Introduction Overview Chapter 3: Charge to tax in case of loan to participator Section 456: Exceptions to the charge under section 455
1384.This section makes certain exceptions to the charge under section 455. It is based on sections 419(1) and 420 of ICTA.
1385.Subsection (1) is an exception for money-lending companies.
1386.Subsection (2) is an exception for ordinary supplies of goods and services.
1387.Subsection (2) refers to a company’s “trade or business”. It does not refer to a company’s “vocation”. This is a minor change in the law. See the commentary on section 452 and Change 4in Annex 1.
1388.Subsections (3) to (8) are an exception for small amounts.
1389.Subsections (3), (4) and (7) apply not only to loans but also to advances. This is a minor change in the law to bring it into line with practice. See Change 30 in Annex 1.