CFM6430 – Taxing loan relationships: money debts: sale of interest rights example

Sale of rights: Example

A company is creditor in relation to a trade debt on which interest is payable. Just before payment of interest of £100 is due to be made, the company assigns the right to receive it for consideration of, say, £99. S100(2ZA)(a) ensures that this amount is brought into account by the company as if it were a profit on a loan relationship to which it is party.