DIRECTORS LOANS UNDER ATTACK

摘要

By way of background, there are specific anti-avoidance rules in Corporation Tax Act 2010 (CTA 2010) at sections 455 et seq where a close company (broadly one that is controlled by no more than five shareholders or alternatively is controlled by shareholders who are directors) makes a loan to a shareholder or an associate of the shareholder. The company has to pay HMRC a tax deposit based on the quantum of the loan, payable nine months after the end of the accounting period in which the loan was made. For some years now, the rate of tax has been set at 25% but the 2016 Finance Bill increases the rate of tax to 32.5% for loans or advances made on or after 6 April 2016. Thus on a loan of £100,000 made before 6 April 2006 the tax will be £25,000, but for a loan made on or after that date it will be £32,500.