Director’s loan repaid within nine months: claiming section 458 relief

Short version. A qualifying director’s loan repayment within nine months of the end of the accounting period in which the loan was made can reduce or remove section 455 tax immediately. Claim section 458 relief in CT600A Part 2. A loan outstanding at the period end still appears in Part 1. See HMRC CTM61610.

1. How do I claim without paying the tax first?

After the qualifying repayment has happened, the original Company Tax Return can show the gross charge and the relief together. HMRC COM53170 explains giving the claim effect in that return.

Part 2’s A25 rows identify the borrower, amount repaid and date. If several qualifying repayments belong to an account, HMRC permits a total with the last included date. A30 and A40 show qualifying principal and A45 shows the tax relief. A80 carries the remaining charge to CT600 box 480. See HMRC’s CT600A box instructions.

In the Financial Data step, open Director’s loans and section 455 tax and choose + Add loan repayment under the relevant borrower. Enter Amount repaid after the period end and Date of last repayment included. Follow the numbered CT600A filing guide to save, review and preview the forms.

2. Does full or partial repayment remove the charge?

Full qualifying repayment offsets the whole charge. Partial repayment offsets only the corresponding relief. For a £1,000 loan made in 2025, with no other loans or reliefs:

Ordinary Corporation Tax on profits is separate and remains payable. The loan and repayment principal fields take prepared whole pounds. Gross tax and relief are each rounded on their total, then subtracted. A75 remains the separate balance at the period end, including earlier loans. Do not reduce it for a later repayment.

3. Which repayments qualify?

Enter the prepared qualifying amount after applying the repayment rules. Temporary repayment and reborrowing can restrict relief. HMRC explains the 30-day rule, the arrangements rule and exceptions to those restrictions. These links give the conditions to consider when preparing your figures.

This feature covers qualifying loan repayments after the period end and within nine months. It excludes later Part 3 claims, releases, write-offs and historical periods spanning different loan-tax rates. Section 464A arrangement return payments have different relief rules, explained in CTM61610.

4. What if a long first period has two CT600s?

Each actual Corporation Tax accounting period has its own loan schedule and repayment window. Enter the prepared loan and repayment amounts against the relevant return’s displayed dates. The service does not split loans or repayments by days. A repayment relating to both returns needs a prepared allocation between them, without claiming the same amount twice.

5. Can I claim after filing the original return?

The supported amendment journey lets you add or correct a Part 2 repayment claim, including eligible originals filed elsewhere. A repayment-only change affects the HMRC return. Review the amended CT600A and computation before submitting. The existing amendment eligibility and time limits still apply.

If the repayment was later than nine months after the original period end, relief has different timing. It is not due until nine months and one day after the end of the accounting period in which repayment happened. That later treatment is outside this feature. Tax already paid is not a reason to assume an immediate refund. See HMRC’s relief timing.

6. Why does the online return use 33.75% for 2026 loans?

The statutory rate for loans made from 6 April 2026 is 35.75%. HMRC says its online service will change on 6 April 2027 and gives amendment instructions for affected earlier filings. The current format uses 33.75% for both gross tax and relief. Full qualifying relief gives nil net tax under either rate, but HMRC’s notice does not expressly exempt fully relieved loans from amendments to the gross disclosures. Follow HMRC’s current service guidance.

Official guidance checked 19 September 2026. This is general filing information, not tax or accounting advice.