Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Computing trading income
- This topic has 4 replies, 2 voices, and was last updated 7 years ago by Tax Tutor.
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- March 24, 2016 at 6:27 pm #308138
Sir, what about interest payable on qualifying loans? Are they allowable deductions on the net profit to calculate taxable trading profit?
March 25, 2016 at 2:19 pm #308280Qualifying 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.
April 5, 2016 at 12:53 pm #309059Thank you Sir 🙂
May 3, 2016 at 10:41 am #313504Sir, 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?
May 4, 2016 at 7:10 am #313611As with every question you answer it entirely depends on the exact requirements of the question!
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