If an individual (director,shareholder,etc) lends money to a company and charges interest, is that amount treated as the gross or net amount for calculating the 20% tax deduction? Also what is the treatment on their personal Tax Returns?
Dylan
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It is customary to deal with interest rates as gross amounts. Thus anything in an agreement between the lender and the company would be expected to be quoted gross. It would not be unlawful, however, to quote the interest rates as net.
The interest would be shown as taxed interest on the SA return.