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corporation tax interest received treatment

How do i treat interest received on tax refund

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How do i treat interest received on tax refund?

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RLI
By lionofludesch
25th Nov 2019 16:50

Buy it a pint !! (Boom-tish)

Go on - give us a clue ..... for what purposes ?

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Hallerud at Easter
By DJKL
25th Nov 2019 17:25

Cr interest received in accounts

Pay tax on it within the computations/CT600

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By CJaneH
25th Nov 2019 17:40

The interest received on a tax refund is not taxable income

It is however shown as interest received in the annual accounts

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Replying to CJaneH:
RLI
By lionofludesch
25th Nov 2019 17:43

CJaneH wrote:

The interest received on a tax refund is not taxable income

It is however shown as interest received in the annual accounts

Agree.

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Replying to lionofludesch:
Psycho
By Wilson Philips
25th Nov 2019 17:53

You shouldn’t

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Replying to CJaneH:
Hallerud at Easter
By DJKL
25th Nov 2019 17:44

Was not my understanding re corporation tax, it used to be the case but pretty sure that got changed a number of years ago and it is now taxable.

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Replying to DJKL:
Hallerud at Easter
By DJKL
25th Nov 2019 17:56
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Replying to DJKL:
RLI
By lionofludesch
25th Nov 2019 18:03

You learn summat every day.

Mind you, I can't remember anyone getting more than a quid in interest.

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
25th Nov 2019 18:26

I think it did change though when I cannot recall, I do vaguely recall removing both HMRC interest received and interest paid in our CT comps pre the days of CT600s.

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
25th Nov 2019 18:28

More on the paid side- they are a cheaper lender than most banks.

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Replying to DJKL:
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By Fum
26th Nov 2019 07:00

Yes thank you all from my findings it is not taxable and interest payable is also tax allowable

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Replying to Fum:
Psycho
By Wilson Philips
26th Nov 2019 07:55

Your findings are wrong (at least one of them is)

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Red Leader
By Red Leader
25th Nov 2019 20:08

Yes, taxable in the CT computation.

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By whitevanman
25th Nov 2019 22:35

Repayment interest has been taxable since CTSA was brought in (1998?). Credits are taxed as Loan Relationship credits.
Prior to this, the rate at which interest (known as supplement) was paid, was fixed including an adjustment for tax such that it was non-taxable.
Interest paid to HMRC (on late payment) is similarly allowable as a deduction from profits (LR Deficit).

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By ireallyshouldknowthisbut
26th Nov 2019 14:07

I can tell you one thing with certainty. The tax treatment won't be material.

But yes I thought it was taxable income now, and even if i thought it wasnt I am not sure I would be arsed to add it back.

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Replying to ireallyshouldknowthisbut:
Hallerud at Easter
By DJKL
26th Nov 2019 14:50

You have just not paid enough CT late, large enough quantum of CT and delay paying until say just after 12 months post year end (3 months late) and it can certainly be a decent figure of interest (in the hundreds if not creeping towards a thousand or so ).

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