Business Savings Account - Tax

[StevieBee]

If I place, say, £10k into a Business Savings account on a Fixed-Term basis, does that £10k still get calculated as part of the Corporate Tax calculation or is the fact that it's gone into a savings account mean it's classed as investment and removed from the Corporation Tax calculation until such time as it's placed back into the Current Account in the future?

[Countdown]

I've always treated it as income received in the year that it's paid.

[trickywoo]

It’s treated as cash in hand and the interest will add to income for the corporation tax calculation. Even if it’s a two year fix in theory the first year interest should still be accrued in the accounts.

[MustangGT]

StevieBee said:

If I place, say, £10k into a Business Savings account on a Fixed-Term basis, does that £10k still get calculated as part of the Corporate Tax calculation or is the fact that it's gone into a savings account mean it's classed as investment and removed from the Corporation Tax calculation until such time as it's placed back into the Current Account in the future?

All you are doing is moving the money from one bank account to another. Why would it have any effect on the CT calculation? You are not reducing the profit by £10k in any way. As others have mentioned the accrued interest will be added to the year's profit for CT purposes.

[Eric Mc]

I assume by “business savings account” you mean a business savings account in the name of the limited company.