Policy paper

Corporation Tax: rate of tax for the loans to participators charge

This tax information and impact note applies to close companies which make loans to their participators or make other arrangements through which participators extract value.



The measure will ensure that the rate of tax chargeable under the loans to participator rules continues to mirror the dividend upper rate, following the changes to dividend taxation from April 2016. The rate of tax charged will increase from 25% to 32.5%.

Published 16 March 2016