Participators, to

– see Close companies

Partnership to purchase land, relief for interest

Case Law – R. v. H.M. Inspector of Taxes, ex parte Brumfield & Ors. [1989] BTC 3

Partnerships

– see Partnerships

Personal representatives, payment of inheritance tax

Commentary – Tax Reporter ¶115-550

Purchase of foreign property, deduction of interest

Case Law – Ockenden (H.M. Inspector of Taxes) v. Mackley. [1982] BTC 151

Purchase of second main residence, not occupied

Interest relief, entitlement

Case Law – Hughes (H.M. Inspector of Taxes) v. Viner. [1985] BTC 156

Qualifying corporate bonds

Generally

Legislation/Regulatory – SP 8/90

Withdrawal of relief

Legislation/Regulatory – FA98 s. 141

Qualifying, relief from capital gains tax

Case Law – Robson v Mitchell (HM Inspector of Taxes). [2005] BTC 13 ; Robson v Mitchell (HM Inspector of Taxes). [2005] BTC 321

Registered pension schemes

– see Registered pension schemes

Release of

Commentary – 3.3.4

Released, gift aid

Case Law – Battle Baptist Church v IR Commrs & Anor (1995) Sp C 23

Self-invested personal pension schemes (SIPP)

Commentary – Gaines on Pension Tax 8.3

Shari'a law

– see Alternative finance arrangements (Shari'a law compliance)

Small self-administered schemes

Commentary – Gaines on Pension Tax 8.3 Gaines on Pension Tax 8.5.2

Sponsorship loans

Interest rates

Commentary – Gaines on Pension Tax 8.5.2

Maximum amount of

Commentary – Gaines on Pension Tax 8.5.2

Repayment terms

Commentary – Gaines on Pension Tax 8.5.2

Security

Commentary – Gaines on Pension Tax 8.5.2

Terms

Commentary – Gaines on Pension Tax 8.5.2

Stock lending

– see Stock lending

Student loan deductions

Commentary – Key Data ¶3-740

Student loans, PAYE

Commentary – Tax Reporter ¶494-380

HMRC Guidance – CSLM2030

Students

Electronic delivery of notices

Legislation/Regulatory – SI 2002/680

Interest to be disregarded

Legislation/Regulatory – ITTOIA2005 s. 753

Traders, relief

Allowable losses

Legislation/Regulatory – TCGA92 s. 253(5)-(11)

HMRC Guidance – CG66040 ; CG66061 ; CG66070

Claims for relief

Legislation/Regulatory – TCGA92 s. 253(3), (4)

HMRC Guidance – CG65931 ; CG65934 ; CG65935 ; CG65940 ; CG65970 ; CG65991 ; CG65992 ; CG66010 ; CG66020 ; CG66030 ; CG66032 ; CG66041 ; CG66080

Qualifying loan

Legislation/Regulatory – TCGA92 s. 253(1)

Transfers of value

Legislation/Regulatory – IHTA84 s. 29

Trustees, transfers of value

– see Transfers of value

Types of loans

Commentary – Gaines on Pension Tax 8.5.1

Unauthorised payments

Connected persons

Commentary – Gaines on Pension Tax 8.5.3

Generally

Commentary – Gaines on Pension Tax 8.5.1

Vocational training

– see Training or retraining; Vocational training relief