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Shareholder loans - benefit in kind

Shareholder loans are taxed as benefits in kind. This is seen as receiving an interest free loan and tax is due on the notional interest at a rate of 5% on balances over £5,000.

So take out a loan as a shareholder and not a director. Keep it under £5,000 and there will not be tax to pay on the notional interest.

 

Disclaimer: Always seek independent advice for any tax planning issues. Structured Internet Ltd cannot be held responsible for any costs incurred, transactions arising from or consequences of any advice listed here or followed as a result of visiting any site being linked from this website.

 

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