363. Loan relationships.

The general rule for corporation tax purposes is that, all profits1 arising to a company2 from its loan relationships are chargeable to corporation tax as income in accordance with Part 53 of the Corporation Tax Act 20094. Profits and deficits arising to a company from its loan relationships are to be calculated using the credits and debits given by Part 55. Where a company is a party to a loan relationship for the purposes of a trade it carries on, the credits and debits in respect of the relationship for the period are treated as receipts and expenses respectively