Directors' loans and tax liability - CPD module - NEW

This month's exclusive Accountancy Daily CPD module focuses on the tax treatment of close company loans to directors and shareholders

The loan to participant rules, more commonly known as directors' loans, impose a tax charge on the company where it makes a loan to a director or a shareholder.

The rules apply where a close company, a UK company that is controlled by five or fewer participators or by any number of participators who are directors, is making loans to an individual that is either a participator or associate in the close company.

However, there are three exceptions to these rules: a loan to a charitable trust, business of lending money and low-value loans to an employee/director.

By completing this module on directors' loan rules, you will be able to:

  • determine whether your client’s circumstances give rise to a tax liability;
  • calculate the tax charge, including taking into account repayments of the loan;
  • claim relief for a repayment/release of the loan; and
  • advise on the consequences of writing-off a loan for the company and for the participation

This CPD module takes 20 minutes to complete and is followed by a short quiz to ensure thorough learning. There are also detailed course notes to ensure a full learning experience. Any CPD learning is also automatically added to Your CPD Tracker.

The CPD course lecturer is Stephen Relf ACA CTA, lead tax writer at Croner-i.

Play the CPD module here

If you're already a subscriber, you can log in to access this CPD module.

4
Average: 4 (3 votes)
Subscribe