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.
Restrictions on submitting CT600A online for 2022
Please note that the rate of tax on loans made during the period changed to 33.75% on loans made on or after 6/4/2022. Taxfiler includes this rate change and will correctly calculate the tax due on any new loans meeting this criteria.
However, it will not be possible to submit the CT600A online until HMRC have updated the Online Service. Please see HMRC’s ‘Changes and issues affecting the Corporation Tax online service page for more information.
Loans to participators
- Have any loans been made and released or written off before the end of this period? – tick the box 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
- Name of participator or associate – enter the name of participator who received the loan.
- Amount – 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
- Name of participator or associate – enter then name of the participator who received the loan.
- Repaid – enter the amount repaid.
- Released/written-off – enter the amount released or written off.
- Date – enter the date of the repayment or write-off.
To delete a line from the grid, click the ‘trash can‘ button at the end of the line.
- Total loans outstanding (including loans made in earlier periods) – enter the total value of outstanding loans at the end of the period, 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.
For more information see the section titled Reclaiming Corporation Tax on a director’s loan account under this link www.gov.uk/directors-loans.