This briefing details the tax issues that surround loans to director-shareholders and loans from director-shareholders to their companies. There has been an increase in the rate of tax on loans to participators from 6 April 2016 which means it will be more costly for the company to make such loans. Changes to the personal tax regime from 6 April 2016 have meant that the receipt of interest by shareholders on loans they have made to their companies may be an attractive means of distributing some of the profits of the company.