1. [What are debits and credits?](https://library.croneri.co.uk/po-heading-id_i9Q1yFh0_kSzvxpvSd8FyA)
1.1. Amounts
1.1.1. Interest paid and received
1.1.2. Expenses
1.1.3. Profits
1.1.4. Losses
1.2. Debit = expense/loss
1.3. Credit = income/profit
1.4. Tax follows accounts
1.4.1. Exceptions in special cases
2. [How are debits and credits taxed?](https://library.croneri.co.uk/po-heading-id_7Lf5YcNU4Eu76qsO9hvVIQ)
2.1. Purpose of loan
2.1.1. Trade
2.1.1.1. Part of trade income
2.2. Non-trade
2.2.1. Pooled to give non-trade profit/deficit
2.3. Unallowable purpose
2.3.1. No relief for debits
3. [Advising the client](https://library.croneri.co.uk/po-heading-id_WqikhdysNU--yCtrTsn0_Q)
4. [Do the rules apply?](https://library.croneri.co.uk/po-heading-id_q4mZTmfwj0-RedCmPUSHdQ)
4.1. Loan relationship
4.1.1. Money debt
4.1.2. Debtor or creditor
4.1.3. Transaction for lending of money
4.2. Relevant non-lending relationship
4.2.1. Money debt
4.2.2. Debtor or creditor
4.2.3. Not transaction for lending of money
5. Special cases
5.1. [Connected and interest paid late](https://library.croneri.co.uk/po-heading-id_LEhO8UxbIkCc4brc9AnYOQ)
5.1.1. Test
5.1.1.1. Close company & participator
5.1.2. Interest paid >12m from YE
5.1.3. Relief on paid basis
5.2. [Connected company](https://library.croneri.co.uk/po-heading-id_YLfHiHetJEmoqu5gv_iJKg)
5.2.1. Test
5.2.1.1. Control
5.2.2. Use amortised cost
5.2.3. Impairments not taxed/relieved
5.3. [Groups](https://library.croneri.co.uk/po-heading-id_v_oO4aTGkUaiLDJwsfa0NQ)
5.3.1. Test
5.3.1.1. 75% direct
5.3.1.2. 51% indirect
5.3.2. Transfers at NGNL
5.3.3. Degrouping charge
5.4. [Loan to participator](https://library.croneri.co.uk/po-heading-id_OnyutC6B4E-7_ksblCnKeQ)
5.4.1. No relief for write off
5.5. [Interest-free & low interest loans](https://library.croneri.co.uk/po-heading-id_fv3YfjSJE0qYZ_jl2OPB5g)
5.5.1. PV and amortised cost
5.5.1.1. Not if small and loan from director shareholder
5.5.1.2. Tax rules to prevent asymmetry
5.5.1.3. Not if repayable on demand