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 Ivor.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 March2021.Select one:O a. £6,500O b. E9,100O. NilO d. E4,000

This given case is related to the close company given loans to participator. The Penalty tax rate is…

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.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 18CE

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