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corporation tax on interest received

is corporation tax due on interest received in a loss making limited company?

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I have been told that interest received is always subject to corporation tax even if the company overall is making a loss. Is this true?

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By Duggimon
20th Aug 2019 10:25

No

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By counthouse
21st Aug 2019 10:55

Thanks - an unequivocal reply. I like that!

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Hallerud at Easter
By DJKL
20th Aug 2019 10:32

How are you using the losses?

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By counthouse
21st Aug 2019 10:49

Losses from earlier years used to relieve current profit

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Hallerud at Easter
By DJKL
21st Aug 2019 10:57

So company overall is not currently making a loss it is actually making a profit .

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By Accountant A
20th Aug 2019 11:11

counthouse wrote:

I have been told that interest received is always subject to corporation tax even if the company overall is making a loss.

Who told you that?

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Replying to Accountant A:
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By counthouse
21st Aug 2019 10:48

A retired accountant who has recently joined the board of a client

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By thomas34
20th Aug 2019 14:43

Yes, unless the company is in the trade of making investments (banks etc.) I've prepared many CT returns with CT liabilities of a fiver or so for this reason.

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Psycho
By Wilson Philips
20th Aug 2019 16:06

So what did you do with the losses?

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By counthouse
21st Aug 2019 10:52

old losses used to relieve current profit

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Replying to counthouse:
Psycho
By Wilson Philips
21st Aug 2019 12:00

Aha. So the company is not actually making a loss, contrary to the wording of your question.

Nevertheless, interest arising on a standard current account used for the company's trade can usually be treated as trade receipts and can therefore be covered by trade losses brought forward (and other losses arising after 31 March 2017).

BIM40805

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By Duggimon
20th Aug 2019 16:34

I'd take another wee look at those if I were you.

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By atleastisoundknowledgable...
20th Aug 2019 21:28

thomas34 wrote:

I've prepared many CT returns with CT liabilities of a fiver or so for this reason.

I did that once, then realised I’d done it wrong and corrected it.

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Replying to atleastisoundknowledgable...:
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By counthouse
21st Aug 2019 10:52

Wrong to pay corporation tax on bank interest?

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By Tax Dragon
21st Aug 2019 11:19

Read your OP. "Overall is making a loss."

See the confusion careless words cause?!

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