Pluto Ltd meets the criteria of a "close company" for corporation tax purposes: Ivor, who is a shareholder and director of the company is considered a "participator" in Pluto Ltd. During the accounting period ended 31 March 2021, Pluto Ltd lent £28,000 to vor. Ivor will repay £8,000 of the loan on 11 December 2021 and he will repay the balance of E20,000 on 29 January 2022. > Calculate the penalty tax liability which will arise in respect to this loan to a participator for the accounting period ended 31 March 2021.
Pluto Ltd meets the criteria of a "close company" for corporation tax purposes: Ivor, who is a shareholder and director of the company is considered a "participator" in Pluto Ltd. During the accounting period ended 31 March 2021, Pluto Ltd lent £28,000 to vor. Ivor will repay £8,000 of the loan on 11 December 2021 and he will repay the balance of E20,000 on 29 January 2022. > Calculate the penalty tax liability which will arise in respect to this loan to a participator for the accounting period ended 31 March 2021.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 18CE
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