CFM30160 - Loan relationships: a short guide: who is taxable?
Who is taxable?
A company is taxable on the 鈥榗redits鈥� and 鈥榙ebits鈥� that arise on its 鈥榗reditor loan relationships鈥� and its 鈥榙ebtor loan relationships鈥�.
A company that lends money or holds a security has a 鈥榗reditor relationship鈥�.
A company that borrows money or issues a security has a 鈥榙ebtor relationship鈥�.
CFM30170 has more on the terms 鈥榗redits鈥� and 鈥榙ebits鈥�. Note that these words refer respectively to receipts and expenses. They are not used as they are in accountancy to mean also liabilities and assets.