Director's Loan (S455) Calculator

Enter the loan and your company's year end to see the section 455 tax, when it is due and what repaying the loan saves.

The loan

Amount owed to the company (£)

GBP

Date of the loan

Company year end

Some or all of it has been, or will be, repaid

Section 455 tax to pay

£7,150.00

On £20,000 still owed

Rate

35.75%

Set by the date of the loan

Due by

1 January 2028

Repay before this date to avoid the tax

Workings

Loan (£)

Loan made on 01/06/2026

20,000.00

Outstanding when the tax falls due

20,000.00

Tax (£)

Section 455 tax 20,000.00 × 35.75%

7,150.00

Section 455 tax to pay by 01/01/2028

£7,150.00

Estimate only. Assumes a single loan from a close company to a director or shareholder, and the same year end each year. The tax is reported on form CT600A with the Company Tax Return. A loan over £10,000 that is interest-free or below the official rate is also a benefit in kind, and a repayment followed by a new loan within 30 days may be ignored.

Guidance only. This calculator gives a general estimate and is not tax advice. Speak to your accountant before relying on these figures or making any decisions based on them.

What section 455 tax is

When a close company lends money to a director or shareholder and the loan is still outstanding nine months and one day after the end of the accounting period, the company pays tax on the balance. The rate matches the higher dividend rate: 35.75% for loans made on or after 6 April 2026 and 33.75% for loans made between 6 April 2022 and 5 April 2026.

Getting the tax back

The tax is not charged on any part of the loan repaid within nine months of the year end. If the loan is repaid later, the tax already paid is refunded nine months and one day after the end of the accounting period in which it was repaid.

Other things to watch

A loan of more than £10,000 that is interest-free or below the official rate is also a taxable benefit in kind. Repaying a loan and taking a new one shortly afterwards can be caught by the 30-day and arrangements rules, so the repayment is ignored.

Need to file the CT600?

This calculator is for guidance only. Tax Optimiser prepares the full corporation tax computation and files the CT600 and accounts with HMRC and Companies House.