s455 tax calculator for director's loans
Enter the accounting period and each loan to a director-shareholder or other participator still owed at the period end. The calculator applies the s455 rate for the loan date, 33.75% before 6 April 2026 and 35.75% from then, and deducts amounts repaid before the tax falls due, 9 months and 1 day after the period ends.
Key facts
| Who it applies to | A close company that makes a loan or advance to a participator or an associate (Corporation Tax Act 2010, s455) |
|---|---|
| Rate | The dividend upper rate for the tax year in which the loan is made |
| Loans made 6 April 2022 to 5 April 2026 | 33.75% |
| Loans made on or after 6 April 2026 | 35.75% |
| Due date | 9 months and 1 day after the end of the accounting period in which the loan was made |
| Repaid before the due date | No s455 tax on the amount repaid; claim the relief in the return (Corporation Tax Act 2010, s458) |
| Repaid later | Tax payable; relief no earlier than 9 months after the end of the period of repayment; claim within 4 years |
As at 25 October 2026.
Work out the s455 tax
Worked example
A company with a calendar-year accounting period lends its director-shareholder £10,000 on 1 February 2026 and £20,000 on 1 June 2026. Neither is repaid by 31 December 2026. The director repays £5,000 of the June loan on 1 March 2027.
| Loan | Rate | Charged on | s455 tax |
|---|---|---|---|
| £10,000 made 1 February 2026 (tax year 2025–26) | 33.75% | £10,000 | £3,375.00 |
| £20,000 made 1 June 2026 (tax year 2026–27) | 35.75% | £15,000 (after the £5,000 repaid before the due date) | £5,362.50 |
| Total, due 1 October 2027 | £8,737.50 |
If the remaining loans are repaid later, the tax already paid comes back by claim, but not before nine months after the end of the accounting period in which the repayment was made.
The rates by tax year
| Loan made | s455 rate |
|---|---|
| Up to 5 April 2016 | 25% |
| 6 April 2016 to 5 April 2022 | 32.5% |
| 6 April 2022 to 5 April 2026 | 33.75% |
| On or after 6 April 2026 | 35.75% |
The rate follows the dividend upper rate in Income Tax Act 2007, s8 for the tax year in which the loan is made, so one accounting period can contain loans at two rates.
Repayments and the 30-day rule
Since 30 October 2024 two anti-avoidance rules match repayments to new borrowing (Corporation Tax Act 2010, s464ZA):
- Repayments of £5,000 or more within any 30-day period, followed by new loans of £5,000 or more to the same person or an associate in a later accounting period, are matched to the new loans.
- Where £15,000 or more is owed immediately before a repayment and there are arrangements to borrow £5,000 or more again, the repayment is matched to the new loans.
HMRC also has an online tool to tell it about loans that participators have repaid in full. It asks the company to confirm that no new loans were made in the 30 days before the end of the accounting period or in the 30 days after the filing date.
Assumptions and limits
- Enter only loans made in this accounting period; loans from earlier periods were charged in those periods. Enter the amount still owed at the end of the period for each loan.
- It treats a release or write-off like a repayment only if you enter it as one; the tax consequences for the borrower are not covered.
- HMRC's systems and 35.75%. HMRC's Corporation Tax online service will reflect the 35.75% rate only from 6 April 2027. HMRC says returns filed before then with loans at that rate must be amended after 6 April 2027.
- The tax goes on the supplementary page CT600A, and the total in box 480 of the CT600.
Frequently asked questions
What is the s455 rate for 2026?
For loans made on or after 6 April 2026 the s455 rate is 35.75%. Loans made from 6 April 2022 to 5 April 2026 are charged at 33.75%.
When is s455 tax payable?
9 months and 1 day after the end of the accounting period in which the loan was made, the same date as the company's Corporation Tax for most companies.
Do I pay s455 if the loan is repaid?
Not on the part repaid before the due date: the relief is claimed in the same return. A repayment after the due date does not stop the charge, but the tax is refunded by claim later.
Does s455 apply to every company?
No. It applies only when a close company makes a loan or advance to a participator or to an associate of one. A company that is not a close company pays no s455 tax.
Sources
- Corporation Tax Act 2010, section 455
- Corporation Tax Act 2010, section 458
- Corporation Tax Act 2010, section 464ZA
- Income Tax Act 2007, section 8
- HMRC Company Taxation Manual, CTM61505
- HMRC: tell HMRC about loans that participators have repaid in full
- HMRC: changes and issues affecting the Corporation Tax online service
- HMRC: the Company Tax Return guide (CT600)
Prepare your statutory accounts
Create an account and set up your company from the Companies House register; your first set of accounts is free. The trial balance import and the CT600 are in preparation.
Join the waitlistGeneral information about UK company law and tax, not legal or tax advice. The directors remain responsible for the accounts and returns they approve and file.