Director's loan s.455 tax calculator

Can I use this calculator in an AI assistant?

Yes. Taxley runs a free Model Context Protocol (MCP) server, so you can add these calculators to Claude, ChatGPT or your own code and ask for a figure in plain English. The assistant gets the same answer as this page, with a link back to the result. There's no key and no sign-up.

How much s.455 tax is due on an overdrawn director's loan?

Section 455 tax is 33.75% of a director's loan still owed at the end of the company's accounting period if the loan was made from 6 April 2022 to 5 April 2026, and 35.75% if it was made on or after 6 April 2026. It applies to a close company's loans to shareholders (CTA 2010 s.455).

Loan made	s.455 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 is the dividend upper rate for the tax year in which each loan was made (HMRC manual CTM61505), so a company whose year straddles 6 April 2026 can owe tax at both rates. A close company is broadly one controlled by 5 or fewer shareholders, or by its directors.

When is s.455 tax due?

Section 455 tax is due 9 months and 1 day after the end of the accounting period in which the loan was made, the same day as the company's Corporation Tax. For a 31 March 2026 year end that is 1 January 2027. The company reports the loan on the CT600A page of its tax return (CTA 2010 s.455(3)).

Our guide explains what a CT600A is and how s.455 tax works, and how to fill in the CT600A box by box.

Can you avoid s.455 tax by repaying the loan?

Yes. No s.455 tax is payable on any part of the loan that is repaid, released or written off within 9 months of the period end, before the tax falls due: by 31 December 2026 for a 31 March 2026 year end (CTA 2010 s.458). A loan that is written off is then taxed on the director instead.

Money borrowed straight back doesn't count. Under the 30-day rule, if £5,000 or more is repaid and £5,000 or more is lent again to the same person or an associate within 30 days, the repayment is matched to the new loan. The arrangements rule does the same, with no time limit, where £15,000 or more was owed and at least £5,000 of new lending was already arranged (CTA 2010 s.464ZA; GOV.UK: Director's loans).

When does the company get s.455 tax back?

HMRC refunds s.455 tax once the loan is repaid, released or written off, but not before 9 months and 1 day after the end of the accounting period in which that happens (CTA 2010 s.458(5)). The company claims within 4 years of the end of the financial year of repayment, and interest on late-paid s.455 tax isn't refunded.

This worked example is the calculator's default: a director owes £25,000.00 at 31 March 2026, repays £10,000.00 by 31 December 2026 and the rest by 31 March 2027.

Step	Amount
Loan owed at 31 March 2026	£25,000.00
s.455 tax at 33.75%	£8,437.50
Relief for £10,000.00 repaid by 31 December 2026	£3,375.00
Net s.455 tax, due 1 January 2027	£5,062.50
Refund if the rest is repaid by 31 March 2027	£5,062.50, due from 1 January 2028

Repaid a day later, on 1 April 2027, the £15,000.00 falls in the next accounting period, and the refund waits until 1 January 2029.

Does the director pay tax on a director's loan too?

Possibly. If a director who is also a shareholder owes the company more than £10,000 at any time in the tax year, the company must treat the loan as a benefit in kind, and the director may pay tax on it at HMRC's official rate of interest, 3.75% from 6 April 2026 (GOV.UK: Director's loans; HMRC official rates).

If the company writes the loan off, the director pays Income Tax on the amount through Self Assessment, and the company deducts Class 1 National Insurance through payroll. The company's s.455 tax on that part is then cancelled or refunded.

How does this s.455 calculator work?

Enter the accounting period end, the loan owed on that date and any part repaid within 9 months. The calculator applies the rate for the date the loan was made, works on whole pounds as the CT600A does, and shows the net s.455 tax, its due date and when relief for a later repayment would be due.

• One loan date at a time. If loans were made either side of 6 April 2026, work out each one separately.
• Loans from earlier periods are taxed in the period they were made: enter that period's end date.
• It doesn't apply the 30-day or arrangements rules for you, and it assumes the company doesn't pay Corporation Tax by quarterly instalments.
• See also the Corporation Tax deadline calculator for the company's other dates, and our guide on whether the company owes you or you owe the company.

Which rules does this calculator follow?

Every figure comes from the rules HMRC and Companies House publish on GOV.UK, and from the legislation behind them. The links below go to the pages we checked when we last reviewed this calculator, so you can read each rule in full and check that it applies to your company.

• Corporation Tax Act 2010, section 455 (charge to tax on loans to participators)
• Corporation Tax Act 2010, section 458 (relief when a loan is repaid, released or written off)
• HMRC Company Taxation Manual CTM61505: s.455 rates by date the loan was made
• GOV.UK: Director's loans — if you owe your company money
• Corporation Tax Act 2010, section 464ZA (30-day and arrangements rules)
• GOV.UK: Beneficial loan arrangements — HMRC official rates

Frequently asked questions

What is the s.455 tax rate in 2026?

It depends on when the loan was made. Loans made from 6 April 2022 to 5 April 2026 are charged at 33.75%, and loans made on or after 6 April 2026 at 35.75%, the dividend upper rate for that tax year. The repayment date doesn't change the rate: relief is given at the rate the tax was charged.

Is s.455 tax the same as Corporation Tax?

No. It is a separate, temporary tax on a close company's loans to its shareholders, paid with Corporation Tax and reported on the CT600A. Unlike Corporation Tax on profits, HMRC refunds it once the loan is repaid, released or written off, from 9 months and 1 day after the end of the accounting period in which that happens.

Do I pay s.455 tax if the loan is repaid within 9 months?

No. If the whole loan is repaid, released or written off within 9 months of the end of the accounting period, before the tax is due, no s.455 tax is payable. The loan still goes on the CT600A. A repayment that is borrowed straight back may not count, because of the 30-day and arrangements rules in section 464ZA.

Does s.455 tax apply to every company?

No. It applies only to close companies, broadly those controlled by 5 or fewer shareholders or by their directors, lending to a participator, such as a shareholder-director, or an associate. Loans in the ordinary course of a money-lending business, and some loans of up to £15,000 to full-time working directors or staff owning 5% or less, are excluded.

What happens if the company writes off a director's loan?

Writing off or releasing the loan earns the same s.455 relief as a repayment, so the company's s.455 tax is cancelled or refunded. But the director is taxed on the amount written off through Self Assessment, and GOV.UK says the company must deduct Class 1 National Insurance through payroll. The written-off amount isn't a deductible expense for the company.

Related free tools

• Corporation Tax calculator: Estimates the Corporation Tax a UK limited company pays on its taxable profits for one accounting period of up to 12 months. Applies the small profits rate, the main rate and marginal relief, with associated companies, short periods and periods that straddle 1 April. A close investment-holding company pays the main rate on all its profits. Returns the tax, the effective rate and the payment and filing dates.
• Corporation Tax deadline calculator: Works out a UK private limited company's Corporation Tax payment date, CT600 filing deadline and Companies House accounts deadline from its accounting period. Accounts longer than 12 months are split into two Corporation Tax periods, each with its own payment date.
• Corporation Tax late filing penalty and interest calculator: Works out HMRC's penalties for filing a UK company's Company Tax Return (CT600) late — the flat £200/£400 penalties, doubled for filing deadlines from 1 April 2026, and the 10% or 20% tax-geared penalty — plus late payment interest on the Corporation Tax at HMRC's published rates.
• All free Corporation Tax tools

Last reviewed 29 September 2026. This calculator gives general guidance, not tax advice.