TBC --------- Chapter 11 - 3.2 - Loan Relationship - Interest Income Flashcards
1
Q
How is interest taxed for all companies?
A
On the accruals basis following the loan relationship rules
2
Q
What do the loan relationship rules determine?
A
Whether interest payable or receivable is classified as trading or non-trading
3
Q
If interest is classed as trading, how is it treated?
A
As allowable or taxable as part of income trading
4
Q
If interest is classed as non-trading, how is it treated?
A
As allowable or taxable as part of the NTLR
5
Q
When are interest receivables deemed as trading?
A
Only if a company’s trade is lending money
6
Q
A
