Non trading loan relationships
noodles
Registered Posts: 308 Dedicated contributor 🦉
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.
Interested to know what other people treat within this and your thoughts to it.
0
Comments
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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.0 -
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.0
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Thank you.0
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