Loan relationships: a short guide: how are taxable amounts brought into account?
How are they taxable?
The key distinction is between ‘trading’ and ‘non-trading’ loan relationships.
Trading amounts are taxable and relievable as part of trading profits and losses. No computational adjustments will be necessary.
Non-trading credits are taxable as ‘non-trading credits’ together with credits relating to non-trading derivative contracts.
Non-trading deficits are either
- carried forward to set against the non-trading credits of subsequent accounting periods, or
subject to a claim
- set against any other profits arising in the same accounting period, or
- set against non-trading credits arising in the immediately preceding accounting period, or
- surrendered as group relief.