Loans to participators section (CT600A)

This screen is accessed via the Data Input tab within the tax return.

Complete this section if the company is a close company, and in this period:

  • it has made a loan which has not been repaid within the period

  • tax is due under S455 CTA 2010, or

  • the company has been party to tax avoidance arrangements under which a benefit is conferred on a participator in this period and no return payment has been made to the company within the period, or

  • tax is due under S464A CTA 2010

Loans to participators

  1. Select the Have any loans been made and released or written off before the end of this period? option if any / all loans made during the period have been released or written off before the end of the period.

Loans made during the period and not repaid before the end of the period

  1. Enter the name of participator who received the loan.

  2. Enter the date of the loan.

  3. Enter the amount of the loan made this period and not repaid.

Loans made during the period and repaid/released/written-off after the end of the period

  1. Enter then name of the participator or associate who received the loan.

  2. Enter the amount repaid.

  3. Enter the amount released or written off.

  4. Enter the date of the repayment or write-off.

To delete a line from the grid, select the ‘trash can' icon at the end of the line.

Loan summary

  1. Enter the Total loans outstanding (including loans made in earlier periods) amount including loans made in an earlier period.

Reclaiming S455 tax repayments for earlier periods

It is not possible to reclaim a S455 tax repayment via the CT600 in a period other than that in which the loan was actually made.

If the S455 tax relates to a loan made in the current period then the repayment due cannot exceed the liability which arose in the period, so a negative figure should not arise.

If the S455 tax repayment relates to a payment made in the previous period then the claim can only be made on the tax return for the period in which the loan was originally made; online validation will not allow the repayment to be claimed on a later period’s return.

Since submitting a claim with the original period requires amending the previous period’s return this is not always the best way; the simplest way to reclaim the tax paid is simply to write a letter to HMRC detailing the loan repayment and claiming a repayment of the S455 tax. This should be submitted after the latest return and accounts have been filed (showing the loan has been paid off), and the claim can only be made after 9 months and 1 day following the end of the accounting period in which the loan was repaid.

See HMRC guide Reclaiming Corporation Tax on a director’s loan account.