interest receivable on a loan straddling tax year end

interest receivable on a loan straddling tax...

Didn't find your answer?

Sorry this is probably obvious but my brain is freezing up.

Client has made a loan, commenced Jan 14 repaid Oct 14, and charging interest on a monthly basis.   Is interest chargeable to tax when accrued or paid? (first interest tranche not paid until July 2014).

edit: to add, this is an individual and query relates to SA return (tax has been deducted at source on interest but he is a higher rate tax payer)

Thanks for filling in my block!

Replies (3)

Please login or register to join the discussion.

Portia profile image
By Portia Nina Levin
14th Nov 2014 11:32

Is the client a company or unincorporated?

It makes a difference, surprisingly.

Thanks (0)
By johngroganjga
14th Nov 2014 11:35

It's taxable in the year in which he receives it.

Thanks (1)
Portia profile image
By Portia Nina Levin
14th Nov 2014 11:39

See!

Easy when you have all the information!

Thanks (0)