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Loan relationships |
See Also
Adjustment of profit | Deferred foreign exchange differences brought forward | Expense analysis | Foreign income | Loan relationships analysis | Losses and allowances | REIT computation of profits - tax exempt business | REIT property business analysis | Short term timing differences | UK property business analysis
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
The schedule enables you to analyse income, expenses and foreign exchange differences relating to loan relationships. The schedule applies the new interest rules to investment income and interest payable for accounting periods ending after 31 March 1996, and the foreign exchange rules in FA 2002 and makes appropriate entries on the A schedule, the REIT computation of profits - tax exempt business and the Losses schedule.
One copy of this schedule may be developed from the Adjustment of profit schedule. Alternatively, it is created automatically the first time that the Link loan relationship option is used from an Expense analysis or a UK property business analysis or a REIT property business analysis schedule. By selecting the relevant row to link from, the amount chosen is posted to a new row inserted on the Loan relationship schedule.
Amounts relating to foreign interest should also be linked in from the relevant supporting schedule.
The user must complete the loan relationships schedule by analysing the amounts falling within the loan relationship rules into the following loan relationship items:
Income tax (suffered)/deducted
There are columns to enter details of tax deducted from payments made. These are located to the right-hand side of the schedule.
Taxable/(deductible) in later periods
Where relief is deferred, these should be entered accordingly using the correct sign notation.
These amounts will then be posted to the Short term timing differences schedule contained within the 'F' schedule pack.
Where a user has elected to have capital losses treated as Loan Relationships under SI 1994/3226 and removed them from the 'E' schedule the amount should be entered on the loan relationship schedule as a debit and reconciled as an amount credited/ (charged) other than to the P/L.
The schedule has three standard supporting schedules:
Loan relationship analysis
Foreign income
schedule
Deferred foreign exchange
differences b/f
On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation. In the subsequent computation, the Taxable/(deductible) amounts and the Assets/(liabilities) are brought forward automatically.
© 2009 Thomson Reuters.