Corporation Tax: reclaim tax paid by close companies on loans to participators (L2P). HMRC provide both postal and online forms which can be used by close companies to obtain a refund of tax paid when a loan has been repaid, released or written off.

Link: Form L2P

The other tax consequences for both company and participator of a loan that is released or written off are considered in detail in our guides:

Directors' loan accounts: toolkit
How a director's loan account is treated for tax

Close Company Loan Toolkit
Tax issues for companies with directors' loans

Unlawful, illegal or ultra vires dividends
Tax and compliance issues when dividends are voided

Tax planning for directors
Links to tax planning guides and updates

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