A limited company has unused trading losses brought forward and has made a trading loss in the current year. In the current year they moved out of their rented business premises (when their lease expired) and their rent deposit was repaid with £200 of interest. Would I be correct in treating this interest as a non-trading loan relationship profit chargeable to Corporation Tax (like bank deposit interest received) or could it be set-off against the losses?
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The losses can be offset against it is more accurate, the losses do the offsetting rather than the profits doing the offsetting.
Yes, bank interest received may well be a non trade loan relationship credit, I certainly treat it as such in our accounts but we do not have a trade. It does often get trickier with the debits, interest paid can be a trading expense or a NTLR debit, as can bank arrangement fees
This might assist:
https://www.gov.uk/hmrc-internal-manuals/corporate-finance-manual/cfm32030
Losses offset in various ways but generally new b/fwd losses (post 2017) can be set against total profits.
This might be useful-
https://www.accountancyage.com/2018/02/07/corporation-tax-losses-newly-f...