Director’s Loan new proposals update
Recently I blogged about how an overdrawn director’s loan account is taxed for a close company. Announced recently are proposals to reform the rules.
The four proposals for reform of the close company rules are:
– Maintain the current regime.
– Increase the s455 CTA 2010 tax rate to 40%, from 25%, but keep the structure and operation of the regime.
– Replace the current system with a lower rated but permanent annual charge on amounts outstanding at the end of each accounting period until the amount loaned has been repaid to the close company.
– Replace the current system with a lower rated but permanent annual charge on average amounts outstanding during the accounting period.
Here at Mark Stanley Accountants we can advise you on this subject, and anything else you are concerned about. We offer you a friendly and affordable service. Give us a call on 01207 582528 and have a chat with our friendly team or drop Alison an email on [email protected] .
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