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Reclaiming section 455 tax

March 11, 2016 by Sian Kelly

In family and personal companies, directors may lend money to the company and they may also borrow from the company. Where the company director borrows from the company, a record of the amount borrowed is kept in the form of a `director’s loan account’. The loan balance may be cleared by crediting dividends or salary to the account or by the director repaying money borrowed back to the company.