Where loans are written off or provided for in the accounts of the lender, or released and written back in the accounts of the borrower, there can be exceptions to the basic rule on the tax treatment of loan relationships. Paul Howard explains
The loan relationship provisions in CTA 2009 provide a statutory framework for the corporation tax treatment of any type of money debt. Although the starting point is that the tax treatment of loan relationships follows the accounting treatment the legislation is wide ranging. It introduces a large number of exceptions and imposes an amortised cost basis of accounting for many transactions.
In this article I will look at just one aspect of the treatment of loan relationships where there are a number of exceptions to the basic...
