As I have mentioned in previous blog posts there has been a tightening of the rules regarding the receipt of a loan from a close company.
The company can be taxed 25% on the amount of a loan drawn by a shareholder which is still outstanding more than 9 months after the end of the company’s accounting period.
We now find that HMRC are looking at possible increases in the tax charge, from 25% to perhaps 40%.
A completely different approach suggests a reduction in the tax charge to 5%, but with no tax refund when the loan is repaid.
All of these changes mean that you need to contact us if you decide to withdraw money from your company to make sure the advice we give you is fully up to date.
Please watch this space for further updates on this point.