Tag: Directors Loans bed and breakfasting

Directors Loans
Our Blog

Directors Loans – Beware of ‘bed and breakfasting’

In days of old, it was relatively simple to prevent a section 455 charge from applying by clearing the loan balance just before the trigger date and, if the director still needed the loan, re-borrowing the funds shortly after the trigger date (bed and breakfasting). However, anti-avoidance provisions mean that as a strategy this is no longer effective.