I was wondering if you could help. I am in the process of setting up a loan arrangement between a company and an individual. The individual will loan the company money and receive interest on this. There will also be an early exit fee clause in the agreement. My question is that will the early exit fee be treated as a chargeable gain on the individual when it is received or treated as normal income in the same vein as the interest payments received? I have had a look at the manuals on HMRC but cannot see anything in relation to an individual receiving an early exit fee. Any advice/links to legislation would be greatly appreciated!!