Can HMRC tax outstanding Directors’ Loan Accounts? A guide for UK company directors

Dipesh Dosani of Lincoln and Rowe explains that HMRC can impose a punitive Section 455 charge on close companies with overdrawn directors’ loan accounts, alongside potential personal tax charges where loans are cheap, written off, or mishandled in insolvency, with recent tribunal decisions underscoring that timing, documentation, and formal release mechanics are critical in determining whether tax liabilities crystallise.

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