Taxable?

Taxable?

Didn't find your answer?

Received by a limited company. Is this gross and hence taxable?

Thanks
Roger

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By User deleted
22nd Sep 2008 10:17

Fundamental?
You say it is fundamental but I have done business tax (AAT), Business tax and advanced tax at ACCA (only newly qualified) and I have never come across it which is why I asked about it. In fact I have asked other qualified's who also didn't know about it.

Maybe not so fundamental but exactly the reason that I read this website.

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By thehaggis
18th Sep 2008 22:11

Clint

Para 4 Sch 7 FA98 inserted s100(4A) FA96:

s141 FA02 is the "repeal" section, listing at Sch 40 the enactments repealed by that act.

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By User deleted
18th Sep 2008 17:12

Clint - thank you
and Haggis too.

I knew that CT int was taxable but also knew I had read here somewhere that both PAYE and VAT wasn't but couldn't find anything to back that up. I know tax law doesn't always make sense but I couldn't also reason why it shouldn't be taxed which was why I looked up the legislation to back it up.

I shall be investigating the tax law that you have provided, thanks again

Apologies to Roger for hijacking the thread

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By AnonymousUser
18th Sep 2008 08:33

I have always done it that way
but as an exercise for the student thought I would try to look up the source and found it rather tortuous.

The link provided by Haggis puts beyond doubt the treatment for CT interest, although it is a reference to the manuals (which are always a bit suspect). But that link does not clarify the treatment of PAYE interest or VAT interest explicitly. If anything it seems to imply like treatment: "Credit interest, {and other interest}, are taxable".

Section 100(7) FA 1996 would seem to support that PAYE interest is taxable or deductible as a non-trading loan relationship debit or credit.

It looks as though there may have been some subsequent legislation in section 34 and Sch 4 para 7 FA 1998 (per Haggis link). And then there is something mysterious in section 141 FA 2002 and schedule 40 Part 3 which no longer appears in my CCH CDrom but with no comment regarding what happened to it, and the CCH CDRom is supposed to cut out redundant legislation but continues to show S.100(7) FA 96 as live.

What a fundamental thing not to be sure of.

EDIT - found it in s.684(4) IT(EP)A 2003. Presumably there is something similar in the VATA. Even so it seems oddly inconsistent with S.100(7) FA 1996.

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By User deleted
18th Sep 2008 09:22

To all
Thankyou.

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By mrshamilton
17th Sep 2008 20:42

I knew I had seen this somewhere
I knew I had read somewhere that PAYE interest wasn't taxable but when I went looking I couldn't find anything to back it up.

do you know where the ruling is on that on the HMRC website?

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By Peter Cane
17th Sep 2008 15:22

Yes, but
Yes, provided it is corporation tax repayment interest.

If it relates to PAYE or VAT, then no, it is not taxable.

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