Sorry for the seemingly random question. I hope my question is not too specific.
As a director, I am considering making a “positive” director’s loan, i.e. the company will owe me money.
I understand that any interest payments are included in overheads and do not attract corporation tax. (I know there’s a special quarterly return and 20% is deducted at source).
With a commercial loan, I understand that although interest payments are considered part of overheads, paying down the capital attracts corporation tax.
With regards to the director’s loan, HMRC say:
Your company does not pay Corporation Tax on money you lend it.
Is this to say that paying down the capital of a positive directors loan does not attract corporation tax?