# Director's Loan (S455) Calculator

> Calculate the section 455 tax on an overdrawn director's loan account, the date it is due, and how much a repayment saves or gets refunded.

Enter the loan and your company's year end to see the section 455 tax, when it is due and what repaying the loan saves.

Use the calculator: https://www.taxoptimiser.co.uk/calculators/directors-loan-s455

Example: A £20,000 loan made on 1 June 2026 by a company with a 31 March 2027 year end, and not repaid, carries £7,150.00 of section 455 tax at 35.75%, due on 1 January 2028.

## What section 455 tax is

When a close company lends money to a director or shareholder and the loan is still outstanding nine months and one day after the end of the accounting period, the company pays tax on the balance. The rate matches the higher dividend rate: 35.75% for loans made on or after 6 April 2026 and 33.75% for loans made between 6 April 2022 and 5 April 2026.

## Getting the tax back

The tax is not charged on any part of the loan repaid within nine months of the year end. If the loan is repaid later, the tax already paid is refunded nine months and one day after the end of the accounting period in which it was repaid.

## Other things to watch

A loan of more than £10,000 that is interest-free or below the official rate is also a taxable benefit in kind. Repaying a loan and taking a new one shortly afterwards can be caught by the 30-day and arrangements rules, so the repayment is ignored.

## Section 455 tax rates

The rate depends on when the loan was made.

| Loan made | Rate |
| --- | --- |
| On or after 6 April 2026 | 35.75% |
| 6 April 2022 to 5 April 2026 | 33.75% |
| 6 April 2016 to 5 April 2022 | 32.5% |
| 1 April 2010 to 5 April 2016 | 25% |

## Frequently asked questions

### What is the section 455 tax rate?

35.75% for loans made on or after 6 April 2026, and 33.75% for loans made between 6 April 2022 and 5 April 2026.

### When is section 455 tax due?

Nine months and one day after the end of the accounting period, on any part of the loan still outstanding at that date.

### Do I get section 455 tax back when the loan is repaid?

Yes. No tax is charged on any part repaid within nine months of the year end. Tax already paid on a loan repaid later is refunded nine months and one day after the end of the accounting period in which it was repaid.

### Is a director's loan also a benefit in kind?

A loan of more than £10,000 that is interest-free, or charged at less than the official rate, is a taxable benefit in kind as well.

## Related calculators

- [Corporation Tax Deadlines Calculator](https://www.taxoptimiser.co.uk/calculators/corporation-tax-deadlines.md): Payment, CT600 and Companies House dates for any accounting period.
- [Dividend Tax Calculator](https://www.taxoptimiser.co.uk/calculators/dividend-tax.md): Income tax on dividends on top of your salary, band by band.
- [Salary vs Dividend Calculator](https://www.taxoptimiser.co.uk/calculators/salary-vs-dividend.md): Compare the standard director salary levels and see which leaves the most take-home pay.
- [Corporation Tax Calculator](https://www.taxoptimiser.co.uk/calculators/corporation-tax.md): Estimate Corporation Tax for a UK limited company with marginal relief.

## Sources

- [Director's loans](https://www.gov.uk/directors-loans) (GOV.UK)

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Last updated 11 October 2026. Guidance only: a general estimate, not tax advice. Published by Tax Optimiser, UK tax filing software (https://www.taxoptimiser.co.uk).