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Bed & Breakfast of Director Loans-S455 charge due?

Bed & Breakfast of Director Loans-S455 charge due?

In this example a company's year end is 31st May and the director has an overdrawn loan account of 2k. If the director repays this just before the following 28th February but then withdrawals another loan of 4k within a week of repaying the previous one then would HMRC treat it as though the original loan hadn't been repaid for S455 tax purposes, or does this just apply to loans of 5k or more?

Thank you for any help


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25th Feb 2016 10:45

Bed and breakfasting

Repays more than £5000 and borrows more than £5000 within 30 days.

It seems the above situation will not be caught by the anti-avoidance rules.

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