date interest taxable | AccountingWEB

date interest taxable

After prolonged negotiations a client received substantial settlement from local council.
The "global" settlement of circa £70000 was said to include "£23000 over and above the fair value of land (£32000)cpo'd in 1995 plus interest and all costs including any claim for loss of trade" which had not been quantified.

I am proposing to deal as follows

Capital disposal 55000 less costs paid out
Interest 15000

The total amount was paid to client 7th April 2000 by their solicitor.
As the solicitor must have received the funds before 5th April I assume it is taxable 1999/2000.
The disposal will fall in 1999/00 also as the final agreement was reached in July 1999.

Any advice/ comments


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