accrued loan interest deductible for CT

My client is a property development company and has loans on sites.  The bank has set up an accrued interest account and this just grows year after year and isnt actually being paid.  The bank is satisfied with this arrangement. My query is this: is the accrued interest deductible for the purposes of the company CT return? In the year that it accrued?

Thanks

Comments

yes, interest is deductible    1 thanks

AD2001 | | Permalink

yes, interest is deductible on the accruals basis (except in very limited circumstances)