Director loan treatment question

[sheendirector]

Hi all,

I am reading gov.uk page on director loan taxation: (can't post link)

One thing I find about this page is: it only talks about when the director is also a shareholder. What are the rules when a director is not a shareholder?

 

[WaveJumper]

This page by any chance
https://www.gov.uk/directors-loans/you-owe-your-company-money

 

[sheendirector]

Yes, this page. And I also checked Corporation Tax Act 2010 which says corporation tax on loan is only chargeable when it's to participator. I understand that if a director is not a shareholder it's not a participator.

 

[WaveJumper]

I have to say I am not an accountant and I am sure one will be along to give you the definitive answer, but yes this is my understanding if your just a director your not a participator

 

[STDFR33]

There are other rules to capture a director as a ‘participator’.

 

[SteveHa]

You need to read S454 CTA 2010 which widens the scope of "participator" beyond a current shareholder for the purposes of S455.

In the absence of any figures in the OP, I also suggest reading ITEPA 2003, Part 3 Chapter 7 for the potential income tax and National Insurance consequences.

 

[sheendirector]

You need to read S454 CTA 2010 which widens the scope of "participator" beyond a current shareholder for the purposes of S455.

In the absence of any figures in the OP, I also suggest reading ITEPA 2003, Part 3 Chapter 7 for the potential income tax and National Insurance consequences.

Thank you!