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Home / Simons-Taxes /Corporate tax /Part D1 Corporation tax generally /Division D1.7 Loan relationships /Taxation treatment of loan relationship debits and credits / D1.746 Loan relationships—capitalised interest and imputed interest
Commentary

D1.746 Loan relationships—capitalised interest and imputed interest

Corporate tax

Capitalised interest

For accounting periods beginning on or after 1 January 2016 a relieving provision applies where debits or credits in respect of a loan relationship are, in accordance with generally accepted accounting practice, included in determining the carrying value of an asset or a liability. In such cases, where the profits or losses arising on the asset or liability for corporation tax purposes are not determined by reference to the basis on which they are recognised in the company's accounts in accordance with generally accepted accounting practice, the debits and credits that have been so included are brought into account in computing the company's loan relationship profits, in the same way as if they had been recognised as an item of profit or loss for the accounting period in which they are so included. Such treatment does

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