Loan to participator
A tax term for certain loans or advances made by a close company to shareholders or other participators, which can trigger specific tax consequences.
Related terms
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Section 455 tax
A Corporation Tax charge that can arise when a close company makes certain loans or advances to participators and the balance remains outstanding after the relevant deadline.
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Credit Director’s Loan Account
A director’s loan account showing that the company owes money to the director, rather than the director owing money to the company.
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Overdrawn Director’s Loan Account (ODLA)
A director’s loan account showing that the director owes money to the company. It can become especially important if the company enters insolvency.
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