TAXguide 09/17 – FRS 102: loans at non-market rates

The Tax Faculty has published a new TAXguide – TAXguide 09/17 – to help members get to grips with FRS 102 changes which affect loans from individuals to a company and intercompany loans.

Not only will businesses need to be aware of the new accounting rules, but changes introduced into Finance Act 2016 now need to be considered.

The tax treatment of such loans will depend on: 

  • how the loan is accounted for under FRS 102;
  • whether the loan was made in a period commencing before or on/after 1 January 2016;
  • the relationship between the lender and the borrower; and
  • whether there are any grandfathering provisions.

To help businesses get to grips with the new rules the Tax Faculty has put together TAXguide 09/17, which focuses on loans from individuals (shareholders and/or directors) to a company and intercompany loans. It considers the tax implications for both loans made in accounting periods commencing before 1 January 2016 as well as those made in accounting periods beginning on or after 1 January 2016.

This TAXguide is freely available to Tax Faculty and Financial Reporting Faculty members.

Comments and questions should be sent to Sarah Ghaffari (