| 释义 |
loan relationship
An individual pays income tax on interest received and, if the loan is to finance trading, may be granted tax relief for interest paid. By contrast, a company is subject to corporation tax on the aggregate of its loan relationships. A company is stated to have a loan relationship wherever that company stands in the position of creditor or debtor in respect of any money debt arising from a transaction for the lending of money (Corporation Taxes Act 2009 s 302). Thus, discounts, exchange gains and losses, and increases or decreases in the value of government stock are all aggregated with interest received and paid, corporation tax being charged on the aggregate sum thus computed. |