Any Answers Answered: CT relief on amortisation and CT61

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To view the full questions and AccountingWEB reader answers click on the links below:

CT relief on amortisation

AccountingWEB member Heavy Metal Mike’s question relates to corporation tax relief on amortisation. The reader is looking at a file and their tax manager disagrees with them.

“Client incorporated in August 2013. Goodwill included and is amortised. I reckon it’s a pre-July 2015 purchase so we don’t need to add back, but my manager says you do. Please confirm that I’m correct and my colleague isn’t!”

CT61: When is interest treated as paid?

The second question this month comes from pbolton who asks a question about CT61. They’ve got a new client who has a long history of lending money to the company.

“Interest is charged on these at a market rate but rather than being physically paid to the directors, it is credited to their director loan accounts. They’ve not previously completed CT61’s but I’m not sure whether they should have.”

Effectively then, you have to do a CT61 when paid, but what does ‘paid’ mean when you’re talking about directors?

For, Good it’s an interesting question that is not quite as simple as some of the analysis implies.

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https://www.accountingweb.co.uk/tax/personal-tax/any-answers-answered-ct-relief-on-amortisation-and-ct61