Sir, what about interest payable on qualifying loans? Are they allowable deductions on the net profit to calculate taxable trading profit?
Qualifying loan interest payments as stated in section 4 of chapter 2 are deducted from total income not from trading income. Interest payable on borrowings for trading purposes are deducted in deriving the adjusted trading profit.
Thank you Sir 🙂
Sir, If a question’s 1st part is to compute income tax (say for 4 marks) and the second part mentions a variation which would reduce tax liability (3 marks), then would you advise to make the whole income tax computation again or just explain the reductions in tax?
As with every question you answer it entirely depends on the exact requirements of the question!
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