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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15942
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If I pay interest at a commercial rate on an overdrawn directors

Resolved Question:

If I pay interest at a commercial rate on an overdrawn directors loan account do i have to show the balance outstanding on form CT600
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

The loan has to be reported on form CT600 regardless of whether interest is paid by the director at a commerical rate unless it is repaid within 9 months and 1 day of the end of the accounting period in which it was taken out. It it isn't repaid by then, a Section 455 charge will be payable.

There is more information here.

I hope this helps but let me know if you have any further questions.

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