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How do I enter a repayment of a loan to participator?

Article ID: 916
Last updated: 10 Dec, 2018

When completing the details surrounding a repayment of a loan, the claim for relief is dependent upon the length of time following the loan being issued. 

The below extract has come from the HMRC website:

Reclaiming within 2 years

If you’re reclaiming within 2 years of the end of the accounting period when the loan was taken out, use form CT600A to claim when you prepare a Company Tax Return for that accounting period or amend it online.

Use form L2P with your Company Tax Return instead if either:

  • your tax return is for a different accounting period than the one when the loan was taken out
  • you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

This would mean that you file an amendment for the original return period to complete the claim for the repayment of the loan. You would need to complete Section 3 of the CT600A pages 'more than nine months after the end of the period and where relief is due now'. Alternatively, you could write a letter to HMRC at the same time as you file your Company Tax return for the most recent accounting period, explaining the repayments and the amount claimed back. This wouldn't require you to submit a paper file however you could do this if you wanted to.

Please note: If you do fill out the Loan wizard then this will populate the details automatically onto the other pages within the Loans to Participators section.

Reclaiming after 2 years

If you’re reclaiming 2 years or more after the end of the accounting period when the loan was taken out, fill in form L2P and either include it with your latest Company Tax Return or post it separately.

HMRC will repay your company by either:

  • using the details you gave in your latest Company Tax Return
  • sending a cheque to your company’s registered office address

In order to include this within "your latest Company Tax Return", you would need to complete the form online and save this in PDF format before being able to attach this onto the return. Once you have the document you can click on Check and Finish > Attach > Add Other PDF. 

Article ID: 916
Last updated: 10 Dec, 2018
Revision: 10
Views: 25327
This article was:  

Also listed in
folder Tax Return Production -> CT600 Corporation Tax Return