[CFM35850] CFM35850 – Loan relationships: connected parties: late interest: lenders outside the loan relationships rules
When is a lender not fully within loan relationships?
Where the lender's interest is fully within CTA09/PT5 there is less risk of mismatch. The lender accounts for interest receivable as it accrues, even if it does not receive it until after the end of the AP. This is why CTA09/PT5/CH8 only applies if the lender is not within the loan relationships rules or, although within the regime for part of the period, credits representing the full amount of the interest are not brought into account at any point for taxation of loan relationship purposes.