Goslings & Sharpe v Blake 2 TC 450 considered the distinction between yearly and short interest and described short loans as “loans for a period short of one year, loans which are not intended to be continued, and are not continued for a longer period”.
CIR v Duncan Hay 8 TC 686 also looked at the characteristics of yearly interest.
Interest on a loan is yearly interest if the loan was made with the intention that it would be outstanding for longer than one year. Cairns v MacDiarmid 56 TC 556
Interest in respect of a loan which was repayable on demand in certain circumstances was held to be yearly interest in Corinthian Securities Ltd v Cato 46 TC 93