Interest paid between one corporate business and another is generally treated as paid for corporate tax purposes at the time it is accrued in the accounts. However, the typical steps for carrying out a liquidation demerger are shown below. As an alternative to paying the interest, in order to obtain a tax deduction under the late payment rules, it is also possible for the borrower to issue Payment in Kind notes (PIK notes) to the lender. It will take only 2 minutes to fill in. Tax treatment for the issuer of a standard convertible For the issuer of a standard ('plain vanilla') convertible, the embedded obligation to convert the debt into its own shares will generally. This cookie is set by GDPR Cookie Consent plugin. Debt restructuring is becoming more common as businesses look at ways in which they can restructure their existing financing arrangements to change the level of debt or manage their future interest obligations. (dZBE2H@@fRVOBE2H@@K:*BF9#_LEr^7]AH3hQDua\S@/tBLAH6-=+95pPB`MWCF9$F`D#eVWF9!on%00-'B`MTBBE0.TF9#kPC]J8OFT?I_+966YDZFSRAH6cOF9$"TAH3hQD?+eZD?+/H+969ZDZFYT+95jNC]IlDD?+2IB`N5T/c[!o;ugJ0D#eMTDZFeX+95mODZFVSD#eJSA,pNJ+92. For guidance on calculating the gain on share disposals, see the Disposal of shares individuals guidance note.Cash plus new securitiesIf the old shares are exchanged for a mixture of new securities plus cash, this is a part disposal for CGT. Lower rate applies to industrial, commercial royalties. (dZFoZF\C]JSXDuat[@/tBLAH3hQFoZ(RC]J/LF9!E`AH6cOEr]bO+95mOB`MrLC]JSXD#b[YA,pNJC]JAREWBYN+95sQFT c=^*Wuq8r4Jg)QHb+[&___#fmWY5,O8=VZ2"#$U,+.SKKC8[k0Q?--dnFQNVmu"9;5gf!ICROQf8R0E^bZNB>)Sn&VVo9PTMQ-UUL9t,DCNAQ&lK.,mR=pBX\7TF]+KTA1^`L"cZoTh/"L62kD9 bO 41;Bd*j27h8%IHucu+-eCPQ":aj,l4K[+>"TZGit7W$i]G'4K[&$**%-rQ1XrS[Wl>M25%DjZ"6"$/EjLAIa["*Do.mAV#F].ReCSa-^kA)qb7r&JOG@3o8WHdM/2\9LD<\d!"!?a:Q%nR;/MthBi.5-PDKoCpJ^SOP_%V7f+g^-kZ5.$X/L?-c#a)YjcHGplA-";iefWuFTRfH;`n(4X0G\eFlq#Mhd"kuV^7&N.&7K(\JOO`ia*].rrAoKofWf;Wn@7'cZGK8cAEm));Ikk0.k])561?T2%LF;;7F9lX*Thr)Tqbh3,BnN&Bts%8i`mX-M4:Zr?ae:Qhd[geDD!;rrfA$kr^"6r+a4-X_pGi&N\PSS!5+Ur!aIc6#l*f1]a)8Q*9+GEQB^(]r+q"pnj][*D[j[Mf%2*XNCq59<^0P`9Ce#NWP&V[*5HW'1t"IC78)]cHYXD%\qXjd.He:Qoa=tR`@-]SARai;/bV9a)>W1WAouc74oXNWTfFdG@)^I]jHUKLj9:I;37POgnBmck1fi,F7R2"M'O7a#.)I->C_AH%,n='R%hcWi4jP'$;/HA'@#^EjLD5D5i%t3tK@gb>'IXa!LJo8^O/F@Y.guEVe0;nWE^*D52!20A74(I'FQcjnQ4+9bH:XYL\e\X$j2>V1\De9[V#7&[7e+0Pbsp[j2YUf^Q(<]+iK"\Cn-CEqB/;,WU41lrD]=YuK%8rr2Bc?uGuEjNHY13d\bf0#$>6q'S_^oiAj(rNff.?7=MQ5pHqD_O;`J_G9"MAQbm?<8FIl-$GZ:-!3n73E7\@2btlo(6MPC8ChB<#H'DDPD)h1N@s/+JO9jh\*:>^8CtZ83csh8n!%knM.bW$u8^a[91"Fq74()5MVjIB%DZ*:L)`NGfs'QErnhH\R>O"3W3fKp5lF^S9L`+-WD`)n&,S-h69Do$JKX!.pF1LWXd$