Commentary on Sections Overview Overview Section 307: General principles about the bringing into account of credits and debits
1056.This section provides the rule that credits and debits are those recognised in determining the company’s profit and loss for a period and must fairly represent profits and losses from loan relationships and also gives further rules on allowable expenses. It is based on section 84(1) and (3) and 85A(1) of FA 1996.
1057.Subsections (3)(c) and (4) allow certain expenses on loans to be treated as debits for the purposes of this Part.
1058.The inclusion of profits of a capital nature in section 84(1)(a) of FA 1996 is rewritten in section 293(3).