Higher tax rate on directors’ loans

Where a Director owes money to their company at the end of its accounting period, any part of the debt which isn’t repaid within the following nine months is liable to a special tax payable by the company known as a s.455 charge. The rate of that tax is tied to the higher dividend tax rate. Therefore, it will increase to 33.75% for s.455 charges arising on or after 1 April 2022.

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