Non-trade income
You'll learn how to classify interest income and expense as either trade or non-trade for tax purposes—a crucial distinction that affects how you calculate taxable profit. This video shows you the key test: ask whether the interest relates to running your business or represents an investment.
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In this lesson
- 0:00 Introduction to non-trade income
- 0:20 Distinguishing trade and non-trade interest
- 0:37 Netting non-trade interest receivable and payable
- 1:08 Key rule: negative non-trade interest figures
- 1:31 Practical examples of trade vs non-trade
About this lesson
You'll work through practical examples covering loans for trading assets, deposits, subsidiaries, and working capital, so you can confidently adjust your figures correctly in exam scenarios.
Duration: 2m
Transcript
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