Loan relationships

Enter information about the company’s loan relationships. A separate page will be created for each loan relationship.

You can create a page in one of two ways. It is important to choose the correct option, to enable the software to generate an accurate tax computation:

• If the loan relationship is included in Profit & loss, then you should allocate the amount from there as a loan relationship. The software will create and open a Loan relationships page for you to complete.
• If the loan relationship is not included in Profit & loss, then go to Income & expenses > Loan relationships > Relationships, and click Add. This will typically be for FRS102 adjustments.

Income/expense type	This identifies the type as Loan relationships
Description	Enter a description of the relationship. This description will appear at Select loan relationship and on the Loan relationships report, available at Return & computations. Note: The description will only be editable from this page if it has been created from Select loan relationship. If the page has been generated by allocating from Profit & loss account, then you will only be able to amend the description at Profit & loss account.
Type	Choose from Trading or Non-trading.
Business activity	If you have identified the transaction as trading, then use the drop-down box to specify the trading activity to which it relates.
Loan relationship type	Select from the options the type of transaction. For example, interest received from a UK bank account would usually be Non-trading credit.
Debit/credit	Identify loan relationship income as a credit and loan relationship interest paid as a debit.
Allocated from P&L account	This box will only appear if you have created the Loan relationships page from Profit & loss. The value is that allocated on Profit & loss and cannot be amended on Loan relationships.
Amount	This box will only appear if you have created the loan relationship page from Select loan relationships. Enter the amount of the loan relationship income or payment.
Amount b/f	Enter any amounts relating to this loan relationship which were included in the accounts of an earlier period but are to be included in the current period’s computation.
Amount c/f	Enter any amounts relating to this loan relationship which are included in the period’s accounts but are to be included in the computation for a later period.
Not taxable/deductible	Enter any amounts relating to this loan relationship which are included in the accounts, but which are not to be included in the tax computation.
Amount for period	This is calculated as the amount allocated from Profit & loss account or the amount entered in Amount, adjusted for entries in the Amount b/f, Amount c/f and Not taxable/deducted boxes.
Income tax suffered/deducted	Enter the amount of Income tax paid or retained, if any.