Non trading loan relationships

What sort of things would you treat within this. I have been reading up on it and it says that bank arrangement fees are non trading.

Interested to know what other people treat within this and your thoughts to it.


  • stevo5678
    stevo5678 Registered Posts: 325
    In practice i havent come across it often. We never show bank costs there. I think its more for investments and loan write offs.

    Most arrangement fees are for finance of trade assets.
  • JJH1969
    JJH1969 Registered Posts: 110 ? ? ?
    If the money was borrowed to fund trading activities it is a trading loan relationship and treated as a tarding expense. If money is borrowed to fund a non trading activity i.e the purchase of an investment or a let property it is a non trading loan relationship. Bank deposit interest is always treated as a non trading activity as it is received as investment income. Also any interest charged by HMRC on underpaid tax is non trading.
  • noodles
    noodles Registered Posts: 308
    Thank you.
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