‘Close’ companies have to pay tax if they lend money to their shareholders. The tax rate is 25% of the amount outstanding at the end of the accounting period. The company can reclaim the tax after the shareholder has repaid the loan.
A close company is very broadly one that is controlled by its directors or by five or fewer shareholders.Last Updated
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Corporation tax
07: Loans to shareholders
Tax rules are subject to change. The FCA does not regulate tax advice.
