Higher tax applied to directors’ loan accounts

From 6 April 2016, companies will be charged a higher rate of tax (payable under s.455 CTA 2010) on outstanding loans to directors, or any other participator in a close company. This new rate is 32.5%, (up from 25%) and is payable by the company on unpaid balances existing nine months after the end of the accounting period. The new … Read More

New legislation – close company loans

As part of his Budget on 20 March 2013, Chancellor Osborne announced changes to the rules governing the taxation of company loans to participators. The legislation will prevent certain types of arrangement which seek to avoid the charge to tax arising under S 455 Corporation Tax Act 2012 (CTA 2010). Essentially, the new rules deny relief where repayments and re-withdrawals are made within … Read More