Non trading loan relationships

noodles

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

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

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

Thank you.