Paragraph 3

In section 455 (charge to tax in case of loan to participator), for subsection (1) substitute—

“(1)

This section applies if a close company makes a loan or advances money to—

(a)

a relevant person who is a participator in the company or an associate of such a participator,

(b)

the trustees of a settlement one or more of the trustees or actual or potential beneficiaries of which is a participator in the company or an associate of such a participator, or

(c)

a limited liability partnership or other partnership one or more of the partners in which is an individual who is—

(i)

a participator in the company, or

(ii)

an associate of an individual who is such a participator.”

The amendment made by this paragraph has effect in relation to a loan or advance made on or after 20 March 2013.