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Beneficial borrowings

07 January 2009
Issue: 4188 / Categories: Forum & Feedback , Employees , Income Tax

Borrowing by a director or shareholder from a limited company can be tax advantageous, but can such loans be ‘bed and breakfasted’ to avoid a charge under TA 1988, s 419? The replies consider the possibilities and warn against this. The accounting disclosure requirements could result in an HMRC enquiry and lead to interest and penalty charges.

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