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The interest received on a tax refund is not taxable income
It is however shown as interest received in the annual accounts
The interest received on a tax refund is not taxable income
It is however shown as interest received in the annual accounts
Agree.
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.
These guys also agree:
https://www.plummer-parsons.co.uk/taxation-services/business-tax/corpora...
You learn summat every day.
Mind you, I can't remember anyone getting more than a quid in interest.
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.
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).
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.
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 ).