Loan relationships and derivatives
This section is designed to analyse tax relevant information related to a company’s loan relationships and derivatives.
- Loan relationship and derivatives
- Use this sheet to allocate income and expenses relating to loan relationships to the appropriate businesses or to non-trading loan relationships. This sheet is optional.
- Non-trading deficits on loan relationships
- Use this sheet to analyse the movement of deficits attributable to non-trading loan relationships. A sheet is created together with theLoan relationship and derivativessheet.
- Derivative movements disregarded
- Use this sheet to allocate allowable and taxable amounts, relating to disregarded derivative movements, to the appropriate type and businesses and to trading or non-trading category. This sheet is optional.
- Derivatives feeding directly into chargeable gains
- Use this sheet to allocate amounts, relating to derivatives feeding directly into chargeable gains, typically property or shares, to the appropriate businesses and to trading or non-trading category. This sheet is optional.
- Sundry adjustments to derivative movements
- Use this sheet to allocate allowable and taxable amounts, relating to sundry adjustments to derivative movements, to the appropriate type and businesses and to trading or non-trading category. This sheet is optional.
Completing the Sheets
Where you have identified amounts you want to be treated as
Loan relationships or Derivatives
within the Income statement
, you should analyse these from the Expense and income analysis
or Management expense analysis
sheet in which they arose. Select Loan relationships / derivatives
from the Analysed as
dropdown list on the row, and develop the Loan relationships and derivatives
sheet from the Insert sheet
menu. An error will show on the sheet until this has been developed.Loan Relationship and Derivatives
In the
Loan relationships and derivatives
sheet, add rows for each item of income or expense you would like to analyse. The Type
dropdown list categorises the income or expense. This will default to Trading/Non-trading credit or debit
. If another category is more appropriate, select the category from the list. You can then show any amounts that are disallowable or non-taxable, and if any amounts are allowable or taxable in a later period.note
Other sheets may insert rows into the
Loan relationships and derivatives
sheet automatically (for example, Transfer pricing
). Information from the Loan relationships and derivatives
sheet will be used as a base for the Corporate interest restriction
calculation, and related adjustments will be linked back to this sheet. Columns are automatically inserted for each accounting period in your calculation.Non-Trading Deficits on Loan Relationships
This sheet summarises any non-trading deficits from the relevant parts of your calculation, and links to the
Loss summary
sheet. You can manually adjust relevant deficit figures and specify utilisation of non-trading deficits arising in the period. For the first period, you are required to enter amounts of brought forward deficits. Balances will then be automatically carried forward to the subsequent periods.note
Additional columns are inserted for each accounting period within the calculation. This sheet will automatically apportion figures to each accounting period.
Derivative movements disregarded
Insert the
Derivative movements disregarded
sheet from the Insert sheet
menu after the parent Loan relationship and derivatives sheet has been developed. Add rows for each item of income or expense you would like to analyse. The Type
drop down menu categorises the income or expense. The Trade / Non-trade
drop down menu allocates values to the appropriate trade or non-trade category. You can then show any amounts that are disallowable or non-taxable and if any amounts are allowable or taxable in a later period. In the business section, please select the relevant Business
or Investment Business
, using the dropdown menu.note
Additional columns are automatically inserted for each Accounting period in your calculation. Values from each manually entered row will be presented on parent Loan relationship and derivatives sheet.
Derivatives feeding directly into chargeable gains
Insert the
Derivatives feeding directly into chargeable gains
sheet from the Insert sheet
menu after the parent Loan relationship and derivatives
sheet has been developed. Add rows for each item of income or expense you would like to analyse. Sheet is divided into Trade
and Non-trade
sections. You can then show any amounts that are disallowable or non-taxable and if any amounts are allowable or taxable in a later period. You will be prompted to develop the appropriate Chargeable gains
sheets where necessary. In the business section, please select the relevant business or investment business using the dropdown menu.note
Additional columns are automatically inserted for each Accounting period in your calculation. Values from each manually entered row will be presented on parent
Loan relationship and derivatives
sheet and where appropriate the Chargeable gains
summary sheet.Sundry adjustments to derivative movements
Insert
Sundry adjustments to derivative movements
sheet from the Insert sheet
menu after the parent Loan relationship and derivatives sheet
has been developed. Add rows for each item of income or expense you would like to analyse. The Type dropdown menu categorises the income or expense. The Trade / Non-trade
drop down menu allocates values to the appropriate trade or non-trade category. You can then show any amounts that are disallowable or non-taxable and if any amounts are allowable or taxable in a later period. In the business section, please select the relevant business or investment business using the dropdown menu.note
Additional columns are automatically inserted for each accounting period in your calculation. Values from each manually entered row will be presented on parent
Loan relationship and derivatives
sheet.