UK How will a director's loan be taxed?


Joined
Feb 16, 2021
Messages
1
Reaction score
0
Country
United Kingdom
How will a loan of £1500 taken from the company (and not paid back withinn 9 months of YE) by the director be taxed?

Does it need to be included as a Corporataion Tax payabale on the accounts on the year the loan was actually taken?

Note: Director is also shareholder
 
Ad

Advertisements

Joined
Apr 2, 2011
Messages
6
Reaction score
0
If only £1,500 the directors loan will be taxed under S455 CTA at 32.5%. As and when the loan is repaid, the S455 tax can be reclaimed. For absolute clarity, S455 is charged on a loan to a participator, and not a director, so it is the shareholder aspect that is important here.

Provided the loan remains below £10,000 throughout the tax year there is no benefit in kind on the director personally.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top