Participator

A participator is a person with a share or interest in a close company: most often a shareholder. HMRC’s own guidance puts it simply: a shareholder is “sometimes called a ‘participator’”³.

Why it matters

A close company is one controlled by 5 or fewer participators, or by participators who are directors². When a close company lends money to a participator, or to someone associated with one, the company can owe extra tax under section 455 on any part of the loan not repaid within 9 months of the year end^1,3.

See director’s loan accounts and s455 for the rates and a calculator.