Originally posted by Lance
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Its not uncommon for close companies to provide longer term loans to their directors in this way - the fact that s455 charges get repaid when the loan is repaid is an acknowledgment of the fact that not everyone who takes directors loans is trying to avoid paying tax. Whether or not its sensible really depends on the circumstances.
AFAIK the only time an s455 charge could be avoided is if the company was in the business of providing commercial loans, was regulated as such and was not a close company - in this case it could of course provide a commercial loan to its director, but that wouldn't apply to anyone here.
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