Loans to participators section (CT600A)

This section should be completed 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

Refer to the HMRC Corporation Tax form for Company Tax (CT600) guidance if needed (opens in a new tab).

To add the Loans to Participators section to a corporate tax return (CT600):

  1. Open an existing or create a new corporate tax return.
  2. Go to the Data Input tab.
  3. Select Add new section.
  4. Change to the Supplementary Pages tab.
  5. Select Loans to Participators (CT600A).
  6. IRIS Elements Tax Essentials subscribers only. and IRIS Elements Tax Professional subscribers only. Complete the following:
    1. Select Save changes.
  7. IRIS Elements Tax Enterprise subscribers only. Complete the following:

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made in the previous period then the claim can only be made on the tax return for the period in which the loan was originally made; online validation will not allow the repayment to be claimed on a later period’s return.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

Refer to the HMRC guide - Reclaiming Corporation Tax on a director’s loan account.