Revenue Note for Guidance

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Revenue Note for Guidance

Treatment of interest in certain circumstances

This section provides that interest which is received early by a lender is to be taxed when it is received rather than when it accrues. The effect of this is to ensure that the interest will be taxed in the hands of the lender at the same time as tax relief in respect of it is given to the borrower.

Relevant Date: Finance Act 2021